The Best Life
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A Healthcare Portfolio for an Aging Society
Continue reading… 0 CommentsThe greatest unknown in retirement planning is the uncertainty of future healthcare expenses. On average, they will total between $250,000 and $300,000 for the typical retired couple. And this is for out-of-pocket spending—after all the insurance and other benefit programs have helped pay medical bills. Although it's admittedly a bit whimsical, one way to cushion the impact could be to invest in a portfolio of healthcare companies that cater to an aging population. These are firms whose products and services are particularly keyed to an aging population. Think of it as the perfect hedge against those unknown healthcare expenses.
[See 3 Industries Riding the Wave of Aging Boomers.]
Jay Nogueira, a healthcare analyst at T. Rowe Price, says the reality of an aging society has not yet sunk in. Even though we see the numbers all the time—78 million baby boomers nearing retirement, 80-year-olds becoming the fastest-growing segment of our population—they remain "future tense" in our minds. "The general perception is that we keep getting older," he says, but the transition has been gradual so far. Looking at the share of our population that's age 65 and older, Nogueira says, "We've been somewhere around 11 to 12 percent since 1980." But in 2011, when the first baby boomers begin to turn 65, this portion will begin surging, and it will hit 20 percent in only 20 years. "That is just enormous on the scale of what we're talking about."
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Incontinence: Looking Away is Not an Answer
Continue reading… 0 CommentsIncontinence may never be a cocktail-party topic, but in an aging society, it needs to shed its taboo status. More than 25 million Americans suffer from incontinence, according to a 2008 report from the National Institutes of Health. And nearly two-thirds of caregivers say the family members they look after have some type of incontinence, according to a current survey by Caring.com and SCA, makers of the TENA brand of bladder-weakness and incontinence products.
[See What Gives Your Life Meaning and Purpose?] -
5 Tips in Using Retirement Planning Tools
Continue reading… 2 CommentsRetirement planning software is available for free on several major investment and retirement websites. But according to a recent analysis sponsored by the Pension Research Council, these programs do an inconsistent and often poor job. Anna M. Rappaport and John A. Turner, long-term pension and retirement experts, looked at both free and fee-based products. They found that many fundamental realities of retirement planning often were ignored in the tools. Consumers, however, aren't likely to possess the knowledge to spot these flaws.
[See 6 Steps to a Better Retirement.] -
Bathroom Work Tops Senior Home Makeover Needs
Continue reading… 0 CommentsMaking bathrooms more friendly to older homeowners tops the list of important projects to help people remain in their homes as they age. Angie's List has more than a million consumers in its local networks providing their experiences and recommendations of favored contractors and service providers. It polled participating contractors and found that the four most requested bathroom improvement projects were the installation of grab bars in the shower-bath area, replacement of a bathtub with a walk-in shower-tub, installation of bathroom vanities with space underneath to accommodate a wheelchair, and the lowering of electrical switches to make them easier to reach.
[See Seniors' Home Repair Help From Angie's List.] -
Seven Tips to Sell a Home in a Tough Economy
Continue reading… 2 CommentsThe Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week offers tips to help sell a house in a down economy. “I’m looking for clever ways to help sell my home is this tough market,” a Boomerater member asks. “My mother has moved into assisted living and I need to sell her home.” Other Boomerater members weighed in with their suggestions:
[See Make a Housing Plan for Your Later Years.] -
Seniors Finding That It Does Take a Village
Continue reading… 1 CommentOlder people who want to stay in their homes as they age might look to an expanding network of "villages" throughout the country as one possible way to get the support and services they need. The villages are part of a broader movement involving what are called naturally occurring retirement communities, or NORCs. These are virtual communities that provide a mix of transportation, home maintenance, and social and healthcare services to their members, who usually live within a few miles of one another.
[See NORCs: Unique Havens for an Aging America.]
Some NORCs are tightly structured, but many are not, reflecting the different residential settings and needs of their members. NORC residents are generally age 65 or older and intend to stay in their homes. As they age, they increasingly need a tailored social safety net that is best fashioned by people in their communities who are intimately familiar with their needs. Some programs are government funded, most scurry for philanthropic and volunteer help, and others rely only on member dues and fees.
