Showing posts with label retirement. Show all posts
Showing posts with label retirement. Show all posts

04 June 2010

Moving Boomers

What do Las Vegas (Nevada), Bend (Oregon), and Fort Myers (Florida) have in common? All three made it onto two of U.S. News & World Reports' Top 10 lists.

For the full lists, click each of these lines:
10 Cities for Retirement Property Steals
10 Cities Facing a Double Whammy of Default Risks

One way to describe the common set is that 30% of the nation's worst mortgage-foreclosure cities are good places for boomers to relocate to for retirement. And will we? Boomers are more likely to move in retirement years when compared to the previous cohort of retirees. But about 80% want to stay where they are, maintaining their home town ties.

© 2010 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (http://www.marybold.com/, http://www.boldproductions.com/, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

22 January 2010

Transition Decisions

It's one thing to talk about making this year a transition year for retirement and relocation. It's another thing to start casting the talk as decisions. Any one thing can take you to the point of making decisions. For me, it was seeing 3 realtor appointments lined up for one very busy afternoon.

The appointments in question are with realtors in our current town. Why even visit potential next towns if we aren't sure the current house can be sold? That's a new concept for us. All previous moves (into 4 houses across 30 years) were prompted by employment decisions. So, moving was a next step—not an initial step.

Our old concept also involved an important assumption: of course, our house would sell. All houses sold. We were part of the mobile society. Just as we needed to move for employment, others were doing the same. And a goodly number were coming to the place we were leaving. The longest we ever waited for a sale was 5 months. And that was the darkest house we ever had. And that's what potential buyers always said... it's just too dark. Two price drops later, it wasn't too dark.

Of course, this year is different. We make no assumptions about all houses having buyers. The Great Recession is a major reason. But there's another: our society is not so mobile anymore and that slow-down occurred long before our current economic ills. Our society is aging (thanks to us boomers) and when that happens, people just don't move around as much. So, society is less mobile and actually Tom Bold and I haven't made a cross-country move in more than 20 years.

Lucky for us, our daughter told us about HGTV. Now, of course, I knew that such a cable channel existed. (I'm not sure that Tom Bold knew but, after all, this is the man who made it to 2006 before he saw his first 10-minute Oprah segment.) I just had never tuned in to the house shows.

Let me tell you. I am now educated. I know about unsellable houses, interventions (different sort than I knew about before), getting it sold (they don't even have to explain the it because everyone knows what isn't selling), and staging. Oh, my, staging is quite the rage.

We have transformed from the mobile society to the staging society.

© 2010 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (http://www.marybold.com/, http://www.boldproductions.com/, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

18 January 2010

Transition Questions

Transition year. Some of the leading boomers—born 1946 and not yet officially at retirement age—are transitioning to retirement by choice or lay-off. The old prediction was that when the leading boomers retired in 2011, the economy would slow and all of the U.S. would begin to feel the effects of this life stage of the big cohort. But instead of causing a change in the economy, boomers are responding to one. With the Great Recession, net worths dropped, careers ended before anticipated, and (for some) bankruptcy loomed due to mortgage foreclosure.

So, 2010 is a different transition than we imagined. The standard questions were supposed to be:
(a) What date should we set for the last day at work?
(b) How should we re-balance the 401K?
(c) When should we move to the perfect climate?

For Tom and me, those questions are replaced with:
(a) How will we bridge health insurance from now to Medicare?
(b) Does our house value allow us to make a move?
(c) Is a retirement location's cost-of-living more important than climate, now?

So? COBRA ends soon and we'll move on to private insurance or high risk pool. We don't know how house values have held up in our neighborhood but we'll talk to realtors soon. And cost-of-living must be balanced with climate... but climate remains important.

© 2010 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (http://www.marybold.com/, http://www.boldproductions.com/, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

22 October 2008

Housing Boom, Housing Bust, and the Boomers

Dated September 2008, a paper published by the Center for Retirement Research at Boston College examines "The Housing Bubble and Retirement Security." The general conclusion for "older households" is that about a third of them will suffer from the housing bubble through less secure retirements.

The authors tracked the decisions by homeowners (across all age groups) during the housing boom years (2001-2006), and found that close to 40% had some kind of "mortgage activity," meaning refinancing or extracting home equity. Among those with activity, about a third spent the money on home improvements, about a third repaid other debts or made new purchases, and about a third made an investment in the stock market or real estate or a business.

