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Boomers - Is 2012 the Year You Retire?

akernek@babyboomerlifeboat.com (Al Kernek) — 2012-02-08T18:02:46Z

10,000 Baby Boomers are retiring everyday. A recent study by the Urban Institute concluded that 30-40 percent will not have sufficient savings and financial resources to support themselves in the same lifestyle lived during their earning years. Due to the devastating recession, I believe that figure is higher for leading edge retirees, and may be actually closer to 60-70 percent.

We retire for sveral reasons. Many have lost their jobs and can't find new ones. Others are just ready to do it, wanting to enjoy life a little more or just do something else. Whatever the motivation, the main challenge is always having sufficient financial resources to survive.

Part of the answer is one's perspective on what constitutes a "comfortable" retirement. Unless your retirement income is at least 70-75 percent of your previous earning income, that will change. "Comfortability" does not mean luxury, eating out every night, or taking continuous world cruises. More likely, it means a down-sized living. But if you know how to do it properly, that doesn't translate to a poor retirement. In fact, no matter what your retirerment income, there options for living comfortably and enjoying a rich, active lifestyle.

Learn How You Can Still Retire!

Boomer Retirement Home Bargains and Investments Abound

akernek@babyboomerlifeboat.com (Al Kernek) — 2012-01-17T18:26:20Z

If there is any way you can swing it, now is the time to buy a retirement home or invest your money in low-priced rental properties. Older Boomers are fortunate to have this window of opportunity, which is an ironic benefit of the Great Recession.

Outstanding buys on retirement homes can still be found in southern California, Arizona, Nevada and Florida. Baby Boomers can now afford a larger, nicer home in a better location than was possible just five or six years ago. And in many cases, sellers are open to carry-back financing. Plus, banks and other lenders have huge inventories of foreclosed homes that will hit the market this year. So, if you have been delaying making a purchase decision, now is the time to take action.

Why not just rent instead of buying? That may be a good strategy for many Boomers, depending on the location. However, because so many people have suffered financial setbacks and cannot qualify to purchase a home, rental demand is soaring and rates are going up, up, up. Those fortunate to to buy a home with minimal down payment can lock in their "rent" at a fixed price, usually enjoying monthly payments considerably lower than local rental rates. And 50+ Boomers quickly grow to understand that retirement is all about monthly cash flow.

That is why investing in rental property is a great idea now. When you can generate monthly passive income with a high return on investment, it sure beats the 1/2 to one percent return seen today on CDs! And rental demand is only going to increase in the future as the social fabric of home ownership is revamped. Going forward, there will likely be fewer homeowners and more renters.

2012 is the year for older Boomers to take advantage of the real estate opportunities that will abound this year. You can still "make lemonade out of lemons." Need some free advice or help in finding a good Realtor in your target location? Let us know - we would be glad to help.

Boomers - Four Easy Ways to Save Money in 2012

akernek@babyboomerlifeboat.com (Al Kernek) — 2012-01-08T16:59:39Z

If you are like a lot of 50+ Baby Boomers this new year, you are looking for ways to save money. Every dollar saved is another dollar you have in your pocket. Well, there are four easy changes you can make that will result in hefty savings this year.

Cut your Cable TV Bill

The cable TV companies play this game where they bundle everything, making it difficult to subscribe to just the shows and channels you want to watch. The result? More money for them and frustration for you.

You would be surprised how many people are abandoning cable TV in favor of much less expensive online entertainment:

Deliotte, an accountancy firm that follows business trends in media, released the results of their sixth State of the Media Democracy earlier this week and it doesn’t forecast sunnier skies for cable companies in 2012. According to the press release:

A number of Americans have already cut, or are exploring cutting their pay TV connection entirely. Deloitte’s survey found that 9 percent of people have already cut the cord and 11 percent are considering doing so because they can watch almost all of their favorite shows online. An additional 15 percent of respondents said that they will most likely watch movies, television programs, and videos from online digital sources (via download or streamed over the Internet) in the near future.

Moreover, the number of people citing streaming delivery of a movie to their computer or television as their favorite way of watching a movie rose to 14 percent from 4 percent in 2009.

Source: http://www.webpronews.com/deliotte-media-study-2012-01

Because of Netflix, Hulu and a variety of other online entertainment sites, canceling your cable has become a viable alternative. Experts state, however, that just downsizing to the basic (~$30) monthly program is probably best to avoid penalties, especially if you still have Internet services with the cable company. But taking this simple step can typically save you anywhere from $70 to $200 monthly!

Consolidate your Insurance

I just did this myself and saved a bundle. By consolidating your home, car and any rental unit insurance under a single carrier, you will enjoy lower rates and discounts. Shop around and you will see what I mean. In my case, a few phone calls resulted in a savings of over $100 monthly without giving up the quality of my insurance coverage.

Get Rid of your Land Line

Most of us still have a telephone landline. This is usually part of a Cable TV package. Others maintain one in the belief that it will still function if a disaster hits and cell towers cease to function. With today's typical phones sets, the type that use batteries for ancillary phones elsewhere in the house, this is not necessarily true. Read the fine print and you are likely to be surprised.

Going strictly to mobile phone use is already a major trend among younger people. Millions are already doing it, and this trend will become the norm over time. If you are honest with yourself, you probably already use your mobile phone much more than your landline. I know that the majority of landline calls I get are from solicitors, wrong numbers or bill collectors trying to reach someone who previously had my number.

