Sixtyandsingle.com

Old and broke. AgingOptions offers an alternative

2012-02-18T11:14:00.000-08:00

Because he's Indian-born, Rajiv Nagaich has a unique perspective on American life and how families manage late-in-life planning. An attorney in Seattle, Nagaich (pron. nah-geesh) has built his practice by offering what he calls "holistic elder care" services. This is way more than writing wills and trust documents and setting up power-of-attorney directives.
Drawing from his own experiences, Nagaich wants his clients to have an end-of-life plan that makes emotional and financial sense. In other words, a plan that outlines a step-by-step process for how you want things to go when you no longer can manage your own affairs.
Nagaich's passion for elder care sprang from his frustrating experience of watching his American-born wife try to help her mother and her father who contracted Alzheimers disease. The cost of years of institutional care for the father left the parents at the end of their lives with no assets, living on Social Security and Medicaid.There are better ways to manage these situations, Nagaich tells his clients. Families must step beyond traditional planning to something he calls a "LifePlan" that helps people avoid institutional care, protects assets from probate and estate taxes and from uncovered long-term care and medical costs.
"All of my clients deal with estate planning issues," Nagaich says at his Web site http://www.agingoptions.com/. "The majority of my clients who have planned their estates have done so under the traditional notion of estate planning which, unfortunately, leaves them largely exposed to the threat of uncovered long-term care costs."
Based on my own experience with my aging mother in Idaho, I'd say Nagaich is right. We do a great job of making plans for everything until we become incapacitated and must make tough decisions about where we will live...at home or in a care facility...and how we will pay for it.
Last Monday, I sat in on a free seminar in Bellevue, Wash. presented by Nagaich, who also hosts a weekly radio show on KTTH 770-AM in Seattle. I learned plenty about Medicare and Medicaid regulations and how there are ways, if you're married, that you can set up estate planning that protects core assets from the costs of long-term care. As usual it's better if you're married than if you're single.
Too often, says Nagaich, the care givers in our lives: our physician, our estate-planning attorney and our financial advisers are not talking to each other. And none of them look at the end-of-life situations many people face because we are living longer....living longer in ill-health, incapacitated by stroke, heart disease or dementia.
The time to address how you want to spend your last years is now, before there's a crisis. The time to address these issues is now while you are mentally and physically able to put a plan in place that you and family agree about.
As with all my reports here at www.sixtyandsingle.com, I am presenting AgingOptions as another resource to explore. The message from Nagaich got me thinking. He's right, we do a lot of planning except for how it will go when we get really old and start draining money from our savings, relying on family for help and turn to expensive institutional care because we think that's our only choice. AgingOptions suggests there's a better way.

Facing your money fears. Here's some advice

2012-02-08T10:07:00.000-08:00

Dear Sixtyandsingle.com readers,
Below is the second installment of a series of investment advise columns that I'm running written by Beverly Fogle, long-time friend and certified financial planner. Bev and I share many of the same thoughts about saving, investing and planning for retirement. Women, more than men, may need to face their fears, talk about money and get a handle on the future. Here's Bev's advice.
Enjoy, Julia

FACING YOUR FEARS by Beverly Fogle, CFP
"Life can be scary. Especially in situations when we find ourselves alone, facing major life transitions, or just needing to make changes. We may know exactly what is wrong, or we may just be uneasy. We seldom know intuitively where we want to go, and our fears become more dominant than our goals.
Have you ever felt this way?
Try looking your fears squarely in the face, writing them down, and then assessing them.
The hard part is acknowledging and defining them. Many of our fears have obscure origins, often dating back to early childhood. Fear of the dark, fear if being left alone, fear of being ridiculed at school, fear of not pleasing the adults in our lives, fear of hunger or not having the right clothes --- all of these typical childhood fears can come back to haunt us in adulthood.
If you suspect they still exist, take them out and look at them in the cold light of an adult day. Are they really so bad? They’re easy to wipe out if you’ve looked at them objectively, but they can really dominate your life if you’ve never faced them.
Lessons about Money
What did your father teach you about money? Your mother? Your community? Your church? Many of our attitudes toward money stem from these early influences. Our sense of financial insecurity generally has a very early basis, and most of us feel at least somewhat insecure.
Is it safe to talk about money? For many Americans, the answer is “no”. We were taught as children not to discuss the family’s finances with anybody. In fact, in most families children were kept in the dark about this important subject. Is it any wonder so many of us can’t talk with anybody about our money? Yet we need that open window and fresh air on the subject in order to make good decisions.
Facing the future
Will I end up being a bag lady? Many, many women have this fear, no matter how unrealistic. It’s the “bogey man” of womankind. While such a fear may motivate men, it seems to paralyze women. We typically don’t grow up feeling a great sense of control over our lives. We have to leave room for Prince Charming. We often feel at the mercy of the whims of the world, at least when it comes to money. Take Charge!
You CAN control your financial life."
For more:
"Facing Your Money Fears" check list at wife.org, click here.
"Frugality and Facing Your Fears" click here.
"Nine Steps to Financial Freedom" from Suze Orman, click here.
"How to Squash Your Nagging Money Worries" by Ben Edwards at moneysmartlife.com.

'Clarifying Your Values' as part of a financial-planning strategy

2012-02-02T20:38:00.000-08:00

Beverly Fogle is a certified financial planner and a friend of mine who has worked in the Portland-Vancouver metropolitan area since 1982. She's been a great source of information for me on topics large and small...all related to investing, money-management and retirement planning.
Not long ago, Beverly and I shared a podium at a Women's Financial Planning Summit in Vancouver. Her presentation was to the point, informative and helpful. Beverly's personal passion is flying airplanes. Maybe that's why she's such a good financial adviser. She knows how to get from point A to point B. Below is Beverly's piece, "Clarifying Your Values."
This is my first guest article at www.sixtyandsingle.com. Thanks Bev.

CLARIFYING YOUR VALUES by Beverly Fogle, CFP®
When you’re faced with making major decisions, it’s time to Apply the Values Test.
Go back and look at your own personal value system. Evaluate your options in this light. Many of us have thought seriously about our values at some time, but this kind of introspection and personal analysis often gets lost in the tumult of daily adult life.
Do it again!
Review your basic values. We all have family responsibilities and commitments, personal goals, and lots of life experiences. These can alter, modify or reinforce the values we defined for our younger selves. Age and maturity have a lot to do with it.
Write them down! There is power and genius in the written word. A goal or value that is actually written in one’s own handwriting has staying power. Saving these pieces of paper, and reviewing them periodically, is one of the mental disciplines of many highly effective and successful people. Some of these thoughts and words are most valuable when shared with others. Others are meant for the privacy of one’s own heart.
All have major importance when it’s time to make life decisions.
What are your family values? Will your vision of family be affected by this decision?
What are your spiritual values? Does this dictate including or eliminating options?
What are your social values? Can this decision make the world a better place?
What relative value do you place on your professional or occupational goals?
Who (or what) would you miss most if you lost that part of your personal universe? And how do you define your personal universe, anyway?
These questions are meant to help you get started in redefining and updating your personal Credo – your personal statement of values. This takes time, and must come from your heart. It can be hard work. Don’t get distracted by failures --- we all have them. It’s called being human.
Don’t be too hard on yourself. This is meant to be a forward-looking study. It will help you be comfortable in your own skin, and honor your values in your future decision-making.
For More:
Defining your values, click here.
How to define your personal values, click here.
What are your Values? click here.
Simplify Your Week, Define Your Values. click here.

10 Things Women Don't Know about Retirement. And what to do about it.

2012-01-21T12:48:00.000-08:00

Dear http://www.sixtyandsingle.com/ readers. When we are in our 30s, retirement seems a long way off. There's a lot going on...family, careers, kids in soccer, vacations. But that's the time when women must seriously be thinking about retirement and what it will look like when they are over 60. Having said that, it's never too late to take charge of your long-term financial planning. My mother was an investor into her 80s.
Whatever your age, ask yourself these questions Or better yet, ask your daughter:
- What income will I need when I stop working and where will it come from?
- What plans do I have for being financially on my own if I lose my spouse?
- What can I do right now to bring my retirement goals in line with my current income?
- Worst case, what could happen and how can I prepare?
The 10 Facts listed below summarize what many women don't know but should know about retirement. We offer suggestions for what they can do about it:
Fact No. 1. By the end of our 60s nearly half of American women will be single and financially on their own because of the death of a spouse or a divorce. Women live longer than men and most of us will out-live our spouses. But 20 percent of single women in this country are living at or below the poverty line without savings for retirement. The standard of living for women drops substantially when they become single. For men, less so. What to do: Expect that you will be on your own and plan accordingly by saving more, investing wisely, if not aggressively, and discussing these issues with your spouse and your family.
Fact No. 2 Women don't save enough for retirement or plan for retirement on their own. That's because women are more likely than men to work in part-time jobs. Part-timers are less often eligible to participate in workplace retirement plans. Women also tend to spend money on short-term rewards such as shopping, vacations and kids and women are more likely to interrupt their careers to care for their families. That means less income, less time to participate in a 401(k) retirement plan and lower income to apply to future Social Security benefit payouts. What to do: Of the 61 million wage-earning and salaried women in the U.S. between the ages of 21 and 64, only about 46 percent participate in a retirement plan in any given year -- much lower than the participation rate for men, says the U.S. Department of Labor. Women should be putting the maximum amount allowed into a 401(k) plan or a self-directed Individual Retirement Account. The savings goal should be close to $1 million.
Fact No. 3: The average American woman who retires at age 65 is likely to live 19 more years -- about three years longer than the average man. Therefore men are less likely to need long-term care insurance because their wives will fill in as caregiver if they become ill. Women on the other hand may need long-term care services. What to do: Long-term care insurance is a way to protect core assets if expensive long-term care is needed. Women should carefully look into that option. There are numerous programs and coverages. Make sure you do your homework before purchasing coverage.
Fact No. 4: Working past full-retirement age is a good way to get the most bang for your retirement buck. Age 80 is the new 65. Regis just retired at 80 from his morning TV show. The number of women working into their late 60s has increased by more than a third in the past 10 years, many because they can't afford to stop working. What to do: Plan to work until your full retirement age of 66 or older. That way you get the highest Social Security benefit payout. This also gives your retirement nest egg more time to grow. Consider part-time work in something that you're passionate about as a way to delay tapping your nest egg.
Fact No. 5: Age-discrimination is alive and well in the workplace. The worst offenders are often younger women who see you as an obstacle to advancement. What to do: Keep your skills up to date, take on new challenges at work, expand your horizons. Be ready to accept change as organizations grapple with market challenges and budget issues. Make yourself valuable. Network for that next great opportunity.
Fact No. 6. Debt reduction is a sure way to a successful retirement. Paying off debt must be a top priority as you approach your 60s. Doing so will bring your lower retirement income in line with your ongoing living expenses and travel budget. What to do: Get rid of debt. Pay off your mortgage. Don't buy things on time. Always pay off your credit cards each month. Set goals that will give you control of your finances and keep you ahead of the curve.
Fact No. 7. You will need $1 million in retirement savings to live comfortably in your later years. That sum can spin off between $2,000 and $3,000 a month. Along with your Social Security benefits your annual income will be between $43,000 and $55,000. Not great but OK. What to do: Save like hell.
Fact No. 8. You can lose weight after 60. Weight loss is a sure way to feel younger and stay healthy. What to do: Losing weight is hard to do on your own. Find a program that works for you and stick with it.
Fact No. 9. In our 60s, some of our long-time friends will drift away as family priorities become more important or spouses retire or die. What to do: New relationships await for those who get out there and meet people.
Fact No. 10. You can continue to work part-time after retirement from the big job. That option gives you more flexibility to travel but still avoid tapping your retirement nest egg. What to do: Match up your passions with a new part-time job. Network with those who might find your skills useful.
Bonus Fact. Sixty is not old. Our 60s are an exciting time in our lives. We're young enough to get out there and explore the world, to live it up, meet new people and find friends or a companion with whom to share life's wonderful joys. It is possible to fall madly, crashingly in love after 60. What to do: Don't bother with expensive online dating services. Trust your friends to help you meet men who might be a good match. If you find someone, all you need is a pre-nup and some term life insurance to make everybody happy.

Insurance, boring but important. Here are 6 money-saving tips for retirees

2012-01-08T12:16:00.000-08:00

Auto and homeowners insurance cost-savings tips for retirees:

1. Combine homeowners insurance and auto insurance in one account with the same company. Such consolidation can save you money.
2. Be open to a higher deductible. If you can bare a bit more risk, you will see greater premium savings. Make sure you are given several options for deductibles, coverages and premium rates.
3. Make sure your agent has details about you: If you have a college degree, a good credit score, that your mortgage is paid off, that you have no loans on your vehicles. Make sure your agent knows if there are young drivers in the household, They may qualify for "good student" discounts – 3.0 GPA or better. This is important if grandparents have grandchildren living with them... a growing trend. A better grade point for the grandson may translate into a lower insurance rate.
4. Change agents, if you're not satisfied with their service. Interview several agents. Conduct background checks through your state's insurance commission on agents and their firms. Make sure the company selling the insurance has a long track record and is rated among the best. Seek out agents that have earned industry designations such as the CIC (Certified Insurance Counselor), which means they have completed a course of study and take additional classes every year. Get recommendations from friends, co-workers, family.
5. Choose an insurance broker or agent who cares about you and your needs. Your agent should check in at least once a year to make sure nothing has changed and coverages are where you want them. Select an agent that conveys a sense of personal interest.
6. Meet at least once a year with your agent to talk about what's changed, what your agent should know about. Look for ways to hold down costs without sacrificing coverage.

