RetirementHomes.com - Finances and Work

The benefits of know about your benefits

aadmin — Thu, 22 Jan 2015 19:50:42 +0000

While reaching your 65^th birthday is hardly the guaranteed sign of retirement it once was, it is still an age that means change for your group benefits and health insurance. When approaching retirement make sure you know how your group and individual insurance will change whether you are working full time, part time or doing what you want on your own time. A few minutes going over your policy fine print will save you from unwanted surprises in the future.

If working full time:

At age 65 many benefits change. Group life insurance and accidental death and disability insurance benefits commonly decrease by half at age 65, even if you are still working full-time. It is a good time to evaluate what individual life insurance you have and what you will need.

Most individual disability insurance policies will remain the same if you still work a certain number of hours per week; however, you need to inform the insurance company of your status. Past age 65, the benefit period for a claim commonly drops to two years.

Some individual disability and critical illness policies also have provisions that allow you to convert the policies to long term care policies, as your focus changes from income replacement to funding potential future care.

For both personal and group plans, out of country travel coverage usually changes at age 65, decreasing by either the length of travel covered or the amount payable. (If you rely on your credit card for travel insurance read the fine print on that policy as well. Each card is different, but for most cards the terms of coverage change at age 65.)

If retiring:

Know what you can take with you. In most cases, your workplace group life insurance can be converted to a personal policy when you retire or leave a company.

Investigate what government plans will cover so that you get the health insurance coverage that you need. And if you have a spouse with his or her own workplace plan, see if that plan can pick up where yours is dropping off.

Apply for a personal health insurance plan right away. If you apply for coverage within 60 days of leaving a group insurance plan, minimal or no medical proof of insurability is required by most companies. Your current insurance carrier may offer a plan, but you can look into options from other insurance companies as well.

If working part time:

Don’t assume working fewer hours but staying with the company means that you will still be entitled to the group insurance coverage. Most employee plans require you to work a minimum hours per week to be eligible for benefits. Know that number before you make the switch to part-time hours. Choose your schedule accordingly if you want to keep those benefits in force.

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Growing number of elderly struggle to get mortgages

aadmin — Thu, 15 Jan 2015 19:19:44 +0000

Older people in the US are increasingly taking more mortgage debt into retirement than ever before, but applying for a new mortgage can prove troublesome for seniors. This is also the case in the United Kingdom, where new rules that were introduced earlier in the year have meant a greater struggle to gain finance for home buying in later life.

For homeowners in America aged 65 and over, the percentage carrying mortgage debt increased by almost 10% to 30% from 2001 to 2011. Among those aged 75 and older, the rate more than doubled during the same period, from 8.4% to more than 21%.

Types Of Mortgages Available In America

There are many different types of housing purchase loans available to older people in America, but the problem comes from proving that you can pay, even if you are still working later in life. There is a lot of advice and services available to senior borrowers, and many options are available.

Range Of Mortgages In The US

There are a range of mortgages available to US senior citizens, from the standard mortgage, which depends on your income and credit rating, to a second mortgage, but these are riskier for lenders. Other options include a refinanced mortgage and a reverse mortgage.

Reverse Mortgages

With a reverse mortgage, which is available to those aged 62 and over, instead of getting a lump sum that is used to pay for a home, a lender gives the borrower monthly payments for your existing home for a fixed amount of time. At the end of that period, the bank owns the home, and the property is then either sold by the lender or refinanced by a family member.

However, these types of mortgages have a bad reputation as a last resort for seniors who can’t keep up with medical bills or the upkeep of their home, but used properly by someone who totally understands what they are getting in to, it can be a useful option. Some analysts have warned that with the growing deficit in America, this type of product may not continue to be available for too much longer.

Getting a Mortgage In The UK

Tough new restrictions introduced by the Financial Conduct Authority in the UK in the spring have forced lenders to prove their customers will be able to afford to pay off loans. The rules are said to ensure both responsible lending by banks and building societies and sensible borrowing by loan applicants, but the so-called mortgage market review has attracted widespread criticism.

Borrowers’ expenditure has been under the microscope like never before, resulting in some not getting the mortgage they applied for. Even people in their 40s have been told they cannot have loans that end after their expected retirement. Due to a fear of breaking the rules, banks are turning down applicants who would more than likely be making repayments in retirement when incomes are lower.