Cutting out a landline can save $25-35 monthly. Think about it.

Cut your Grocery Bill

This tip is very easy to implement. You can enjoy major savings in your monthly grocery bill simply by using coupons and buying house brands. And there are tons of online sites that offer free coupons for EVERYTHING! Just google "coupons." Taking this simple step can result in amazing savings with little effort on your part.

The Bottom Line? More Money for You in 2012!

So, if you take advantage of these four easily attained savings, you will quickly see several hundred dollars more of spendable money in your pocket every month without really having to make any sacrifices. Life is good, and 2012 is going to be a good year for older Boomers.

Boomers - Set your Resolutions for 2012

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-12-20T18:48:38Z

As the Holiday Season draws to a close and the New Year looms, I urge 50+ Baby Boomers to take time out to reflect on this year's events and set goals for 2012.

I do this every year. I look at my successes and failures during the current year, then craft my goals for the next year. This document becomes my guide, reminding me of the important things I want to accomplish as the following year progresses. It is my roadmap.

My goals are both personal and business. I look at health objectives (somehow, losing ten pounds always makes the list!), personal relationships, family, travel objectives, activities and my business goals. I try to be as specific as possible so that I don't succumb to the "weasel room" pitfall. Whatever makes my list is something I really want to accomplish during the coming year.

I also do something unusual. I list events that I feel are likely to happen during the coming year. Last year, I predicted that our two older pets might pass on. Unfortunately, I was right. But I also look at possible national and international events and how they might affect me, my family and my friends. This exercise has often positioned me to be better prepared for circumstances that catch others by complete surprise. Occasionally, my prognostications have saved my butt because I had at least taken minimal steps beforehand "just in case." So far, my predictions are batting about 50 percent.

Give it some thought. If you want your life to become productive, then envision where you would like to be this time next year - Slimmer? Richer? Happier? There's an old saying, "If you don't know where you're going, how will you ever get there?"

Boomers - Beware of "Easy Money" Home Business Scams

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-12-06T19:05:10Z

Many Baby Boomers are turning to home-based businesses to supplement their retirement income. Too often, however, they are falling prey to ads for "easy money" that sells them an Internet solution which never delivers.

I hate to break the news to you, but there is no such thing as an easy way to make money online. Like all other businesses, it requires ongoing hard work to become successful selling products or services over the highly competitive Internet medium.

The most common pitfall for Boomers are "canned" solutions that deliver a Wordpress or small website with dynamic content gleamed from other sites claiming you will make money off affiliate or third-party advertising placed on your site. In fact, you don't really have to do anything - for a price, they will create the site for you. Then you just select the ads to be placed on it (and sometimes not even that!) and sit back to watch the money roll in.

It is a scam! Simply putting up a website these days accomplishes nothing! If the site is not optimized for a specific market niche, it will be invisible on the Internet. No one will ever find it because it will never show up within the first few pages of search engine returns. Search engine optimization and ongoing marketing are required to gain Internet visibility. Without investing in that activity, you are wasting money.

At BabyBoomerlifeboat.com, we carefully researched the plethora of Internet business solutions and settled on Site Build It as the best answer for Boomers starting a home-based business. Why? Because it is a complete answer which includes keyword market research, site optimization, ongoing marketing tools and analytics to help you tweak your operation to success.

Whether you join an MLM business, buy a franchise or start an Internet-based business, there is no such thing as a "canned" solution that delivers passive income without work on your part. Nonetheless, it is certainly possible (and highly practical) to grow a successful home-based business. These days, it is probably the best means of supplementing your income to make retirement more comfortable. Just do your homework before you leap.

Boomers and Pets - RIP Misty

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-11-30T16:16:01Z

This week, my wife and I had to take out 17-year old dog, Misty, to the vet where we reached the painful decision to have her euthanized. She had been in failing health for the last two months, but we kept hoping that she would go peacefully in her sleep one night. Unfortunately, it rarely works that way. We gently petted her as the drugs were administered and she closed her eyes forever. It was a tough day, with a lot of tears and an overwhelming sense of loss.

Nearly all the people I know that are 50+ Baby Boomers have a pet or two. They are the surrogate children of empty nesters and those who never had children. Or in many cases, our pets grew up with our kids and remain a legacy after the latter have departed for college, jobs or marriage.

The thing about dogs and cats (we have both) is that they give us unconditional love. No matter how bad our day, or how many regrets we have, they are there to lick our hand or purr in our laps. Pets live in the "now," are always happy to see us and rejoice in the simple aspects of life. They sooth our pain and help us through our fears. We become better people because of their love.

Boomers everywhere are forced to face our own approaching mortality when a pet's accelerated life ultimately brings us to a vet's office, carrying this precious family member on their last journey. One day, it will be our turn. We can already see it on the horizon.

There is a lot to be said for euthanasia. We lovingly bestow this gift on our pets rather than watching them suffer to the end. Yet, with a few exceptions, society denies individuals the right to make the same choice for themselves. Even though our quality of life may have deteriorated to a point that we are a burden to relatives, consume assets that those we leave behind need, and overwhelm our country's medical system, we do not have the basic right to end our own lives.