By Julia Anderson
www.sixtyandsingle.com
If you are on a more or less fixed retirement income, saving money on your annual car and homeowners insurance bill is one way to reduce ongoing household expenses. That said, the bottom-line cost of your insurance should not be the only criteria for selecting an insurance agent or the company they represent. As with everything, there are trade-offs between quality service and cost.
In the past 12 months I've taken several steps to bring my ongoing household expenses in-line with my retirement income. Those steps include refinancing my home mortgage loan for a lower monthly payment, signing up for mandatory Medicare, which has reduced my health care insurance costs, and moving my insurance business to a new agency and consolidating coverages at a reduced cost without sacrificing too much on coverages.
In that process I came to know Audrey Brouwer, a certified insurance counselor in my home town. She expertly walked me through my options for coverage and the cost of that coverage for home, farm and auto.
Over lunch, I followed up with her for what general (insurance) advice she might offer retirees, particularly women on their own.
"Buying insurance," she said, "should not be complicated. Insurance is understandable...you ask questions and then you can make informed decisions."
In many households, however, one spouse may handle all financial matters. In older couples it's usually the husband. Younger couples more often work together, she said.
A newly 60-and-single woman should feel comfortable asking questions, getting the hang of insurance lingo and finding an agent who has her best interest as their No. 1 goal. Look around until you find the right fit. This meeting to establish a relationship and evaluate premium coverages is important. For those who like studying up on topics, get a copy of Insurance 101, a what-you-need-to-know brochure from the American Insurance Association.
Building a relationship
Consumers of all ages should expect a solid ongoing relationship with their insurance broker, Brouwer said. People approaching or moving into retirement likely have worked hard for their assets and want to protect them. They need an adviser who is interested in their needs, first. That may sound like so much industry hype but I switched brokerage firms last year because every time I called that office, I talked to someone different who really didn't know my story or my concerns.
If you are newly single, an appointment with your insurance agent should be near the top of your to-do list. And if you start a new relationship or re-marry, insurance coverages must be discussed. There's money to be saved through consolidation without sacrifice.
"Clients must take the time to sit down, be willing to talk about what's going on in their lives and what their needs are in terms of coverage and cost," Brouwer said. "They need to ask questions and make sure their agent or broker is taking time to answer questions and explain coverages and cost trade-offs."
A good agent should stay in touch at least once a year to find out what might be changing in your life. An ongoing relationship means the insurance agency is fulfilling its role as circumstances change, she said.
Be ready to answer these questions when meeting with an insurance broker:
1. What do you want protected? What needs to be protected?
2. What kind of trades off do you want to make in terms of coverages, their costs and your ongoing household budget?
3. Be ready to listen to your broker when she talks about risks faced by seniors and what you need to protect. Don't be so cheap that you endanger your core assets, if something bad happens.
4. Be ready to share information about yourself, your financial situation, your property and what's on your mind. An agent can't help you unless you tell them what they need to know. For example, do you have an RV, a vacation home? Make sure everything is on the table.
"Yes, you want to stay on a budget, but clients should consider several scenarios in terms of the risks they can take on versus the coverage needs," Brouwer said.
Finding an agent
When considering a new agent or new coverages, it should not be a one-time meeting across a desk. A first meeting would determine your needs. Once the agent knows those needs, she can go to the insurance companies she represents and come back with a summary of premium rate options. Those options should be discussed in a second or third face-to-face meeting as the dialogue continues.
"Buying for price alone can leave you with inadequate coverage," Brouwer said. "Each person has insurance needs specific to them. This is not a cookie cutter business."
For women who want to learn more about insurance costs and coverage, a good strategy is to take advantage of the training received by your insurance agent. Let them be a resource to identify risks and make sure you have the right coverage at the right cost. Long-term care insurance was discussed in a previous http://www.sixtyandsingle.com/ post. Annuities and term life-insurance were also addressed, previously.
Thanks Audrey for your help with this post.
For more:
Washington State Office of the Insurance Commissioner, click here.
Oregon Insurance Division, click here.
Tips for Choosing an Insurance Policy, click here.
Consumers' Guide to Homeowner Insurance, click here.
American Insurance Association, click here.
Directory of Insurance and government resources, click here.

Opening another door. Helen Keller's simple message

2012-01-02T13:17:00.000-08:00

"When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has been opened for us." -Helen Keller, 1880-1968.

Sometimes it is the simplest of thoughts that have the most power to pull us forward, to carry us out of sadness and depression and the most power to motivate us to embrace the world we have, not the one we've lost. Looking back five years to the year of my deepest grief when I became 60 and single, I now see how beautifully in tune I was with the world around me. Every flower, every shadow, every loving look from my Black Labrador dog, every meeting with a friend meant something and presented an opportunity to be loved and more importantly to love. Every quiet evening alone offered opportunity to think about where I was in the world and where I wanted to go.
Being alone...as lonely as it is....gives one time to ponder profound truths, embrace your most creative self and to give love in the moment to all whom you encounter...including yourself.
The start of a new year is the perfect time to reconsider the universe and our place in it. Each new year offers an opportunity to learn something new, broaden our experience, express ourselves and to find satisfaction in the relationships with family, friends and work colleagues.
Becoming 60 and single opened my heart to a new life with new experiences, new relationships and provided a profound way to help other women in my age group cope with the challenges of modern American life. More than anything, I've learned that those who embrace the moment are most likely to see the door opening that Helen Keller speaks about. We walk through this door with a full heart...a heart filled with both sadness at our losses but also with hope. And hope, as my older son reminds me, will always beat hate.
The letter
Early in 2011, a woman contacted me by e-mail after reading my posts at http://www.sixtyandsingle.com./ She was (and still is) in the midst of the painful break-up of her long-time marriage and was shocked by how much it hurt, how devastated she felt. I recently checked in with her to find out how things are going.
Below is part of her response:
Julia,
"I am not really all over the place but it is weird to be so immersed in my feelings. It seems as if I was so stuck before in the marriage that I am so raw in the world. Everything is new and so often it feels like I’m not ‘good’ at anything, when I used to be excellent at so much. I’m not sure if you are familiar with the work of Brené Brown, but I’m working on accepting the gifts of imperfection and cultivating vulnerability.
I used your email (query) as a opportunity to pause and consider where and how I am now.
Thank you for asking. You have occasionally floated through my mind over the past months like a guiding star. A bit ago I had breakfast with a couple of gals that I hadn’t seen in some time, one of whom has been divorced for some time and in her mid 50’s. She is only now starting to see the possibility of her worth, of maybe there being a future of love with someone."
--- And, "I am almost divorced, it seems like we have almost reached a settlement, though now there is some debate over the values of retirements, as if he hasn’t been earning more than me from the beginning. It is so hard not to take personal these sorts of debates and having to continually provide proof and stand up for the black and white objective truth. It is just draining and also maybe this impacts the struggle to feel worthy in the fight with someone who I loved for so long."
---- "I have been so surprised to realize that I can imagine a future with someone else, that I hold that as a possibility and a desired one. I don’t know where my life will go, but I know that I want that even though I struggle to feel worthy of that. I have a place of pain and shame perhaps from being rejected, yet I don’t believe it owns all of me." Thank you for thinking of me.
Take care, Carol (not her real name).
Making the most of ourselves
In her ten guideposts, Brene Brown, author of "The Gifts of Imperfection: Letting Go of Who We Think We Should Be and Embracing Who We Are" (Hazelden, 2010) explores "how we can cultivate the courage, compassion, and connection to wake up in the morning and think, "No matter what gets done and how much is left undone, I am enough," and to go to bed at night thinking, "Yes, I am sometimes afraid, but I am also brave. And, yes, I am imperfect and vulnerable, but that doesn't change the truth that I am worthy of love and belonging."
Here at sixtyandsingle.com, our goal is to change the way women think about retirement and give women information and tools for managing their financial lives and their retirement on their own. I also spend time commenting on singleness, how it feels and why we must embrace life in the moment with courage, emotion and enthusiasm.
I've discovered that retirement for most women is not about sitting on a beach with a good book. It's about coping with loss, dealing with change on all fronts, wrestling with financial issues, managing new relationships and trying to help the people closest to us by giving love and sharing wisdom. As the New Year begins here are a few good quotes to get us on our way.
Quotes for the new year:
- "Let go of who you think you're supposed to be and embrace who you are," Brene Brown, in "The Gifts of Imperfection."
- "It’s not that some people have willpower and some don’t. It’s that some people are ready to change and others are not. -- James Gordon
- "You have to get to the point where going for it is more important than winning or losing," -- Arthur Ashe
- "The first step towards getting somewhere is to decide that you are not going to stay where you are," -- J. Pierpont Morgan
- "When we do the best we can, we never know what miracle is wrought in our life, or in the life of another." – Helen Keller.
- "If you can’t make it better, you can laugh at it." – Erma Bombeck.
- "I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands; you need to be able to throw something back." – Maya Angelou.
"The most effective way to do it, is to do it." - Amelia Earhart.
"If you don’t like being a doormat then get off the floor." – Al Anon.
- "Anything you want to ask a teacher, ask yourself, and wait for the answer in silence." – Byron Katie.
- "It is only when we truly know and understand that we have a limited time on Earth and that we have no way of knowing when our time is up that we will begin to live each day to the fullest, as if it were the only one we had." - Elisabeth Kubler-Ross.
- "When you forgive, you heal your own anger and hurt and are able to let love lead again. It’s like spring cleaning for your heart." – Marci Shimoff.
- "Forget about the fast lane. If you really want to fly, just harness your power to your passion." -- Oprah Winfrey.
- "Your own words are the bricks and mortar of the dreams you want to realize. Your words are the greatest power you have. The words you choose and their use establish the life you experience." - Sonia Choquette.
- "Life is not measured by the number of breaths we take, but by the moments that take our breath away." -- Maya Angelou.
- "I don’t think of all the misery but of the beauty that still remains." -- Anne Frank.
- "Life should not be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, chocolate in one hand, champagne in the other, body thoroughly used up, totally worn out and screaming….. WOO HOO…. What a RIDE!”
Happy New Year,
Julia

Tax-sensitive and age-related rules of retirement. What you need to know.

2011-12-28T15:26:00.000-08:00

The process of retiring in our 60s is an age-related continuum with many options along the way. Do you start taking Social Security at 62 or do you wait till full retirement age or later? How long do you keep working? And how do you make that change, "cold turkey" or by moving to part-time?
What do you do with your 401(k) nest egg if you leave the big job? When should you start withdrawing from that account? What does your financial picture look like when mandatory withdrawals kick in during your 70th year. Below are a few answers:
For me it's been a continuous learning experience as I decided to start taking Social Security in January 2011 at age 64 and moved over to Medicare and Medicare-advantage coverage when I turned 65 in October.
The age-related changes continue. However two key pieces of my planning are turning out to be different than I first assumed.
Assumption No. 1: I could pay back Social Security for the benefits received by using inheritance when my mother died. Mom hasn't died and Social Security has changed the rules, eliminating the pay-back option.
So now I'm stuck with a lower-payout rate than I would have received if I'd waited until my full retirement age of 66. I'm at peace with this decision since I really had no choice because of my "early" retirement from my full-time job nearly two years ago. The combination of part-time work and Social Security has given me flexibility to travel, do pretty much everything I want and not have to tap into my real nest egg. Meanwhile this year, I refinanced my mortgage, reorganized my insurance coverage, went on Medicare and have applied for a reduced property taxes through a forest preservation program in my county. All that has reduced my everyday household living costs.
The good news: This year I couldn't make more than $14,640 in earned income without facing reductions in 2012 Social Security benefits. Now going into 2012 -- because I'll be 66 in October -- that threshold increases to $38,880. In 2013, there will be no limit on my earnings while also collecting Social Security benefits. However, up to 85 percent of my benefits in 2011 could be subject to federal income tax depending on how much I earn from other sources. I'll keep you posted on that when I get into my 2011 tax return reporting process.
Assumption No. 2. When I planned out my next 30 years, I expected to continue to accumulate wealth through my tax-deferred 401(k), now Rollover IRA account. I should have read the rules more carefully. Yes, I understood that I would have to start making withdrawals from my Rollover IRA at age 70 and one-half. What I didn't realize is that the government dictates how much those taxable income withdrawals must be. The mandatory amounts are much greater than I planned.
In fact, if I live as long as my mother who is going on 96, the federal mandatory withdrawals will mean I'm out of savings before I die. At least that's what I think could happen. I'm going to have to adjust my strategy....save part of what I have to withdraw from my nest egg, pay taxes on it and reinvest it. It turns out that there are BIG penalties for not making the withdrawals at 70 and one-half.
For all of you with Roth IRAs, good news: You are not required to take any withdrawals from any Roth IRAs set up in your name. That's because the taxes have already been paid.
Changes in Social Security at 70
At 70, the rules also require that you start taking Social Security benefits, even if you don't want to do that. Since I am already tapping my benefits, that's not a worry for me. If you wait until 70, your deferred benefits will be higher than if you start earlier. That's a good option if you don't need those benefits and can wait, and are in good health. As will all my reporting information, check this out for yourself, make sure you understand your options and don't take anyone's word for this. I have received information from friends who think they know what they're talking about and from brokers, who should know better.
In the coming year, I will:
1. Reexamine my long-term retirement and investment strategy in light of the mandatory Rollover IRA withdrawals.
2. Continue to adjust my household expenses.. that means.cutting, leaving more money for travel.
3. Ramp up my part-time income to the maximum allowed in 2012....$38,880. It's a matter of trade-offs in time, energy and effort. Working at home has its challenges and rewards.
4. Upgrade my www.sixtyandsingle.com Web site to make it revenue positive. Another exciting year in retirement. Yahoo!!!
For more on age-related milestones, click here.

Sixty and single: Is a good night's sleep possible? Maybe, yes!

2011-12-13T12:21:00.000-08:00

Women 60 and single have a lot on their minds. All of those worries, issues and concerns can come to bed with you every night and prevent you from either going to sleep or staying asleep.
In my case, I often go to sleep but find myself awake at about 1:30 or 2 a.m. I can be awake for hours reading my smart phone, playing Solitaire and lately, watching episodes of the TV series about a high school chemistry teacher gone wrong called, Breaking Bad.
Yes, I know, that show is the last thing that's going to put me into a restful state. I'm into season No. 3, most of the viewing done in the middle of the night.

