Showing posts with label Estate Planning. Show all posts
Showing posts with label Estate Planning. Show all posts

Friday, October 1, 2010

Democrats Trying to Sway Senior Voters


The Associated Press: Democrats, "running scared in an election year," are hopeful that a $250 check - to help seniors afford prescription drugs - will turn the tide of public opinion. "Democrats ... are trying to overcome older people's mistrust of the new health care law, which expands coverage for younger generations by cutting Medicare payments to hospitals and insurers. … Behind the hoopla, the reality is modest.

"The $250 check, for example, is just a fraction of what many people in the prescription coverage gap have to pay. The gap starts after Medicare beneficiaries and their insurance plan have spent $2,830 on medications. Once total spending reaches $6,440, Medicare's catastrophic coverage kicks in, and people pay only a small amount. That means the 'doughnut hole' is $3,610 this year. ... . A previous Congress, led by Republicans, came up with the idea to control costs. It's never been popular" (Alonso-Zaldivar, 8/16).

The Hill reports that administration is acting on other fronts: "Stephanie Cutter, assistant to the president for special projects, took to the White House blog Friday to lambaste Rep. Paul Ryan's proposal to turn Medicare into a voucher program. … 'Under the Ryan plan, the Medicare seniors know and trust would disappear,' Cutter writes. 'In its place, seniors would receive a voucher to buy insurance on the private market.' Ryan argues that the current system, even taking into account the healthcare reform law, is 'on course to collapse'" (Pecquet, 8/14).

In the meantime, outside groups are hoping to bolster Democrats' political fortunes.

Roll Call: "Americans United for Change is dispatching staff and resources to battleground states in what appears to be a shoestring effort to paint Republicans as seeking to destroy Social Security and Medicare. … To prove their claims that Republicans are targeting Social Security and Medicare, Democrats and activist groups like the AUFC cite Wisconsin GOP Rep. Paul Ryan's 'Roadmap for America's Future,' which proposes to overhaul the two programs to ensure they remain solvent without eating up more of the federal budget. ... Republicans contend that Democrats are trying to scare voters" (Drucker, 8/14).

The Seattle Times: In addition, advocacy groups are protesting the presence of lobbyists at the gathering this week of state insurance regulators. "Health-care-reform activists sported surgical gowns and masks as they chanted and handed out packets that offered to 'disinfect' the gathering from a 'lobbyist pandemic.' The packets included soap, a hand wipe, a clothespin and a face mask to protect against 'lobbyist lies ... lobbyist germs ... and lobbyist stench' — underscoring that emotions over health-care reform haven't entirely subsided since President Obama signed a historic reform law in March. … The protest was organized by Washington state Health Care for America Now" (


For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Tuesday, September 28, 2010

We Need Bills to Freeze Elderly Property Taxes


Bill Would Freeze Property Taxes for PA Elderly

Many Pennsylvanians 65 years or older would be exempt from future property tax increases under a bill being introduced in the State Senate.
Democratic Senator Lisa Boscola of Northampton County says her Senior Citizens’ Property Tax Freeze Act would hold tax rates steady for those who have lived in their home for five years or longer and earn less than $65,000 per year.
Boscola says the individuals have earned a tax break and school districts and municipalities would need to adjust to the change.

“I like bills that have been introduced by other Senators who have said, ‘Maybe we should consolidate some of the administrative costs of our school districts.’ There’s ways to cut, we just have to do it responsibly.”

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Monday, September 27, 2010

It's Almost $20,000 a Year for Seniors to Live


September 15, 2010
By Ashley Gebb/Appeal-Democrat

Rising costs and fixed incomes are an incompatible combination — yet it is one senior citizens face every day.

Seniors, no matter their source of income, often struggle to make ends meet in Yuba and Sutter counties, according to standards released Wednesday by UCLA and the Insight Center for Community Development.

The standards calculate for each county the minimum income necessary to cover an older adult's basic expenses and estimate the number of senior citizens who have — or do not have — that income.

A local senior citizen would need a minimum income of $19,629 a year to meet their basic needs — housing, food, medical care and transportation, according to those standards.

Using that data, the Area 4 Agency on Aging estimates 4,432 seniors in Sutter County and 2,847 seniors in Yuba County fall in the eligibility gap, said Planner Will Tift. Those citizens are above the federal poverty level but still don't earn enough for their basic needs.

"That's a substantial percentage," he said. "Somewhere between a third and a half of seniors in both counties do not have enough money to make ends meet."

Some accumulate debt, others turn to family and friends to help them out and others go without.

"They may not be going to doctor's appointments or dental appointments or having their vision checked because they can't afford to do those things," Tift said. "Some may drive without insurance because they can't afford it."

The greatest challenge is not fixed incomes but rising costs, said Yuba City resident Norman Walker, 80.

"They are nickel-and-diming us to death," he said.

Every expense continues to rise, from groceries to utility bills, taxes to dog food, medical care and license plate fees, he said.

"You name something that hasn't gone up," he said. "It's stressful, when you sit back and watch your bills come in and think about what you make."

He retired in 1993 after working for more than 50 years. At the time he had several hundred thousand dollars saved in the bank, plus his pension. That's what has helped him hold on all these years.

"I don't know how people live on Social Security," Walker said.

He's also fortunate because he does not have a house payment to make, he said. He knows other seniors who have had to sell their homes or move in with their children.

But finances have not been easy for Walker, despite how well he planned. Every year he has to dip into his savings, and there is only about $90,000 left, he said.

"If I live to be 100, I'll be on welfare," he said.

Yuba City resident Joe Thordsen, 80, retired in 1992. This year was the first time in 18 years he did not receive an increase in his Social Security payment, and the house he bought six years ago has declined in value by $33,000, he said.

His pockets have felt the hit, and so he continues to pinch pennies anywhere he can. This means clipping coupons, searching out freebies and drinking water instead of coffee or other costly drinks when he goes out to eat.

"It gets a little tough, but we adjust as we go along," he said.

Thordsen knows how to live on a tight budget. As a child of the Great Depression, he remembers his parents standing in soup lines to get a hot meal.

That's the point many seniors are almost pushed into today, he said.

"They say it's a recession, but if you're not working, it's a depression," he said.

The battle between rising costs and fixed incomes has always existed but the current recession has exacerbated the problem, Tift said.

"We definitely need to be looking at all kinds of solutions," he said.

The standards released by UCLA and the Insight Center are a valuable tool that can be used in planning, advocacy and general education about the financial struggles seniors are facing.

"It's the first step in quantifying the issue," he said. "It puts it into real terms and numbers people can see and deal with."

Meanwhile, seniors get by however they can and combat the stress and depression caused by financial strain with inexpensive fun. For Walker and Thordsen, that means frequent billiards sessions with their buddies at the Yuba City Senior Center.

"We pay $33 a year, and we get to shoot pool all day long," Walker said

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Saturday, September 25, 2010

Investing During Retirement


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For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Wednesday, September 22, 2010

Medical Records: What Are My Rights?


WHAT ARE MY RIGHTS REGARDING MY MEDICAL RECORDS?
HOW DO I GET MY MEDICAL RECORDS FROM FORMER DOCTORS?


Question: I used to go to a doctor in Colorado, but then I moved to California and went to
another doctor. I signed a release for the California doctor to obtain records from the one in Colorado. Later on, I had to go to yet another doctor, who asked me for all pertinent past records. To get the ball in motion, I sent a certified letter to the California doctor and asked for the records she had obtained from the Colorado doctor. She sent a certified letter back saying that she was prohibited by law from giving me these records and that I had to go directly to the Colorado doctor to obtain them. I do not want her to keep these records, and I need them for my new physician. Is it true that the law forbids her from turning my own medical records over to me or a new doctor of my choice?


Answer: Legally, you have a right to a copy of your medical records. But it is also true that you will have to go back to the original doctor that you saw for many types of medical records. Your new doc should have no problem getting records from both of the old docs with nothing more than your signed consent form. But all evaluations and test results must come from the original source, and you, the former patient, must ask for them directly. Another person can procure those records for you only if you have given him or her a medical power of attorney. You shouldn't be charged more than a nominal fee for staff time and copying, and you should receive the information within the week.
For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Sunday, September 19, 2010

What is Elder Law?


By George Dickerman

Elder Law involves the legal issues that result as a consequence of the aging process. This is a rather narrow field and can be a little confusing to some senior citizens.

Many seniors have legal problems that are similar to people in their thirties and forties; for example, wrongful termination (employment), bankruptcy, or real estate disputes. Sometimes a potential client calls an elder law attorney to obtain, for example, family law advice regarding a possible divorce. That lawyer explains that family law and divorce issues do not fall under the category of elder law. Elder law pertains to persons who, generally, are 65 years of age or older. Nearly always, the client responds by saying: "But I'm over 65 years old".

Elder law generally involves the following types of legal matters:

Elder financial abuse. Taking advantage of another person's weaker state of mind and wrongfully obtaining their money and property through undue influence, coercion and manipulation. A civil lawsuit is usually filed to recover the property fraudulently taken.

