RetirementHomes.com - finance

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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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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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

More Boomers looking to real estate as encore careers

aadmin — Fri, 21 Jun 2013 16:57:12 +0000

Retirement is not what Hollywood tells us, with a silver-haired man playing a relaxing game of golf on a sunny day, and later enjoying a relaxing dinner at an upscale restaurant with his wife. In fact, for a growing number of Baby Boomers across North America, retirement is just an opportunity for a new chapter of life to begin, and not the end.

For many Boomers in the United States and Canada, retiring from their day jobs opens up the opportunity, not necessarily to relax, but to find a new job; one that offers more meaning, enjoyment, or a better work-life balance than their previous roles provided.

An encore career is a job taken by a previously-retired person, and it can be anything from working part-time as a math tutor to a Wal-Mart greeter, and the goal is not necessarily primarily financial, but rather to achieve personal or ideological goals.

“Instead of accepting the notion of a career as an arc that rises in youth, peaks in midlife, and declines into retirement, they are charting a new territory - one that for many will reach its apex of meaning and impact when others in past generations headed for the sidelines,” wrote Marc Freedman, founder of Civic Ventures, a San Francisco-based organization which promotes encore jobs, in his 2008 book, ‘Encore: Finding Work that Matters in the Second Half of Life.’

And while encore careers is a growing trend in North America, not all jobs are ideal for already-retired Boomers; some roles are physically demanding, stressful and can be frustrating.

To help Boomers find the best roles for their post-retirement jobs, here are three of the five encore self-employed careers:

Consulting: This job offers the flexibility that many full-time workers do not have, and depending on the area of specific expertise, the high hourly pay can offer few weekly hours in return for an enjoyable experience, social outlet, and intellectual stimulation.
Entrepreneur: Similar to consulting, this career allows a semi-retired Boomer to determine their workflow and the area they in which they would like to specialize- regardless of whether it is related to their past experience.
Sales: This job can be selling a product or a service for another company or agency, or working on commission-only for selling houses in a close neighborhood.

If a part-time or self-employed isn’t the right fit for your encore career, and you’re looking for a head start on finding the right job, visit RetirementHomes.com’s jobs checklist HERE and find yourself the right encore career.

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The three questions every Boomer planning for retirement must ask themselves

aadmin — Fri, 07 Jun 2013 17:32:02 +0000

If you’re planning on retiring one day, you may be in for a rough surprise. According to management consulting company Aon Hewitt, the average North American worker, should they retire at the age of 65, likely requires about 11 years of their annual pay in order to pay for a retirement with an unchanged lifestyle.

In their 2012 study, ‘The Real Deal: 2012 Retirement Income Adequacy at Large Companies,’ Aon Hewitt also reported that for people hoping to retire a bit earlier – at age 62 – the amount of money saved should amount to 13.5 times annual pay.

And if that doesn’t yet sound intimidating, just plug in the numbers: if you live comfortably on a $75,000 total household income, and if you plan to retire at age 65, in order to maintain that standard of living in retirement, you would need to have about $825,000 in total retirement savings and investments. For a retirement age of 62, that number jumps dramatically to more than one million dollars.

Unfortunately, the average American doesn’t have enough money saved or invested for retirement; in fact, it’s not even close. A study from the Employee Benefit Research Institute this past March found 57% of Americans – up from 49% in 2008 – said they had less than $25,000 saved and investment for retirement.

With so many people facing a significant shortfall in their retirement savings, what is a Baby Boomer to do? What are the best and most effective ways to prepare a financial plan for the golden years?

Here are some handy tips which will help you better prepare for retirement:

1. Know your lifestyle: Many online retirement calculators are based on a premise that retirees will maintain a certain lifestyle after they have stopped working. Each calculation is different, but before calculating how much money you will need in retirement, ask what kind of lifestyle you plan on having. For example, if your current lifestyle has you vacationing, eating at upscale restaurants on a regular basis, and you expect to maintain that lifestyle after work ends, then don’t assume your budgetary needs will decrease. In fact, they may even rise. Conversely, if you plan to scale back your travel and entertaining in retirement, then you don’t need to assume your financial needs will be the same as they are now.