Based on age in 2004, the age group 50 - 62 saw the greatest housing gains between 2001 and 2006. This age group also led in extracting home equity and then led in consuming (paying other debts or making new purchases). At least according to the formula in this paper, the near-retirement group who extracted home equity have lower net worth after the housing bubble.

The paper (which opens as a PDF file) includes easy-to-understand charts that illustrate the impact of the housing bust on age groups. It also explains the predictable human response to a housing boom: housing gains promote spending.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

14 October 2008

Encore vs Ex-Retired Careers

"Ex-Retired" (or ex-retiree or ex-retirement) at its most neutral just means a person retired and then returned to work. "Encore" carries extra meaning: a person transitioned to a more fulfilling career (sometimes without actually retiring).

As baby boomers plan for the future, more and more of them are expecting to push off retirement or, if they have retired early, to now seek employment. The current financial crisis is a powerful motivator. Perhaps the nest egg has cracked. Or perhaps the housing crunch threatens a planned home sale. Or maybe a recession/depression of unknown length is too great a risk in light of retirement of unknown length.

Comments I've heard from boomers in the past few days reflecting on these issues:

  • If I can back into industry, I could work for a couple of years and sock away the salary to replace what I've lost in the last 3 weeks. (Age 62)
  • I don't have a retirement year in my mind and that's good. (Age 63)
  • If I have to go job-hunting it's going to be for a job, not a career. (Age 62)

Maybe the mood of the country doesn't allow for optimistic planning for encore careers, or maybe the encore concept belongs to people with resources to support that choice. I wonder if we'll gravitate to a division of the vocabulary, where Ex-Retired will take on the connotation of being forced to return to employment in order to make ends meet.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

17 September 2008

Health Insurance: COBRA and Dependents

Member Only. Because I had no dependents on my benefits while working, my COBRA "election" is for Member Only. Just me. For the past seven years, Tom and I have maintained separate insurance coverage through our employers. But what if Tom needs/wants coverage with me while I am under COBRA coverage?

The Call to the State. This was my only reason for calling my State retirement office regarding COBRA. The paperwork was clear for folks electing coverage for existing dependents, but only mentioned "adding newly acquired dependents" in a general way. I still considered the 10-page packet highly readable and low in complexity; it just didn't answer my specific need about a dependent who might become "newly acquired."

Qualifying Events. Birthing or adopting a child is so much more obvious a case of newly acquired dependent. Getting married, too. But Tom Bold just might be my newly acquired dependent in the future. Will the end of his COBRA coverage be a qualifying event to join me in my COBRA? The State says yes, although the representative first said no and had to be prompted to go check with a supervisor.

At What Cost? At least right now and rounding the dollars for easier reading, the projected cost is for health coverage to increase from $365 (Member Only) to $786 (Member + Spouse). Dental coverage will increase from $23 to $43.

By What Means? To add Tom as a dependent, first a qualifying event must occur. In our case, that would mean his own coverage must end (meaning, end of his lay-off-instigated COBRA). I would have to notify my State office in writing and also provide proof of Tom's insurability. Then, of course, I would also have to send the additional premiums.

Projecting the Need. Because we did not plan 2008 as the Great Transition Year, we are learning about COBRA, private insurance, and retirement in general in a hurry. But I don't think we're unique. I think most boomers hit these transitions with the same level of ignorance that we have. It's not that the information isn't out there, it's that we have to reach our own "teachable moment" for the information to have meaning. So, even though I like planning and projecting, I don't fault myself for not projecting our current needs. I had to get to this point in life to feel the full impact of the information.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

04 September 2008

Job Searching After Retirement

I'm reviewing a number of employment web sites that promise a focus on "seniors," retirees, and boomers in general. I'll detail more in future posts, but wanted to share this one not so much from the job angle as the information angle.

Retired Brains
http://www.retiredbrains.com/

I found myself reading the short informational pages. Yes, even the one on Arthritis Pain. But to stay focused on the work issue, check out Start Your Own Business for a nice set of web links.

On my searches of employment web sites so far, I'm finding few listings for telecommuting except for the typically spammy "work from home and earn $11,000/month" opportunities.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

27 August 2008

Will Baby Boomers Wreck American Society?

Really wreck society or just Social Security? Forecasting appears dire. If boomers insist on retiring early (or even on time), they will create a shortage of funds for Social Security benefits. Presumably, a nation can fund anything it chooses to, so the U.S. may continue to support retirees even if one fund runs short.