Elder physical neglect. Most often, this concerns nursing homes that fail to properly care for their elderly patients. It can also be caused by in-home caregivers or anyone who has the primary responsibility of caring for an elder.

Estate Planning. This involves the creation of trusts, wills and powers of attorney for financial matters and healthcare decision making. Although these tools should also be utilized by younger people, they are most often created for elder adults at a time when they seek to get their financial affairs in order.

Probate. The probate process enables a decedent's estate to be distributed to loved ones after death. With the proper use of trusts and wills, the probate process may not be necessary. However, if no prior estate planning was accomplished, then it may be necessary to utilize the probate court in order to complete the distribution of assets.

Conservatorships. When proper estate planning documents have not been put into place (for example, powers of attorney), then it may be necessary to establish a conservatorship over the elder's person and/or estate. Court intervention is sought to grant someone the authority to make necessary healthcare and financial decisions for the incapacitated elder.

Medicaid Planning. This area refers to the laws and regulations in most states that determine the guidelines to qualify an elder to receive government benefits to pay the high cost of long term care in a skilled nursing facility. This is a complicated area of law with the goal of having the state pay the monthly nursing home bills and, at the same time, allowing the elder and their spouse to keep as much of their assets as possible so they can pass them on to their loved ones.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Sunday, September 12, 2010

What Happened to Our 2010 C.O.L.A.?

The cost of living adjustment for social security benefits did not occur in 2010. How does the lack of a 2010 social security cost of living raise affect seniors and will it happen again?

United States citizens who get social security or social security disability benefits received a surprise at the end of 2009. The Social Security Administration announced on October 15, 2009 that there would be no cost of living adjustment or COLA for 2010. How did the government come to this decision and what impact did this have for social security benefit recipients?

What Is COLA?

COLA, also known as the cost of living raise, helps to bridge the gap for those receiving social security benefits during periods of inflation. COLA became part of the 1972 Social Security Amendments enacted by Congress. Since then, COLA has existed as an annual occurrence each January, however in 2009, the US Government announced that a 2010 Social Security cost of living raise would not occur leaving many people concerned.

How is COLA Determined?

The 2010 social security cost of living raise has been determined the same way since 1972. COLA is based upon the annual change in the Consumer Price Index (CPI) for urban wage earners and clerical workers (CPI-W). The measurement is calculated by comparing the third quarter of the previous year to the third quarter of the current year in order to predict if a COLA will occur for the following year. If there is a percentage increase of at least 0.05 percent there will be an increase in the cost of living allowance. If there is no wage earner increase based on the CPI or if it is less than 0.05 percent, no COLA is offered.

What Happened to the 2010 COLA?

In 2010, the cost of living raise was determined from comparing the average CPI for wage earnings from the third quarter 2008 and the third quarter 2009. The Bureau of Labor Statistics showed that the 2008 third quarter CPI wage average was 215.495 while 2009's third quarter CPI wage average was 211.001, meaning year 2009 was less than year 2008. Since there was no increase in CPI average wages between 2008 and 2009, the 2010 social security cost of living raise did not occur.

2010 COLA and Medicare Part B

Seniors felt the lack of a 2010 COLA increase through Medicare Part B premium increases that affected 7% of people receiving social security benefits. Medicare Part B premiums are not determined through the Consumer Price Index and increase each year regardless of a COLA increase or decrease. However, there is a "hold harmless” provision in the Social Security Act that protects 93% of social security beneficiaries from having to pay the increased premium.

While Medicare Part B did not negatively affect a majority of social security beneficiaries, other factors outside of the social security administration's reach still lurk behind the scenes. The lack of a 2010 social security cost of living raise did not prevent property owners from raising rents each year, for example. With the 2009 Credit Reform Act, credit card companies began increasing and implementing fees to pass on to cardholders before the act went into effect in February 2010.

Therefore, even though the average price of groceries and gas did not increase, other areas such as housing did rise. Which means a COLA would be needed for some individuals to help hedge these increases. Doris Bias, age 52 from Maryland, receives social security disability and was dismayed there was no increase but thankful that her landlord decided not to raise her rent in 2010.

"I know I would have found some way to manage if the rent did increase, but at least now I can continue on with my normal budget," explained Ms. Bias.

Read more: http://www.brighthub.com/money/personal-finance/articles/69916.aspx#ixzz0mlwzQw3K

Can This Happen Again?

It is possible for there to be no COLA just as there was in 2010? If there is no change or a decrease in the CPI wage earnings average from year to year, a COLA will not occur. Be advised that special circumstances occurred in 2008 and 2009 that directly affected why there was no social security 2010 cost of living raise. As with other global governments, the United States was in an economic downturn during this period meaning consumers had less money to spend due to high unemployment rates. This in turn, drove prices down to encourage increased spending. Should another economic situation similar or worse than that which occurred in 2008 were to happen, the chances are likely there would not be a COLA.

The 2010 COLA Aftermath

No 2010 social security cost of living raise was a shock to social security beneficiaries across the nation. Seniors and other beneficiaries will have to tighten their budgets a little more if housing and utility costs continue to rise. No COLA for 2010 served a reminder that this cost of living raise is not guaranteed to occur every year. When the government determines there will be no cost of living allowance, it can also affect the Consumer Confidence Index or CCI. Ways to combat any unexpected surprises should this happen again include:

•Tightening your monthly budget by trimming down to your necessities.
•Start saving a little extra money for a rainy day to help out in a crunch, if possible.
•Do not expect a COLA each year. If it happens, use that extra savings to your advantage.
For more information on the social security cost of living raise, visit the Social Security Administration's website and be sure to read the FAQ section and current press releases.

Read more: http://www.brighthub.com/money/personal-finance/articles/69916.aspx?p=2#ixzz0mlwnpQyf

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Thursday, September 9, 2010

Watch For Signs of Elder Financial Abuse

Invisible Abuse: Financial Exploitation and Senior Citizens.

Financial abuse and material exploitation of the elderly may not cause physical injuries or leave scars, but they can have devastating effects and ruin the lives of victims. An elder’s entire life savings can disappear, leaving the victim unable to provide for his or her own needs and causing harmful stress and agitation.

Financial elder abuse and material exploitation occur when an abuser uses an elder’s money or assets in a manner contrary to elder’s wishes, needs, or best interests, or for the abuser’s personal gain. Oftentimes, elderly victims are exploited because of vulnerabilities associated with advanced age, such as impaired mental capacity. Abusers can be caregivers in nursing homes or assisted living facilities, professionals hired by the elder (such as accountants), strangers, or family members.

Financial elder abuse can take many forms. The abuser may steal money or items from the elder’s bank account or home, sell or transfer property against the elder’s wishes, use the elder’s credit cards for unauthorized purchases, use the elder’s name to open new credit accounts, and create or alter a living trust or will for the abuser’s benefit. Financial elder abuse also can take the form of telemarketing fraud, identity theft, predatory lending, home improvement scams, and estate planning scams.

Unexplained behavioral changes, such as sudden secrecy or reluctance to speak freely, may be warning signs of financial elder abuse. If an elder appears withdrawn, helpless, frightened, or angry, this may also indicate that abuse is taking place. Some of the warning signs of financial elder abuse can be explained by other causes, and no single indicator can be taken as decisive proof. However, a pattern of multiple warning signs may suggest that a problem is present.

The following are warning signs of financial elder abuse:

Unusual bank account activity, such as ATM withdrawals at a bank the elder cannot travel to....

Signatures on checks and documents that do not match the elder’s signature...

Checks or documents signed despite the fact elder cannot write or understand what he/she is signing...

Unexplained change in spending patterns or unusual/out of character purchases...

Unusual medical charges or nursing home charges...

Generous gifts to a person the elder has only met recently...

Change in lawyer or bank for unknown reason...

Change in who has power of attorney for unknown reason...

Stranger who initiates close relationship with elder and offers to manage finances and assets...

Factors which make elders susceptible to financial abuse include isolation, loneliness, physical and/or mental disabilities, and lack of familiarity with financial issues. Elder financial exploitation often goes unreported. The senior may be unaware that exploitation is taking place or remain silent due to intimidation by the abuser. The elder victim may also be embarrassed about the situation or worried that making accusations will cause him or her to be labeled senile or too demanding.

Reporting financial elder abuse can save the assets, dignity, and health of an elder. If you suspect abuse, it is better to err on the side of caution in order to protect an senior from victimization.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Wednesday, September 8, 2010

Scholarships For Seniors Going to College

Most high school students headed for earning a college degree learn to search for scholarships if they need financial aid. However, senior citizens may not realize there are ways they can also cut costs if they would like a college education. here are some good ideas for earning a college degree at any age.

Senior Citizens College Scholarships

Senior citizens can search for college scholarships offered just for them. Some businesses and universities, for example, offer special scholarships for seniors. beyond scholarship money designated for senior citizens, one can look into awards offered to all adults. it is wise to keep in mind that beyond tuition there will be other fees, supplies, and books for which you will need to pay. Often students apply for and are awarded multiple types of money for school.