News flash: Last night, I may have found a solution. Instead of doing the usual middle of the night threshing, I used Google to do a smart phone search on "getting a good night's sleep." Up popped the Mayo Clinic Sleep Center Web site on the topic, which mentioned hypnosis as a possible tool. That in turn got me to thinking about smart phone apps. I went to the apps marketplace on my phone and did a search using one word: SLEEP.
There were many many apps to choose from with a download fee, most ranging from 99 cents to $4.99, but there also are many that are free. Since I wasn't too confident on the whole thing, I choose a free app labeled "Sleep Soundly Hypnosis" offered by Kym Tolson,a clinical social worker and therapist based in Chesterfield, Va. Kym's 10-minute hypnosis sleep session worked.
With my ear buds secure, I followed her softly spoken instructions to relax, get comfortable and take my mind to an uncluttered place where I could let go and go to sleep. The first time through got me to a level of relaxation that usually eludes me. I then went to sleep before the second round ended. When did I wake up? Seven hours later. I felt restored, if not liberated.
There must be tons of people who aren't getting a good night's sleep based on the billions spent advertising sleep medications on television. I've tried a few, myself: anti-anxiety medicine, prescription sleeping pills, over-the-counter medicines such as Tylenol PM. All of them have negatives from drug hangovers to allergic skin reactions.
My strategy is going to be to use Kym's relaxation-sleep hypnosis session every night for as long as it works. The good news is that there are many more sleep apps out there that I could switch to, if this one loses its effectiveness.
For those without a smart phone, may I recommend an iPod download or some other recorded way to set up a regular nightly "going to sleep" session. For me, the result was waking up feeling sane and rested.
For me, sleep makes the difference between coping with life's challenges and not coping with them.
Based on my first late night experience, I may have found something that will work for "getting a good night's sleep." Additional resources:
National Sleep Foundation, click here.
"Ten Tips for a Good Night's Sleep without Pills," click here.

Medicare, Social Security, part-time work, guardianships. You name it.

2011-12-09T14:38:00.000-08:00

As 2011 winds to a close, I'm feeling a need to update my readers at sixtyandsingle.com. You may have noticed that my posts have been a bit further apart as I continue to try to balance demands on my time from my freelance work as a business news writer, from family, my transition to retirement and travel with Ken.
In January, I started taking Social Security benefits. In October, I marked my 65th birthday...half way to 70! That meant signing up for Medicare. When people ask me what I'm doing since leaving the full-time job at the newspaper, I say I'm semi-retired. The reality is that I'm doing about as much writing as I did on the job. The difference is that I don't have a bunch of meetings to go to all day long. I write more about what I'm really interested in and less of the boring stuff. Nevertheless, the pace is hectic.
My freelance work is a top priority because the part-time income is allowing me to postpone taking money out of my rollover IRA. The IRA earnings only are taxable when I reach 70, so I'm trying to let the nest egg grow untapped until I really need it. Meanwhile, the weekly deadlines keep coming around.
Since I retired earlier than my full retirement age as determined by Social Security, I have to keep my freelance earnings at about $14,000 a year. This is a bit of self-imposed financial hardship. I'm definitely on a budget. If I go over that limit, Social Security will hold back benefits until I reach full retirement age.
Studying to be a guardian
My family has also been eating up my time. Right now, I'm taking an online guardianship training class offered by the Idaho Supreme Court to prepare me to become my mother's guardian. This preparation is in response to a court petition by my bi-polar sister who is asking the court to make her my mother's guardian. This move blind-sided everyone including my mother's long-time attorney and my mother...who had been telling my sister for months that she didn't want a guardian.
All this happened after my mother fell at home and broke a hip. After hip-replacement surgery my mother spent nearly three months in convalescent care. When it came time to make a move from there, my mother decided to slide over to the assisted living unit in the same facility. It was a difficult decision not to go home but that became less of an issue since my sister meanwhile had torn out the farm house bathroom for a remodel. The project wasn't finished. Other issues complicated a move home. Among them that my mother's doctor said she needed 24-7 care to keep her from falling. The cost of that care at home would have been around $11,000 a month. Assisted living is running more like $4,500 a month.
While my mother still wishes she could be at home, she's telling me that she "prefers" to stay where she is. When she falls...there's someone there to pick her up. That happened twice in the past 10 days.
Meanwhile my sister's petition to be mom's guardian is alive in the local court system. I'm expecting there will be a hearing in January. The interesting thing is that in most, if not every state, all attorneys involved in such a case can submit their fees to the estate of the person (my mother, in this case) who would become a ward of the guardian. My sister's attorney, my mom's attorney and my attorney (oh yes, I've got to have my own lawyer) all are paid by my mother's trust, now managed by a bank.
The bill will be at least $10,000 but could be much more if we get into a "court like" contested hearing. The sad thing is that mother has tried to do all the right things....setting up a power of attorney, if she needed that. Setting up power of attorney for health care decisions. Putting her assets in a bank trust. An ordinary family would typically have come to some agreement about what was best for mom with her as a lively participant in the decision. Does she need a guardianship? If you look at the history of the past several years: There's been "serial" rounds of power of attorney assignments. There's been undocumented spending out of her checking account. She's not had control of her check book for a year. She doesn't know how much money is in her checking account and can't see well enough to read documents or know what she's signing.
At 96, she probably does need a guardian. The court will decide who that is.
Rehab on the ol' barn
On the farm front, we've just learned that we've won a grant from the Washington Archaeological & Historic Building Preservation Department to put more effort and material into saving our 1920s historic barn here on the farm. The work will involve new support beams, new footings and a drain around the upper side of the structure to manage water runoff. It's an exciting project, which will get started next spring.
Right this minute, we've got lots of plans for the holidays with gift-buying well under way.
New topics coming up at sixtyandsingle.com:
- How to get the best deal on insurance.
- Communal living for women, 60 and on their own.
- How to sell stuff your kids don't want.
- How the demographics are changing -- 80 is the new 65.
- Revisiting 5 Steps to a successful retirement.
Please send your ideas to grinnellroadfarm@gmail.com.
Thanks
www.sixtyandsingle.com
Julia

Retirement budgeting. How to save big bucks.

2011-11-28T13:03:00.000-08:00

Staying on a budget is no small task especially with those cyber bargains are just a couple of clicks away. But year-round budgeting and cost cutting are the only ways to improve our financial profiles in the face of a fixed retirement income. For me it's about "finding" more money for travel, for enjoying my kids and grandson. It's about more money to do the things I want to do. I accept the need to cut back on certain expenses in order to have more money to spend elsewhere.
This won't be easy since I have always been what I call "careful." There's not a lot of wiggle room in my budget for more household cost-savings. But here's what I've done this year:
- Refinanced my mortgage loan from 6.1 percent to 3.7 percent for a monthly savings of $300.
- Signed up for Medicare and bought a supplemental coverage plan that cut my health insurance costs from nearly $400 a month to about $200 a month. This happens at age 65.
- Cut back on credit card spending related to clothing and eating out. Everything gets paid off, monthly.
- Negotiated for free barn siding through Washington state's Heritage Barn preservation program for a rehab project on our old 1920s barn where we store hay for the horses. I have applied for a grant for more work on the barn in the coming year.
- Consolidated home and car insurance coverage through a new brokerage firm with higher deductibles and other savings. Costs went down by several hundred dollars a year.
- Continued to work part-time rather than tap my "nest egg" IRA rollover savings. So far, so good.
- Shopped discount clothing stores and recycle stores such as Goodwill and a great Seattle store called Gather for real bargains. My best score was a clever, like-new vest with faux fur lining.
- Looked for cheaper entertainment options at smaller theaters in the Portland-Vancouver urban area where tickets are $15 to $25 per person rather than $75 and up. My toughest decision was deciding $100 tickets to attend a "Journey" concert in October were too expensive. Cheaper venues include the Alberta Rose Theater and the Aladdin Theater in Portland and the Old Liberty Theater in Ridgefield, Wash.
- PS: I dumped my satellite TV hook-up a few years ago. Cost savings: $600 a year.

There are still danger zones. I can spontaneously go off budget on clothing, eating out, my kids and gifts. But I am determined in the coming year to make more progress on cost-cutting.
Brett Arends, writing at Fidelity.com and the Wall Street Journal has come up with a list of great ways to save money. Here are a few of his ideas along with my editing and embellishments.
- Use loyalty programs aggressively to get discounts on car rental, air travel and other deals. Credit cards sometimes offer huge bonuses like a free airline ticket to new customers.
- Switch banks and credit-card companies for less expensive services. Drop cards that charge fees.
- Cut the frequency of services such as pedi-cures and house cleaners.
- Leave the car in the garage, ride a bike.
- Axe the landline and switch to a new Internet and phone provider.
- Refinance the mortgage home. (see above).
- Team with trusted friends or neighbors to make purchases through warehouse clubs.
- Don't pay someone else to do what you can do yourself. Your federal taxes, for instance. Home maintenance, for another.
- Use eBay and Craigslist more.
- Cut back on new books. Download classics from Gutenberg.org for free. Sell books back to Powell's Book Store in Portland or to Amazon.com.
- Use last minute websites such as vacationstogo.com to find savings on vacation deals. Swap your house instead of paying for a hotel.
- Go green. Stop wasting hot water and cut your heating bill by purchasing new lower-flow aerator showerheads and using cold water to wash clothes. Slowly move to LED and CFL lighting in your home. By a "smart strip" to turn off peripheral electronics when not in use.
- Volunteer to get in to music events for free.
- Go to happy hour for lower prices on drinks and food plates.
- "Return sanity to the holidays," say Arends. Set a budget, swap oraments instead of spending big bucks on gifts people may not need or want.
Good luck, Julia.

'Angel' investing may be an option for some. Here's how they do it in Portland, Ore.

2011-11-25T13:39:00.000-08:00

On the list of investment opportunities, putting money into "angel" funds ranks over on the risky side of the spectrum. Having said that, if you have a spare $5,000 sitting around doing nothing you might consider looking into angel investing. The experience would not be so much for the potential return on your money but for the learning opportunity as a participant in the selection and mentoring process associated with a start-up.
Angel funds in general invite investors to pool their money in a loan fund, which is then meted out to promising entrepreneurial early stage businesses. These businesses are usually too risky for banks to consider but have potential worth supporting. The money goes to such things as general financing, business growth, product development, hiring and operations.
Angel Oregon LLC, a Portland-based angel investment group, is soliciting 2012 investors and is hosting an informational session this Wednesday, Nov. 30 from 5-7 p.m. at the Lane Powell offices downtown. If you want to attend, contact Julie Brown at Oregon Entrepreneur's Network at 503-222-2270 or julieb@oen.org. Angel Oregon is a collaborative part of OEN.
So how does Angle Oregon work? Pretty much like any angel group.
This year Angel Oregon is hoping to raise $325,000 with a minimum of $200,000 to be invested in a winning "launch stage" company, says Shelley Gunton, Angel Oregon co-chair.
Over an eight-week period starting Feb. 6, 2012, investors review between 20 and 30 start-up companies. Through a thorough review process (due diligence) the field of competitors is narrowed to between five and seven companies in two categories: Launch stage companies and concept stage companies.
These finalists then present at the Oregon Entrepreneur's Network conference on Wednesday, April 18.
The event draws 300 investors, business students and others. The outcome produces the winners of the Angel funding.
Typically the investment is made in the form of a convertible note and converts to equity as part of a "qualified equity financing," said Gunton. Investors often remain involved with these companies as advisors and board members.
So what's the possible reward for a $5,000 investment? The payback typically may not come for five to seven years, when and if the company sells stock shares.
Gunton said Angel Oregon typically sees 50 to 60 people in the annual investment pool but women make up only a small portion of those investors. "We want to see that increase," Gunton said.
The angle experience gives investors a unique insider opportunity to be engaged with a start-up business that has the potential to success.
"Our angels come from a variety of backgrounds, which adds immeasurably to the experience for everyone," Gunton said. "The common factors are curiosity, the desire to help early stage companies, an interest in expanding their personal networks and the opportunity to investment," she said.
Investor meetings kick-off on Feb. 6 from 5-7:30 p.m. at Lane Powell in downtown Portland. Meetings include presentations by participating companies, discussions on due diligence by investors, voting at certain milestones in the selection process and networking.
There are angel investment organizations throughout the U.S. In these challenging economic times, they appear to be playing an even bigger role in supporting start-up businesses with great ideas that need financial backing. Typically in the old days, investment minimums were much greater in the $25,000 and $50,000 range and appealed only to the wealthy who may have had success with their own start ups.
Now with $5,000 minimums, the outreach is much broader and may even be more rewarding for all involved from entrepreneurs to investors.
For more information about Angel Oregon, contact:
Shelley Gunton at shelley.gunton@castorpolluxpet.com or Drew Smith at drewcsmith.@gmail.com
For MORE ON ANGEL INVESTING:
"Angel Investing: Matching startup funds with startup companies" by Robert Robinson, at amazon.com.
Angel Capital Association
"What's an Angel Investor" from the Wall Street Journal.
Angel Investing 101 from NBA&I.