A report released recently by a body representing 24 big lenders in Britain – including Santander, Nationwide, Lloyds and Barclays – warns that even borrowers in their 40s are falling victim to the new regime, and even those in their late 30s seeking increasingly popular longer-term deals risk being turned down. The rules are also a problem for those forced by soaring house prices to take on longer-term loans that have lower monthly repayments.

Uncertainty Over Pensions

Uncertainty over pensions is also making it difficult for lenders to asses mortgage affordability in later life, and this could become increasingly so when new pension freedoms take effect in 2015, with fears that regulation could bring about the extinction of mortgage terms that stretch into retirement.

The new pension freedoms are said to make it difficult for lenders to know if someone will have a steady income in retirement or if they will have blown it on a big ticket purchase. There is no reason that banks cannot lend to someone in their 70s but they are seeking assurances from the borrower that they will be working until the loan ends

Proving Your Income

Problems can arise when taking a mortgage beyond normal retirement age. Lenders will then start asking about levels of income after retirement to demonstrate that the mortgage will remain affordable, and proving that income could be where the difficulty lies.

In all circumstances it pays for older borrowers to research thoroughly all of the options, shop around with different lenders and know the type of mortgage you need and what the best way of finding it is that will suit you and your family for the future.

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Is it time to fire your financial advisor?

aadmin — Thu, 18 Dec 2014 15:05:45 +0000

Do your new year’s resolutions include getting your financial plan in order? Look not only at where your money is going, but who is helping you decide how it gets there. If your new year means you need a new approach, look at finding a new advisor. Here are some reasons to consider making a change.

You don’t have one

Is your financial planner the first person to come to the front desk at your local bank branch or whoever answers the telephone banking line? A financial planner will help give you perspective and look at Even long -term planning rather than what mutual fund or ETF is popular. While you may feel you are doing all right on your own, there may be issues you are not thinking of, especially when in or approaching retirement.

It is no longer a good fit

Over time your needs have changed and your relationship with your advisor may have changed too. The person who helped you with your first home, may not be the person to help you with your plans for downsizing and estate planning. After any major life event or large purchase such, as a home or vacation property, it is a good idea to review your financial plan. If you are looking at investments or products your advisor does not deal with often, a new stage in life may require a new advisor.

It’s been years since…

Can’t remember the last time you actually sat down with, or spoke to, your advisor? In the digital age of web meetings and email correspondence, there is no reason you should not be able to get in touch with your advisor when you need to. If you find that your calls or emails repeatedly go unanswered, or that your advisor never contacts you to update your plan and review your current situation, it may be time to find someone who can give you more attention.

You feel like your advisor does not listen to you

You are going to a financial advisor because you would like some guidance or assistance. That does not mean that you are not entitled to your opinions. Your advisor’s recommendations should reflect your needs, goals and tolerance for risk. Do not stick with an advisor who you feel is bullying you into making decisions you don’t agree with.

Your advisor won’t tell you how he or she gets paid

Whether advisors are working on a yearly rate, fee for service, or on commission, you should be able to get a clear answer about how they are paid and who is paying them. You should also know with all mutual funds and similar investments if there are any options regarding management fees, commissions and how they are paid.

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6 Job Search Tips for the 50+ Crowd

aadmin — Sun, 30 Nov 2014 14:26:48 +0000

If you are over 50 years old, and looking for employment, you have your work cut out for you. You're up against a plethora of recent college graduates also looking, and even though employers can't legally engage in age discrimination, it still happens. In fact, ExecuNet, an executive-level membership website, reports that a vice president over age 50 requires 20% more time to land a position than someone at the same level in their early- to mid-forties. So if you're dusting off your resume, keep these tips in mind to accelerate your job search:

1. Learn How to Network on Social Media
Even if you've never liked or followed someone on Facebook or Twitter, now is the time to use social media for networking. Use LinkedIn to look for industry influencers in your niche, participate in a few conversations, and get the networking ball rolling. Also, check out The Water Cooler group at the AARP website for more networking tips and resources.