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Can Boomers Lead an Elder Revolution?
Continue reading… 6 CommentsThe implications of an aging world are widely viewed with alarm. When 10,000 people a day begin reaching retirement age in a few years, how will society support them? And when these people are turning 65, thousands more will be turning 80 or 85. Who will take care of them? And how will we afford the bills? This enormous price tag is the elephant in the room during debates about healthcare reform.
[See What Gives Your Life Meaning and Purpose?] -
Are You Ready to Take the E-Book Plunge?
Continue reading… 8 CommentsDo you see yourself ever reading books and periodicals electronically—on a computer screen or hand-held device? The movement of paper-based printed materials to the digital world is gathering steam. Seniors will need to decide whether they have the desire and aptitude to embrace these new tools.
[See New Technologies Require New Learning.] -
Entertaining Exercise Options for Boomers
Continue reading… 5 CommentsThe Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week explores new ways to stay fit that are both fun and physically challenging. “I’m 56 and work from home and know I’m not getting enough physical activity,” a Boomerater member commented. “I’ve heard that some of the new video games have fitness programs. I wouldn’t mind investing in one if they really work without getting too monotonous. I'm also interested in good tapes or TV fitness shows that are geared toward the 50s crowd. I’d like to hear of any ideas for ways to stay fit without going to a gym.” Other Boomerater members shared these insights:
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8 Tips to Avoid Nasty Estate Surprises
Continue reading… 1 CommentCombine the worst downturn since the Great Depression, mix in a steep drop in stock prices, and garnish with the disappearance of trillions of dollars in home values. Voilà! You have just stirred up the recipe for a surge in estate litigation and intrafamily feuding.
[See why Estate Taxes Are a Nice Problem to Have.]
"I think we have definitely seen an increase in family squabbles and a lot more people wanting to contest wills," says Adam Gaslowitz, an estate attorney in Atlanta. The recession also has led to reduced asset values for stocks and real estate, making it harder to split the pie and reach amicable settlements. "I also think that the recession may be used, perhaps unconsciously, by some children to wrestle control of assets away from aging parents," Gaslowitz says. Some children may feel that it's better for them to manage their parents' assets in such troubled times. If there's any silver lining to the downturn, he observes, it's that "financial difficulties may make it harder for people to afford such a legal fight."
Steven K. Mignogna, who practices estate law in New Jersey, says there's been a sustained increase in contested estates during the past 20 years. He says that generally we are more litigious, but it's also true that the volume of wealth transfers has picked up in our aging society. Lastly, he notes, families have become more fragmented, which leads to more complex bequests and more potential for family conflict. "In the last year or two, I have seen an increase of perhaps 10 to 20 percent," Mignogna says. "It is difficult to determine if that increase is attributable solely to the economy, or to the trends from the last 20 years. . . . I am sure that the economy is a factor."
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What Gives Your Life Meaning and Purpose?
Continue reading… 3 CommentsMaking a difference, doing something of value, and having a purpose in life. They all stem from a common human need that doesn't disappear with age. However, the perception that you're making a difference may well decline sharply after the end of a career, and the close of a professional life with decades of rich experiences and relationships. And as we get older, our self-perceived worth can take another hit if people have trouble looking beyond our age when they interact with us. All too often, older people aren't valued for what they can offer, and often aren't even expected to participate in activities.
[See 7 Tips for Finding Right Volunteer Work.] -
Medicare Basic 2010 Premiums Sport Asterisks
Continue reading… 2 CommentsThe official 2010 Medicare premiums and deductibles for Part A (hospital services) and Part B (doctor and non-hospital expenses) have been released by the Centers for Medicare & Medicaid Services (CMS). It would be difficult to make up a scenario more confusing than the one facing Medicare beneficiaries. Even CMS says it hopes some of the announced rate changes never come to pass, and it supports a Congressional proposal to avoid any increases in premiums next year for these basic services covered by Medicare. Until Congress decides otherwise, however, here is how 2010 looks:
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Most Against Another $250 Payment to Seniors
Continue reading… 35 CommentsThe push for Congress to enact another $250 cash payment to seniors has generated substantial opposition. The prevailing view, voiced widely on the Internet in blogs and comments on news stories, is that seniors already have protection from price inflation and don't merit further special help, particularly when most Americans are financially strapped and the nation is running horrendous budget deficits.