How much better it would be to have a freedom of choice. When my time comes, I would like to have a gathering on the beach to enjoy one last time with my friends and family, smoke a last cigar, and then pop a pill into a cold glass of chablis. As I sail into the great beyond, I know Misty will be there to greet me with a goofy smile on her doggie face.

50+ Boomers - What will You Do if the Economy Collapses?

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-11-21T18:24:40Z

Like a lot 50+ Baby Boomers, I'm becoming increasingly concerned about the economy, not just ours but worldwide too. The news just keeps getting grimmer. Whether Europe can pull itself together is anybody's guess. It's not looking good at the moment. And our Super Committee failed to do its job (yea, big surprise there). The U.S. Congress once again has highlighted just how dysfunctional it has become. So where does all this leave older Boomers?

What can we expect if the world economy double-dipped into another recession or worse? The scary thing is that no one knows for sure. Sometimes I get the feeling the world is slowly falling off a cliff into unchartered waters.

Just off the top of my head, here are some consequences I think we could expect:

* A stock market collapse with significant damage to already battered 401Ks and retirement funds.

* The implementation of widespread austerity measures, likely affecting Medicare and Social Security in some fashion.

* More job losses and a big jump in unemployment. More people on food stamps. Huge increases in the number of homes going into foreclosure. Possible civil unrest.

* Downsizing of the military to cut costs, including bringing the troops home from places like Germany and Korea.

I'm sure you could easily come up with more outcomes, none of them good. So, the question is, "What would you do if a worse-case scenario develops?"

Some people, including my neighbor, are stocking food and growing crops in their backyard. Others are buying gold and silver as a hedge against a devalued dollar. A few have "get away" plans to relocate to remote areas with lots of ammo. There seems to be a "survivalist" mentality gathering strength out there.

I think the greatest danger is giving into our fears. No one can accurately predict how the economy is going to play out or the consequences of worldwide economic developments. All we can do is to stay abreast of the news and take reasonable precautions. I have confidence in the American people's ability to ultimately overcome adversities. When the chips are down, we seem to be at our best.

Meanwhile, I'm off to the super market to buy canned goods...

Funds-Strapped Boomers Find Creative Ways to Retire

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-10-25T19:32:36Z

I attended a webinar this morning where the financial presenters reiterated that about two-thirds of today's 50+ Baby Boomers do not have enough funds stashed away to survive in retirement. Moreover, they basically stated that financial companies and retirement planners have no answer for these Boomers, and are essentially focusing their efforts on those with assets worth their time. As far as they are concerned, the majority of Boomers approaching retirement are s*#t out of luck.

They might be surprised to know that this group of Boomers (of which I am one) is handling their retirement setbacks just fine, thank you. We are not a generation that just rolls over and dies when facing adversity. No one is coming to rescue us but ourselves.

And we have gotten quite creative about surviving. Here is some things older Boomers who have lost their jobs and seen their savings and home equity trashed by this dismal economy are doing to stay alive:

Bunching together to buy or rent homes so they can reduce their financial burden by sharing expenses.
Starting home-based businesses to generate extra income. In fact, Boomers age 50 and above are the fastest growing group of entrepreneurs.
Comfortably retiring south of the border where the American dollar goes a lot further.
If they own their home or still have equity,selling their abode and moving to less expensive locations where housing and the cost of living is cheaper. If they are upside-down on their mortgage and can't sell, many Boomers are renting out their current home to cover the bills and possibly create income, then relocating to a cheaper area.
Creating "villages" where collective food buying, transportation, etc., allows retiring Boomers to get more bang for their retirement dollars and thus stay in their neighborhood.
Reviving carry-back financing to sell their homes in a down market while enjoying a higher income stream than possible at today's interest rates.

It is not our parents' retirement, but this is what life has given us. We excel at overcoming obstacles with creative "workarounds." Despite financial setbacks, our generation continues to find ways to forge meaningful lives that contribute to society. We should all give ourselves a pat on the back.

Economy Dashes Boomer Hopes for Downsizing

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-10-13T16:00:50Z

In a recent survey, most 50-plus Baby Boomers - and especially those in their sixties - expressed a desire to simplify their lives by moving to a retirement location and/or downsizing their abode. But nearly all are frustrated in this desire by the dismal economy.

First, many older Boomers now have their college-graduate children moving back in because they cannot find jobs and financially survive on their own. Others are doubling up by accommodating relatives who have lost their jobs or have had their homes foreclosed. It's ugly out there.

Second, now is not the best time to sell a home. A lot of Boomers are upside-down on their mortgages and face foreclosure, walking away or doing a short sale. None of these are particularly attractive options. A better course is to rent out their home if they can at least break-even on expenses. Many Boomers are doing this and actually generating another income stream. Then (with their credit score intact) they are renting in a location of their choice. And holding their breath in hopes that the real estate market will eventually turn around.

Whatever your dilemma, know that you are not alone. We live in strange times. New challenges abound, and Boomers are experimenting with ways to meet them. Think creatively to find innovative solutions. Look inward to clarify your goals and explore possible strategies. The answer will come.

Banks Stick It To Baby Boomers Again!

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-10-03T20:20:50Z

Well, well, our friendly bankers have found new ways to stick it to Baby Boomers (yea, those bankers...the ones your tax dollars bailed out after their greedy shenanigans almost collapsed our financial system). Since Congress lowered the boom on their hidden fees and propensity to small print in contracts (aka "I win; you always lose"), they have retaliated by apply fees to things that cost them nothing and have historically been free.