Discounts and Financial Aid for Mature Adults

Often, public colleges will waive tuition for senior citizens. a number of states have statewide public college tuition waiver programs for senior citizens. Some offer discounts to senior citizens. many community colleges also waive tuition for senior citizens or charge reduced rates. one should also ask about these deals and for life experience degree credits.

Alternative Education ideas for Seniors

If one does not need a college degree, but simply wishes to learn, senior citizens may be able to audit classes for free or at reduced prices. When auditing a class, the student has the choice of taking or not taking exams, writing papers, or doing other class work.

Another choice is taking continuing education classes exclusively for “mature” adults (often 50 and older). these types of classes generally run four to eight weeks and may or may not offer credits. these courses can also be a good way to meet new friends with similar ages and interests.

Many programs for senior citizens are not well known or publicized, so it is always a good idea to call around or search online.

Online Degree Programs and Courses

There are many college and university online bachelors degree programs and other classes available on the web. For Internet-savvy or homebound seniors (or even for those hoping to save on gasoline costs, etc.), this can be a viable option. Scholarships, grants, discounts, college loans, or other financial aid may still apply. Today, complete online bachelor degree programs and graduate degree programs are offered online. When searching for online degree programs, one should find out if the college or university is accredited.

Other Savings ideas for College Courses

Most colleges and universities offer many student services. these may include free or very low cost medical visits and student dental care, free cultural events, childcare, mental health counseling, free advising, and many more services.

Senior citizens wishing to extend their knowledge or skills should try not to let money be a barrier. there are plenty of options for those who do their “homework” to earn a college degree

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Tuesday, September 7, 2010

Choosing Your Senior Home: Money Factors

4 Financial Factors in Choosing a Senior Citizen Home:

Senior citizen homes aim to meet the unique needs of the retired community. When you retire, you are on a fixed income for the remainder of your life. Making financial decisions on a budget becomes extremely important because you lack the ability to go earn more money if needed. Costs can become more difficult to manage as you enter your senior years; medical expenses and care expenses can be very burdensome. To reduce these expenses and woes, many seniors consider a senior citizen home where care is provided. Unfortunately, living in these facilities can be a cost burden in itself.

#1 Cost of Residence

The cost of simply renting a residence in a senior living community can be very high. Where you are right now, you are the sole owner of a property. You manage it yourself, and you can control management costs as a result. When you buy into a larger community, the cost to manage the facility is also your burden, but you cannot directly control that cost. To help find a less expensive option, look for communities with a lot of residents. There, the costs will be split between more people, reducing the cost per person.

#2 Cost of Care

It is true that you will receive an abundance of medical care in a facility at a fixed rate. Instead of rushing to the doctor each time you are ill, you can simply use the services of an in-house nurse whose salary is covered by your ongoing payments. This will save money for those who visit the doctor frequently, but it can be a wasted cost if you are not making use of the staff. Look for a facility with many care levels. You can begin with a minimal care package, allowing you to save money over jumping into a maximum care facility.

#3 Cost of Ancillary Services

If you are still an active person, consider the services you would like to locate in a community of your choice. Some will offer educational opportunities, others will focus on spiritual guidance. You may want a large recreational area with pools, a gym or other active life options. The more services you elect, the more the home will cost. When you need to control costs, this is a key area you can cut back.

#4 Comparable Cost of Alternative Options

Cost is never an absolute consideration; it is always relative to the cost of other options. You may be fortunate to have a friend or family member who can support you in the future. You may also be willing to remain in your current residence or move into a mobile home or similar option. If this is the case, you have to compare the cost of these other options to the cost of the senior senior home. Of course, you should compare the relative happiness you could fell in each situation along with cost. Only choose the senior home if the benefits and service offered are worth any additional cost rendered through the decision.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Wednesday, September 1, 2010

Baby Boomers: Crushed Retirement Dreams

Those nearing retirement adjust to dashed dreams and diminished portfolios

Randy Kamen Gredinger and her husband, Martin, had big dreams for retirement. The couple had talked about taking a trip around the world or maybe spending time in Asia or Africa.

Then came the market downturn in 2008, which erased 25% of the Gredingers' savings.

With two children in college, their immediate concern turned to cutting costs so that they could cover tuition expenses. “We had the lion's share of college covered before the crash,” Mr. Gredinger said. “Now we don't.”

The Gredingers, both 59 and making six-figure salaries — she's a psychologist and he's a certified public accountant — still plan to retire, but probably later than they had envisioned and well past the customary retirement age of 65. And when they stop working, their travel itinerary probably won't be as extravagant as they had hoped.

“I love what I do, but the challenge for me is coming to grips with the fact that we have to work, rather than thinking of it as a choice,” Ms. Kamen Gredinger said.

The retirement dreams of many baby boomers like the Gredingers were based on having a solid nest egg consisting of ever-appreciating stocks and real estate.

The financial crisis cracked the egg.

And while stocks have made up some of the losses sustained in 2008 and early 2009, and housing values show signs of stabilizing, employment is still sluggish, and it may take a while for many boomers to recover financially and regain the confidence they had as they looked forward to their golden years.

So, boomers are making adjustments.

Forty percent of workers 45-59 now expect to retire later than they did before the market downturn, according to the Center for Retirement Research at Boston College. Most of these workers intend to delay retirement by four or more years.

Fifty-five percent of workers 45-64 are postponing travel, according to a January survey by AARP; 68% are reducing spending on entertainment.

Some are cutting back on necessities — 17% said they are reducing medications. Eight percent have taken on a second job, while 19% have increased the number of hours they work, according to AARP.

“People are really husbanding their resources and trying to save more,” said Alicia Munnell, director of the Center for Retirement Research. “Some are trying to work longer, but unfortunately, the financial crisis was accompanied by a dramatic decline in economic inactivity.”

While the Gredingers have partially replenished their savings, thanks to the market rebound, they also have taken steps to cut expenses.

Mr. Gredinger has encouraged his son to sign up for a work-study program and apply to be a resident adviser so he'll get room and board for free.

Ms. Kamen Gredinger has cut back on her shopping trips. She used to have so many designer shoes that her husband once placed them around the entire exterior of their home, just to make a point. Now if she buys one pair a year, that's a lot, she said, and she won't set foot in Bloomingdale's unless there is a sale going on.

Ms. Kamen Gredinger is also considering doing volunteer work abroad so they could travel at a discount, she said.

For some, postponing retirement is not an option — even if it means living a more frugal lifestyle than they had imagined.

John Buchter, 63, and his wife, Roberta, 65, proceeded with their plans to retire to Savannah, Ga., last year even though it could mean living on a shoestring budget for the rest of their lives.

“My father passed away at 58 and never had an opportunity to retire,” Mr. Buchter said. “So I had retirement in my mind since I was 50.”

The Buchters relocated from Reading, Pa., where Mr. Buchter worked in the steel industry. They chose Savannah because it has a warm climate and they can live there inexpensively.

Today the Buchters are living off the $2,600 a month they get in Social Security payments. They have agreed not to touch Mr. Buchter's 401(k) account for four years in the hope that it gains back the 15% it lost during the market crash.

As a result, the couple is more careful with money. They try to walk rather than drive to save on gas. And they buy generic brands at the grocery store.

“Sure, we would like to be more carefree with money, but I don't miss anything,” Ms. Buchter said.

Financial advisers and experts are worried, however, that many baby boomers, like the Buchters, are tapping into their Social Security accounts too soon.

Forty percent of 62-year-olds eligible for Social Security are taking it, according to AARP.

“Taking Social Security at 62 makes sense for those people who have shorter life spans, but that is not 40% of the population,” said Jean Setzfand, AARP's director of financial security.

Financial advisers said they are spending more time managing baby boomers' expectations.

Michael A. Masiello, a financial adviser with Masiello & Associates Estate and Wealth Preservation Council LLC, is seeing a number of new baby boomer clients who are struggling with how they are going to live off their retirement savings.

“We tell clients what they need to hear, not what they want to hear,” Mr. Masiello said. “I keep a box of Kleenex on the table.”

Many of these investors understand that the notion of retiring at 65 is more the exception than the rule, said Steven Brett, president of Marcum Financial Services LLC, which has $400 million in assets under management.

“Some of them will have to take on third or fourth careers,” he said.

But for those baby boomers who lost their jobs, finding new ones can be challenging.

Larry Benson, 53, was laid off from his job as a graphic designer at SEIU United Healthcare Workers-West in February 2009 after only 11 months.

Before that, he had been a freelancer. Since then, he has been sending out four or five résumés a week — but has been on only one interview.

“I don't know if it's my age or because I am competing against so many people,” Mr. Benson said. As for retirement, he is relying on the value of the house he shares with his partner, Rick Fitzgerald.

They bought the four-bedroom house in Oakland, Calif., for $400,000 in 2001 and figure they could sell it for $500,000 today if they had to.

“I used to think that I would retire when I could still move around — maybe in my mid- to late 50s,” Mr. Benson said. “Now I don't think I will ever retire.”

Mr. Benson isn't alone. Fourteen percent of baby boomers have lost their jobs since the market downturn, according to AARP, and 27% have had their hours or pay cut.

As a result, many baby boomers are cutting out things that could help them save for retirement, experts said. For example, only 27% of baby boomers are consulting financial planners.