Surviving the holidays. Coping strategies for those 60 & Single

2011-11-22T12:02:00.000-08:00

"The most profound relationship we'll ever have is the one with ourselves." - Shirley MacLaine

By the time we reach age 60, memories of holidays past can fill up our brains to over-flowing. As a kid Christmas and Thanksgiving were a potent and emotional way for my family to come together despite underlying power struggles or ongoing disappointments.
Those memories reach back to my early childhood while growing up on an Idaho farm when one Christmas my younger sister found a "magic" wand under the tree, waved it and discovered a saddle horse waiting for her outside at the fence. For me the best memories were from the night before Christmas when we turned out the lights, built a fire in the fireplace and munched on grilled tuna sandwiches and drank hot chocolate. It was so perfect. I was so happy there in the dark with the flickering fire and my family.
Memories of Christmases with my own children and extended family include grandparents arriving from afar and tons of food and presents. There was singing, big family dinners, open houses for friends and church choir concerts. A ton of activity. That was 20 years ago. This is now.
My children are grown and attending a East Coast family reunion this week with their father. Grandparents are either gone or so feeble that travel is out of the question. A divorce has changed my relationship with former step-children. An estranged daughter-in-law makes access to my only grandchild difficult.
Friends my age are in ill health. Those "family" experiences have slipped away to be replaced by something new. My situation (in limbo between past and present) is no worse and in many ways much better than many. I've moved on, I have a new relationship and new wonderful people to get to know.
But being single at 60 (widowed or divorced and even remarried after 60) during the holidays is a bit like walking through a mine field never knowing when something will blow up, triggering memories and the nostalgia that floods in with them. Death, separation, divorce, illness, family trauma, job loss or moving to a new location result in great losses that make the holidays difficult, observes writer Toni Coleman.
So how to cope? There's plenty on the Internet about "Surviving the Holidays" if you're single. My personal advice: TAKE CHARGE! Make this special time your own.
The first year that I was 60 & Single during the holidays, I went out alone on my farm property one snowy afternoon with my dog. Equipped with a hand saw, I found a tree the proper size for Christmas, cut it down and hitched it to the back of my SUV with a chain. I felt triumphant dragging it back to the house. "I can do this," I said to myself. As well, I gave myself time alone to grieve over my losses. You've got to keep processing what has happened, everything that's changed in your life.
Laura Petherbridge has written plenty about how to cope during the holidays when your marriage dies. Toni Coleman offers "Tips For Singles On Enjoying (and surviving) The Holidays." Below is my edited summary of their advice. Hey, being single during the holidays means having the freedom to make them your own in new ways. Down the road those memories will add to the rich pattern of your unique life.
Don't just sit there, do something. Instead of dwelling on what's missing, find ways to fill up your heart by giving love rather than trying to find it. It may be a simple as sitting quietly next to your dog and feeling the love between you. Or it may be visiting with a friend over coffee.
People come and go from our lives. We all die.
Rent some funny movies. Laugh. Sing. Be engaged in life. Go for a jog, get on the tread-mill.
"Surviving the Holidays" Tips from Laura Petherbridge:
- Don’t hibernate or wait until the day before the holiday to make a plan. Force yourself to be with other people, even if only briefly.
- Develop a coping strategy. Review whom to call or where to go if the stress or pain becomes too severe.
- Create new, meaningful traditions.
- Help your child or grandchild make a gift for an ex-daughter-in-law or former in-laws. This communicates your permission to love the other family, and greatly reduces fear and tension.
- Take notice of a married friend who may be discouraged or rejected. Remember, some of the loneliest people on the planet are married.
- Try out a new “family-focused” restaurant. Avoid the ones that cater to couples or may have romantic overtones.
- Have a potluck supper with other singles.
- Do something completely different. Go roller-skating, skiing, hiking to the mountains or to the beach.
- Send a card, flowers or a small gift to someone who has comforted and loved you.
- Write a poem or journal entry listing things you’re grateful for.
- Treat yourself to a massage, manicure or pedicure.
- Immerse your family in assembling a Lego adventure or a jigsaw puzzle.
- Get out the hammer and build something.
- Treat yourself to cozy bed linens or a new nightgown in a magnificent color.
- Try a new pillow or neck exercises. They work wonders for tension.
- Make yourself a warm comforting drink, such as hot cocoa, chai or herbal tea.
- Invite friends over for dinner and use the good linens and china.
- Attend a hockey or basketball game, or participate in one.
- Get enough sunshine. Winter’s shorter daylight hours can take their toll on the emotions. If you work where there are few windows, take a walk during lunch or on your break.
- Exercise. It produces natural stress reducers, and it’s a great way to meet new people.
- If you’re feeling suicidal, seek help immediately. The phone number of your counselor, pastor, close friend or hotline should be taped to your phone. Don’t minimize the effect the holiday can have on your mental state.
- Don’t drink too much. Alcohol is a depressant.
- Tuck away photographs or items that will trigger melancholy.
- Don't go to couples events.
From Toni Coleman:
PREPARE – The ambush of emotions can attack at any time; prepare beforehand.
ACCEPT the difficulty of this time of year and your loss. Remind yourself that it’s a season and it will pass.
SOCIALIZE – Don’t hibernate. Insecure feelings may tempt you to isolate, but force yourself to go out even if it’s only for a short time.
LOWER your expectations – Movies and songs paint an unrealistic picture of the holidays.
DON’T ANESTHETIZE the pain with drugs or alcohol – Numbing emotional distress with chemicals creates more depression.
TRIMMING – If old ornaments or trimmings cause too much pain, don’t hang them this year. Put them aside for another time.
GET UP AND MOVE – Take care of your physical well-being. Healthy foods will give you strength; fattening and sugar-filled foods can worsen your depression. Exercise produces natural stress reducers.
SHOP online if going to the mall is too stressful.
COPING STRATEGY – Have the phone number of your counselor, pastor, church, close friend or hotline already taped to your phone. Make the commitment to call someone if negative thoughts get fierce.
LIGHT – Get some sunshine. Winter can take its toll on your emotions by the loss of sun you experience.INVITE a new (same-sex) friend to see a movie, have dinner or help decorate the house.
SET BOUNDARIES – Precisely explain to your family and friends what you are capable of doing this year, and what you aren’t. Don’t let others guilt you into taking on more than you can handle.
REACH OTHERS by discovering people who might be alone during the holidays.

Elder Abuse: A national emergency. What women need to know.

2011-11-13T15:52:00.000-08:00

It may begin innocently enough with a family member dropping in to help an elderly parent pay monthly bills. It may be a live-in caregiver who begins calling his client “mom.”
How about the financial adviser who offers to manage a large investment portfolio for an elderly couple whom he has met at church?
At some point the person paying the monthly bills is spending all of the elderly person's money and giving themselves an early inheritance. The caregiver has his elderly patron rewrite her will giving him a half million dollars when she dies. The financial manager can not resist the temptation to tap into his clients’ nest egg, stealing more than $1 million.
These scenarios all are true and shed light on a growing national issue ….financial exploitation of the elderly. Nine times out of 10 the abuse is by a family member and experts estimate that only one in 25 cases ever is reported.
Older people are living longer. Older people have all the money. That combination is in some cases tearing families apart as siblings compete for parental favor and money and giving unscrupulous caregivers opportunities to steal.
In some cases what may have started out as a workable plan to help mom turns into a nightmare with the elderly parent trapped in their own home in an abusive and controlling relationship, experts say. Women generally are at higher risk because they tend to out-live their spouses.
“Thieves…family members or not…count on their abusive behavior to not come to light,” said Dianna Kretzschmar, program coordinator for a new Elder Abuse Justice Center in Vancouver, Wash., that opened this year to more effectively handle financial exploitation and abuse cases. The center is the first like it in Washington state where the latest data show more than 12,600 abuse cases were reported in 2009 including 4,061 financial exploitation cases.
Kretzschmar sees the center’s case load expanding “exponentially” compounded by a growing generational gap between haves and have nots.
“Our elderly are generally those who came out of the Depression, who saved and didn’t have credit cards,” she said. “They didn’t take on debt and they lived within your means. They are not equipped to handle the world we have now…frankly they’re sitting ducks.”
Wealth gap
A recent report showed that the wealth gap between younger and older Americans is the greatest that it has ever been. Households headed by people 65 and older have a net worth 47 times greater than households headed by someone under 35. That's the greatest spread ever and five times worse than it was just six years ago.
The problem in going to get worse, especially in these difficult economic times, as people live longer, Kretzschmar said.
Carol Sloan, Adult Protection Services program manager for Washington state, said investigators and agencies are struggling to get on top of the growing problem.
“Every state defines target populations differently,” Sloan said. “New national legislation has been passed but is unfunded.”
With the baby boomer population wave heading toward retirement the number of seniors 65 and older in the U.S. population is expected to increase from 39.6 million in 2009 to 72.1 million in 2030.
Washington Post newspaper financial columnist Michelle Singletary took up the cause this month with support of a nationwide Prevent Elder Financial Abuse Call-in program.
Phone lines were staffed by certified financial planners, heath-care professionals and adult protective services professionals who gave out advice and guidance on how to protect against investment fraud.
The call-in (now completed) was sponsored by the Investor Protection Trust, which offers a wealth of information at www.investorprotection.org.
In her column, Singletary shared the story of Jeffrey Butler, a California man who bilked 124 elderly investors out of more than $11 million in a Ponzi scheme. Butler was convicted and given a 90-year prison sentence. Butler, according to an Orange County District Attorney’s report, first met many of his victims while operating a company that offered to assist senior citizens in creating living wills, trusts and other estate planning structures.
Nine in 10 are family
But investment fraud is a small part of the financial exploitation picture with much greater risk coming from family members who see grandma’s assets and Social Security check as free money.
“As elders become more physically frail, they’re less able to stand up to bullying or to fight back if attacked,” say the experts at the National Center on Elder Abuse. “They may not see or hear as well or think as clearly as they used to, leaving openings for unscrupulous people to take advantage of them.”
On the other hand, mental or physical ailments may make them more trying companions for the people who live with them thus creating an atmosphere of entitlement.
More than half a million reports of abuse against elderly Americans reach authorities every year, and millions more cases go unreported, said center experts.
Abuse may take many forms:
- Physical abuse. Physical elder abuse is non-accidental use of force against an elderly person that results in physical pain, injury, or impairment. Such abuse includes not only physical assaults such as hitting or shoving but the inappropriate use of drugs, restraints, or confinement.
- Emotional abuse. In emotional or psychological senior abuse, people speak to or treat elderly persons in ways that cause emotional pain or distress.
- Financial abuse. That may mean slowly taking over the elderly person’s check book and using it to pay for unrelated personal expenses. It may mean using the elderly homeowner’s money to buy unwanted items such as TVs, appliances and cars. Or it could mean “borrowing” from a savings account and never paying it back, talking the person into an unneeded reverse mortgage to get at more money or pushing a vulnerable person into bad investments with a high commission, over and over. One car dealer in the Vancouver area sold several new cars all in one year to a demented old man because he couldn’t remember the prior deals. He lost thousands on every trade-in. Family members stopped the situation. The money was paid back.
Family abuse has history
Dianna Kretzschmar said in many cases family members are “acting out” long-standing dysfunctional behavior within the family unit.
“Family members may have a sense of entitlement or they may be ill-equipped to handle a disabled parent,” she said. “The problem is that as any greed goes, it gets bigger and bigger.”
Kretzschemar puts the blame in certain situations on the parent who invites an unqualified family member to help them with their finances. An out of work grandson may not be the best choice.
“People should not do what is expeditious but instead put thought into who they might trust in their house or who they want handling your money,” she said.
(Turning your assets over to a bank trust department may be one answer. See my earlier post at sixtyandsingle.com)
Spotting elder abuse
The National Center on Elder Abuse offers these tips for spotting abuse:
- Intimidation through yelling or threats. Threatening, belittling, or controlling caregiver behavior that you witness. Behavior from the elder that mimics dementia, such as rocking, sucking, or mumbling to oneself
- Humiliation and ridicule.
- Habitual blaming or scapegoating.
- Non-verbal psychological elder abuse can take the form of ignoring the elderly person, isolating an elder from friends or activities and terrorizing or menacing the elderly person
- Significant withdrawals from the elder’s accounts. Sudden changes in the elder’s financial condition. Items or cash missing from the senior’s household. Suspicious changes in wills, power of attorney, titles, and policies. Addition of names to the senior’s signature card. Unpaid bills or lack of medical care, although the elder has enough money to pay for them. Financial activity the senior couldn’t have done, such as an ATM withdrawal when the account holder is bedridden. Unnecessary services, goods, or subscriptions
In addition there is a whole category of health care fraud that involves duplicate billings, overmedication and inadequate care even though bills are paid.
According to the national abuse center, “many nonprofessional caregivers — spouses, adult children, other relatives and friends — find taking care of an elder to be satisfying and enriching. But the responsibilities and demands of elder caregiving, which escalate as the elder’s condition deteriorates, can also be extremely stressful.”
The stress of elder care can lead to mental and physical health problems that make caregivers burned out, impatient, and unable to keep from lashing out against elders in their care, said center experts.
Reporting abuse
Abuse experts urge family and friends who suspect elder abuse to call Adult Protection Services in their area.
The National Center on Elder Abuse offers a hot line at 800-677-1116 or at its Web site at www.ncea.aoa.org. Local Adult Protective Services operate in most cities and towns with staff available to look into possible abuse cases.
“This can be done anonymously with no repercussions,” Kretzschmar said. “All you’re saying is that you think there might be something wrong, that you have concerns. APS investigates and may find nothing or findings may be inconclusive. We need to remember that the triumph of evil is for good people to do nothing, she said.
For more:
My radio interview with Steve Leader on KXL 101.1 FM in Portland, Ore., click here.
The National Center on Elder Abuse, click here.
Check List for Dealing with Elder Financial Abuse, click here.
"Stop Walking on Eggshells: Taking Your Life Back When Someone You Care About Has Borderline Personality Disorder" by Paul Mason at Amazon.com
How bank trusts work" at sixtyandsingle.com.
"Making Sense of Life's Changes" by William Bridges.
"MacArthur Fellow Leads Fight Against Elder Abuse," USATODAY, click here.

Elder abuse and financial exploitation. Where to go for help.

2011-11-10T11:59:00.000-08:00

My dear sixtyandsingle.com readers.
I am working on an in-depth piece about elder abuse, guardianships and adult protective services.
It's a big project with lots of reporting.
Meanwhile Steve Leader at Portland's KXL 101.1 FM radio interviewed me today on those topics. You can catch the interview at KXL.com
As follow up to the radio show, I'm posting helpful Web sites and phone numbers on the topic of elder abuse. Here they are:
National Center on Elder Abuse: http://www.ncea.aoa.gov/ for state-by-state contact information, facts and resources.
National Elder Care Locators for adult protection services 800-677-1116.
Adult Protective Services, Region III hotline for Southwest Washington - 877-734-6277.
Vancouver, (Wash.) Elder Justice Center - 360-397-2261
Friends of the Elder Abuse Justice Center at Facebook.com
Washington Adult Protective Services statewide hotline - 877-734-6277
Oregon Adult Protective Services - click here.
Oregon APS by county, click here.
Elder Abuse and Neglect: Warning signs, click here.
Case reports:
Missouri man leaves sick woman rotting alive, click here.
Bellevue, Wash. accountant steals $1 million from elderly couple, click here.
Actor Mickey Rooney, 90, testifies before Congress on elder abuse, click here.
Special Committee on Aging, 2011 testimony, click here.