Almost all of us have been hit by new $15 monthly account maintenance fees unless your account has an automatic monthly deposit of $1,500 or more. Also, transfers from your 401K or PayPal now incur fees as well. Want a printed, mailed statement every month? Be prepared to pay for it. And don't even talk about the fee for canceling a check - OUCH!

Now, starting in January, "too big to fail" Bank of America will begin charging $5 monthly just to use your debit card! Bend over America - Theyrrrrrre back! Chase is also testing this to see if their customers will put up with it or revolt. I foresee a brave new world of "nickel and dime them to death" banking.

It sure is nice of the banks to gouge us for letting them make money off investing our money, especially since they now know the government will bail them out no matter what foolish risks they take. Yep, they believe they have Americans by the short hairs and are looking forward to increased annual bonuses for clever strategies that boost their bottom lines.

But just from a marketing standpoint, one would think that a bank somewhere out there would see this as a splendid opportunity to grab a lot of their competitor's customers by advertising their continued free use of debit cards and low fees. It works for Southwest Airlines, which doesn't charge baggage fees. Are there still some honest banking players out there?

I wonder just how far the public will be pushed before we start fighting back. For starters, I expect to see more people paying with cash rather than using debit cards. I also hope that Boomers express their anger by moving accounts to financial institutions that do not charge outrageous fees just because they're confident they can get away with it.

I HOPE YOU ARE ONE OF THE BOOMERS WHO DRAW THE LINE! We the people are the only ones who can stop this piracy. TAKE ACTION - FIGHT BACK!

Job Hunting Aids for Older Boomers

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-09-25T18:58:00Z

If you are a 50+ Baby Boomer who has lost your job, you know how difficult it is to find new employment. Companies do not want to hire older workers. In fact, if you ahve been out of work for six months or more, many organizations will not even look at your resume. And if you do find work, don't expect to make what you did before...think less...probably much less. Sorry, that's just the way things are now in our brave new world.

For some older Boomers, the answer is to start your own business. But that is usually only a viable option if you still have some financial staying power. For the others, finding employment - even part-time employment - is a must.

Here are a few sites where older Boomers can leverage their experience to find part-time or freelance work that will help to keep your ship afloat:

Monster.com - Still the grand-daddy of all job sites and better then ever. You can drill down by skill levels, categories, keywords and geography for full-time and part-time work. Lots of tools too, including the ability to post your resume online and set up email job alerts according to your search criteria.

PrimeCB.com - Similar to Monster.com in functionality and capabilities, but they often show jobs not found on Monster.com.

LinkedIn.com - This is a networking organization for professionals and business people. Since networking is the best means of finding new employment, LinkedIn is a must for older Boomers. Set up a free acocunt, serach for contacts and invite them to join your network. Set up a profile with your resume; get recommendations. Link to any website(s) you may have. take a look at their affordable "job seeker" plans too.

FlexJobs.com - Great place to find freelance and telecommuting work. requires small annual fee (~$50). Set up profiles and email job alerts. Get gigs and make money working from your home office. Also check out iFreelance.com.

Expect your job search to take a while. Don't get discouraged. Let go of expectations and look for contracts or positions where your experience gives you an advantage. Good luck!

Updates to Baby Boomer Lifeboat

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-09-18T18:13:20Z

We've been busy, busy, updating and enhancing Baby Boomer Lifeboat. Our goal is to give you you a more rewarding and fulfilling experience when you visit our sites. Here's what we've recently accomplished:

1. Added a new online store that carries customizable, fun gifts designed especially for 50+ Baby Boomers. Check it out at www.UniqueBoomerGifts.com.

2. Created a Facebook page just for Baby Boomer Lifeboat. Everyday, we scrutinize the Web for articles relevant to 50+ Boomers. Those of interest to our readership are "shared" on our new Facebook page. So to read the latest material helpful to 50+ Baby Boomers, start visiting the Baby Boomer Lifeboat Facebook page on a regular basis: http://www.facebook.com/#!/pages/Baby-Boomer-Lifeboat/147095818693387

3. Revised and expanded the website section on "Retire Abroad." With this rotten economy, more and more Boomers are looking south as their best bet to stretch retirement dollars. Learn how you can retire south of the border and live comfortably on a reduced or limited income.

4. Expanded the number of onsite articles to make your Baby Boomer Lifeboat website visit more rewarding. Our frequently updated Home page now contains insightful articles prepared especially for 50+ Boomers by strategic partners.

5. Prepared a guide for Baby Boomers hit hard by the Great recession, "How 50+ Baby Boomers Can Still Retire."

6. Bringing you the CBS Senior Moment and U.S. News & World Report news of importance to Baby Boomers.

We are doing everything possible to help Boomers facing retirement with less funds than anticipated to circumvent financial setbacks so they can still enjoy a fulfilling Fall and Winter of their lives.

What Should Boomers Look For in a Home-based Business?

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-08-30T17:48:53Z

Since nearly every Baby Boomer I know who is approaching retirement - or is unemployed - is planning to start a home-based business, I get deluged with questions like "What type of business should I consider?"