2. Know when you plan to retire: The longer you delay retirement, the less money you will have to save and invest for retirement, but it also means more time working. Every person’s priorities and professional goals are different, so consider when you would like to ideally retire.

3. Don’t count on government assistance: Although Canadians and Americans are offered government pension plans, many studies have shown these to be unsustainable, and many workers today may see the funds run out before they retire. So although it’s tempting to include this money in your retirement calculation, only count on your own money.

Although saving for retirement is one of the most challenging financial goals of Baby Boomers, it doesn’t have to be a struggle. Through self-discipline and planning, even the most ambitious retirement plans can be realized.

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What comes to mind when you think of life insurance?

aadmin — Wed, 29 May 2013 14:11:44 +0000

What comes to mind when you think of life insurance? You are likely thinking of paying final expenses and funeral costs and not what you can do with your insurance policy while you are living. A whole life insurance policy, either a universal life or participating policy, can also benefit you and your family while you are alive.

Many permanent life insurance policies have a cash value that can grow tax deferred over time, taxed only when withdrawn from the policy. Here are three things you can do with a whole life insurance policy, whether you are looking to access the values of a policy you already have or want to make a new policy part of your retirement or estate planning.

1. Supplement your retirement income

You can combine planning for your retirement income and your insurance needs with a whole life policy. In retirement you can assign the policy to a lending institution as collateral on a line of credit and withdraw values from the policy as needed. The death benefit still remains in place and upon the death of the insured any outstanding balance and interest is paid to the lender and the remaining goes to the beneficiaries.

2. Take out a loan

Access the cash values through a policy loan. Interest is then charged on the loan within the policy, but the policy cash values (and death benefit for applicable policies) continue to grow as if no money was withdrawn. The loan can be repaid at any time without penalty. If the insured dies while a policy loan is outstanding the loan and interest outstanding are taken from the death benefit and the rest is paid to the beneficiaries.

3. Help fund a child’s or grandchild’s education

If you have saving for college or university for a child or grandchild in mind, there is an opportunity for several years of tax advantaged growth in the cash value of a policy, by owning a policy where a child is the life insured. When it is time to pay for post-secondary education, ownership of the policy can be transferred to the insured and, similar to a Canadian RESP, taxes are paid at the student’s tax rate when money is withdrawn.

If the child does not want to use the money for school it can instead go to a down payment on a home, the purchase of a car, the start of a business or continue to grow untouched in the policy. Funding a policy in this way can be a tax advantaged strategy for wealth transfer whether or not there is a specific savings goal in mind, while insuring the child for the future at comparatively low premiums.

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Who are the world's oldest business executives?

aadmin — Mon, 27 May 2013 12:46:51 +0000

The average age at which North Americans typically retire is around 60 years old. And while many Baby Boomers across Canada and the United States look forward to an early retirement, a growing number of middle-aged people are opting for a never-ending career in fields they love.

Many of these older workers aren’t just continuing in careers they enjoy; some of them are also prominent leaders in the business world.

This past week, legendary Texas oil man T. Boone Pickens published an article on online business social media networking website LinkedIn coinciding with his 85th birthday, where he wrote that, to him, “retirement is not an option,” and how continuing to travel widely and conduct business meetings around the world are a surefire way to stay healthy and vibrant.

To Pickens, another motivator for his continued career is amassing wealth, although he doesn’t plan on keeping it for himself: “My charitable gifts are now approaching my net worth. That’s an accomplishment I am proud of,” he wrote.

And although Pickens is one of the world’s most high-profile older CEOs, he is by no means the only one.

Another business magnate is 82 year-old Warren Buffett, CEO and Chairman of Berkshire Hathaway and the world’s third-richest person, with a current estimated net worth of about $54 billion (US). Like Pickens, Buffett has made a public commitment to philanthropy, and said he plans on giving 99% of his vast wealth to charity.