2. Use the Right Online Job Search Sites
CareerBuilder and Monster are great, but in order to save time, focus on websites designed specifically for an older population. Try Employment For Seniors, the Mature Workers Community Channel at the DiversityWorking website, and The Senior Community Service Employment Program located at the AARP website.

3. Carefully Consider a Career Coach
Career coaches aren't always necessary, but sometimes their knowledge and skills are exactly what you need to land a job. If you'd like a refresher course on interviewing or job searching, or if you're thinking about switching careers, go ahead and seek out professional help. Career coaches can look over your resume, identify strengths and weaknesses, and provide actionable tips for improving your job search.

4. Embrace Your Age
There's no point in trying to hide your age, and doing so may actually hurt your job search. Instead, embrace the advantages your experience has to offer. When interviewing for a position, play up your achievements and draw on your years of work to highlight your knowledge and skills. There are in fact many benefits to hiring older workers.

5. Continue Your Education
No, you don't have to go back to school to enroll in a degree program, but showing potential employers that you're a lifelong learner doesn't hurt. Seek out new certifications or continuing education credits within your field to show hiring managers that you're ready, willing, and able to expand your horizons and develop new skills. Courses in technology are particularly helpful. Do an Internet search for certifications in your field to see what's available.

6. Know How to Ace the Interview
While it's good to build a rapport with the hiring manager, keep the discussion focused on professional matters, rather than personal ones. When conversations get overly personal, it's easy to let information slip, such as a recent illness, that could work against you when the manager makes his or her hiring decision. Make an interview go smoothly by practicing with friends, family members, or a career coach before the big day.

When it comes to landing a job, don't underestimate the power of your resume. Unless you have recent, relevant experience in resume creation, go ahead and pay to have it professionally written. Sometimes you have to spend money to make money, and there's no reason to cut corners on this important job search tool.

What job search tips do you have for the 50 plus crowd? Share your thoughts in the comment section below.

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Little-known Tax Credit Can Help Seniors Cope With A Health Impairment

aadmin — Mon, 09 Jun 2014 13:46:34 +0000

Almost a third of Canadians over the age of 65, and two-thirds of Canadians over the age of 85, have trouble walking around a city block. What you may not know, however, is that an impairment may enable you to recover a portion of the income tax that you have paid every year over the last 10 years, up to $5,000 per year.

Each year, the federal government pays out hundreds of millions of dollars in tax credits to people with impairments. Yet thousands of Canadians are not even aware that they qualify for the money.

“I didn’t realize that I would qualify for this tax credit, so I’m glad I called. The service I received was everything one could ask for,” says Lorna Eady of Edmonton, who collected a refund with the help of Grants International.

“We work with the government every day,” says Darren Earn, president of Grants International,” to help clients access the refunds that can make a difference in their life.”

The refund is calculated according to the taxes paid as far back as 10 years. For example, if your health has been impaired for five years, you are eligible for a refund on taxes you’ve paid over the last five years. To qualify, your condition must be certified by a doctor. Grants International has a doctor on staff who will discuss your condition and pass along a summary that you can take to your own family doctor for certification. This makes the process easier for doctors who are not familiar with the application.

“Grants International did all the paperwork,” says Heidi Kempin of Calgary, who received a refund after contacting Grants International. “All I had to do was give them the information.”

Not only have Canadians like Heidi Kempin received a refund from income taxes paid in past years; they also continue to receive the refund in the future, for as long as their health remains impaired.

“Do this correctly the first time,” says Darren Earn, “and you’ll get the money for the rest of your life, if you qualify.”
For more information, contact Grants International toll-free at 1-888-999-2221 or online at HealthRefund.com.

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Finances and Work

Financial Planning

It's Never too Late to Plan Ahead for Retirement

aadmin — Tue, 04 Feb 2014 14:22:31 +0000

New Year's has passed and many resolutions are hopefully still be in place - whether it is losing weight, eating healthier, or a myriad of other goals. These resolutions change with the passage of time, issues that did not have a “best before date” could be handled sometime in the future. Then middle age comes out of nowhere, and many of those “things” that need to be handled are now right over the horizon.

A Cautionary Tale

I have a personal story that should serve as a cautionary tale for anyone either nearing or contemplating retirement.