But there's another wreck coming. But it's not just the funding for retirement benefits that boomers will influence. The retirement years of note (2008 and 2011 being most discussed now but there will be more dire years ahead) are those that will deplete specific work forces. On campuses, that's called the graying professoriate. Look around a faculty meeting and count the gray hairs. A new dean may see opportunity to grow a new college; a more experienced dean may dread the upcoming upheaval.

A national treasure: I'm not one to call any generation a national treasure, but the Treasury Department has identified the baby boom generation as crucial to their work force. They hope that as current employees exit (with their federal retirement benefits), other retirees or near-retirees will enter. Through the nonprofit Partnership for Public Service, the Treasury Department hopes to recruit retiring IBM workers for encore careers with the government.

Other graying areas: It's not only Treasury that faces a gap in their work force. (Treasury is just one of the smarter entities to develop a strategy to meet their need.) Across all levels of government, we now hear predictions that the most experienced workers will soon be leaving. What will happen then? I can imagine longer lines in government offices, delays in permits and applications for everything, and a general decline in services. Think DMV on its busiest day—every day.

Will government offices make good encore careers? Would you sign on? I can think of some inducements that would lure me for an extra 5 or 10 years of employment: health benefits, flex schedule, option to telecommute half the time, and a cap on total hours of, what, 20 or 25 a week? We'll see what develops.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

25 August 2008

Retirement Planning: A Deficit Model


If you are feeling deficit right about now, that's probably because the conventional wisdom maintains that boomers haven't earned enough, saved enough, or planned enough for retirement. That's a common trend for humans: assume the worst. And the trend is actually a good survival instinct.

The pragmatics of retirement planning are correct: advisers plan for extremes because no one can predict the future. So, the standard assumptions are for high medical costs over a long life span with a need for 80% of your pre-retirement income. Hence, the dire calculator results of You may run out of money at age 78... or 89... or 94.

In order to moderate these predictions, resist the standard expectation that you will need 80% of your income in retirement. (Granted, health costs may be dramatic in the future but even in those terms, don't awfulize.) Instead, try building your retirement budget from the ground up.

My favorite retirement calculator is at Bloomberg.com because I can try out multiple scenarios, including setting "percent of income at retirement" at anywhere between 50% and 150% of current household income. Boomer women should also play with the checkboxes for "If you are married" and "To include Social Security."

On a personal note: Using the Bloomberg calculator, I like to play with predictions of pre-retirement household income that are below my current salary. I also check on what will happen if I make no more contributions to retirement savings...and no salary increases. ~ Lida

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

23 August 2008

Affordable Travel in Retirement

The boomer advantage in travel is that either we're approaching retirement and have a generous number of vacation days, or we're already retired and can claim any day as a vacation day. That flexibility is key to making travel affordable.

  • Travel in the off-seasons, or at least enter "dates flexible" when booking your flight or hotel online. This Fall, I'm using this strategy for a beach resort and "off" doesn't even involve hurricanes.
  • Especially at resort and city center hotels, you'll see different rates for prime days, so check rates by date, not just an average for the nights you specify. I look for Sunday or Monday check-in's that are post-weekend rates.
  • Some cities are on sale over the winter holidays. If there's a hotel that typically serves the convention market, there's a good chance it will have affordable rates when conventions are not scheduled. This has been the case for us in San Francisco during Christmas week. But we've never found discounted lodging at Tahoe over Christmas or New Year's, and I don't care to divulge what we've spent on Thanksgiving in New York.
  • Check for extended stay hotels, often the best buy in metropolitan areas. For New York stays of 2 weeks at a time, I have cut lodging costs by 65% and enjoyed a one-bedroom apartment with full kitchen and in-unit laundry.
  • If you are near a state line, check on differences in taxes that can impact your hotel bill.
  • Camp in a national or state park: buy a senior pass or travel with someone who can.
  • Learn to love the motels on the Interstate
  • Stay at a hostel or Y. OK, granted, I've never gone this route.
  • Swap homes through an exchange service. Something else I haven't tried but The Holiday certainly made Los Angeles and the UK look promising....
  • Couch surf on craigslist. (If you don't know what this is, you absolutely must not do it.)
  • Look for a "package" from a timeshare resort (ask your friends to "refer" you). My friend The Artist is trying this out...right now.
  • Rent a house with other families (related or not) and split the cost. We've done this for stays at a lake in Oklahoma as well as trips to the Colorado mountains. It is important to select co-families with complementary talents. I only did this when there were good cooks on board. I cannot imagine what they thought I was contributing.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