“They see it as another expense they have to pay for,” Ms. Setzfand said.

In fact, a number of baby boomers interviewed for this story said they have stopped seeing financial advisers as a result of the market crash.

Doreen Orion, 50, and her husband, Timothy Justice, 52, fired their financial adviser after the market crash and decided to handle their investments themselves.

“Since we did just as badly as everyone else, we wondered why we were paying someone else to do it,” she said.

But some baby boomers, such as the Gredingers, are making a point to check in with their advisers periodically to make sure they can still meet their retirement goals, even if they are not as lofty as they once were.


For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Friday, August 27, 2010

Save Dollars - Don't Pinch Pennies

Penny-Pinching Is Fine, But It Won't Save the Profligate
by Alina Tugend

Sometimes I read about ways to pinch pennies and I feel good. We turn off lights, often buy in bulk, use compact fluorescent light bulbs and put tap water in our reusable bottles instead of buying disposable ones.

A pat on the back for us.

Then I read another list and realize there are some things I just don't want to do. I don't make my own cleaning supplies. I am pretty hopeless about remembering coupons. I rarely wash out baggies.

A kick in the pants for us.

It turns out there are a million ways to save small amounts of money, and not all of them are going to fit all of us. I know some people who have elaborate coupon systems that work well for them, but it's just not something I want to spend time on. I do use every rewards card I can, though, to rack up points toward a free movie ticket, meal or flight.

I'm not saying my choices make sense. I'm simply saying that saving is as individual as spending.

And perhaps, despite common wisdom, the small ways to save don't really help us. They can even but hurt us by fooling us into believing we are making genuine financial changes when we're not.

"We've read so much about economizing -- here's how to clip a coupon and save 10 to 20 percent," said Jeff Yeager, who wrote "The Ultimate Cheapskate's Road Map to True Riches," (Broadway Books, 2008). "But what we're missing is the golden epiphany of the time -- not can we save, but what do we need?"

Cutting out the little stuff, what's known as the latte factor, "works on paper, but not necessarily in reality," said Mr. Yeager, who also runs the Web site ultimatecheapskate.com. "It's analogous to the easy weight-loss plans -- that you can save in a quick and painless way."

If we're living way beyond our means, drinking a little less coffee may make us feel as if we're doing something, but we're really avoiding making the more challenging decisions.

Rather, we need to focus on the big choices in life, like buying a smaller house or downsizing the one we have now, Mr. Yeager said. Or living at home during college so we don't run up debt and then moving out when we graduate (rather than, as seems to be increasingly necessary, moving back in with the parents after college).

I can see these issues are important to think about and even act on. But can we start a bit smaller?

Yes, Mr. Yeager said. How about this idea, which is a common one, but worth repeating? Eat out much less. Forty-five percent of the average family's food budget is spent on meals prepared outside the house (that includes fast food). Imagine how much we can save by eating at home.

I don't have to imagine it. I know. That's one of the things we cut back on last year, and it has made a difference.

But notice, I said cut back. We haven't eliminated it altogether. There are times when a Chinese takeout or a restaurant dinner is just what we need. And that's O.K., said Rebecca Schreiber, a certified financial planner for Solid Ground Financial Planning in Silver Spring, Md.

"People tend to focus on the smallest areas that have the least impact," she said. "The key is satisfied spending." That is, don't just spend out of habit, but because it's something you really want. For instance, many people eat lunch out almost every day. It may be because they enjoy the food, but part of it is the activity surrounding the meal -- getting outside and socializing.

So try to do that in a cheaper way, Ms. Schreiber said. Instead of going to a restaurant, buy some fresh lunch options at a grocery store. Then meet with friends and eat outside or in the work cafeteria.

"You can get a salad for $4 at Trader Joe's," she said. That may be more expensive than making one at home, but it's less than ordering it in a restaurant.

When working with a client, "we get into the weeds of the behavior," she said. "We listen to the frequency and timing of the spending." For instance, one client says she goes shopping every weekend with a friend, not because she needs anything, but because it's something they always do.

"You might need to stop shopping with that friend, and find a less destructive habit," Ms. Schreiber said. "I used to take my 4-year-old son to the mall every weekend and think of something to get. What I really wanted to do was just get out. Now we go to libraries, playgrounds and museums."

Another big place to save, Mr. Yeager said, is cellphones. Don't have one.

I fear this is a battle Mr. Yeager is waging largely in vain. But his argument is that most people spend at least $1,500 to $2,000 a year on cellphone bills (I did a quick calculation, and that is true for us). While most of us tend to believe that having a cellphone is not just a convenience but a safety issue -- how else do I keep track of my children? -- the number of people killed using phones while driving belies any true safety claim, he said.

While I'm not going to give up my cellphone, I did go to the Web site fixmycellbill.com and plugged in some information to see if I was on the right plan. People waste a lot of money paying for add-ons or minutes they don't need. The site will, at no cost, tell you how much you could save by changing plans or carriers. For $5, it will give you a detailed report.

I was happy to see that our plan was the most economical one available on our carrier, but apparently if I switched carriers, I could save about $600 annually. Something to check out.

Here are some more ideas I picked up. They may not help you climb out of a deep financial hole, but if you just need to trim your budget slightly, they're worth considering:

• Your printer is a place you can save bucks. Change the font on the documents you print. A Dutch company, printer.com, found that Century Gothic and Times New Roman use significantly less ink than some of the more common fonts. It found that Century Gothic, for example, uses about 30 percent less ink than Arial. And I've found that ink bought on the Internet from companies like inkjetsuperstore.com is far cheaper than in major stationery stores.

• If you were already considering buying a new refrigerator or clothes dryer, many states are offering a cash-for-appliances rebate, modeled on the highly successful cash-for-clunkers rebate program. Each state is administering the program differently, but if you act fast you might get a rebate if you buy a new energy-efficient appliance.

• Taking a shuttle to the airport or paying for parking can run into hundreds of dollars. My neighbors and I started a reciprocal deal. If the timing allows for it, we drive and pick up her family and she does the same for ours.

I rejected a few ideas out of hand. Flattening the toilet paper roll just enough so people can easily pull out only a few sheets at a time seems, well, pathetic. It might save a few pennies, but that's one lifestyle choice I don't want to live with. I'd skip the latte instead.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Friday, August 20, 2010

Baby Boomers: Rethink Retriement Costs

by Philo Gabriel

The “Baby Boomer” generation is a colloquial term for those born during the time after World War II when the birth rate increased significantly due to the bulk of the marriage-age males returning from having been away at war, ready to settle down and start a family. Consensus places the starting year for the Baby Boomers at 1946 (nine months after the end of World War II). There is no similar consensus as to when the last Baby Boomers were born, with 1960 and 1964 being the two most common years used as the endpoint.

In any case, now retirement is very much on the Baby Boomer’s minds, and for a number of reasons it’s maybe not looking as rosy as it was a few years ago. Once aging Baby Boomers really sit down and analyze their financial situation in light of the projected costs of retirement, many of them will have reasons for concern.

First, the good news: Baby Boomers will likely live a lot longer. With life expectancy on the rise, after the typical Baby Boomer retires at 65 or 70 or whenever they choose, it’s not as if their life will be at an end or close to it. Most will enjoy many more years of life; many will enjoy multiple decades more of life.

Now, the bad news: Baby Boomers will likely live a lot longer. However many post-retirement years their parents and grandparents needed sufficient funds to cover, it’ll likely be substantially more for the Baby Boomers.

Let’s look at some of the reasons that might be a problem:

1. More years means more living costs

After you retire and no longer have work income, that doesn’t stop your bills. You still have to eat, you still have to keep a roof over your head. And a good portion of that for many seniors will be at assisted living facilities or nursing homes, which are far from cheap.

2. Medical costs go up with age

Medicare is undeniably a godsend for seniors, but it isn’t perfect. It’s not as if seniors never have to pay a penny again for medical treatment once they hit 65. Medical issues can still deal a major financial blow even to those on Medicare, and the older one gets, the more likely one is to suffer from medical problems that are very expensive to fix, or more often very expensive not so much to fix as to survive with a little longer.

3. Social Security won’t cover much

Social Security serves its purpose of keeping (most) seniors out of abject, homelessness-levelpoverty, but if your sole income is Social Security it’s not going to do much more than that.

It’s not that the doomsayers are right who’ve been saying since about five minutes after Social Security was enacted in the 1930s that it’ll be bankrupt right around the corner, that “Social Security won’t even be around by the time I retire anyway.” No, Social Security is so untouchable politically that it’ll be paying out for as long as the present form of government in the United States exists, regardless of what else has to be shuffled around to make that happen. It’ll end when an asteroid strike, or global warming, or a total economic meltdown far worse than the Great Depression wipes away the present economy and system of government, and not a moment before.

It’s not that the Baby Boomers won’t get their Social Security checks; it’s that those checks are pretty paltry, relative to their expenses.