Women traveling solo? You're not alone. Here's what you need to know

2011-10-27T13:08:00.000-07:00

Traveling solo used to be only for adventure-hungry backpacking 20-somethings. Leave it to baby boomers to create a new and growing trend in the leisure travel industry: Seniors -- including many women -- traveling on their own.
Some are traveling for business such as the 65-year-old woman I know who has been in at least eight different countries on three continents in the past seven months leading training seminars for a U.S.-based manufacturer. Or the 60ish mother and her 40ish daughter who just returned from three weeks on tour together in Italy, leaving husbands and children to fend for themselves. (They did fine.)
Then there was my retired school teacher friend, Sharron, 69, who joined a group of 35 on a Road Scholar trip organized through her Atlanta church called "In the Footsteps of Christ," which took her to Jerusalem, the Dead Sea, the River Jordan and Egypt. Of the 35 people, there were only four couples...the rest singles, mostly women.
For Cynthia Anderson and her husband, Donald, co-owners of Sunshine Travel & Cruise Co. and USA River Cruises based in Vancouver, Wash., solo travel and women-only group travel has been among the biggest surprises for their business over the past 10 years. Despite 9/11 and despite the 2008 economic downturn, their travel businesses have been growing like crazy. Women traveling on their own or in groups have been a big factor in that growth. Other travel professionals are seeing similar trends in independent travel.
That’s good news for single women, widowed or divorced, who like to travel as well as for those who are married but may want to take a trip without their spouse. More travel businesses are catering to their needs.
Anderson said women travelers once represented about 20 percent of USA River Cruise business but that percentage has climbed to 37 percent.
“We’re seeing a huge surge of people wanting to take family and extended-family members on trips,” she said. “We’re seeing many in the 55-and-older age group who are opting for small ship travel. Women love them because when you’re on a ship of say 28 passengers somewhere in the world. You end up knowing everybody and it feels safe.”
Travel trends also include more inter-generational travel where grandmothers are taking granddaughters on trips or grandparents are taking grandchildren.
And more international travel of all kinds as baby boomers retire, write out their “bucket list” and see the clock ticking. Friends of mine just returned from 21 days in Turkey and said they had a fabulous time.
What women travelers want
April Merenda, president and co-founder of http://www.gutsywomentravel.com,/ explains that single women travelers want a unique travel experience.
“First of all, single women travelers don’t want couples…they don’t want to feel like a fifth wheel,” Merenda said. “Secondly, they like to linger, ask questions and multi-task. That may mean getting a spa treatment, attending a cooking class, shopping or hearing a guest educator.”
Couples, she said go to resorts and tend to concentrate on one location. Single women are looking for variety, interesting experiences and bonding with other women.
“Women like the company of like-minded women,” Merenda said. “There’s strength in numbers. They will share what’s happening in their lives be it aging parents or teenage kids.”
Merenda, who founded her online travel business for women 10 years ago, said the number of women who are traveling completely on their own without other family or friends has jumped from about 50 percent of her clients to 70 percent.
“Gutsy Women is not about climbing Mount Everest,” she said, “but about having the courage to put your self first.” Women, she said, "spend their lives doing for others. Independent travel is about occasionally making time for yourself to refresh and renew your mind, spirit and body in the company of like-minded women at fascinating destinations.”
Safe but single
Gutsywomentravel.com and travel and tour businesses like them catering to solo travelers emphasize the safety features of their tours. Tours are typically designed to offer a variety of experiences and chances to meet local people.
At gutsywomentravel.com, trips are no more than seven days’ duration or less “as we recognize that women are time-deprived,” Merenda said. Women-only tour groups and the travel industry in general recognize growing market opportunities by catering to women, since women make 70 percent of all travel decisions.
The latest 2010 U.S. Travel Association data show:
- 40.3 million Americans are age 65 and older.
- Of those about 23 million are women with 59 percent married and 41 percent widowed or divorced.
- Of the 17.4 million men, 65 and older, 71 percent are married, 29 percent, widowed or divorced.
In addition to a growing number of solo travelers, more couples are taking separate vacations, Merenda said.
“In this economy, couples may have to leave careers, they may have differing vacation times…. she may take a vacation alone because he may be working or have different interests,” she said. “She can do a cooking class in France and he doesn't mind because she’s in the safety of like-minded women.”
Inter-generational travel
At Road Scholar, a not-for-profit Boston-based travel and learning organization, the trends show an increase in international travel and intergenerational travel.
“Our programs have always offered accommodations for single travelers,” said Stacie Fasola, Road Scholar director of public relations “Our only barrier is ability level in terms of walking, hiking. Our programs are rated accordingly.” Road Scholar encourages solo travelers to share double-occupancy rooms. It charges extra -- in the $200 to $650 per person range -- for a single room.
Fasola said a typical Road Scholar traveler is a retired female educator who may have been a school administrator or librarian. Something close to 60 percent of Road Scholar clients are women who like the educational aspects of travel. The organization offers hundreds of group trips a year with some as inexpensive as $600 for an all-inclusive three day expedition in Arizona. Most are more elaborate and far ranging such as 10 days exploring “The Hidden Treasures of Florence,” for $3,398 including meals, hotel and transportation and airfare from JFK.
Eating alone? Not.
“Our solo travelers may have concerns about safety,” Fasola said. “They likely will not want to eat alone or go to hotels alone. Travel is an experience you want to share. We help make that happen.”
At Rick Steves’ Seattle-based travel and guide publishing company, a growing trend is not solo women travelers, but male solo travelers, said Deanna Woodruff, tour department manager.
“In 2000, we occasionally had a solo male on one of our tours,” she said. “Now it is common to have at least one solo male traveler on each tour and on some tours you may find two or three.”
As for Cyndi Anderson at Vancouver’s USA River Cruises, small ship travel on rivers and waterways throughout the world has become popular for the easy of travel from one location to another and for the safety.
“These trips include shore excursions and independent exploration with a ship’s crew looking out for you,” Anderson said. “We see ship operators putting on more single cabins.”
The best travel operators, she said, will arrange for a pre-trip get-together for their singles travelers. The idea is to meet before you start traveling, she said.
My good friend Sharron, the retired school teacher, said her travel group of mostly women became a little family. "My experience," she said. "was better than a college course. This was more than just sight-seeing...it was a trip of a lifetime."
Don't wait to take yours.
Thanks to Dianne Moore at http://www.zestnow.com/ for republishing this piece on Women Traveling Solo at the ZestNow Web stie.
Travel Web sites:
- http://www.cruiseandresorts.com/ for Sunshine Travel and USA River Cruises.
- http://gutsywomentravel.com/ for women-only travel groups.
- http://www.roadscholar.org/ for travel-education tours.
- http://www.ricksteves.com/ tour travel and guide books.
- http://www.tripadvisor.com/ search “solo travel” forum.
- http://women-traveling.com, group travel for women.
-http:www.journeywomen.com. A travel resource for women.
women.
A few tips for traveling on your own:
1. Use a quality travel agency or travel company with a solid track record to book your trip. Online prices may look good but can be misleading or a scam.
2. Do your homework. Get reliable recommendations on travel agents and tour agencies.
3. When comparing trip prices make sure they are apples-to-apples trip comparisons.
4. Go on a trip with an open mind. You will return with new friends and memories from life-changing experiences.
5. Small group travel means that you’re not really alone but have security and a travel director to assist you.
6. Share your goals with your travel director. If you want a camel ride, say so.
7. Take lots of small denominations in foreign currency to avoid international ATM fees and tipping awkwardness when traveling solo.
8. Never allow a hotel desk clerk to verbally mention your room number when you check in. Instead have them write it down, then look at the number when you're on the elevator.
9. Don't put off your travel dreams just because you're on your own. Looking into your options and prices. Go with other like-minded women. Make something happen.
U.S. Travel Trends
- Solo travelers: 11 percent all leisure travelers.
- Baby boomers, born 1946-54: 15 percent of leisure travelers.
- Mature travelers, born before 1946: 21 percent of leisure travelers.
- Women traveling solo: 30 percent are married, 55 percent are single and 15 percent, widowed.
- 65 and older U.S. population: 40.3 million.
- Of women, 65 and older, 41 percent are married, 40 percent widowed, 12.3 percent divorced and 4.7 percent, never married.
- Travel decisions made by women: 70 percent.
- Leisure industry revenue: $526 billion.
- Leisure travel U.S. tax revenue: $82 billion.
SOURCES: U.S. Travel Association, U.S. Census Bureau, gutsywomentravel.com.

At 65. What I know now that I didn't know five years ago.

2011-10-19T17:14:00.000-07:00

Today, I'm 65. The good news is that I have plenty of company with something like 10,000 baby boomers like me turning 65 every day this year. I've got my Medicare card tucked securely in my wallet, along with the supplemental Medicare Advantage insurance card. Monthly Social Security benefits roll into my bank account every month. I refinanced my mortgage loan.
AARP sends me mail, sometimes three times a week. So do brokerage firms, insurance companies and retirement centers. Yep, I'm 65.
Did we really think about what life would be like in our 60s? For me it was the vague gauzy future where I'd be married, surrounded by successful children and grandchildren, some of them Harvard graduates. I'd be financially secure, active in the community and enjoying a satisfied life of travel and engagement. Some of that has actually come true. Some of it has been dramatically different.
Since marking my 60th birthday five years ago, I experienced an unwanted and devastating divorce and became suddenly 60 and single. I quit my full-time job of 26 years and moved into semi-retirement as a home-based journalist. My best friend from the second grade died of stomach cancer.
Then I met a wonderful new man and after some discussion, we married. Traveling is a more important aspect of my life. Family is important. New relationships are interesting and revitalizing. Life is rich, hectic and good. But not peaceful.
Ticking clock
We agree that the clock is ticking as we see friends grappling with serious illness and even widowhood. We are determined to live life as fully as possible. There's some pressure to do that.
At 65, half way to 70, I would say to those coming along behind that your 60s will be filled with changes and challenges. They will be exciting and a bit scary as we sometimes see bad things happen to good people.You will see friends slow down and grow old, mentally, if not physically.
Some friends will drift away as husbands retire and their interests are more centered on family.
Did we really stay up until 11 p.m. on weeknights? Now I can barely make it to 8:30!
At one end of the spectrum we are still worrying about our kids and grand kids. Worrying about our financial profile, income and strategies. On the other, we have aging parents. My 96-year-old mother meets with her doctor tomorrow to find out if she can go home after breaking her hip. I'll be there with her.
We all know that having control of most anything in our lives is an illusion. I count myself lucky to have my health, to have found a wonderful partner that likes to ski, river raft and live in the woods with me. These past five years of being over 60 have been challenging, exhausting and certainly exhilarating. I've learned a lot about life from top to bottom. I expect that the learning process will continue.
Below I'm sharing a few quotes that inspire me. I hope they inspire and cheer you on your journey.

"One of the conclusions I have come to in my old age is the importance of living in the ever-present now. In the past, too often I indulged in the belief that some how or other tomorrow would be brighter or happier or richer." - Ruth Casey

- "The key to reconnecting is to cherish the gift that abandonment has given you, to remain open to your vulnerabilities and to the vulnerabilities of others. Maintaining emotional contact creates a bridge to true relationships," - Susan Anderson, from "The Journey from Abandonment to Healing."

- "The lesson....is that when we are ready to make a new beginning, we will shortly find an opportunity." - William Bridges from his "Transitions: Making sense of Life's changes."

- "Courage doesn't always roar.
Sometimes courage is the quiet voice
at the end of the day saying,
"I will try again tomorrow."
- Mary Anne Radmacher

- "It is only through labor and painful effort, by grim energy and resolute courage, that we move on to better things." - Theodore Roosevelt

- "Life is like riding a bicycle. To keep your balance you must keep moving." - Albert Einstein

- "Insanity is doing the same thing over and over again and expecting different results." - Albert Einstein

- "Forgive yourself for your faults and your mistakes and move on." - Les Brown

"Laughter gives us distance. It allows us to step back from an event, deal with it and then move on."
- Bob Newhart

-"We keep moving forward, opening new doors, and doing new things, because we're curious and curiosity keeps leading us down new paths." - Walt Disney

"Whatever you can do, or dream you can, Begin it. Boldness has genius, power and magic in it, Begin it now." - Johann Wolfgang von Goethe

"You can only perceive real beauty in a person as they get older." -Anouk Aimee

"To keep the heart unwrinkled, to be hopeful, kindly, cheerful, reverent that is to triumph over old age."
-Thomas B. Aldrich

"To know how to grow old is the master work of wisdom, and one of the most difficult chapters in the great art of living." -Henri Frederic Amiel

"I'm not interested in age. People who tell me their age are silly. You're as old as you feel."
-Elizabeth Arden

"Probably the happiest period in life most frequently is in middle age, when the eager passions of youth are cooled, and the infirmities of age not yet begun; as we see that the shadows, which are at morning and evening so large, almost entirely disappear at midday." -Thomas Arnold

"Old age is like everything else. To make a success of it, you've got to start young." - Fred Astaire

"Aging seems to be the only available way to live a long life." - -Daniel Francois Esprit Auber

"Men of age object too much, consult too long, adventure too little, repent too soon, and seldom drive business home to the full period, but content themselves with a mediocrity of success." -Francis Bacon

"I will never be an old man. To me, old age is always 15 years older than I am." -Bernard M. Baruch

"We grow neither better or worse as we get old, but more like ourselves." -May L. Becker

"To think, when one is no longer young, when one is not yet old, that one is no longer young, that one is not yet old, that is perhaps something." -Samuel Beckett

"Therefore we do not lose heart. Even though our outward man is perishing, yet the inward man is being renewed day by day." [2 Corinthians 4:16] -Bible

"To resist the frigidity of old age, one must combine the body, the mind, and the heart. And to keep these in parallel vigor one must exercise, study, and love." -Bonstettin

"The tendency of old age to the body, say the physiologists, is to form bone. It is as rare as it is pleasant to meet with an old man whose opinions are not ossified." - J. F. Boyse

"Old men should have more care to end life well than to live long." -Captain J. Brown

"You are never too old to set another goal or to dream a new dream." -Les Brown

"A woman's always younger than a man at equal years." - Elizabeth Barrett Browning

"Grow old with me the best is yet to come." -Robert Browning

"Perhaps one has to be very old before one learns to be amused rather than shocked." -Pearl S. Buck

"Age is something that doesn't matter, unless you are a cheese." -Billie Burke

"By the time you're eighty years old you've learned everything. You only have to remember it."
-George Burns

"How beautifully leaves grow old. How full of light and color are their last days." -John Burroughs

"To me -- old age is always ten years older than I am." - Andre B. Buruch

"A man of eighty has outlived probably three new schools of painting, two of architecture and poetry and a hundred in dress." - Joyce Carey

"It is not all bad, this getting old, ripening. After the fruit has got its growth it should juice up and mellow. God forbid I should live long enough to ferment and rot and fall to the ground in a squash." - Emily Carr

"Most people think that aging is irreversible and we know that there are mechanisms even in the human machinery that allow for the reversal of aging, through correction of diet, through anti-oxidants, through removal of toxins from the body, through exercise, through yoga and breathing techniques, and through meditation." - Deepak Chopra

They've promised my mother that she can go home.