The obvious answer is to leverage your work experience, contacts and expertise to create a business that can be run from a home office. In most cases, this is the fastest path to success.

But thinking about it more, there are other important considerations:

At some point, you will want to really retire or at least cut back on your involvement in a business. Then, it would be nice to have something that gives you ongoing residual or passive income. Membership and subscription-type businesses are good for this. So are royalties from self-published ebooks. And good MLM opportunities - they can yield solid, ongoing revenue streams as well.
If you create your own business, do so with the objective of creating intrinsic value that can be sold at some point. This advice is also applicable for those who buy into franchises.
Your ultimate success depends on whether you enjoy what you are doing. If so, then it's not "work." Rather, you will be motivated to spend the time, energy and resources necessary to achieve success. Besides, we only have so much time left, and isn't it better to spend it doing something that really rocks your soul?!

Personally, I have created and operate seven websites under my LLC ("Pacifica Endeavors"). It pays the bills and has never seemed like "work" to me. And my schedule is flexible - I make time for the gym, golf, bicycling, reading, coffee with friends and going to the movies with my sweetie. Considering this dismal economy, life is good.

50-Plus Baby Boomers Slammed by Economy

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-08-18T17:28:24Z

More than any other group, 50-plus Baby Boomers are being devastated by the economy. Many have lost their jobs. Others have seen their savings dwindle as the stock market tanks and interest rates remain low. Most have suffered from crashing home equities.

It is obvious now that the world economy is (best case) stagnating or (worse case) headed for a major crash. Aside from those on Wall Street, no one is profiting.

So what are older Boomers to do amidst all this economic chaos? Survive!

It's back to Maslow's hierarchy of needs for the two-thirds of 50-Plus Boomers who no longer have an economic cushion to ride into retirement. It is a matter of setting priorities in a fluid environment.

Here are my suggestions:

1. Maintain your health. It's true, if you have your health, you have everything. The opposite is true too, so make time to relax, exercise and pay attention to your well-being.

2. Keep a roof over your head. Amazingly in the U.S. this is no longer easy to do. Many have lost their homes and now live with relatives, friends or in RVs. Some are on the street. Not having a shelter plays with your mind and confidence. Whatever you do, figure out a way to have a place that that provides shelter, food, and safety. We all need somewhere to unwind and gather our mental strength.

3. Adjust your lifestyle to your means. This is especially tough for those who have suffered economic reversals. But living within your new means is critical to survival. Cutting back, budgeting, weaning yourself from credit cards and learning the joy of coupons is the new reality for most older Boomers.

4. Learn to live in a dynamic environment. There is a new reality out there. Nothing is assured anymore. Give up previous perceptions and tune into the way things have really become. Learn to perceive new opportunities and avoid risks. This isn't Kansas anymore.

5. Figure out how to make money. There are few or no jobs for 50-plus Boomers. Across this country, senior Baby Boomers are launching home-based businesses to supplement their income. Working during retirement is the new norm. Ask yourself, "How can I leverage my experience and talents to fill a market need?"

Perhaps the most important thing is to never give up hope. Life does not require riches to be happy. Comfortable, rewarding retirement is still possible - it just requires a mental adjustment, commitment and becoming proactive. Learning to make educated choices in our brave new world is key.

But then our generation has lived their lives in a changing world. Most of us are still fast on our feet. We are up to the challenge. We're not through yet.

How Boomers Can Protect Family Assets From Devastating Nursing home Costs

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-07-31T17:25:42Z

Building on my last post, I received this enlightning information from Gabriel Heiser J.D., who has a new book about this very subject. Here is his email response:

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The fact is that in 2010, more than 7,000 people turned 65 years old or older every single day, a figure that is predicted to rise in 2011. Further, an AARP survey revealed that only 4 in 10 of those people feel they will be financially secure for their golden years.

For many, that lack of financial stability will transform from being a worry to becoming a crisis if they discover they’ll need any kind of assisted living. That’s why Gabriel Heiser, an attorney with more than 25 years of experience in nursing home law, believes that people should start planning now, even if they aren’t close to their 65th birthdays.

“The average monthly cost of a nursing home today is $6,917 per month, and a typical Alzheimer’s patient will spend $395,000 for their nursing home care after diagnosis,” said Heiser, author of How to Protect Your Family's Assets from Devastating Nursing Home Costs: Medicaid Secrets (www.MedicaidSecrets.com). “Those costs are only going to rise, so it’s important to plan now. One important benefit to consider is Medicaid, which can help offset a good amount of those costs, but only if you know what it takes to qualify for those benefits.”

The mistake a lot of people make is thinking that they can’t qualify for Medicaid, according to Heiser.

“Many feel that because they own a home or have some assets that they can’t qualify for Medicaid help with their nursing home and doctor’s bills,” he said. “The truth is there are a variety of assets people can own and still qualify. It’s just a matter of knowing the rules, and making a plan to meet those requirements.”