4. Savings have taken a hit

The recent downturn in the economy and major bear market has left many seniors and near-seniors with less savings entering retirement than they anticipated. Exacerbating this is the fact that in this bear market and that of the dot-com bust of 2000-2002, many people worried about their impending retirement scrambled to get out of the market at or near what turned out to be its low point out of fear of it collapsing even further, and thus missed a good portion of the upturns.

5. Inheritance ain’t what it used to be

Once upon a time, Baby Boomers were projected to receive trillions of dollars. (A Columbia University study projected $10.4 trillion.) For the most part that hasn’t materialized.

The reasons are parallel to those facing the Baby Boomers themselves. While the parents and grandparents of the Baby Boomers are not living as long as the Baby Boomers are expected to, they’re living longer than previous generations, and therefore using up a lot more of their net worth on themselves. Furthermore, they too have taken a big hit from the downturn in the economy.

6. You can only work so long

Many people as they approach retirement age assume that as a fallback, they can simply work longer than planned. If they had hoped to retire by 63, maybe that could be set back to 66 or 67. If they had always assumed they’d be retired by 70 at the latest, maybe they’ll just haveto keep getting that paycheck to age 72 or 73 or even 75.

No doubt that will work for some Baby Boomers. They’ll be able to work a few extra years, and if they like what they do they might even be happier than if they had stopped.

But it won’t work for everyone. Aging beats people up, physically and mentally. You might be able to hold down a job in your 60s, maybe your 70s, maybe even beyond. But you might not. You certainly can’t guarantee that you’ll have the energy and the mental sharpness to have a paying job when you’re 78. The age will vary from person to person, but you’ll reach a point when retirement isn’t a matter of choice.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Wednesday, August 18, 2010

Frugality is the Best Policy

Jeannine Aversa and Bernard Condon, AP Business Writers,

Frugality among consumers is outliving the recession (what recession?)

Even as the economic recovery plods ahead, many American consumers are refusing to come along.

They're not spending freely -- and they have no plans to.

Many of them have steady income. They aren't saddled by high debts. They don't fear losing their jobs. Yet despite recent gains, they've lost so much household wealth that they're far more cautious about spending than before the recession.

Their behavior suggests that the Great Recession may have bred a new frugality that will endure well into the recovery. And because consumers fuel about 70 percent of the economy, their tightfisted habits means the rebound could stay unusually sluggish.

That's the picture that emerges from an Associated Press survey of leading economists and interviews with more than two dozen ordinary Americans. The new AP Economy Survey asked 44 leading economists whether the recession created a "new frugality" among consumers that will outlive the recession. Two-thirds said yes.

They had in mind people like Marjorie Feldman of suburban St. Louis, who retired three years ago as a systems analyst for a utility company. The stock investments in her retirement account have sunk 15 percent from 2007. The value of her home is down 20 percent.

"I had retired assuming I'd make money" off the investments, said Feldman, who's in her early 60's. "I just don't feel as confident in the economy, and I never will again. I won't spend money the way I used to."

Feldman's husband works full time in academia. She has a part time job preparing tax returns at H&R Block. But her prime earning years are behind her.

"I don't think it will ever get back to where it was before," she said of her nest egg. "I won't spend money the way I used to."

Scott Hoyt, senior director of consumer economics at Moody's Economy.com, notes that baby boomers, in particular, enjoyed spending sprees for most of their adult lives as their assets steadily grow.

"But the recession changed that," Hoyt said. "Many have retirement and children's education looming. All of a sudden, they see their balance sheets decline in a way they've never seen before."

To be sure, many shoppers, especially the wealthy, are buying into the recovery. Partly on the strength of consumer spending, the economy emerged from recession last year and has been growing steadily, if moderately, since. Major retailers logged solid sales in March. Employers have begun to add jobs, including a net increase of 162,000 in March. The stock market has risen 70 percent from its low in March 2009.

Yet many who became penny-pinchers during the recession are in no mood to start shopping again with abandon for clothes, cars and home additions. They've discovered the peace of mind that comes with rebuilding savings, shopping more prudently and learning to live with less.

At their nerve-racked peak last year, Americans socked away 6.4 percent of their disposable income. That compared with less than 1 percent hit at one point during the pre-recession boom. The savings rate has since dropped to 3.1 percent. Yet few expect it to approach the near-zero savings rate that would signal high-octane spending has roared back.

Susan Wilson, 55, a freelance PR specialist in Scottsdale, Ariz., says her business is picking up. But her spending isn't. Wilson still feels burned by the recession, when she lost her home to foreclosure.

"Shame on me," she said. "I wasn't paying enough attention to my financial health. That will never happen again."

Wilson is renting now. She traded in her leased car for a used car she could buy outright. She's started growing her own vegetables and air-drying her laundry to save money and stay out of debt. She's looking to buy a home, but not one with an outsize mortgage.

"I'm looking for pretty much the smallest house I can live in," she said.

Interviews with ordinary Americans suggest a new frugality endures even though consumer spending has risen for five straight months and retail sales for three.

In the AP's new quarterly survey, a majority of economists agreed that a new frugality will persist even as the recovery gains firmer footing.

"I would call it a 'mini age of austerity,'" said Sean Snaith, an economics professor at the University of Central Florida.

"Consumers will not run up multiple credit cards to their limits, and when buying a house the objective will not be to get the maximum square footage for which they can afford the payment. A higher savings rate will be in place for several years."

Jeff Thredgold, an economist at Thredgold Economic Associates, predicts "less impress-my-neighbor-type spending" in coming years.

Count Keith Flowers of Manassas, Va., in that category. He's decided that the hit he took in the housing slump requires him to continue to rein in spending. He's cut off his landline phone and has become a regular at discount retailer Costco.

He isn't worried about losing his job in business development at an information technology company. What's led him to cut back spending is the sunken value of his condominium. He bought it in 2005 for about $270,000.

"I doubt right now it's cracking $100,000," Flowers said.

Rajeev Dhawan, director of Georgia State University's Economic Forecasting Center, says: "I think the chances of us being big spenders in the next 10 years are pretty low."

So much household wealth was inflated by the housing boom, Dhawan said, that the real estate bust spooked consumers. States hardest hit by the bust -- California, Nevada, Florida and Arizona -- together account for about 30 percent of national economic activity, he noted.

Household net worth -- the value of assets like homes, checking accounts and investments minus debts like mortgages and credit cards -- has risen for three straight quarters. But economists say consumers would need a stronger and prolonged increase in wealth to lead them to ratchet up spending. Net worth would have to rise an additional 21 percent just to get back to its pre-recession peak of $65.9 trillion.

Some economists put their hopes for the economy in the rich, who are spending more freely than the rest of the population. They hold out hope that this will encourage more hiring and stimulate spending by the less wealthy. More spending could increase companies' revenue, which allow them to boost hiring and pay. And that would lead their employees to spend more.

Royal Caribbean Cruises Ltd. returned to a first-quarter profit as more travelers vacationed on its ships and spent more money on board. And makers of luxury goods are benefiting from a release of pent-up demand for jewelry, watches and high-end furnishings.

High-end retailers have reported blowout results. Nordstrom's revenue in stores open at least one year jumped 16.8 percent last month. Saks' surged 12.7 percent.

McClaren Automotive has announced it will debut a $200,000 sports car in the U.S. next year. And business is picking up faster at high-end hotels than at mid-priced and budget hotels.

Whether spending by the wealthy will cause the less-well-off to spend freely, too, remains unclear. For now, though, many people have embraced a more frugal approach to spending.

Or maybe they've just learned to go without.

Jan Iris Smith, 57, and her husband of Cabin John, Md., put off furniture and clothing purchases after the stock market's collapse in early 2009.

"We were counting on our income from our investments," said Smith, a psychotherapist whose husband is retired. "We just stopped pretending everything was going to be OK anytime soon."


For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Friday, August 13, 2010

Fend Off That Collection Agency

Among debt collectors, Steven Katz is known as a “credit terrorist.” For years, he has run what he calls the Steven Katz School of Bill Collector Education, otherwise known as the “credit terrorist training camp.”

Mr. Katz, a 58-year-old accountant in suburban Tucson, spends his free time schooling debtors on the finer points of consumer protection law to help them turn the tables on debt collectors. On occasion, he thumbs his own nose at them too.

“How many times can I sue you? Let me count the ways,” he wrote under his pseudonym, Dr. Tax, in a March posting on Inside ARM, a debt collectors’ Web site.
A former bill collector himself, Mr. Katz rebelled after a debt buyer damaged his credit score with what he says was a bogus bill. Mr. Katz sued, and in 2003 he collected his first damage award, a $1,000 check that he now keeps framed behind his desk.

“The bill collectors, when they call, make you feel like the only option you have is to lay down and play dead. That’s not true,” said Mr. Katz said, who does not charge for his advice. “Nothing validates this more than getting a check.”

Call this movement revenge of the (alleged) deadbeats. Even as collectors try to recoup debts from millions of Americans struggling to pay their bills, a small but growing number of lawyers and consumers are fighting back against what they describe as harassment, unscrupulous practices — and, most important to their litigiousness, violations of the Fair Debt Collection Practices Act.