2011-10-13T21:32:00.000-07:00

The other day on the phone, my mother asked why was she still here. "Why didn't I die when I fell," she said.
It's been a rough couple of months for her after a fall in her kitchen in July that broke a hip. She had hip replacement surgery and has been recovering in a convalescent center since. Her living space is a small room with a bed, a table, TV and no real privacy. She's been going to physical therapy, eating in a lunch room three times a day with other residents. Last night, a music group entertained.

A few nights ago, she fell again while trying to get to the bathroom when no one was around. So now an alarm goes off if she tries to get out of bed. She hates the prison-like confinement. She hates the alarm.
Before the fall, she'd made good progress with her recovery. Now she seems tired and a bit discouraged, which for her is saying a lot. She has just never let much get her down...she's a steel magnolia, a Scarlett O'Hara, a woman who grew up in the Depression and never looks back.
Now after three months, she's pretty much used up her Medicare rehab coverage and very much wants to go home. A lot of people have been trying to make that happen by building a ramp to the front of her farm house door, making some changes in the bathroom, helping my sister clean up the house and hiring care givers to help her get in and out of bed, to dress, bath and make it to the bathroom when my sister isn't there.
I didn't have a good answer for my mother when she asked why she was still here. Why are any of us here? It's just not her time, I told her. "We still have things to learn from you," I said.
Maybe it's just genetics... both her parents lived into their 90s, so no surprise...here she is.
Mom has had a great life as farm wife and mother, active in her church, women's groups and the community. She lived independently until her stroke at 83. Even after that she had Howard, her second husband, who provided love and companionship. They got along well until his death at age 93. My mother was 89.
She's been widowed twice, the first time when my father died 20 years ago. She was 76 and still a vital and independent woman. Now she's using a walker and a wheelchair to get around. When I visited her at the care facility a few weeks ago, I saw what old, really old, looks like.. tiny white haired women, wrapped in blankets and shawls, sitting in wheel chairs. In some cases, too weak to feed themselves.
Old is old when you get to be over 95.
Mother is trying to stay positive and engaged. Tonight, we talked politics. She's stays up on football (Go Boise State!) and told me about the visitors who recently have come to see her. Next Friday, they've promised to let her go home. For how long, I don't know.
According to the latest Census Bureau stats, there are more than 1 million women aged 90 to 94 alive in the United States as compared to 424,387 men in the same age group. Another 288,981 women are aged 95 and above, my mother at 96, is among them. Do I want to live that long? Nope. The scary part is that I might.

One year later: How has my rollover IRA performed? Not bad, considering

2011-10-10T16:21:00.000-07:00

A year ago I reinvested my 401(k) nest egg out of my employer-based plan into a self-directed Rollover Individual Retirement Account when I went from full-time wage earner to semi-retirement. Those of you who read this blog, know that my investment strategy is heavily weighted to dividend-paying U.S. based blue chips. I've made those investment decisions based on my faith in American capitalism and the strength of American corporations, nimble enough to stay ahead of the competition, foreign and domestic. It is time for an annual review. What was my over all performance in the past year. Who were my winners and losers?
First let me explain that I merged two accounts...my 401(k) money accumulated over 26 years of full-time work in the newspaper business and a separate Individual Retirement Account. Both chunks of money went into a new self-directed rollover IRA at Fidelity Investments.
As a long-time investor and market watcher, as a business news reporter and someone with an entrepreneurial Idaho cowgirl view of life, I thought I could do as well as or better than any broker that I've worked with. That saves money management fees and commissions and gives me the comfort of knowing all the mistakes are mine, but so are the rewards.
In my new semi-retired life, I watch markets daily, check regularly on my investment portfolio and try to not over react to the latest sky-is-falling world economic news. Lately, that's been tough to do.
I'm working as a freelance business and energy writer, I write for http://www.sixtyandsingle.com/ and do a weekly business news broadcast snippet on KXL-FM 101.1, a Portland, Ore. radio station. I occasionally lead workshops for women on money, investing and retirement planning. I am on a regional advisory board to Umpqua Bank where I recently refinanced my mortgage.
It's a full life that also includes more travel and visits to my 96-year-old mother who taught me everything I know about investing. (Well almost)
The good news is that my part-time freelance work is helping me avoid tapping my tax-deferred retirement investments while they continue to earn money.
Signing up for Medicare this month cuts my monthly health insurance cost from $400 to $195. I'm generating some cash flow from my 20-acre farm from pasture rental and I hope to log and sell a few trees before the end of the year to supplement that income.
How have I done in the past 12 months since moving my nest egg from my former employer's investment program to one totally under my control? Last spring my answer would have been, "sensational." Now, with the market downturn of the past few months, I'd have to say, "OK" considering what's been going on.
Overall, my combined rollover IRA is up in value year over year about 5 or 6 percent, depending on the day. That's despite having a substantial part of my portfolio in an S&P 500 index fund with a modest 2 percent value increase from a year ago and down 5 percent from January.
My rollover IRA investments are diversified around the table using a combination of index funds, individual blue-chip dividend stocks and a bond fund that so far have kept me above water.
Better performers have been:
- Coke-cola (KO) with a share price increase of 20 percent in the past 12 months and an annual dividend of 2.85 percent.
- Bristol Myers Squibb, (BMY), up 20 percent with a dividend of 4.08 percent.
- Johnson & Johnson, up 15 percent with a 3.6 percent dividend.
- Of course past performance of these stocks does not guarantee future performance. But the experts are recommending blue-chips with good dividends as an alternative to certificates of deposit, which pay zilch. The bond market is looking iffy if interest rates go up....but the Federal Reserve pretty much guaranteed that wouldn't happen until 2013. What about those European banks? They could screw things up.
In addition to the individual stocks mentioned above, I'm big into utilities...companies that market power in the form of electricity, oil and natural gas to the world. Among my holdings are Duke Energy Corp. (DUK) with share price growth of 12 percent and a 5.05 percent dividend and Dominion Resources (D), up 9 percent with a dividend of 3.9 percent. Money also went into a telecommunications and utilities index fund through Fidelity that has seen a share increase of 6.9 percent and a bond fund, up 5.2 percent.
There also have been some losers, most of them from investments prior to October 2010, made through my separate IRA account. Those losers are Cisco Systems, down 10 percent, Macy's up 13 percent in the past 52 weeks, but down still from when I bought it almost three years ago in my IRA and PMI Group, a mortgage insurance company that looked like a good buy three years ago at $17 but has since slid to less than $1 share. I keep that stock to remind me how bad it really can get.
The good news is that I don't have to live on my 401(k) earnings but instead am relying on Social Security monthly benefits and part-time work. I have to keep those earnings below $14,500 a year since I am not yet at my full retirement age of 66.
So what's next?
Would I change anything about my portfolio? I keep reading that bond funds are at risk if interest rates go up or banks default, so I took some money out of my bond fund and put it in the S&P stock index fund. Over the summer it was hard to see the value of that fund drop by 11 percent and I hate those big daily market swings. There are doom-and-gloomers out there that warn that we could be in for a bad new recession that would push equities down a lot more. But where is there to go? Most experts say to sit tight.
If anything, I'm going more into utility stocks which have low volatility (beta rates) and pay a good dividend of 3 percent or better. The experts see utilities are a good place to be, even in a weak economy.
Banks remain in the dog house. So there's a contrarian part of me that says this might be the time to buy some banks. Citigroup, anyone? Maybe not yet.
Despite the Occupy Wall Street crowd, I still believe in American capitalism. I'm gratified that Ford Motor Co.and General Motors are profitable and selling cars, again. We are still the biggest economy in the world. Some of the wealth we thought we had never really existed. But our over all population continues to grow, unlike Japan and some countries in Europe. That will drive economic growth.
Meanwhile, baby boomer like me are retiring and living on less household income. I'm spending less. I'm guessing others like me are doing the same. That will be a negative. But hey, I'm going to keep traveling, eating out, gardening and driving my car. New tires for the Frontier are on my to-do list this month.
Generally, I'm happy with my self-directed portfolio management strategy. Would I do it the same way again? Yep.
For more on investing in a difficult economy.
"How to invest in tough times," click here.
"Retirement plans to savers: Sit tight., click here.
"Seven Investment Strategies for Tough Times, click here.

Investors are fed up. When will we start solving our economic problems?

2011-10-04T12:56:00.000-07:00

They've finally done it!

As an average semi-retired baby-boomer and long-time investor I am totally and completely fed up.
Fed up with the sky-is-falling market gyrations fueled by the European Greek debt chaos.
Fed up with the constant barrage of daily economic news that in the past three months has eroded consumer confidence in the U.S.
And completely disgusted with partisan politics and the woeful lack of leadership in Congress to solve our debt issues, reform entitlement programs and keep our fragile economic recovery going.
If the meltdown in 2008 was caused by greedy bankers and mortgage lenders run amok. This time the blame goes to the President and to Congress for not rising above politics as usual. I'm actually tired of hearing them talk, talk, talk. President Obama's "Jobs Speech" was a non-starter for me.
This week's example: U.S. Sen. Dick Durbin's two-faced whine to fellow senators about Bank of America.
Durbin essentially told Bank of America customers to dump the bank because of its announcement that it will start charging debit card customers a $5 a month fee. Was the bank stupid for the timing of this announcement and the blunt way it made the announcement? Yes. But banks have a right to make a profit.
Durbin was a prime architect of the Dodd-Frank financial reform law that stripped banks of their ability to make money from credit card interest, debit card fees to retailers and bank-account overdraft fees.
In the old days banks were supposed to make money by lending to borrowers who used the money to buy houses and grow businesses. That's way down the list of revenue producers for banks.
So Durbin is ranting about the debit card fee, telling bank customers to dump the bank. Great. Let's put Bank of America...the nation's largest bank...on the ropes. According to report, Durbin's amendment capped the "swipe fees" that banks charge retailers.
Senators should not be in the business of running banks and bank businesses, but that's where we're headed.
Meanwhile, there are much bigger unsolved issues...the federal debt, government funding and jobs. There are solutions but again I have no faith that our elected leaders will do what needs to be done. Neither the far right nor the far left get it.
The federal government can not be compared to the average household where you can't borrow more than you spend. That is just too simplistic. Governments do borrow, they do carry debt and grease the economy with the spending and debt. For example, Treasury bills weren't invented yesterday.
Charles Krauthammer in a recent column sees a three-prong solution to the serious issues we face that will return our economy and our investment markets to something more normal. The so called super-committee established by the debt-ceiling deal from two months ago has the power to deal with this, he said,.
First tax reform: True tax reform,he said, would remove loopholes while lowering tax rates. "It appeals equally to left and right because, almost uniquely, it promotes both economic efficiency and fairness." The committee doesn't need to reinvent the wheel because the proposals were already laid out by the Simpson-Bowles Commission earlier this year.
Secondly, Revenue Neutrality.
Krauthammer says every dollar of revenue raised by stripping out a loophole is to be returned to the citizenry in the form of lower tax rates. "Start with the obvious boondoggles," he says, "from the $6 billion-a-year ethanol subsidies to your Democratic perennials — corporate jets, oil-company breaks, etc." But it will take more than that. "The real money is in the popular tax breaks: employer-provided health insurance, mortgage interest and charitable contributions. Altering some of these heretofore politically untouchable tax breaks would alone be a singular achievement," he said.
Take the mortgage interest deduction: Krauthammer suggests gradual elimination of the mortgage-interest deduction by first excluding second homes and mortgages greater than, say, $500,000. Then lowering that threshold by $100,000 chunks as the housing market meets certain threshold indexes of recovery."
And finally, Krauthammer talks about a "Grand Bargain."
"Once you have serious revenue from neutral tax reform in place, the ideological horse-trading that is required for massive deficit reduction — tax hikes vs. entitlement reform — can begin."
Republicans will resist the former, Democrats the latter, he said.
"But tax-reform-first makes possible the compromise that eluded John Boehner and Barack Obama," he said. Dealing with Social Security, Medicare and Medicaid in some sort of trade-off negotiations would cut our debt, restore world confidence in the American economy and "best of all, we would be back on the road to national solvency."
Smart people have been explaining this formula or variations of this formula to Congress for years, even decades, but we Americans never solve problems unless we have to. Congress was set up to compromise but in the 24/7 news world of "transparency" it's difficult for reasonable people to have a conversation.
I still believe in American capitalism. I still believe in our ability as a people to solve problems. Today, the Washington-Post reported that hopes that the super-committee will come up with something big are growing less and less likely. But maybe the best indicator that things will be better is that they can't get much worse. If history is any indicator there are better days ahead for investors, for markets and for the economy. Where will the leadership come from to make it happen?

