You've waited all your life for this moment! Or perhaps you're gearing up for it in the near future. Whatever your situation, you want your retirement to be the best it can be. From protecting your nest egg from scammers to settling in to semi-retirement to gracefully aging in place, we've got some rock-solid advice you can use right away.
Article
Protect Your Nest Egg from Scammers
You've worked hard for decades to put away enough money for a comfortable retirement. Now you've got to protect that cash from any crooks and fraudsters who might be lurking.
ou've worked hard for decades to put away enough money for a comfortable retirement. Now you've got to protect that cash from any crooks and fraudsters who might be lurking. Their scams could wipe out a lifetime of savings.
The threat is real. A recent survey by the Investor Protection Trust found that nearly one in five Americans age 65 or older had been taken advantage of financially. Because some fraud victims may be too embarrassed to report the crime or may not even know that they've been had, the actual number may be even higher.
Follow these steps to keep your nest egg from getting cracked:
If an investment seems too good to be true, it probably is. Given that most retirees are worried that they may outlive their money, it can be tempting to fork over funds to someone who promises guaranteed profits. But when it comes to investing, there really is no such thing. Beware of any high-pressure sales pitches, particularly any that require you to act immediately to lock in some promised returns. If you're worried that a potential investment might be a scam, answer some questions about it on the Financial Industry Regulatory Authority Scam Meter to see if it raises any red flags. Then run the company's name with the Better Business Bureau (BBB) to see whether it has been the subject of previous complaints.
Don't fall for phone calls demanding cash, no matter the reason. You probably already know to delete the email from the Nigerian prince asking for money to claim his fortune, but the most common scams now come via a phone call and they're becoming more sophisticated. Posing as representatives of the IRS, swindlers now call unsuspecting victims and threaten legal action for (bogus) overdue taxes if they’re not paid right away. These charlatans often have identifying info about the person they're calling and have rigged caller ID to show the call is coming from the IRS.
Another growing phone scam involves fraudsters calling victims and telling them that their children or grandchildren have gotten into an accident and need cash immediately. They may have the child's name and other relevant information to make the scam more believable.
If you get either type of call, hang up right away and file a complaint with the Federal Trade Commission (FTC) by calling 877-382-4357. Sign up for the national Do Not Call Registry to reduce the number of solicitations you receive.
Take basic steps to prevent identity theft. More than half of identity theft victims are over age 50, according to the FTC. Protect yourself by giving out your Social Security number only when absolutely necessary; using strong, varied passwords for online accounts; and shredding documents (like bank statements and credit card offers) that contain your sensitive information and securely store those that you need to keep (like tax returns or health care receipts). Check your credit reports every year to make sure no one is opening accounts in your name.
Create a strategic plan for charitable donations. It's hard to refuse a request for money that goes to a good cause. Often, however, scammers who make such calls have no affiliation at all with a charity. In some cases, the callers genuinely represent a charity but may be taking a large cut of the donations, so that your contribution doesn't go as far as you might expect. Instead, come up with a plan for how much you'd like to donate to charities in any given year, and which ones you'd like to fund. Then you'll feel less guilty when refusing solicitations that don't jibe with your strategy.
Article
Welcome to Your Second Act
Americans today are living longer, healthier lives, yet the average age for retirement remains age 62. That translates into this trend: A growing number of retirees are seeking ways to fill their time beyond travel, golf, and grandkids.
mericans today are living longer, healthier lives, yet the average age for retirement remains age 62. That translates into this trend: A growing number of retirees are seeking ways to fill their time beyond travel, golf, and grandkids. In fact, nearly half of current retirees say that they are working or have worked during retirement, according to a 2014 study by AgeWave and Merrill Lynch.
For many, working at least part-time in retirement is a financially necessity. But even for those who have saved enough cash to carry them securely through their golden years, there are real benefits to finding a second act. Studies show that seniors who work are healthier, happier, and live longer than their peers. Indeed, more than 70 percent of current workers say that their ideal retirement would include some work, the AgeWave report finds.
Still, that doesn't mean you have to continue slogging away at the same 9-to-5 you’ve held for decades. You'll find a host of jobs on sites like Retired Brains and Workforce50, which have listings tailored to the senior set. Or you might consider taking one of the following popular paths:
Go part-time at your current job.