My uncle passed away in 1998, he had worked until age 82, (the last ten years part time) and my aunt worked until age 68. When he passed away his children felt that their mother was in relatively good shape financially. They had encouraged her to look after her funeral arrangements, while she was still mentally sharp and had the financial resources to do so.

My cousins noticed signs of dementia when she was 83 years old. She went into an assisted care retirement home. The cost was approximately $3,500 per month, and she stayed there for 6 years, (the cost was up to $4,100 per month by then) until her dementia had progressed to the point where she needed to be placed in a nursing home. The nursing home costs $2,800 per month*, plus extra help brings the total up to $3,600 per month. My aunt is now 94 and has burned through the majority of her life savings.*

All of my friends who having living parents have one question they are all asking themselves. What happens when their parents money runs out, and they are either in or will be needing to go into some sort of retirement home.

Peak Levels of Personal Wealth

You typically hit the peak level of your wealth when you are 55 to 64 years of age. By that point, the average household has accumulated a net worth of about $670,000. But don’t forget that this figure is inflated by a small number of wealthy households. The median household of the same age is worth only about $420,000. In recent years, Canadians have experienced little joy from the stock market, and so called safe investments are paying a minuscule amount of interest.

More and more, we have come to depend upon the real estate market to drive our wealth upward. Thanks to record low interest rates and innovations such as 30-year-mortgages, eager home buyers have propelled housing prices to double in value from a decade ago. Real estate now makes up an unprecedented share of our personal balance sheets. Despite the recession, most of us can take some satisfaction in the growth of our net worth over the past decade; however we should be aware of three warning signs that may indicate trouble ahead.

The Three Warning Signs

Warning Sign No. 1 is our addiction to debt. Back in 1990, the typical Canadian owed 91% of his or her disposable income. By 2000, our ratio of personal debt to disposable income had grown to 111%. It has now soared past 140% and is still climbing. We appear to have compensated for our stagnant paychecks over the past few decades by borrowing to make up for the raises we missed.

High debt levels are an excellent predictor of bankruptcies, so the staggering increases in our personal debt makes it likely that we will see more insolvency during the years ahead. We are already witnessing a dramatic increase in bankruptcies among older Canadians.

Call this Warning Sign No. 2. Since 1990 the rate of insolvency among Canadians 55 and older has shot up by more than 500%. It is a striking and worrisome fact that more and more Canadians are reaching the end of their working lives encumbered by debt. It seems that as the boomer generation edges into their 60s, a significant number are finding themselves unprepared for retirement.

This brings us to Warning Sign No. 3: our fascination with real estate. One reason that so many older Canadians have large amounts of debt is because of our growing reliance on real estate and hence mortgages and lines of credit backed by this real estate. Back in the mid-1990s, real estate constituted about a third of a typical household’s assets. It now accounts for 40%. If real estate prices remain strong, our willingness to go into debt to purchase homes will be justified. But our wealth could take a major hit if prices dip. *

All of the experts agree, if you do not have sufficient savings to fund your retirement start a savings program now. It is also essential to have a valid will and have designated a responsible person to be your Power of Attorney, in case you becoming incapacitated and cannot make your own decisions.

All financial experts agree that prepaying your funeral is one of the best gifts you can give your family; it ensures that your wishes are carried out and removes the emotional and financial burden on your family. No one is left scrambling to try to ascertain what kind of a final sendoff you desired, along with the stress of finding the funds to pay for the funeral itself.

The Final Needs Planning Program, is considered the most efficient and effective way of looking after both the planning and prepaying of your funeral in Canada. To find out how our program can help both you and your family contact us at: www.finalneedsplanning.ca or 1-800-661-8908.

.* All figures are in Canadian Dollars
** Figures compiled by Money Sense

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Top Boomer Job Trends for 2014

aadmin — Thu, 02 Jan 2014 08:39:30 +0000

The work landscape for boomers promises to be unconventional in 2014. Employment trends have transformed, leaving middle-aged people with more alternatives and difficult choices. Change leads to challenges. Boomers face the spectre of ageism as younger wage earners enter the job market.