[See Social Security Makes the Call: No 2010 COLA.] -
Erickson Communities Agrees to Sale, Bankruptcy
Continue reading… 4 CommentsUnable to find new investors, Erickson Retirement Communities announced late Monday afternoon that it is selling the company and, as a condition of the sale, will seek bankruptcy protection in order to restructure its debts. The company, which operates 19 complexes around the country with 23,000 residents, is one of the nation's largest developers of continuing care retirement communities (CCRCs). It said it is being acquired by Redwood Capital Investments, a privately held investment company controlled by Jim Davis, chairman and majority owner of Allegis Group. The companies are based near Baltimore.
[See 7 Tips on Retirement Community Safeguards.] -
It's Never Too Late to Find Your Next Career
Continue reading… 0 CommentsThe Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week explores factors to consider when searching for a new career. Here is the question from a Boomerater member: “I am planning to leave the very stressful job I have held for the past 10 years. At age 55 I still want, and need, to work, but I’m looking for a job I like, closer to home. I’m concerned about changing jobs at my age in this rough job market. I’d be interested to know of websites that cater to the 50-plus crowd and also about companies that realize the benefit of hiring older, wiser employees.” Other Boomerater members shared these suggestions:
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6 Steps to a Better Retirement
Continue reading… 0 CommentsStandard financial-planning advice often begins with telling consumers to set aside three to six months of their spending needs in liquid assets. This is important, we're told, so that we have money stashed away for an emergency. Otherwise, we might have to sell investments at an inopportune time or dip into retirement funds. The assumption is that consumers have discretionary resources to begin with and thus have the luxury of a studied response to an emergency.
In most households, an emergency really means an emergency. Many consumers don't have extra money lying around. Even in normal times, funding the next three to six months' spending needs is a stressful balancing act. How effective it is to tell these households to set aside yet more funds—funds they don't have—for longer-term retirement and old-age health needs?
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Social Security Makes the Call: No 2010 COLA
Continue reading… 35 CommentsThe Social Security Administration (SSA) announced on October 15 that the absence of consumer price inflation means the agency will provide no cost of living adjustment (COLA) for Social Security recipients in 2010. The widely expected announcement comes after last year's 5.8 percent COLA—largest in 25 years—and hits retirees during what's being regarded as the worst economic downturn since the Great Depression.
[See Poor Social Security Knowledge Has Big Costs.] -
Target-Date Funds Post Strong 3rd Quarter
Continue reading… 0 CommentsTarget-date funds continued to post stellar results in the third quarter, according to Ibbotson Associates, a unit of Morningstar. Among 319 funds in business at least a year, the average target maturity fund returned 14.3 percent during the quarter, compared with a 15.6 percent gain for the S&P 500 Index. Target-date funds are keyed to investors' planned retirement ages. Over time, they automatically adjust their mix of stocks, bonds, and other holdings to create a risk profile, or glide path, appropriate to an investor's changing age. The funds have become increasingly popular default options in many employers' 401(k) plans.
[See A New Role for Stocks in Retirement Funds?] -
Is Retirement Really a Fading Goal?
Continue reading… 11 CommentsIf you like getting hit with a hammer, then keep reading the dour retirement surveys that lots of investment firms and think tanks have been conducting. They all pretty much say the same thing: This recession is a game-changer, and has put retirement out of reach for millions of Americans. If you want to track a related thematic reprise, it's that the horde of baby boomers nearing retirement has decided to eschew the materialistic life in favor of more meaningful pursuits.
[See Is This High Tide for Senior Finances?] -
5 Smart Ways to Lower Your 2009 Taxes
Continue reading… 0 CommentsThe Boomerater™ Report, our weekly collaboration with online baby boomer resource Boomerater, this week explores what you can do now to lower your 2009 income taxes. “With the end of the year approaching I’d like to learn about anything I can do now to lower my taxes,” a Boomerater member asks. “Are there any stimulus offers I can take advantage of now before they expire?” Other Boomerater members offered these suggestions:
[See 6 Money Lessons of the Great Recession.]