Heiser listed the asset limits for those applying for Medicaid. They include:

• Cash – You can possess $2,000 cash that will not be counted as an asset in determining your Medicaid eligibility.
• Home – There is a $500,000 exclusion toward your home, meaning that if your home is valued at $500,000 or less at the time of your application, it is excluded as an asset. Some states use the higher permitted exemption of $750,000.
• Car – Up until recently, you could exclude only one car at a value of $4,500 or less, however that law has been changed. Now, one automobile of ANY current market value is excluded on your application.
• Funeral and Burial Funds – If you have a pre-planned funeral or memorial arrangement, the entire value of that plan is excluded. If you do not, a separate bank account that contains $1,500 toward funeral expenses can be excluded. If you have pre-purchased burial plots, you can exclude not only the costs of the plot for the applicant, but for the entire family, and still be eligible for Medicaid.
• Property – According to federal law, any real or personal property that is essential to self-support, regardless of value or rate of return, is excluded. That could include farms, rental properties and other real estate investments that generate income necessary for self-support. For rental income, however, the property must generate at least 6 percent of its value annually in order to qualify for the exclusion.
• Life Insurance – Only the cash value of a life insurance policy owned by the applicant is counted, thus, all term policies are ignored.

“There are so many other rules that can benefit those who aren’t sure they’ll have enough when the time comes,” Heiser added. “The key is to plan now and act now. These laws exist for your protection, and avoiding the discussion and the planning necessary to take care of the potential complications just because it is an unpleasant topic will only result in a more unpleasant conversation when you realize you’re not ready when the worst happens. That can be a very expensive dilemma. Peace of mind right now, however, won’t cost a dime, and could save you hundreds of thousands of dimes later.”

Most 50-Plus Boomers WILL Outlive Their Savings

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-07-27T17:01:13Z

I continue to see these articles by financial planners and retirement experts lamenting that a large number of Baby Boomers are not prepared for retirement, that about half will certainly outlive their savings. For example:

“Baby Boomers face so much uncertainty that nearly half of them fear their retirement will result in poverty,” reports a recent article in USA Today. Unfortunately, this fear is not unfounded. The 2010 Retirement Readiness Ratings by the Employee Benefit Research Institute indicated that at least 45% of Baby Boomers are in fact at risk of outliving their retirement savings.

In addition, those Baby Boomers without Long Term Care (LTC) insurance face additional financial threats presented by the possibility of chronic health problems and prolonged medical issues, draining their already fragile savings. - Jonathan Hodgson

For 50+ Baby Boomers slammed by the Great Recession and who are still struggling in its aftermath, worrying about surviving has become a way of life. They have accepted that their "retirement" will mean continuing to work in some capacity. Worrying about LTC insurance is not high on their priority.

Rather than fretting about outliving your savings - if you have any left - here is a news flash - ACCEPT THE FACT THAT YOU WILL OUTLIVE WHATEVER SAVINGS YOU HAVE LEFT!! Deal with reality. Unless you work(ed) for Wall Street, a defense company or the government, chances are that your income during retirement income is going to be limited and your safety net tenuous. Most will be a major illness away from financial ruin. So take a different path and plan for reality.

The fact is that most long-term care programs are not affordable, tend to increase their premiums annually and offer little assurance that they will be there when needed. Of those available today, the best are the ones that partner with state governments to offer some realistic protection of assets. See LTC Tree, AARP and About.com for information about this approach and LTC policies in general.

Most 50-plus Boomers would be better off spending their time researching ways to protect their assets from nursing homes and government agencies should they have to rely on Medicaid or another program for long-term care. Here are our suggestions:

1. Make sure you have reliable medical insurance if you do not already qualify for Medicare (with supplemental insurance). This offers protection against injuries and short-term illnesses requiring hospitalization.

2. Determine whether you can afford a minimal LTC policy that may benefit you (see above links).

3. Investigate your state's Medicare asset limits. To find out if you qualify for Medicaid, you should contact your state’s Medicaid office for specific details about eligibility in your state.

4. Educate yourself on proven legal means to protect your assets if you or a member of your family has to turn to Medicaid. A good place to start is Amazon.com where you can find a lot of books on the subject.

Do this NOW or risk suffering a big surprise down the road. There are ways to be prepared for LTC needs, even if you cannot afford to buy a LTC insurance policy.

55+ Baby Boomer Discounts

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-07-25T21:12:18Z

One of this blog's readers contributed a list of retail operations that offer discounts to 55-plus Baby Boomers. Many thanks to "Pat." This is too good not to share. Here it is for your reference and use:

Restaurants
• Applebees: 15% off with Golden Apple Card (60+)
• Arbys: 10% off (55+)
• Ben & Jerrys: 10% off (60+)
• Bobs Big Boy: discount varies by location (60+)
• Boston Market: 10% off (65+)
• Burger King: 10% off (60+)
• Captain Ds Seafood: discount varies on location (62+)
• Chick-Fil-A: 10% off or free small drink or coffee (55+)
• Chilis: 10% off (55+)
• CiCis Pizza: 10% off (60+)
• Dennys: 10% off, 20% off for AARP members (55+)
• Dunkin Donuts: 10% off or free coffee (55+)
• (Fuddruckers: 10% off any senior platter (55+)
• Golden Corral: 10% off (60+)
• IHOP: 10% off (55+)
• Jack in the Box: up to 20% off (55+)
• KFC: free small drink with any meal (55+)
• Krispy Kreme: 10% off (50+)
• Long John Silvers: various discounts at participating locations (55+)
• McDonalds: discounts on coffee everyday (55+)
• Mrs. Fields: 10% off at participating locations (60+)
• Shoneys: 10% off
• Steak Shake: 10% off every Monday & Tuesday (50+)
• Subway: 10% off (60+)
• Sweet Tomatoes 10% off (62+)
• Taco Bell: 5% off; free beverages for seniors (65+)
• TCBY: 10% off (55+)
• Tea Room Cafe: 10% off (50+)
• Village Inn: 10% off (60+)
• Waffle House: 10% off every Monday (60+)
• Wendys: 10% off (55+)

