RetirementHomes.com - savings

Seniors: Don't Discount a Discount

aadmin — Wed, 17 Jun 2015 07:13:29 +0000

When people reach a certain age or just get near to being senior, they may become unwilling to acknowledge it because they are embarrassed or they can’t accept the reality that they have reached THAT age.

There’s nothing to be ashamed of. In fact, there are many valuable offers and discounted deals just waiting to be discovered, that are available only to the “older generation”.

Some deals are extended only to those aged 65 and older, but many are accessible to people from 50 and up. These special offers and discounts are easily obtainable as long as legitimate proof of age is presented, which can be a state ID, driver’s license, or any official document which will guarantee the actual age of a person.

Another way to save, is by joining various groups like AARP, the American Seniors Association, the Seniors Coalition, and the National Active and Retired Federal Employees Association. They are membership organizations for people 50 years and above, which provide a variety of discounts and a lot of information and assistance to senior citizens, especially in these times when they need all the support that they can get to maintain a decent life after retirement.

There are many advantages to growing old, especially in Northern America, where discounts and special deals are available to the senior population. Not all businesses offer these benefits, and not all businesses that offer them, advertise them. It is up to the senior to inquire if they can receive those benefits from the establishment.

Here are some senior discounts that may not be very well-known to the older folks:

• Some restaurants offer discounts, some offer special dishes, some offer free coffee or free dessert. It’s good to know that many popular food chains in North America offer special deals for seniors, including, but not limited to, IHOP, KFC, McDonalds, Krispy Kreme, Subway, etc. Remember, if your favorite eating place is not listed here, just ask them!

• When planning to go places around America and Canada, there are transportation facilities that are friendly to older travelers. Travelers aged 62 years or older will get a 15% discount on rail fare on most Amtrak trains, while those 60 years or over traveling on cross-border services operated jointly by Amtrak and VIA Rail Canada will get a 10% discount.

VIA Rail Canada also offers a "Bring a Friend" special deal for seniors, where their companion travels for free. North American Rail Pass, offers a good deal for those seniors who plan to travel more. It offers a 10% discount on a one month ticket for travel to various destinations in USA and Canada.

• For affordable storage while traveling, Sentinel Self-Storage offers a 10% monthly rent discount to customers 60 years and older. This low-cost public storage throughout Canada allows seniors to enjoy their travel with peace of mind.

More and more establishments are offering benefits to the older folks; it’s about time these folks benefit from their generosity.

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Financial Planning

How to build the perfect retirement budget

aadmin — Wed, 17 Jul 2013 10:53:27 +0000

Creating and sticking to a budget in retirement is a lot like sticking to a weight loss plan. A strict diet that requires unsustainable habits and leaves you feeling deprived will not be successful in the long run.

Your budget needs to give you an overall healthier financial lifestyle that is sustainable for your savings and income, but also allows you to enjoy the retirement you have worked for. There are a few things you can do to help make your budget a positive step to the lifestyle you want and not a stressful:

Be Honest

Start with a realistic analysis of what you are spending now and where you are spending it. Use a few bills and credit card statements from different points in the last year to give you an idea of seasonal changes in your spending. The more exact you are with your starting numbers, the better you will be able to predict what you need and what you can change. Simply estimating the percentage of your pre-retirement income you will need in retirement will not give you the whole picture.

Get Help

There are many budget guides and tools available on the Internet. Most banks insurance companies have free budget calculators and downloadable charts available. These resources will also help you make sure you have taken all of your expenses into account. Your budget should be part of your overall retirement plan, and your financial advisor can be a resource for you.

Expect the Unexpected

Include some form of saving in your budget. Whether that is all going to an emergency fund or some of it is going towards a big trip, make sure you have built in some flexibility to your budget. If you need to access money unexpectedly, being able to use what had been part of your retirement budget is preferable to dipping into your larger retirement savings. Between inflation, rising health care costs and volatile financial markets, you want to feel as prepared as possible.

Simplify and streamline

When you have the option to pay monthly without being penalized, take it. It is much easier to plan for predictable monthly expenses than for large or fluctuating bills. Paying monthly for property taxes or choosing a monthly plan for utility bills takes some of the guess work out of your budget. As well, try and keep your bill payments coming from one account or one bank account and one credit card. The more places the money is taken out of, the harder it is to track.

Stick with it

Here is that diet analogy again. While dieting, you track your progress, whether it’s by checking yourself in the mirror or getting on the scale. Stay accountable with your budget also. Try, especially at the beginning, to keep all of your receipts to see how your spending compared with your budget. Making necessary changes to the budget and to your spending will keep you on the right path.