As Baby Boomers begin leaving the workforce in droves, a growing number of companies are introducing phased retirement options that allow workers to ease into retirement with reduced hours and responsibility. Just over a quarter of workers age 55 and older say their companies allow employees to shift from full- to part-time as they approach retirement, according to a report by the Aegeon Center for Longevity and Retirement. But even if your company doesn't have such a program in place, it may be worth asking yourboss or human resources representative whether they would consider such an arrangement with you.
Become a consultant.
After decades in a field, many retirees have a bevy of connections who would like to tap their expertise for industry insight or for help on a project basis. In addition to letting former employers and co-workers know that you're taking on freelance work, become involved with relevant trade organizations to expand your network even further. Working as a consultant allows you to take on as much, or as little, work as you would like and to set your own schedule. You might also find work as a coach or mentor for folks just entering your industry.
Turn a hobby into a business.
If you've always been a craft enthusiast or enjoyed snapping photos or making a mean apple pie, now is the time to put those talents to use. Even if you don't make a huge amount of money in your new endeavor, you'll be keeping busy and doing something that makes you happy.
Open a franchise.
Becoming a first-time franchisee may be a bigger time commitment than some of the other ideas on this list, but if you've always dreamed of becoming a small business owner, this may be a chance to make it happen, with a proven business model. If you seriously consider this option, work with a franchise lawyer, a business consultant, and a financial planner to understand the risks involved with the investment.
Give back.
If you don't need to make money in your Second Act, you may find it most rewarding to donate your time to a cause that you care about. Do some research into local nonprofits that work in fields that are important to you to see just how you can really make a difference. And if you don't know where to start, check out Encore, which specializes in helping seniors find opportunities to give back in both paid and unpaid positions.
Listicle
5 Reasons It Makes Sense to Downsize in Retirement
One of the biggest financial decisions that many people make in retirement is whether to downsize their home. While for many folks, selling the family home and moving into a smaller one makes a lot of sense, it's not the right move for everyone. Here are five reasons to downsize... and five reasons not to.
ne of the biggest financial decisions that many people make in retirement is whether to downsize their home. While for many folks, selling the family home and moving into a smaller one makes a lot of sense, it's not the right move for everyone. Here are five reasons to downsize... and five reasons not to.
Top reasons to downsize:
1. You now have more space than you need. Once your kids finally leave the nest, a big, empty house can start to feel rather lonely. If you have multiple rooms that you're not using, moving into a smaller property will reduce not only your overall housing costs but also the utilities and taxes associated with a larger property.
2. You can get rid of your mortgage. If you still have a home loan heading into retirement, that can become a real drag on your budget. But if you can sell your home and buy another with either all cash or a smaller mortgage, you'll increase your cash flow and enhance your lifestyle in retirement.
3. You're sick of home maintenance. If you've had it with decades of shoveling snow and cleaning gutters (or paying someone to do it), downsizing into an apartment or condo where such maintenance is included can be priceless.
4. Your neighborhood no longer matches your lifestyle. Your current home may have been a great place to raise your family, but you may no longer enjoy hearing shrieking kids playing outside or being surrounded by neighbors who are so much younger than you. Downsizing could give you a chance to move into a Boomer community or to try out living the downtown life.
5. You can lower your property taxes. Living in a good school district while your kids are young makes it easy to justify paying elevated property taxes. But once your children are out of the school system, moving to a home with lower taxes makes good sense.
Top reasons not to downsize:
1. Your home is paid off. If you have paid off your mortgage already and have the cash to cover ongoing maintenance, insurance, and property taxes, it may not make financial sense to incur the costs associated with a move.
2. You want to keep your home in the family. It's important for some people to make sure they’re passing their property on to their heirs. If you want to bequeath your home to your kids, discuss the plans with them as well as with an estate attorney to make sure your wishes are carried out.
3. You’ve got (or are considering) a reverse mortgage. Reverse mortgages were once widely considered a last-resort financial product for retirees, but some financial planners now consider it a useful tool for retirees. If you have a lot of equity in your home but don't want to move, this may be an option to consider.
4. You can’t say goodbye to your stuff. Part of moving into a smaller home means getting rid of the many possessions taking up space in your current place. If that’s anathema to you, downsizing may not be the best option.
5. You are able to age in your home. To stay put for the long-term, you'll want to make sure your home is equipped to allow you to age in place. If you don't have universal design elements such as a bedroom on the first floor, wide doorway, and a step-less entry, you might consider installing them now.