In fact, 8,287 federal lawsuits were filed citing violations of the act in 2009, a 60 percent rise over the previous year, according to WebRecon, a site that tracks collection-related litigation and the most litigious consumers and lawyers on behalf of debt collectors.

On Wednesday, the Supreme Court made it even easier for consumers to use the courts to fight debt collectors, ruling that collectors cannot be shielded from suits by claiming they made a mistake in interpreting the law.

When a consumer stops paying a bill, creditors often try to collect on their own for a few months. In many instances, the creditor hires another company to collect the debt. In other cases, they may dispose of the debt by selling it to a debt buyer for a steep discount.

Debt collectors and debt buyers are the targets of litigious consumers, since the debt collection law primarily applies to third-party collectors.
Peter Barry, a Minneapolis trial lawyer, is so bullish on the future of debt collection litigation that he holds several “boot camps” each year to share his secrets with other lawyers who want in on the action. If the debtor wins a court case under the act, the debt collector must pay the lawyer’s fees.

The next boot camp is being held in early May in San Francisco, at a cost of $2,495 a person for two and a half days of instruction.
“I can’t sue every illegal debt collector in America, although I’d like to try,” Mr. Barry said.
Mr. Katz can also claim some credit for the increase in lawsuits. For six years, he has run a free Web site called Debtorboards.com, where people share tips on topics like keeping a paper trail and recording calls from collectors.

He said the site received two million hits in 2009, a 60 percent increase over the previous year.
“Debtorboards is geared to help people use the laws as they are on the books as both a shield and a sword,” said Mr. Katz, who says he has won $36,000 from his own litigation against collection agencies. (Since many of the settlements are confidential, it is difficult to prove the claims of Mr. Katz and others).

Of course, debt collectors are hardly pleased with the litigation trend.
Rozanne M. Andersen, chief executive of ACA International, a trade association for the debt collection industry, said she was “extremely concerned” about the increase in lawsuits, which she said cost her industry hundreds of millions of dollars a year. She said much of the increase was the result of ambiguous language in the Fair Debt Collection Act.

Debt collectors are required, for example, to identify themselves on a voice message left for a consumer, she said. But they are also prohibited from telling a third party — including someone who might overhear a phone message — about a consumer’s debt.
“We are between a rock and a hard place,” Ms. Andersen said.
Ms. Andersen said she had little patience for Web sites that encouraged consumers to thwart debt collectors.

“We believe those types of Web sites are encouraging people to not take responsibility for just debt,” she said.

Jack Gordon, who runs the fee-based WebRecon site, said it was no wonder lawsuits were increasing, because consumers were being bombarded with ads from lawyers when they searched online for information on debt collection. He said the proliferation of discussion sites like Mr. Katz’s had, to a lesser extent, also contributed to the trend.

On the boards, he said, “There’s a lot of hot air, a lot of people who overinflate their accomplishments.” Regardless, Mr. Gordon’s database has become a badge of honor among the devotees of Debtorboards.com. As Brandon Scroggin, a 37-year-old from Little Rock, Ark., puts it, “That’s one list I’m a proud card-carrying member of.”

Mr. Scroggin, who provides price estimates at a body shop, said he was the type of person who refused to be taken advantage of, even for petty offenses. For instance, years ago, he said he joined in the class-action suit against the pop group Milli Vanilli, accused of lip synching, and collected a $1.25 check.

After a messy divorce, Mr. Scroggin was stuck with a $7,000 bill that he said belonged to his ex-wife. Instead of paying it, he began researching the law and stumbled on Debtorboards.com.
Armed with lessons he learned on the site, he demanded proof of the debt from the collection agency, and the calls stopped. But two and a half years later, they started up again so he sued the collection agency, National Loan Recoveries, for failing to provide proof of the debt, among other things.

The case was settled in 2008. The terms were confidential, but he says he never paid National Loan a dime. “Let’s just say I’m a very happy person,” he said. A lawyer for National Loan, Kathryn Bridges, did not return messages seeking comment.

Mr. Katz said his Web site was not intended to help people avoid paying legitimate debts. But if they do so, so be it — he feels no need to apologize.

He said Congress gave consumers certain rights, and he is simply making people aware of them, sometimes colorfully.

As Mr. Katz says at the bottom of each Dr. Tax posting, “A telephone in the hands of a collector is like a crowbar — it can be used to pry a mouth open wide enough to insert a foot.”
Barbara Thompson, 46, of Atlanta, said she challenged $11,000 in credit card debt using online research about collection laws. She does not dispute the debts but reasons that the credit card company wrote off her charges long ago. By her account, she owes the credit card company, not the debt collector.

“The credit card company, they sell it off, they charge it off, it’s just business as usual,” she said, adding, “I’m adamant about not paying a collection agency.”

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Wednesday, August 11, 2010

Saving Money on Health Care - 4 Tips


Four tips for saving money on health Care

Whether you have individual or group health insurance, costs keep going up and we’re paying more out of pocket, but there are a few ways to guard your pocketbook. Here are four money-saving ideas to consider as you go about your routine health-care activities.

1. You might assume generic drug costs are all the same, but compare them anyway. Prices can vary widely depending on the kind of prescriptions and coverage you have. Shop around at pharmacy chains like Walgreens and Costco to see if your generic drugs cost less there than under your health plan. You may be able to find some savings. Charlie Lichtman, a San Francisco man who recently received notice his health premiums were going to rise 38%, cut his generic-drug tab by about $2,300 a year this way. See this Vital Signs column from early March for more on his quest for answers and savings.

2. Don’t be afraid to question your doctor. Many times potential savings and even patient safety concerns start at the doctor’s office. If your doctor wants to send you for a test, it’s a good idea to ask how the results would affect the course of your treatment. Patients are wise to be skeptical if the doctor is unwilling to discuss his or her reasoning – and both the risks and benefits of doing a particular test.

3. If your doctor sends you for a blood test, consider your options before going to the nearest laboratory. An independent lab like Quest Diagnostics may be able to run the same blood test just as effectively for less money.

4. Review your explanation of benefits forms. You may spot discrepancies or questionable billing practices. If you do, call your health plan, doctor’s office or hospital’s patient accounts line for more details. And if you’re on the receiving end of a persistent billing error that may threaten your credit score, don’t ignore your health insurer. They may be able to help you resolve the problem with your health-care provider.



For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Thursday, August 5, 2010

Next Year's Taxes Will Be Higher For Seniors


As you race to get your 2009 federal income tax return in the mail, take a moment to consider the tax landscape. It's changing, especially for senior citizens, and it's not too early to start planning for it.

No matter how you slice it, taxes are probably headed higher, if not this year then next year for certain. The income tax reductions enacted in 2001, often referred to as the "Bush tax cuts," are set to expire at the end of this year. It's possible Congress could vote to extend them for a year or two, but unless the economy slides back into a recession, few analysts expect that.

That means starting next January chances are you will move into a higher tax bracket, even if you're not making any more money. In most cases, you can expect more money to be withheld from each paycheck.

Currently, the top tax brackets are 35 percent and 33 percent. These are the rates paid on income by the wealthiest Americans. When the tax cuts expire, the top tax rate will rise to 39.6 percent.

There are bigger changes farther down the tax table. The tax cut law added two extra tax brackets; a 25 percent bracket and a 10 percent bracket. When the law expires, the 25 percent bracket reverts to 28 percent while the 10 percent bracket moves up to 15 percent - the largest increase of all.

Also set to expire are some reductions in taxes on investment income.

Deduction limits?
In addition, President Obama has floated the idea of limiting some deductions claimed by upper income tax payers. For example, the administration has suggested limiting the value of top earners' itemized deductions to 28 percent.

Even though they would be paying 39.6 cents of every taxable dollar in taxes, deductions would only save 28 percent of every taxable dollar. At the same time the Administration has also suggested limiting the value of the current mortgage interest deduction.

Should you be worried about that? Probably not, at least not right away. Those changes would require action by Congress, which is unlikely in an election year, if at all. Also, the impact falls only on those in the top tax bracket.

Are there any taxes you should plan for in the short term? Yes, if you're a high wage earner. The just-passed health-care bill contained a couple of increases in Medicare payroll taxes for higher-income taxpayers. Analysts at Deloitte say those provisions would cost about $2,250 for a family with income of $500,000.

For retirees, the Medicare Part B premium, which is deducted from Social Security checks, has gone up. The cost this year is $2,652 for a married couple, up almost 17 percent from the $2,270 cost last year. Those in the upper income brackets will pay even more.

If you retired this year, don't forget you'll be taxed on 85 percent of your Social Security benefits. You will likely need to make quarterly estimated payments to avoid owing additional taxes, and possibly penalties, at the end of the year.

Roth conversions
One of the biggest tax changes of 2010 is the ability of all income groups to have a Roth Individual Retirement Account. In the past, upper income groups could not participate.

The difference in a Roth and traditional IRA is simple. In a traditional IRA, contributions are tax deductible each year, the money grows without a yearly tax event, and the account holder then pays taxes as she withdrawals the money.

With a Roth account, the contributions are not tax deductible but withdrawals are. This is a significant advantage if you expect to remain in a high tax bracket during much of your retirement years. However, to convert a traditional IRA to a Roth, the account holder must pay taxes on the current value of the account, which can be a significant hit.