Boomer Entrepreneurship as a Necessity

Sarah Baldwin, from Highland Park, IL, is a creative freelancer and blogger in support of struggling boomers at Kool-aid Rehab for Bright-eyed Entrepreneurs. “There’s a perception that experienced people are too expensive to hire,” she said. “So the price of great talent is going down.”

To escape the inevitable onslaught of younger cheaper talent, Baldwin decided to work for herself. “I became an entrepreneur by necessity,” she said. “There are no opportunities for boomers.” She has partnered her talents with a company specializing in recovery wear, Goodnighties.com. The freelance marketer liked its product so much, she arranged to become its exclusive marketing and sales rep.

It was a deal made in the trenches. But Baldwin had special reasons to align with the online company offering recovery night wear for women with body temperature issues – over 40-years-olds or those undergoing chemotherapy.

Baldwin had suffered from sleeplessness and found the company’s product line beneficial for her. Goodnighties.com is still a work-in-progress, but Baldwin is working hard to promote a product of personal interest. “It’s make your own way,” she said. “Boy is it hard.”

Sabbaticals for Successful Boomers

Bill Van Eron – CMO of Headwaters Marketing – was born in 1946 in the first wave of boomers. He works out of Fort Collins, CO, in strategic PR and integrated research and communications for high-profile clients like Hewlett-Packard.

Over the past year, he has transformed his work and personal goals by capping recruitment with new clients. At 67, he has taken a partial sabbatical or GAP year. Similar to Baldwin, he advocates personal business values.

“People need to depend on a special sense of trust,” he said. On a practical level, Van Eron feels the pressure of a new, upcoming generation. “I don’t want to compete with young college grads and their cool design firms when I can re-envision my personal purpose.”

For Van Eron, a looming issue facing Boomers is to go beyond traditional retirement. “Retirement has taken on negative connotations. We almost need to invent another word.”

Telecommuting – The Flexible Alternative

Flexible work – telecommuting – has become a growing trend for boomers and will continue into 2014.

In 2006, Sara Sutton Fell was seven months pregnant and laid off. She began looking for flexible home-based work. “I was really astonished by all the scams in the niche,” she said. She came up with the idea for FlexJobs, a place where qualified workers could find flexible professional online work. She hatched FlexJobs in 2007; a company she said has helped over 650,000 job seekers in their search for adaptable work hours.

FlexJobs attracts boomers who need to remain in the work force, and others who want to stay active and involved. “The nature of how, when, and where we work has changed so much in the last decade,” said the FlexJobs CEO. “Many professionals are opting for telecommuting.”

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These are sample work situations that boomers will create of find available in 2014. The trick is to discover the right fit.

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Why do seniors give to charity?

aadmin — Fri, 20 Dec 2013 11:55:16 +0000

For many people in the United States and Canada, winter is prime charitable giving time. With a wide range of different religious and cultural holidays in November and December, charity is in the air. And while the ranges of charitable giving ranges wildly, based on such demographics as income, sex, and location, one demographic consistently donates more money – and time – to charitable causes: older people.

According to a study by Blackbaud, people aged 49 and older donated 69 per cent of all charitable dollars in the United States. However, that age bracket only represents 20 per cent of the overall American population. So Baby Boomers and their peers are giving about 3.5 times their proportion. And while Baby Boomers and seniors are generous with their money, they have found new ways to donate to their favorite charities: the internet.

“It is exciting to see how giving is trending with the Baby Boomers playing an ever important and impactful role in philanthropy. It is also encouraging to see all sectors using technology to give,” Lisa Dietlin, a Chicago, Illinois-based philanthropic consultant, said. “Technology will accelerate giving by providing easy opportunities in which to donate.”

Catherine Chapman, a philanthropy consultant based in Louisville, Kentucky, told RetirementHomes.com that one major factor which has dictated older people’s charitable giving is their financial situation; namely, their lower expenses. Other reasons include their desires to establish a lasting legacy in their later years, as well as their higher level of overall trust for charitable organizations, whereas younger cohorts tend to be more skeptical of the efficacy of charities to accomplish their stated goals.

The rates of charitable giving, even among seniors, have fallen in recent years as a result of the unstable economic landscape in Canada and the United States. A recent article in the Globe & Mail newspaper showed that in Canada, charitable giving fell from 10 billion Canadian dollars five years ago to only 8 billion today.