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Retirement savings: How do you compare to others?

aadmin — Tue, 26 Feb 2013 15:19:07 +0000

When it comes to saving for retirement, how do you think you compare to your peers? Are you ahead of the pack, or falling behind?

As recently reported by Forbes.com, retirement advisors say there is a gap of about $250,000 between what most people have saved for retirement, and the kind of lifestyle they hope to achieve during their retirement years.

For women between the ages of 25 and 32, the average amount they have saved for retirement is $37,00, so if you have more than that, you are doing better than average. But while $37,000 is average, it still isn’t very high.

“Saving for retirement needs to be a priority, particularly for women,” Lori Cathey of TIAA-CREF, a financial services organization.

Cathey told Forbes.com she recommends women in their 20s and 30s have savings of about $55,000 to help put them on the path for a comfortable retirement.

Men between the ages of 25 and 54 told Forbes.com they have an average of $220,000 saved for retirement, which is nearly identical to the amount women aged 45 to 54 said they have.

How much have you saved for retirement, and how are you faring compared to your peers? Tell us in the comment section below:

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What will your pension look like?

aadmin — Wed, 09 Jan 2013 19:42:42 +0000

With Baby Boomers and other soon-to-be-retirees, retirement advisors frequently offer suggestions for how clients can calculate how much money they think they will need to continue their desired lifestyle after they have stopped working.

And while there are different calculations being suggested for Baby Boomers, many experts advise people planning for their retirement to take a holistic approach, and consider their current lifestyle versus planned retirement lifestyle, and what role, if any, travel or part-time work will play in the future.

Writing recently in the Globe & Mail newspaper, Canadian economist Michael Wolfson argued that despite changes in lifestyle habits and sometimes even location, most people maintain a fairly consistent spending and consumption pattern even after they retire, and one of the consequences of this is that lower-income and higher-income individuals are affected in different ways.

For example, those who earn less during their working years are often hurt by the loss of that income in retirement, and they may struggle to avoid poverty, while wealthier people, while they may not be at risk for poverty, will not maintain their standard of living.

What do you think? Do you think government pension plans should aim to fully replace working income, or act merely as a supplement for the retirees’ own savings and investments?

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The 7 common myths of retirement

aadmin — Fri, 07 Dec 2012 16:42:24 +0000

Have you prepared well for retirement? You may have a retirement advisor and various stocks, mutual funds and savings bonds, tucked away over years of working.

But not all the things you have heard about saving for retirement is necessarily correct. Courtesy of NBCNews.com, here are five of the most common myths about saving for retirement:

1/ Saving for retirement can wait – The earlier you start saving, the longer the money has to grow. So don’t delay at all if possible.

2/ Medicare covers all medical problems – Medicare covers about half of the average seniors’ healthcare needs, according to NBC, but it won’t cover everything.

3/ You will spend less in retirement – There’s no magic formula that applies to everyone; instead, your retirement savings will depend on what kind of lifestyle you are looking forward to.

4/ There’s no consequences to taking Social Security early – Americans can start receiving their Social Security checks at the age of 62, but you won’t receive as much money; in fact, as much as 25% less.

5/ Buy more conservative investments with age – This advice isn’t as relevant as it was decades ago, now that life expectancy is longer than ever before. To pay for a 30-year retirement, sometimes aggressive investments are necessary.

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What does the Fiscal Cliff mean for retirees?

aadmin — Wed, 05 Dec 2012 14:20:14 +0000

The Fiscal Cliff is a hot topic in American politics right now, with the White House and congressional republicans negotiating a resolution that will prevent scheduled tax increases and spending cuts scheduled to take effect on January 1, 2013, which experts say could push the United States back into a recession.

While the political power brokers attempt to negotiate a settlement, retirees are one group that will be affected significantly by any changes that will take place.

As reported recently by Reuters, one of the most important potential consequences of the fiscal cliff for seniors is the expiration on December 31 of tax cuts for investments such as capital gains, dividends and income. President Barack Obama is a proponent of increasing tax rates, while congressional republicans have been cool to that idea.

Regardless of whether new tax increases are implemented in the new year, financial advisors recommend seniors and retirees do not make radical changes in their retirement savings plans.

“Don't let the tax tail wag the investment dog, and keep your long-term goals in perspective,” John Sweeney, the executive vice president of portfolio and advisory services of Fidelity investments, told the news wire service.

Do you plan on changing or re-evaluating your investments and retirement savings with the fiscal cliff looming? Tell us about it in the comment section below.

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