The Estate Tax was repealed for 2010, meaning there is no tax this year on any sized estate. However, the tax is scheduled to return next year, taxing any estate over $1 million in value. The tax rate would also go up significantly. Congress is expected to take action before that happens and may set the limit a bit higher.

In 2007, federal, state and local taxes claimed about $3.8 trillion, or 27 percent of U.S. gross domestic product, according to the non-partisan Tax Policy Center. That's nearly $13,000 for every American. Two-thirds of tax revenues went to the federal government.

It may sound like a lot, but taxpayers in other developed countries pay even more. In 2006, taxes in 30 of the world's richest countries averaged 36 percent of GDP; only Mexico, Turkey, South Korea and Japan had tax rates lower than the US. And taxes in many European countries exceeded 40 percent of GDP because these nations offer more extensive government services than the US does.

Americans do pay far more in individual income taxes than residents of other wealthy nations. Nearly 37 percent of U.S. tax revenue came from personal income taxes in 2006, about 10 percentage points more, on average, than in other industrialized countries. But Americans pay much less in sales taxes; 17 percent of 2006 U.S. tax receipts were from taxes on goods and services, or about half the 32 percent average for rich countries.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Friday, July 30, 2010

Multi Generational Homes: Trend Reversal


In 2003, members of Rosa Licea-Mailloux’s family bought an eight-bedroom house in North Grafton. Her household now consists of her parents, husband, two brothers, sister-in-law, aunt, uncle, three cousins, and her own 3-year-old daughter.

Living in a multigeneration household is “partly a cultural thing,’’ said Licea-Mailloux, 33, a Boston attorney whose parents emigrated from Mexico in the 1970s. But the built-in advantages — like having help with child care, or being near her parents as they age — also make living in a large familial nest appealing, offsetting a loss of privacy.

The Licea-Mailloux family’s living arrangement is representative of a marked change in how the American family has organized itself over the past three decades, an evolution brought on by what one observer calls “a perfect storm’’ of demographic, cultural, and economic factors.

A report last month from the Pew Research Center found 49 million Americans, or 16 percent of the population, living in multigeneration households as of 2008, compared with only 28 million in 1980, or 12 percent. The surge reverses a sharp decline between 1940 and 1980, when the percentage of Americans living multigenerationally dropped from one-fourth to less than one-eighth.

The most common arrangement? The head of house living with his or her adult child and grandchild, an arrangement shared by 2.2 million Americans, according to an AARP poll that echoes the trend. An additional 1 million occupy households where the head of house belongs to the so-called sandwich generation, living with both a parent and child in the house.

Both studies offer a variety of reasons for families opting to move in — or back in — together in large numbers, among them a tough job market and rash of home foreclosures, along with the cultural influence in immigrant communities, and a desire to share the care of family members.

“The difference between this boom we’re seeing now and the postwar model is, back then it was almost automatic that grandparents moved in with adult children,’’ said Amy Goyer, who blogs on intergenerational issues for the AARP. “Once people got more mobile, this was much less of a given, though.’’ Today, Goyer said, family members increasingly rely on one another for support, whether it’s because more grandparents have seen their savings shrink during the recession or because more mothers work outside the home and need assistance with child care. “I’ve been hearing both enthusiasm and reluctance’’ from family members who are regrouping this way, she said, “but most focus on the positive side.’’

Even the White House has become a three-generation household, noted Goyer, with President Obama’s mother-in-law moving in last year.

Jane McMahon wasn’t necessarily thinking big picture when she sold her Springfield house in the mid-’90s and moved to Eastham. McMahon, 68, bought a small, two-bedroom Cape cottage, mostly to be near her three adult children. Suffering from a slow-progress form of muscular dystrophy, however, McMahon knew she could not take living independently for granted as the years rolled by and her disability worsened.

Page 2 of 2 --Her son moved in with McMahon not long after, followed by her future daughter-in-law. The high cost of rentals had priced them out of the local housing market and, she said, “they said they’d take care of me if I could give them more space and privacy, so that’s what we did.’’

Five years ago the cottage was torn down and replaced by a two family home that accommodates both McMahon’s physical needs and the couple’s desire for privacy. Last summer McMahon welcomed a granddaughter into the household.

“Now I have assisted living at its best, and they have their own two-story house,’’ McMahon said. “This is the way it used to be’’ — with older, more experienced mothers lending advice to first-time parents. Though unable to handle some child care duties, McMahon helps with laundry, bill paying, and other chores. Having a granddaughter around 24/7, she said, is “the best pain medicine I’ve ever had.’’

Returning closer to family is often the primary concern, said Joann Montepare, director of Lasell College’s Fuss Center for Research on Aging and Intergenerational Studies.

“People want that multilayered piece to their lives,’’ she said. “They’ve lived a distance from their parents; now they have kids of their own and want to live closer.’’

While living with an older parent or two can be challenging, she said, “people are also more open to the benefits of living intergenerationally, and in a rich way.’’

For Debbie Sheehan and her mother, Jan Liehe, it’s taken a concerted effort to face the rougher sides of multigeneration living to make the arrangement go smoothly. Sheehan, 39, lives in a four-bedroom Somerville house with her husband and two young daughters. Liehe, 71, retired from working and left her Ohio home four years ago, intending to help Sheehan with first-time motherhood.

Sheehan anticipated her mother staying around for a few weeks. But a combination of financial need — Social Security checks are Liehe’s sole income — and generational bonding has turned a few weeks into four years.

“The first few months were the honeymoon period, then we went through struggles and tensions,’’ Sheehan recalled. “In terms of privacy, it’s hard enough adjusting to having a spouse around. With a parent, though, there’s always that duality of being a child and a parent at the same time.’’

It took multiple family meetings for roles and responsibilities to become clear, both women said. “We knew we had to deal with this, or one of us would have to move out,’’ Sheehan admitted.

Said Liehe: “I’m very independent and always have been. To slowly lose that has been a challenge. But we’re working it out. And some day I’m sure the kids would love to have their house back.’’

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524

Thursday, July 29, 2010

Baby Boomers In The Role Of Caregiver


Except for the years when my father was serving in World War II, my parents were inseparable during their 54-year marriage. Then, 14 years ago, Dad died at the age of 80 of a brain tumor.

My mother, who was just 73 at the time, was pretty much self-sufficient for about a decade after that. She still played tennis, drove her car, and got together with friends and neighbors, including fellow retirees from her years as a kindergarten teacher who met monthly for lunch. After a few years, Mom had a new romantic partner as well.

Then, about four years ago, my sister and I got “the call.” It was the call to which many baby boomers who have an aging parent can relate. Who makes the call can vary. It can come in many forms -- a phone call, a letter, an e-mail, or even someone making a comment. It is that defining moment, that “wake up call” if you will, the one where you can no longer deny that your parent needs help.

Whether the call is from a physician, a sibling, a spouse or romantic partner, a friend, a neighbor or, in some cases, from the police or even the fire department, it is that call that distinguishes the moment when you go from being an adult child to someone who will now have to be the parent to your parent.

Giving Up the Car
For many of us, the first big change in our parents’ independence occurs when it becomes prudent for him or her to stop driving. (See, “Seniors in More Severe Auto Crashes Than Younger Drivers” which reports on a study conducted at Kansas State that analyzed the driving patterns of those aged 65 and over.

Parents who live in an urban setting, where driving was rarely an issue, may find it has become more difficult for them to take public transportation because of diminished mobility or increased feelings of insecurity around strangers. It is often left to the Boomer to help his or her parents to get around. And that’s just the beginning.

Seek Out Help
If you find yourself becoming your parents’ caregiver, it may be useful to invest some time and money in meeting with an eldercare or geriatric manager or counselor. They can guide your parent or you through the world of senior care that you and your parent or parents are now entering.

Linda A. Ziac, president of the Caregiver Resource Center, has been working in the eldercare field for 35 years. She emphasizes that “no two situations are the same.” Ziac gets calls from adult children who are trying to get things in place but their parent refuses to talk about it, as well as “calls from seniors from 60 to 90 saying that they want to explore help for themselves.”

You can find a local eldercare manager or counselor the same way you would find any trusted professional: ask friends, your own physician, or senior services in your own or your parents’ community for referrals. Then perform due diligence checking out their credentials, testimonials, or websites. Usually there is an initial consultation for a fee and if additional services are requested, you would negotiate with the eldercare specialist what assistance will be needed and what it will cost.

Becoming Your Parents’ Advocate
One of the best gifts you can give to your aging parent or parents is to become their advocate. This is especially important if a parent starts to have a diminished capacity and can no longer deal with such everyday activities as walking, feeding or dressing oneself, making phone calls, or cooking.

As eldercare counselor Ziac points out, there is a big difference between being your parents’ advocate and helping and taking over in a way that makes the parent feel worse. Ziac says, “There has to be a conversation between the senior and the family to honor the wishes of the senior. They can’t just come in and dictate what the right thing is to do.”