“I’m having the time of my life,” Buffett said in a 2012 interview with CNN Money about his business career. But, he added, “In terms of managing money, or even managing a business...age isn't really a deterrent. It's a deterrent to everything else; hand-eye coordination, balance, and all kinds of things.”

As a result, while many older business leaders may not be intending to retire at all, for most people, at some point, the aging body begins to take its toll.

In a 2012 article in the academic journal Modern Biological Theories of Aging, Dr. Kunlin Jin of the University of North Texas wrote that while the modern scientific community is yet to establish a consensus with regards to the primary reason for physical aging among individuals, the aging of the human body remain a universal condition, and this can shorten the career lifespan of older executives.

Despite the challenges of running a business and aging, there remain a number of high-profile business executives over the age of 70, including Les Wexner, CEO of L Brands fashion retailer, Rupert Murdoch, Chairman and CEO of News Corporation, and J.W. Marriott, Chairman of hotel chain Marriott International.

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Owning or renting: What's the best real estate move for Boomers and seniors?

aadmin — Fri, 24 May 2013 11:55:48 +0000

The residential housing market in the United States is finally starting to pick up steam after five years of decline. In many parts of the U.S., housing prices are still well below where they were in 2006 and 2007. The median national home value in April 2013 was $184,300, a far cry from their peak of $230,400 in 2006.

For Baby Boomers looking forward to retirement in the near future, financial considerations are of paramount importance, and for the majority of middle-class Americans, their primary residence represents more than two-thirds of their total net worth, according to Christian Weller, a professor at the University of Massachusetts.

For these people, that means a change in the real estate market puts them at risk of losing significant money. In fact, Weller found that is exactly what happened to middle-income Americans between 2001 and 2010, when their average total assets fell from $90,500 to $57,000.

So in an era of economic and financial uncertainty, what are Baby Boomers to do? Should they become (or stay) home owners, and enjoy the equity and stability that comes with it, or opt to become renters, and enjoy the lower costs that are associated with renting?

The first step a soon-to-be retiree needs to take is evaluating what their needs and goals are. In addition to financial considerations and questions, a prospective retiree needs to ask how much space they need in their home and how many people are living there, whether they see themselves moving in the near future, and what their needs are in a home.

From a financial perspective, ownership offers the potential for long-term appreciation, but also comes at a high initial cost, with land transfer fees, property taxes, maintenance, as well as mortgage and other borrowing costs.

Renting, conversely, typically is cheaper on a regular basis, with no property taxes or large-scale maintenance and renovation costs, and that lower cost offers renters the flexibility to take their saved funds and invest them, thus providing a high potential return.

However, volatility in the stock market exists, just as it does in the real estate market.

Although many financial experts say renting offers a potential for higher investment return compared to home ownership, statistics from the financial services market research firm DALBAR reports that the average individual investor only saw a 3.83% return on their stock market returns, primarily because many investors lack the self-discipline to wait out tough economic periods.

In other words, it’s often tempting to buy when a stock is high, and making headlines, and tempting to sell when it’s fallen out of favor.

One downside of home ownership, however, is that it lacks the flexibility of renting. Whereas a renter can, in most instances, simply give their landlord a 60-day notice that they wish to leave their home, selling one’s home is a significant investment in both time and money.

As a result, with all the uncertainty surrounding both real estate and stocks, the careful Boomer should consult their financial advisor and see what works best for them.

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Tax tips for seniors

aadmin — Wed, 24 Apr 2013 13:19:41 +0000

In both the United States and Canada, April is tax season. For millions of people across North America, that means scattered papers across their dining room tables, and time spent sorting papers, printing receipts and records, to be sent to their accountants or the taxman directly.

And while the average tax refund in the United States is about $3,000 (and in Canada, about $2,000), there are many opportunities for seniors and older people to ensure they receive the highest refund possible.