Retail and Apparel
• Banana Republic: 10% off (50+)
• Bealls: 20% off first Tuesday of each month (50+)
• Belks: 15% off first Tuesday of every month (55+)
• Big Lots: 10% off
• C.J. Banks: 10% off every Wednesday (60+)
• Clarks: 10% off (62+)
• Dress Barn: 10% off (55+)
• Goodwill: 10% off one day a week (date varies by location)
• Hallmark: 10% off one day a week (date varies by location)
• Kmart: 20% off (50+)
• Kohls: 15% off (60+)
• Rite Aid: 10% off on Tuesdays & 10% off prescriptions
• Ross Stores: 10% off every Tuesday (55+)
• The Salvation Army Thrift Stores: up to 50% off (55+)

Grocery
• Albertsons: 10% off first Wednesday of each month (55+)
• Compare Foods Supermarket: 10% off every Wednesday (60+)
• Frys Supermarket: free Frys VIP Club Membership & 10% off every Monday (55+)
• Kroger: 10% off (date varies by location)
• The Plant Shed: 10% off every Tuesday (50+)
Travel
• Alaska Airlines: 10% off (65+)
• Alamo: up to 25% off for AARP members
• American Airlines: various discounts for 65 and up (call before booking for discount)
• Amtrak: 15% off (62+)
• Avis: up to 25% off for AARP members
• Best Western: 10% off (55+)
• Budget Rental Cars: 10% off; up to 20% off for AARP members (50+)
• Cambria Suites: 20%-30% off (60+)
• Clarion: 20%-30% off (60+)
• Comfort Inn: 20%-30% off (60+)
• Comfort Suites: 20%-30% off (60+)
• Continental Airlines: no initiation fee for Continental Presidents Club & special fares for select destinations
• Dollar Rent-A-Car: 10% off (50+)
• Econo Lodge: 20%-30% off (60+)
• Enterprise Rent-A-Car: 5% off for AARP members
• Greyhound: 5% off (62+)
• Hampton Inns & Suites: 10% off when booked 72 hours in advance
• Hertz: up t0 25% off for AARP members
• Holiday Inn: 10%-30% off depending on location (62+)
• Hyatt Hotels: 25%-50% off (62+)
• InterContinental Hotels Group: various discounts at all hotels (65+)
• Mainstay Suites: 10% off with Mature Travelers Discount (50+); 20%-30% off (60+)
• Marriott Hotels: 15% off (62+)
• Motel 6: 10% off (60+)
• Myrtle Beach Resort: 10% off (55+)
• National Rent-A-Car: up to 30% off for AARP members
• Quality Inn: 20%-30% off (60+)
• Rodeway Inn: 20%-30% off (60+)
• Sleep Inn: 20%-30% off (60+)
• Southwest Airlines: various discounts for ages 65 and up (call before booking for discount)
• Trailways Transportation System: various discounts for ages 50 and up
• United Airlines: various discounts for ages 65 and up (call before booking for discount)
• U.S. Airways: various discounts for ages 65 and up (call before booking for discount)

Activities & Entertainment
• AMC Theaters: up to 30% off (55+)
• Bally Total Fitness: up to $100 off memberships (62+)
• Carmike Cinemas: 35% off (65+)
• Cinemark/Century Theaters: up to 35% off
• U.S. National Parks: $10 lifetime pass; 50% off additional services including camping (62+)
• Regal Cinemas: 30% off
• Ripleys Believe it or Not: @ off one-day ticket (55+)

Older Boomers are Urged to Get the Shingles Vaccine

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-07-23T14:45:06Z

If you know anyone who has ever had shingles, you know how painful and devastating it can be. The sad thing is that Shingles are now preventable. There is a vaccine (Zostavax) and all Boomers over the age of 60 are strongly urged by the CDC to get it.

The shingles vaccine is approved to protect your body from reactivation of a virus — the chickenpox (varicella-zoster) virus — that most people are exposed to during childhood. When you recover from chickenpox, the virus stays latent in your body. For unknown reasons, though, the latent virus sometimes gets reactivated years later, causing shingles. The shingles vaccine prevents this reactivation.

The shingles vaccine is a live vaccine given as a single injection, usually in the upper arm. The most common side effects of the shingles vaccine are redness, pain, tenderness and swelling at the injection site, and headaches. - James M. Steckelberg, M.D.

Medicare (Part D) recipients can get the Shingles vaccine free. The amount of cost-sharing (money you have to pay) for vaccination varies. If you have private insurance or Medicaid, your plan may or may not cover the vaccine - contact your insurer to find out; it typically costs about $200.

Shingles is a terrible, painful disease. Once you get it, you will likely have more outbursts. Don't wait - ask your doctor or pharmacists for the vaccine now! RiteAid and Walgreens offer the shot. Your local CVS pharmacy may or may not - call ahead.