Even if the final decision about what your parent wants to do is up to him or her, you can still help by doing some research. For example, if your parent has vision challenges such as macular degeneration, you can explore if there are free services for the visually impaired in your community. Volunteers may be available to read to your parent on a regular basis for one to two hours a week.

As long as your parent is still self-sufficient and able to get to the programs and participate in activities, or has a caregiver to help out as needed, you can explore senior centers in your parents’ community to see what she or he might want to participate in.

Getting a Geriatric Assessment
If you suspect that your parent has Alzheimer’s or another kind of dementia, you might want to get a detailed geriatric assessment through a hospital or a neurologist. This will give you a starting point of how your parent is currently functioning as well as suggestions about what medical or social services your parent would benefit from. One such program is run by the Center for Healthy Aging at Greenwich Hospital in Greenwich, Connecticut.

The assessment is conducted by the Geriatric Health Team which consists of a geriatrician, who is a physician, board certified in geriatric medicine, a geriatric nurse practitioner, a pharmacist, a gerontologist, and a social services liaison. (Your parent would first be seen and evaluated by an internist who would make the determination that your parent should be referred to a neurologist or geriatric assessment center.)

Housing and Caregiver Considerations
Author Mike Campbell has spent more than 18 years in the senior housing and care industry including visiting hundreds of nursing homes or assistant living residences on behalf of his former employers. He also comes to this topic from a personal perspective. Campbell and his siblings, all of whom live in Ohio, and his mother, who is 81 and living in Florida, are deciding where she should live since her second husband died. (Campbell’s father died suddenly at age 57 of a heart attack.)

In his book, When Mom and Dad Need Help, Campbell identifies nine basic housing options that seniors and their Boomer children need to consider:

(1) parents moving in and living with you;
(2) adult day services, a community-based option, with your parent still living in their same home;
(3) home care services, while still in the same home;
(4) moving to an independent community with supportive services;
(5) assisted living communities;
(6) stand-alone Alzheimer’s dementia communities;
(7) nursing care facilities;
(8) Continuing Care Retirement Communities (CCRCs)which offer all of these levels of care on one single campus; and
(9) hospice, the final option.

Campbell says there are pluses and minuses for each option. One concern is cost but another key factor is the staff. According to Campbell, “You want to have “adequate staff and adequate training.”

In assisted living and nursing care residences, the recommended maximum staff to resident ratio varies depending upon the shift. For the morning (7 a.m. to 3 p.m.) shift, Campbell suggests that the maximum assisted living ratio should be 10 residents to one direct care staff. In a nursing home, Campbell’s maximum recommended ratio is 5 direct care staff to one resident.

In addition to finding out the staffing ratio, you and your parent will also want to tour any residences that your parent is considering. Here are some questions you want answered:

• What is the ambiance of the residence?
• Are activity rooms in use?
• What is the dining area like?
• Is the food up to the standards that you and your parent were expecting?
• What will this residential option cost?
• Are there any additional fees beyond the daily room rate and meal charges that you should know about such as charges for various types of assistance, from administering medications to escorting to meals or activities, as well as any one-time or recurring activity fees?
• How long is the lease and what, if anything is the obligation for payment of the monthly rent if there is an extended hospitalization or death that requires breaking the lease?
• How friendly are the staff and fellow residents?
• Is there an emergency system in place if your parent falls and can’t get to the phone such as pull cords in the apartments that connect to the front desk or to 911?

Legal Issues
Hopefully your parents will have already taken care of the major legal issues such as having an irrevocable or revocable trust, a will, a durable power of attorney, and a health care directive. (See “A Legal Wake Up Call for Boomers” for a discussion of these key legal concerns.) You should look at these legal and estate issues from your parents’ perspective. It may be helpful to consult with the family attorney or an elder care attorney on these matters.

As Carolyn L. Rosenblatt, who was a nurse for 10 years, a lawyer for 30 years, and who is now an elder care advisor and author of The Boomer’s Guide to Aging Parents, says, “Everyone needs to have a durable power of attorney for finances and a health care directive for health.”

Everyone Ages Differently, On Their Own Timetable
At the assisted living residence where Mom now lives, there is a petite healthy woman who is 103 years old. Everyone points to that woman as a role model of aging. On the one hand, it is very comforting to know that someone could be 103 and still be in excellent shape, walking on her own, and needing minimal assistance with everyday self-care.

But, on the other hand, it is a false standard by which all others are compared. For one thing I have learned most about aging is that there is a very wide disparity in how or when someone loses their mobility, develops dementia, suffers from chronic pain, arthritis, or contracts life threatening diseases like heart disease or cancer. Therefore, it’s important to keep the focus on the abilities and challenges of each senior rather than making him or her feel unfairly compared to someone else who seems to be faring much better even at a more advanced chronological age.

I have also learned that seniors deal with the changes they are going through in unique ways. Some become very angry and resentful, looking back at the way things were; others are accepting and positive. Excessive and ongoing depression and sadness in seniors, however, is not necessarily a normal part of aging; it is treatable. If your parent is showing signs of chronic depression, seek out a geriatric social worker or counselor, psychologist, or psychiatrist for help. (See “Depression Not a Normal Part of Aging” by Fred Cicetti).

Meeting Your Aging Parents’ New Relationships
As your parents’ life changes, they may also be forming new friendships or even romantic relationships, which may be an adjustment for you. For example, 49-year-old Brenda, whose mother died suddenly in 2008 after 51 years of marriage, said it was a challenge dealing with a new stepmother for her and her siblings.

“It wasn’t a few weeks before my father was looking for a new wife,” said Brenda, “and he was quite open about his desires, even before my mother’s funeral. He did not want to be alone and he was going to make sure that was not the case for the rest of his life. Within five months, he was online dating, and he quickly found someone who looked exactly like my mother. It was comforting and disturbing all at the same time. Within 17 months, he was remarried. All has gone well with the marriage, however a couple of my siblings have had great difficulty with the transition to having a stepmother.”

Health Care Issues
Coping with the myriad of healthcare issues is a large part of the aging process and can take a lot of time and attention. Although some parents will be fit and self-sufficient even into their 90s or beyond, others will have one or more health concerns that require your time.

With the advancement in medicine today, conditions that seemed a part of aging that just had to be endured are now treatable even if not curable. For example, there are medications that internists can prescribe for incontinence; urologists may even have additional treatment suggestions including surgical procedures, to minimize or eliminate this as a health care issue. Research advances in treating any number of age-related health care problems, such as macular degeneration, dementia, arthritis, depression, or hearing loss. You may also want to find local or even out-of-state experts who can help.

How Are They Going to Pay?
As elder care advisor and lawyer Rosenblatt points out, “One of the biggest problems we have as Boomers is that many parents did not plan on living this long and have outlived their money.” That leaves the question, how is your parent going to pay for their care?

You may want to hire an elder care attorney or specialist with whom you can have a family meeting to weigh the various options. If your parents got long term care insurance in their 50s or 60s, that is one possible option; if they are already in their 70s or 80s or older, it is probably too late to buy such insurance. Since your parents are over 65, they will have Medicare, but Medicare may not pick up all the healthcare expenses.

Your parent might want to look into the feasibility of buying “gap” insurance which covers some or all of the difference between what healthcare costs are reimbursed by Medicare and the actual costs. (Because of the recently-passed health care reform bill, you may want to check with an elder care expert about what is changing for senior healthcare.)

If your parent needs to go into a nursing home, or if you need a nurse to care for your parent in his or her home, you might want to find out if your parent is eligible for Medicaid to cover some or all of the costs. Since this is an extensive requirement and application process that varies from state to state, you might want to hire an elder care attorney to help your parent with this.

Acceptance and Perspective
Recently I asked my mother, who now needs continual care since she has mobility, vision, and memory issues, if her situation is hard on her. “No,” she answered, much to my surprise. “That’s good to hear,” I replied with relief. Then she continued, with absolute clarity and certainty, “It makes me feel loved.”

I learned so much in that exchange with my mother. I was looking at her situation as an outsider rather than as the one who has resigned herself to the walking and memory challenges that are part of my mother’s new world. I also did not understand that she views her situation from a very different perspective than I do. I am a “young” 61-year-old. My mother’s world is now mostly made up of other seniors with physical and mental challenges of their own who are in their 70s, 80s, 90s, and beyond.

Caring For Ourselves
We Boomers also have to remember that it’s okay to turn to other family members, romantic partners, friends, or even local support groups if we need help in our caregiver role. (See “Managing the Stress: Tips for the Caregiver” at the AARP website.

It Will Never Happen To Me!
I try hard to make time for Mom by visiting her regularly and calling often. I like to think that I won’t be so dependent on my children when I am that age. Not me! I jokingly tell my sons, who are now ages 20 and 24, that when their father and I are in our late 80s, we’ll be traveling around the world in a hot air balloon, joyfully independent and healthy.

However, deep down inside I can hear a little voice telling me that my mother and every other senior dealing with the tough physical and mental challenges of growing old probably had that same dream and hope when they were my age. It is a reminder to live our dreams as fully as possible while we still can because aging and all that entails is happening to all of us.

For more information contact Senior Solutions at (954) 456-8984 or toll free at 1-800-213-3524