Although every person’s situation is different, there are a number of different tax tips and strategies for seniors:

Live in the United States? Here are some tax strategies for seniors:

1. Disability credit: Seniors aged 65 and older can take advantage of the Credit for the Elderly or Disabled, which would allow them to enjoy a deduction in their income taxes, even if they are not disabled.

2. Low-income seniors: Seniors who earned less than $11,200 in income in 2012 are not required to file a tax return, according to the IRS (Internal Revenue Agency). Additionally, depending on their overall level of health and independence, some seniors may be considered dependents of their adult children, thus allowing them additional tax savings.

3. Medical deductions: Expenses incurred while living at some senior living communities such as skilled nursing homes or Alzheimer’s Care facilities are considered medical expenses, and senior residents of these communities may be able to include some of these expenses as tax deductions.

Live in Canada? Here are a few options you can use to lower your taxes:

1. Check your income: According to the Canada Revenue Agency, people aged 65 and older who had a net income of less than $78,684 in 2012 are eligible to claim tax credits that are not available to higher-income tax filers.

2. Breaks for people with disabilities: The Disability Tax Credit is open to anyone who has a proven physical or mental disability, and this credit serves to lower the amount of income tax paid by the filer every year.

3. Transit use: Although less than one-in-ten Canadians aged 65 and older use public transit as their primary form of transportation, they are still eligible to claim their transit passes on their income tax, thus lowering their overall tax bracket.

The above three tax tips are open to all Canadians, regardless of age, but seniors and older people are likely to be among the biggest beneficiaries of these tax laws, so as you prepare your taxes (or if you already have, for next year), keep these strategies in mind for a maximum return.

When it comes to income taxes, there are plenty of deductions available for seniors and the elderly, so if you haven’t yet filed your taxes for last year – or in preparation for next year – do some research and find the deductions which you are eligible to claim.

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A short look at long-term care insurance

aadmin — Wed, 03 Apr 2013 12:01:11 +0000

As we so often hear, people are living longer and longer lives, and able to survive illnesses that would have been fatal not long ago. However, living longer than expected, even while remaining healthy, can be a strain on retirement savings, and an illness or chronic condition that requires extended care will quickly deplete those savings.

If you are willing to put some current savings dollars toward insurance premiums, long-term care insurance can make your retirement more secure, no matter what health challenges you may face.

What is it?

Long term care insurance pays a benefit towards the costs of home care or facility care when you need it. Once the qualifying conditions are met, the long term care benefit is paid out over time, up to the policy limits, daily, weekly or monthly. Every carrier’s policies are slightly different, so look for one that best suit your needs and budget.

Home and facility care can stand alone or can be combined. A plan with both home and facility coverage can take you through different stages as your care needs may change over time. You can choose the length of the benefit period, either to be paid for a certain number of years, your lifetime, or in some cases up to a maximum benefit dollar amount.

Premiums can be paid for the length of the policy until a claim is made, or for a set number of years so that the policy can be completely paid up long before you need the care. Premiums can be kept lower by opting for longer waiting periods or choosing a shorter a benefit period. And as with all insurance, the younger and healthier you are when you apply, the lower your premiums will be.

No one can know exactly the amount of care they may need, or for how long, and claims may be decades away. To offset some potential “what ifs….” additional policy riders are available. Riders can be added to ensure the benefits rise with inflation or to return eligible premiums if you die before making a claim. Some insurance carriers provide shared coverage, where there is a maximum benefit available to a couple, so a greater portion of the benefit can go to one person if he or she needs it.

Who is it for?

The short answer is everyone. Long term care insurance may be particularly helpful for individuals who have little or no pension or guaranteed income in place for their retirement years. It can provide stability to offset retirement savings and may enable you to preserve your savings or keep assets including your home.

If you know that you will be faced with providing care for parents, grandparents or another family member in the future, a long term care policy is a step to secure their future care without jeopardizing your future finances. Paying, or sharing in the payment of a policy with siblings or the insured makes paying for care a small predictable expense now compared to a larger, more difficult expense later.

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