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Finances and Work

Financial Planning

Do seniors deserve senior discounts?

aadmin — Fri, 01 Nov 2013 13:03:59 +0000

Across North America, one of the perks of growing older is that senior discounts suddenly become available. From local restaurants to dry cleaners, public transit and hotel chains, many vendors across Canada and the United States offer discounted rates to older people.

According to a 2008 Washington Post article, senior discounts began in North America during a period of economic difficulty for older people, and when they had less disposable income than younger age brackets. As a result, senior discounts were created to help equalize different parts of society.

However, that economic disparity has disappeared, and no longer are seniors the most economically disadvantaged age demographic in the United States.

From 1984 to 2009, according to the Pew Research Center, the median net worth for households led by people aged 65 and older rose 42 per cent. Conversely, in the same time period, the median net worth led by people under the age of 35 not only did not increase, it declined by a significant 68 per cent.

Even in just the last few years, in the wake of the Great Recession, the Federal Reserve Survey of Consumer Finances found that after the 2007-2009 recession, households led by someone aged 65 to 74 suffered less financial pain than any other age bracket.

So if statistics consistently show older people in the United States tend to have significantly higher median net worth than their younger counterparts, does that mean it is time to retire the senior discount?

Writing for USA Today last year, columnist Don Campbell caused waves with his article, ‘Why we should kill senior discounts,’ and argued that today’s Baby Boomers and seniors should not be recipients of lower prices at the expense of the rest of the population.

“The top income-earning years for most professional and skilled workers are from about age 50 to about age 62,” Campbell wrote. He added that senior discounts create a situation where “people who are making the most money and have the highest net worth are in effect being subsidized in the marketplace by a generation 20 and 30 years younger that often is struggling to pay off student loans, establish a career, start a family and buy a first home.”

What do you think? Do older people deserve to receive discounts off goods and services because of their age, or does their relatively healthy financial position render such discounts unfair? Tell us in the comment section below:

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Finances and Work

The biggest retirement fears among Baby Boomers

aadmin — Fri, 18 Oct 2013 12:13:04 +0000

Despite being called the ‘Golden Years,’ retirement is not always easy. The combined challenges of saving enough to live on, frequently declining health, and limited mobility can make retirement a difficult period for many people.

According to a 2010 survey from Allianz Life Insurance Company, Baby Boomers in the United States shared that their biggest retirement-related fears were a combination of health and financial concerns, with the apprehension of outliving their retirement savings topping the list,

“One of the things in the study that was surprising to us was the level of fear,” Katie Libbe, vice president of Allianz, told AARP.com in an interview. “It was greater than we anticipated.”
The study spoke with more than 3,000 Americans aged 44 to 75, and found the biggest fear among 61% of the population was running out of money in retirement, whereas 39% feared death more.

One year later, in 2001, AARP commissioned a study of people aged 50 and over, and found that another common concern among Baby Boomers was the fear of not maintaining their current lifestyle during their retirement years. Sixty-two percent of respondents agreed with that statement. Additionally, more than running out of money and maintaining their current lifestyle, many American Baby Boomers feared crime.

Eighty-one percent of respondents said they were concerned about consumer fraud, with 72 per cent afraid of identity theft, and 64 per cent were on the lookout for deceiving businesses which could hurt their investments.

Outside of financial concerns, the AARP survey found older Americans are, for the most part, hoping to live out their years in their own homes (41 per cent). Nearly one-third (29 per cent) are concerned about losing their ability to drive as they get older.

Szifra Birke, a retirement consultant based outside Boston, Massachusetts, told RetirementHomes.com in a recent interview that although her clients tend to be higher net-worth, their concerns are frequently outward-focused.

“Their biggest concerns are less likely to include finances, but the one that does come up is ‘I think I have enough money, but you never know,” Birke said.

She added that other top concerns she has heard from clients include: ‘What will I do with my time in retirement,’ ‘My spouse wants me to retire, and I’m not ready,’ and ‘My spouse wants something different from retirement than I do.’

Regardless of your financial position, and what you are looking for out of retirement, speaking with a competent retirement advisor and seeking out relevant advice online are great early steps.

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