Women, investing and choosing a financial adviser

2011-10-04T09:55:00.000-07:00

There is no one investment strategy that fits all clients. That’s the bottom line message gleaned from a recent conversation with a financial adviser in Portland, Ore. Depending on age, income, financial savvy and family dynamics each client's needs may be different, he said. That’s what makes his work interesting and rewarding. However, he shared some general strategies for three groups of women:
Those recently divorced or widowed, those under 50 and those who are close to retirement or who are retired.
Women newly divorced or widowed
Women with whom he counsels who are recently widowed or divorced are many times "overwhelmed" by the task of sorting things out... wills, investments, trusts, pensions, you name it. "Often the home filing system for accounts, investments, wills has been haphazard," hen said. "Maybe the husband was in charge and knew where things were but she may not. Both husband and wife need to know the basics of where things are before something changes."
This adviser strongly recommends that woman who are on their own after a long marriages should find "good counsel" from someone on whom they can rely and trust as they face the daunting task of settling the estate and making a myriad of financial decisions.
In working with professionals, she needs to be asking, "Why are you doing this, and why not," he said.
She'll probably need an attorney and should audition several, if she doesn't have one that she is comfortable with. "Maybe this woman is a working professional, but at home she's deferred to her spouse," he said. "Now she's driving the bus. There are tax implications for how an estate is settled. She needs to be in charge."
Once, her team is in place, she should recognize that there are obligations and opportunities to respond to the needs of her children, grandchildren, even her parents. Then she can get on with her life. The good news, this adviser said is that women are multi-taskers "She can shine at this...there's lots of balls to be juggled. Women need to be prepared for that work," he said.
Women investors under 50
"Women under 50 can be a lot more open to diversity in their financial planning because more time means more uncertainties can crop up that can go well or not go well," he said. "Women need to be focused on what's going on globally."
To that end, there's an emerging middle class globally with billions of people who want to buy a Big Mac, wear Nike shoes and drink a Coke. Many American companies are seeing and will see the majority of their revenue and profit coming from outside the U.S. But because they are U.S.-based their financial statements are more transparent.
In general, it is important for women to gain confidence with regard to money management and financial planning whether married or single, he said "They've got to understand what's being done and the thinking behind certain decisions. All of this falls under the generally heading of gaining confidence," he said.
How do you gain confidence?
No 1. Get educated. Keep up with what's going on in the world, the economy and seek out information sources. Financial advisers can help, or not. “Too often among my colleagues, advisers can be patronizing to women,” he said. “They can do things to their detriment. Women need to ask questions and get answers.
No. 2 Use your nose, follow your instincts when it comes to investing and money management. If you don't understand the thesis for an investment, you're probably not going to do it. Question, get answers. "If you don't have an adviser who will give you answers, find someone else," he said.
No. 3. Reading is important. Reading the Wall Street Journal can be helpful but watching the 24/7 business news channel may not be helpful because that news and analysis is to short-term, he said.
No. 4. Find useful Web sites but above all else don't limit yourself to one source. You will agree with some Web site content but not agree with some.
No. 5. Understand that things change. "At the end of the day you've got to maintain your own values but keep in mind that things will change, he said. “Be prepared for that. Just as you go to your doctor for an annual check up, you must do the same with your financial adviser, your legal adviser and accountant.
Women managing their money over 50
All of the above applies to women over 50 but this age group also may need to be a bit more conservative. Shifting into low beta (lower volatility) stocks such as utility companies with a good dividend may provide that security. Duke Power, Potomac Electric Co. were examples that he shared.
Women at 65 or 70 or above
Women in this age group need to be re-balancing things, again. You just can't "set it and forget it" any more. Demand that of yourself and your adviser, he said. He likes engaged, informed clients.
"When you take on a financial adviser, you're taking on a partner (not unlike a marriage)," he said. "You need to be comfortable with that person," he said. "Their fees, how they make their money needs to be part of the ongoing conversation. "The economic downturn has eroded investor confidence, made us question most everything, made us less trusting, He said that unfortunately that's also made us fearful sometimes to our detriment." That's why there's got to be open communication.
Worst case scenario for women on their own who are newly divorced or widowed? "There are often many surprises, some unpleasant, not so much that the husband was deliberately doing something wrong but that there might be unintended tax implications or just bad or ill-informed decisions."
Investment advisers are very much the social worker and psychologist in working with couples (and singles) who are making investment decisions. "I want my clients confident enough to say, 'bull shit' if they don't understand something. They have to have the confidence to say this feels good, or this doesn't feel good."
Follow up:
Here are Julia's TEN QUESTIONS TO ASK WHEN CHOOSING A FINANCIAL ADVISOR:
How do you get paid?
What’s your background, experience?
What’s the strength of the company you work for?
What do your clients say about you?
What are your checks and balances?
Can you put your proposals in writing?
What are the potential pitfalls of the investment products you are offering?
What do other professionals have to say about you?
What’s your gut-level comfort with this adviser?
When you meet with your adviser do you come away feeling good about what you’ve learned, where you’re headed?
FOR MORE:
Choosing a financial adviser, tips from the SEC, click here.
Selecting a financial adviser, Reuters, click here.
Seven questions to ask a financial adviser, from the WSJ, click here.

Giving away those 'Dress for Success' suits, doing good works in the process

2011-09-22T17:17:00.000-07:00

Let's begin with quotes from a few famous women:
"Adornment is never anything except a reflection of the heart." -- Gabrielle "Coco" Chanel
"Remember that always dressing in understated good taste is the same as playing dead." -- Susan Catherine
"If men can run the world, why can't they stop wearing neckties? How intelligent is it to start the day by tying a little noose around your neck?" --Linda Ellerbee
"Dress is at all times a frivolous distinction, and excessive solicitude about it often destroys its own aim." --Jane Austen

Now an update on my life in semi-retirement:
It has been 18 months since I "retired" and stopped wearing business suits to work every day as part of my full-time job as a newspaper business editor. That move, however, did not mean that I was ready to literally give up my suits. Who knows, I thought, maybe I just might need them because I’m just semi-retired, right, and still working as a freelance journalist. I still have meetings to go to, people to meet, events to host.
As I’ve mentioned before...adjusting to my new life has been a gradual process, not to be rushed. But here’s the story on my suits.
More than a year later, they have mostly gone unworn as I find myself working out of a home office, doing phone interviews while drinking coffee and wearing my bathrobe. Then I may throw on jeans and a t-shirt and go outside and garden before returning to my desk.
The suits with clever flared skirts and tailored jacket and their “I-mean-business” message have become a memorial to my former work life. The reality is that I wear a suit once or twice a month, sometimes (out of a sense of obligation) to a Rotary Club meeting.
Meanwhile, my sense of style has evolved. That semi-retired look is more confident but less business-y, a bit less formal. This style that I'm inventing is more diverse with more dresses, mix and match skirts and jackets with a funkier feel. My retired readers know what I’m talking about. It’s time for me to let go of the suits, this shrine of mine to the dress code of work.
Options for letting go
But where do I take them? Where will my beloved suits have the biggest impact and do the most good? My options include Goodwill, an American Cancer Society thrift store, the Salvation Army, a for-profit upscale used clothing store called Dolly's that's run by a young Russian woman in Portland, or something called Dress for Success.
Women my age -- 60-plus -- may remember (and some of us still have) the book from the 1980s called "Dress for Success." It was all about the power suit. It was about how women needed to dress in clothing similar to men to gain credibility at the business conference table. Remember those suits over blouses with a ribbon neck tie?
Men could put on the “uniform” of suit, white shirt and tie to look like a member of the club, said author John Malloy. Women needed to send the same message. This was a time when women rapidly were moving out of the secretarial pool into the ranks of middle management. There were plenty of do’s and don’t’s. We were so ready to learn.
Mallory's book went into the dust bin along with a lot of other ideas from that time of change. Wearing a suit might help women climb the corporate ladder, but it wasn’t the secret formula. That’s a topic for another posting.
A New Dress for Success
There’s a new version of Dress for Success, which has nothing to do with the original book but still is about women making a positive impact when applying for a job and while on the job.
The nonprofit Dress for Success program was established in New York in 1997 by Nancy Lublin who wanted to help lower-income women “find jobs and remain employed.”
Dress for Success Oregon has operated in Portland since 1998 and now serves about 2,200 women a year through its career center, coaching program and professional clothing assistance, Carol Wire, acting executive director told me in a recent interview.
“Our mission is to promote the economic independence of disadvantaged women by providing professional attire, by giving them a network of support and the career development tools to help them thrive in work and in life,” Wire said.
The program serves women throughout the Portland-Vancouver metro area who are referred to Dress for Success by some 170 nonprofit and government agencies such women’s shelters, social service agencies, prisons. The idea is to help women do the work they need to do to get a job.
“They may be getting through personal issues such as abuse, they may be dealing with addiction,” Wire said.
Through all of its programs nationwide and internationally, Dress for Success is helping 50,000 women a year.
Volunteers and Dress for Success staff assist low-income women referred to the program in polishing a resume, developing interview skills and learning how to dress appropriately for the workplace. The program also provides a follow-up support network with monthly meetings to help clients keep their jobs, once hired.
It all sounds good to me, especially for an organization that does not rely on government funding but instead seeks donations from businesses and individuals.
How to give away a suit
As part of all this, Dress for Success takes clothing donations, particularly suits such as the ones I’m interested in giving away. Personal shoppers assist clients in selecting five clothing items from the Dress for Success shop at 1532 N.E. 37th Ave. (at Sandy Boulevard) in Portland.
To locate other sites around the country, click here.
“When they get the job, they get to choose another five pieces of clothing and join a professional women’s support group,” Wire said. “Many of these women have no one to talk to about work or a professional network.”
If you are giving clothing to Dress for Success, leave your suits on hangers and tuck a $10 in the pocket. More than clothes, the program needs money to support its work, Wire said.
The tax deductible donations go to support the training and network programs and to buy such items as shoes and underwear for clients, Wire said. Funding comes primarily from foundations, generous individuals and fundraisers such as a spring fashion show.
Wire mentioned several major sponsors including the Walmart Foundaton, the Allstate Foundation, U.S. Bank, The Hasson Co., a Portland-based realty firm and others. The Community Foundation of Southwest Washington and the Vancouver (Wash.) Housing Authority, to name a few.
“If our clients don’t get the job, we invite them back to work with the career center on their resume and their communication skills,” Wire said.
I am feeling good about the idea of finally letting go of my suits through the Dress for Success program for the simple reason that I’m a woman helping other women. I dressed for success throughout my full-time working life and enjoyed every minute of it. That’s what http://www.sixtyandsingle.com/ is all about...helping other women.
Thanks for listening.
Julia
PS If you would like more information about Oregon Dress for Success send email to oregon@dressforsuccess.org or call 503-249-7300.

New census data show divorce, widowhood are (no surprise) bad for women

2011-09-15T13:01:00.000-07:00

The U.S. Census Bureau is out with new data on the impact of divorce and widowhood on women. While the information from 2009 is an update from prior years, the over all picture hasn't changed: Women fall behind financially when they lose a spouse. And during their working years women earn less money but are living longer and remarrying less often than men.
According to the Census Bureau marital status report, national rates of marriage in 2009 showed 19.1 marriages out of every 1,000 men in the population with 17.6 marriages for every 1,000 women.
Here's the big number: For every 1,000 Americans there were 3.5 instances of widowhood for men and 7.8 for women. That's more than twice as many women losing husbands and men losing wives to death. It's a fact: Women outlive men and live on alone in their later years.
How about the economic "well-being" of those who experienced a recent marital event?
The Census Bureau said that women who divorced in 2009 were more likely to receive public assistance than recently divorced men. That's 23 percent of women who divorced versus only 15 percent of men.
In addition, women who divorced reported less household income than recently divorced men. For example, 27 percent of women who divorced in 2009 had less than $25,000 in annual household income compared with 17 percent of recently divorced men.
And finally, women who divorced were more likely than recently divorced men to be in poverty, 22 percent of women compared with 11 percent of men. So women who divorced were more than twice as likely to fall into poverty as men because of divorce.
Why should I care?
All of these statistics spell trouble for women in retirement. We earn less, live longer, are more likely to live in poverty after being widowed or divorced.
I am convinced that we need a national initiative to alert women to their need to save more for retirement. But in addition to that young women should be better informed about the world of work and what a lower-paying or part-time career path will mean later in their lives. They need to understand why women are more often the big losers in a divorce. No one seems to talk about divorce any more as a blight on society for what it does to women, children and the economy of the nation.
Modern social norms have women working half-time in lesser paying jobs, managing the kids and household. But no one talks about this "secondary" status and what it means in terms of retirement savings, losing a spouse and the long-term outlook for women in poverty. Husbands and wives should talk candidly about what would happen when someone dies.
There is a huge demographic tragedy slowly in the making as baby boomer women are forced to retire without the needed savings. Many friends of mine already are struggling to get their feet on the ground after widowhood or divorce. Being on your own emotionally is one thing, being on your own financially is very very very scary. Check out the census data for yourself. It's not a pretty picture. Let's have a discussion.
Who's fault is it that women end up poor? Are we to blame or is it lack of education from our mothers, our teachers, our mentors?
How can we have a national discussion about the negatives of divorce? Is Dave Ramsey the only one talking about this?
What should women being doing for each other when it comes to mother-daughter marriage and divorce counseling? Are we telling our daughters what they need to know about money, investing, retirement?
What are you to doing to secure your own financial future....401(k), self-directed IRA savings account, stock investments. Are you looking out for yourself when it comes to money or do the kids' vacations coming first?
There is plenty of help available, click here.