Case Study - 50-Plus Baby Boomers Face Difficult Retirement Decisions

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-06-25T18:47:38Z

No matter how much we plan for retirement, no one can foresee the future. How many anticipated the Great Recession and its lingering after affects, for example? Regardless of the assets we currently enjoy, there is no guarantee that our financial situation will remain static during retirement. All we can do is to mitigate known risks and leave room for flexibility. Let’s illustrate this with an actual example of a Boomer couple coming up on retirement.

Based on an Actual Case Study - Bill and Jane Smith near Retirement

Bill and Jane Smith (not their real names) are Baby Boomers, both 63 years old and looking forward to retirement together. Jane is already a retired college professor who receives a pension and has heart problems. Bill works as a cashier at a nationwide book store chain, mostly to have medical insurance. Both are now eligible for social security benefits, but plan to wait until age sixty-six in order to receive larger payouts.

Recently, Bill’s company has been cutting back as a consequence of electronic books overtaking printed books in sales. Branches are being closed, and the company may be sold. Bill’s hours have consequently been cut, but he is fighting to work the minimum number of hours necessary to retain medical insurance. If he is laid off or his company goes away, Bill hopes that he can land another job to receive medical insurance until he and Jane are eligible for Medicare at age 65.

Asset-wise, Bill and Jane own the condo where they reside in California. It currently has $50,000 in equity, but that figure is diminishing as the real estate market continues its downward plunge. Bill’s 89-year old mother is not expected to live much longer, and upon her death he will receive half ownership in her home. Bill and his brother plan to sell the house and split the profits, with each expected to receive about $150,000. Bill and Jane also have $150,000 in savings invested in mutual funds. So, altogether, they expect to have a $300,000 nest egg for retirement, plus $40,000 to $50,000 in home equity when they retire in two years.

Advice for the Smiths

· If Bill is laid off from his current job, his chances of finding another position that provides medical insurance coverage are slim – no one wants to hire a 63-year-old person in today’s job market. Hence, the Smiths will have to either pay Cobra or other expensive health insurance premiums for the next two years until they qualify for Medicare. They will also have to survive on their savings and Jane’s pension. Taking social security benefits earlier than planned may become a necessity. The Smiths are advised to set aside reserve funds for this possibility.

· Given the volatility of today’s economy, the Smiths’ are also urged to immediately review their investments for diversification and safety. As many older Boomers know, even supposedly low-risk mutual fund investments can disappear overnight! Moving some savings to gold or precious metals may be indicated.

· The anticipated $150,000 inheritance from the sale of Bill’s mother’s house could be used to pay off the remaining mortgage on their condominium. However, this is probably not be the wisest choice, as their condominium project has only eighteen units and its value is closely tied to the amount of reserve funds held by the home owners association, which unfortunately is much less than desired. Thus, a large assessment could be forthcoming just to maintain the complex. And if other homeowners cannot afford the assessment or stop paying monthly dues, the market value of everyone’s condo will drop. Also, given the difficulty of selling a condominium in California today, it may be better to preserve liquidity by investing their inheritance in diversified mutual funds, CDs and bonds rather than tying it up in real estate.

· With Jane’s heart condition, they need to consider how they would address the possibility of medical bills that exceed Medicare coverage or a need for long-term nursing care. Either of these situations could quickly gobble up their savings. Since the cost of long-term care insurance is typically prohibitive, consultation with a financial advisor is suggested to determine how to best protect their financial assets should they one day have to resort to Medicaid coverage for Jane’s long-term care.

· Bill and Jane should also research home-based businesses and launch one before their planned retirement date. This can provide a means to both handle possible increased insurance premiums and then later supplement their retirement income after they qualify for Medicare.

Summary

What all this illustrates is that even older Boomers with some savings and financial assets still face the risk of seeing their retirement plans disrupted by events outside their control. Whether due to job loss, health problems, accidents, or forces of nature (earthquake, flood, tornado, etc.), our lives can change overnight. The best retirement planning advice, therefore, is to develop realistic plans based on anticipated assets while maintaining the flexibility to respond to unforeseen or evolving circumstances.

Baby Boomers Must Work Until They Are 84?!!

akernek@babyboomerlifeboat.com (Al Kernek) — 2011-06-19T16:48:43Z

A new study by the EBRI concluded that many Baby Boomers must work until the age 84 to have enough money to retire. It basically said, if you are a 50-plus Boomer who is not wealthy, you are screwed. I beg to differ. These types of conclusions come from people who are afraid - or don't understand how - to color outside the lines.

Every 50-plus Baby Boomer can retire. it is just a matter of formulating an achievable plan to do so...and yes, there is a unique plan that works for each and every Boomer.

Most viable plans for older Boomers who have seen their savings and home equity decimated by the recession involve some form of continued work. But, this is work of their choice, work they enjoy, so that it is not really work. The majority of retiring boomers will start home-based businesses or begin a new career doing something they have always wanted to do. They will avoid the traditional mind-numbing grind that wears a person down. This is their time to rejuvenate their souls, and they will re-invent the concept of retirement in the process.

So I say, "Don't put off retirement." Your most valuable treasure is "time." Use your remaining life to do things you have always wanted to do. Control your own time and spend it optimally.

Don't worry about how to survive - there is always a way once you have clear priorities. Take a look at "How 50+ Baby Boomers Can Still Retire" to learn how you can make the autumn and winter of your life meaningful.