Weight loss in our 60's. Get with a plan, make a commitment

2011-09-08T15:38:00.000-07:00

Nine years ago when I was working full-time and in my mid-50s I came to the conclusion that, "Yes, I was getting older but I didn't have to be old AND fat."
That was in 2002 after I'd gradually packed on the pounds while getting through menopause... climbing to a hair's breath of 170 pounds. That's a size 14 on a 5-foot-2-inch frame. Not good.
The weight had not slowed me down. I was still regularly jogging three miles on my lunch hour, I was an active gardener and my then husband and I were into building a vacation cabin. The work was demanding with lots of hammering and hefting around piles of lumber and sheet board. I rode horses, hiked, fished. I didn't feel old but my clothes were getting bigger and bigger. When I bent over to tie my shoes...ugh.
A close friend and I shared (and still share) many of the same challenges. Among them weight gain. We liked to cook, to entertain. We were subscribers to Bon Appetit, magazine, gave each other cookbooks for Christmas and equated food with love for our families and friends. We went crazy over the holidays with cookies, big meals and entertaining. We also enjoyed a glass of wine.
When she suggested the weight loss program at Jenny Craig, I thought what do I have to lose? Ha.
I had never been able to take off the pounds on my own. Never. My fad diets lasted for a couple of weeks then I'd get discouraged and the effort would fade away. For me Jenny Craig turned out to be the answer with its weekly face-to-face counseling and weigh-in sessions, a 1200-calorie-a-day menu and a program that never let me feel too hungry. That first summer, I took off 20 pounds. I was elated.
But it was only 20 pounds. Once I quit the diet those pounds started creeping back on. At one point my mother looked me up and down and said, "Darling, you need to lose another 20." I hated that. But she was right. Back I went the next spring to the weekly weigh-ins.
Jenny Craig is a program that includes lots of water, moderate daily exercise and most importantly, accountability. I lost another 20 pounds, got down to a size 8 and honestly felt really good about myself, not just for the 40-pound weight loss but for the improved self-esteem.
Here's my confession: I have not mastered the maintenance part of my food life. I've gained 10 pounds in the past 18 months since leaving my full-time job at the newspaper. Semi-retirement has meant more traveling, more outdoor adventures, more eating out on a more erratic schedule.
No surprise, I've gained some weight. I accept the idea that (more than ever) I will periodically need to diet to stay where I want to be in a size 8. I still love food, wine, entertaining and yes, I still view cooking as a creative, giving experience. So today I've started back on a short-term weight-loss program to drop about 10 pounds. What's different now that I've retired? A lot:
- My dieting incentives have changed in retirement. If my primary incentives while working had to do with appearance and feeling good in my clothes, my need now is to get rid of the weight for health reasons..... help lower my blood pressure, lower cholesterol levels and generally feel better physically. There are a few clothes I'd like to get back into.
- The job routine structure is gone. Working meant my day was built around an early breakfast, mid-day lunch and late evening dinner. It was easier to avoid food. Now, one day I'm out, the next I'm hanging around the house in my bathrobe drinking coffee and eating buttered toast with jam.
- It's easier to over eat in retirement. Access to a refrigerator is nearly constant.
- Eating out is a danger zone..it was before, it still is. More calories everywhere with appetizers, more fried foods and alcohol.
- Celebratring life is a major priority. In retirement there's a more celebratory approach to life. Every day is a good day. Every day (when you're over 60) is to be treasured. That means more creative time cooking the evening meal, more sampling appetizers to start and maybe a nightly glass of wine.
- More traveling, for sure. There's a real danger here. When I travel I sort of give myself permission to over-indulge. Hey you're on vacation!!! Circumstances may mean it's harder to resist the extra calories, dessert or that Margarita.
Jenny Craig, of course, is not the only weight loss program with credibility and is probably more expensive than some. I buy their food, eat their structured (but varied) menu. My first full week of dieting is going to cost me $100. But after I get into the program there are ways to reduce that cost. Plus there's a trade-off with less spent at the grocery store. I'm squeezing this into my budget...at least for a few months.
What makes sense for you?
Weight Watchers ranks first on most diet program rating sites. U.S. News & World Report offers its rankings with Weight Watchers at No. 1, Jenny Craig No. 2 and something called Raw Food Diet, No. 3.
My local hospital offers a weight-loss counseling service that helps you plan your own menu with a weekly weight in. Nutrisystem will ship pre-organized and prepared food to your doorstep.
One plan does not work for everyone. I need weekly accountability and a bit of counseling.
But honestly, you may be old(er) but you don't have to be old and fat! Really, you don't.
Follow up questions:
1. What's your successful weight-loss story?
2. What program has worked for you. Why not share the inspiration.
3. Is it harder to diet when you're over 60?
4. What weight-loss challenges have you over come?

Medicare for women. Signing up is no big deal but do your homework

2011-09-02T12:05:00.000-07:00

Medicare....it's what you sign up for when you have your 65th birthday whether you are a working woman or retired or something in between. Going through this sign-up process this summer has been the next big step on my road to retirement that began at age 63 when I quit my full-time job.
In a word: The whole thing is easy. Here's my step-by-step Medicare sign-up plan.
- Step 1: Call Social Security. Call or email the Social Security Administration at http://www.socialsecurity.gov/ and let them know you will soon be 65. You have a three-month window on either side of your 65th birthday to sign up. Failure to do this means penalties later on. Social Security then puts you into the Medicare program and sends out your Medicare card. Medicare has four parts:

A. Hospital Insurance - helps pay for inpatient care in a hospital or skilled nursing facility (following a hospital stay), some home health care and hospice care.
B.Medical Insurance - helps pay for doctors’ services and many other medical services and supplies that are not covered by hospital insurance.
C.Medicare Advantage - plans are available in many areas. People with Medicare Parts A and B can choose to receive all of their health care services through one of these provider organizations under Part C.
D.Prescription Drug Coverage - helps pay for medications doctors prescribe for treatment.
Go to http://www.socialsecurity.gov/ for a basic helpful Medicare overview.
- Step 2: Medicare-only or something more? Decide if you will go with just Medicare coverage or whether you can afford to sign up for a Medicare Advantage or Medigap plan that broadens coverages and care options. Most people want more than the minimum Medicare program. Your provider will also like you better, if you've got an Advantage Plan or Medigap plan. Providers lose money on Medicare-only patients since the federal government only pays 80 cents or less for every $1 of care.
- Step 3: Check in with your regular provider. Call the business office of your current primary care provider and ask what Medicare plans your provider accepts. Providers aren't supposed to recommend plans but they can tell you what they accept. Their answers will save you a lot of time and help you cut through all the junk mail. (Warning: If you are relocating to another city, many providers will NOT accept a new Medicare-only patients. But they will accept Medicare-Advantage or Medigap patients.) Don't be buffaloed by all the marketing scare tactics that show up in your mail box. In fact, ignore all the stuff that comes to your mail box. Stay local or at least regional in selecting coverages.
- Step 4: Check out Advantage plans and Medigap plans. Because I want better coverage and I also want added dental and vision coverage, I went with a Medicare Advantage plan. Many providers will recommend a insurance broker to help you sort through coverage options and costs. Some clinics offer free weekly Medicare classes to explain the process and options. Once you've selected an insurance provider, call them. Have them walk through their various packages, levels of coverage and related costs. Pick the one that best suits your needs. There's usually three or four. Everyone is there to help, no matter how confused you might be.
If you are in good health and use few if any medications, a cheaper Medicare Advantage plan is probably the best choice. After a year, if you don't like the plan you can change it after a year or opt out for something else.
- Step 5: Figure the budget impact. Before signing up, figure out what all this will really cost. If you already are collecting Social Security benefits, the agency will start withholding $115 from your monthly benefits check once you hit 65. If you're working, you must sign up for some combination of Medicare and additional insurance coverage through your employer. Because I'm "retired", I separately am buying an Advantage plan for $80 a month. That charge will be paid with an automatic monthly withdrawal from my checking account. That way I don't forget.
Altogether my health insurance coverage will cost me a total of $195 a month. (Social Security deduction and added coverage plan). That's far better than the $399 a month that I was paying this summer for individual coverage. I expect the new combined cost to steadily increase over the next 30 years as adjustments are made to Medicare and insurance companies continue to raise their rates. See recent story in U.S. News & World Report.
Meanwhile, within a few weeks, I'll get a Medicare Advantage card through Regence Blue Cross in Portland, Ore. I'll use that for all my health care expenses including office visits to the doctor, prescription drug costs as well as semi-annual visits to my dentist and once-a-year eye exams. That's pretty much what I was getting through my employer when I was working.
Whew...another item checked off the list on my road to retirement.
Below are helpful Medicare information Web sites:
Official U.S. government Web site, click here.
Kiplinger makes it easy, click here.
Medicare Made Clear, for women, click here.
Social Security Administration on Medicare, click here.
What's ahead for Medicare and Social Security, U.S. News & World Report, August 2011.
Medicare Advantage vs. Medigap, click here.
What is Medicare Part D? click here.
Medicare "Starter Kit" from AARP, click here.

Mortgage refinancing for women. Warning: Watch out for the stealth lien

2011-08-25T15:06:00.000-07:00

As someone more or less on a fixed retirement income I've been looking for ways to cut household expenses. Refinancing my home mortgage loan seemed like a good deal with interest rates this summer at historic lows. As I mentioned in a previous post at sixtyandsingle.com I turned down a refi offer from Chase Bank this year but later have said yes to a deal with Umpqua Bank.
I am glad I went through with the refi not just because it cuts my mortgage payment by $288 a month but also because of the unresolved lien on my house left over from my divorce three years ago. I would never have discovered this lien without the refi. It could have caused real trouble 10 or 20 years down the road.
So the first lesson from this refi is that for all of us who divorce: Make sure in a divorce settlement that everyone involved follows through on what they said they would do.
In my case, I'd agreed to pay-off my now ex-husband to the tune of $25,000 so that I could go on living in what had been our house and take over the mortgage loan that went with it.
In a community property state, he walked with his assets including a vacation property out of state. I got the house and the mortgage debt, along with my retirement and savings assets. To insure that he got his money, my husband (or his attorney) put a $25,000 lien on my house until I could refinance the loan and pay him off. I did that a month after the settlement. At the time, everyone (including my own attorney) promised me that the lien would then be removed. My mistake was believing that. I went on with my life, not thinking about it again.
Title company surprise
So last week when the title company found that lien still in place I was a bit, shall we say, surprised. Fortunately, the title company was able to track down my ex-husband who came to the office and signed documents to remove the lien, agreeing that he had been paid. However, he refused to pay the $170 fee from the title company for doing the legal work to remove the lien. That meant I had to pay it or my re-fi deal would not go forward. So I paid it. (I'm considering small claims court).
It could have been a lot worse. My ex could be dead or disappeared. It could have thrown a wrench into the whole refi deal or worse, the sale of the property, down the road.
My advice: In a divorce settlement write your settlement check to his attorney (not directly to him). The attorney then transfers the money to his client. That way there's a separate paper trail in case someone doesn't follow through on the lien removal. You can use the paper trail to prove that the debt was paid off.
Over all, I'm happy with the seven-year adjustable mortgage agreement I got from Umpqua. I have seven years -- until 2018 -- to pay off the mortgage loan by either selling my house or by using expected inheritance from my mother. Seven years feels like a long time, but I know it will go fast.
Here's what I got out of the deal. For $2,063 in settlement charges, I'm getting a monthly loan payment that is $288 lower than my current monthly payment for a savings of $3,456 a year. That may not sound like much but for me it's found money that will go into savings. Go to bankrate.com's calculator to figure your own savings.
I will have recouped the cost of the loan in less than a year. The new loan interest rate is 3.6 percent, down from the old 6.1 percent.
At the end of seven years, if I have not sold or paid off the loan, the payment could jump to a maximum of 8.625 percent but never go any higher. My monthly payment at that rate would be only $100 more than what I'm paying now.
I like the seven year deal....especially as a retiree looking to cut household expenses. I've got breathing room to plan.
What else do you need to know? See below:
Finding the best lender
Do not go with an unsolicited refi offer received by mail or by phone. These deals are expensive and may not meet your needs. What is promised may not be accurate. They'll want a fee up front over the phone, charged to your credit card.
Instead find a local bank and loan officer that you trust. In fact, interview two or three in person to see who has the best service and the best mortgage package that fits your needs. Make sure you get an official written loan proposal showing all aspects of the deal including closing costs and fees, title company fees, appraisal fee and your new monthly payment and loan details. Do not do a deal over the phone or online. You just don't know who you're dealing with!!!
Appraisals, what's new?
I learned about appraisals. To do this deal I had to pay out of pocket for an independent appraisal. Since the housing melt down, regulators don't want banks using their own appraisers for fear of manipulation of the assessed value. As I expected my appraisal came in below my home and property assessed value as determined by my taxing district and way below what my property was worth at the time of my divorce.
From what I've read, if real estate appraisals were inflated during the housing boom beyond reasonable value, they now are too low.
I'm lucky in that my loan is still less than the revised new appraised value even through my property has lost substantial value (30 percent) in the past three years.
Appraisal fees, by the way, are no longer folded into the new bank loan along with other refi costs. I had to pull out a credit card to pay separately for the appraisal. That's because so many loan deals fall through before closing. Banks don't want to be stuck with paying that fee, which now runs around $500. Yes, I know, they used to cost about $250 or $300.
Checking the paperwork and more tips
As I was signing the papers to complete the re-fi transaction at the title company, I got to visiting with the woman who was walking me through the process. Here's her advice to women looking into a refi:
- Now is a good time to do such a deal with interest rate at record lows. The rate on a 30-year fixed is 4.41 percent. If your current mortgage rate is more than 6 percent, you likely would benefit from a refi.
- Make sure that when you come to the title company to sign the paperwork you compare what you're signing with what the loan proposal from your lender described. It they don't match up to your liking, walk away. All too often, numbers don't match and the borrower is left paying a higher or different monthly mortgage payment than promised.
Don't sign something that's out of whack with what you expected. The law requires a three-day waiting period before filing, if you have second thoughts.
Tax implications
Check into tax implications. You may be able to write off certain costs of the refinance such as the origination fee on your federal tax return. You may also be able to write off the remainder of the prior loan expense.
If you have remarried but live in a "community property" state.
If you have remarried and live in a community property state such as Washington, the title company will require that your new spouse sign a "quitclaim" document saying he has no interest in your separate property. This a requirement by the title company, even if you and your spouse have signed a pre-nuptial agreement saying the same thing.
What counts as income with the lender
Because I'm semi-retired, qualifying for the loan got a bit tricky. My monthly Social Security benefits check counted as guaranteed income. My monthly income from freelance business writing and consulting did not. So I had to temporarily sent up an automatic withdrawal from my nest egg rollover IRA 401(k) investment account to meet the income qualifications. Once established, I then canceled this automatic withdrawal and redeposited the money back to the rollover IRA 401(k).
Pluses of a mortgage loan refinance: Saving money by lowering the interest rate on the loan and cutting household expenses. Stabilizing a monthly payment by switching to a fixed-rate mortgage or using a longer-term adjustable to cut costs and get some breathing room.
Minuses: Refi costs average between $2,000 and $3,000 and are typically folded into a new loan. An appraisal fee is paid out of pocket and will cost about $500. You've got to do your homework. Make sure you understand the terms of the loan. Find a good loan officer that you trust, who will do what was promised. Talk to your friends for recommendations.
FOR MORE INFO:
- Mortgage calculator: To calculate loan rates and monthly costs go to bankrate.com,
- Here are tips on loan refinancing from from financial writer Richard Barrington at www.guidetolenders.com
- How to refinance your loan in retirement at newretirement.com, click here.
- Top reasons to refinance a mortgage loan at mortgagecalculator.org, click here.
- Mortgage loan rates at bankrate.com, click here.