20 August 2008

Personalized Social Security Statement

In yesterday's mail, I received my annual "Your Social Security Statement" from the Social Security Administration (SSA). I decided it would be the year to understand the formula by which our Social benefits are figured. Of course, I was not able to achieve that. On a positive note, our government does not hide the formula—you can track it down on SSA websites. The important conclusion is that the formula protects citizens with lowest incomes and progressively decreases the benefit reward for citizens with highest incomes. (That's proportionate, of course. Maximum contributors to the system still have higher benefits in dollars.)

What I was able to achieve was a comparison of projected benefits according to different income levels. In other words, I was able to estimate benefits in case my income drops, stays the same, or increases over the next few years. (The estimate in my Paper Statement is based on my "current earnings rate" and does not consider other possibilities.) I also made age comparisons using 62 for early retirement, 65 for retirement in my Medicare eligibility year, 66 for "full" retirement, and 70 for delayed retirement. I did all this through the website that my Paper Statement directed me to (www.socialsecurity.gov/mystatement). I had used the online calculators before but today I took time to record all the steps.


Go to http://www.socialsecurity.gov/estimator

Look for the page titles alongside the SSA logo.


Page title: About the Retirement Estimator

Click red button, Estimate Your Retirement Benefits, or at bottom of page, click Continue button.

Page title: Acknowledgement For Online Services

Click on the I Agree button.


Page title: Information We Need

Enter identification factoids (including your Social Security Number)
.
Click Continue button.


Page title: Verify Your Information

Click Confirm button.


Page title: Create Your Retirement Benefit Estimator

Enter a number for last year's income
. (Don't fret about an exact figure—this page just gets you into the estimator. Suggestion: round your current salary to a user-friendly figure such as 40,000.)
Click Create Estimate button.


Page title: Your Retirement Benefit Estimate

The information probably looks a lot like the usual estimate in your Paper Statement from SSA.
Now, for the powerful part of this online tool, look to bottom right of screen for the next step.
Click
Create Additional Scenarios button.

Page title: Retirement Estimator

Step One: Select an age (to get started, use 62 or 66).

Step Two: Enter an average salary; to get started, use the same salary as before (such as 40,000).

Click the Create Scenarios button.


Page title: Your Additional Retirement Scenarios

Finally, you reach the best of the estimator!
Mid-page, enter figures for additional scenarios—change the age, change the average salary.
To get started, add a lot of contrast:

.....Age 62 at average salary $20,000

.....Age 62 at average salary $40,000
Click Create Scenarios button
.

You will then see all 3 scenarios listed at bottom of page. You may need to scroll down, depending on the width of your screen.

You can continue entering new figures in the mid-page section called Create Additional Scenarios. Each time you make a change, click Create Scenarios button.

(You can also back up to the Scenario 1 page by clicking on the Previous button at bottom of page and re-setting the first estimate. Then proceed as before with Create Scenarios.)

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

19 August 2008

Boomers and Their Finance Advisers

What our financial adviser said (continued from yesterday's blog). When I disclosed that I was retiring from a public university and not seeking a similar position anywhere, our adviser said, "You'll never make it!" She knew that my early-retiring husband's salary would end in 2008, and that the expected course was to rely on my income for the next 11 years. (That means pushing off any withdrawals from 401K and IRAs in order to protect them for the long term, that span of retirement that will be 25 to 30 years.)

Who is this nervy adviser? Well, it's a family member. The professional advisers at the investment companies were quietly respectful and merely said, "What accounts do you want to move where?" The in-family adviser fretted a little and fumed a little and finally started to make the projections I needed to justify this change in career. (I'll still be in education, just not on a campus.)

How many advisers does a boomer woman need? Obviously, I need more than one. (Itemization is below.) What I've determined from this recent round of career decision-making is that I like having one in the family. An in-family adviser knows my real habits, not the ones I posture for the outside-adviser. She also knows when I'm serious ("I can stop buying clothes") and when I'm not ("I can give up travel"). Most important, she is my most-motivated adviser. If my career and investments fail, she'll have to support me. Fidelity hasn't made that promise to me.

Advisers of everything. Under one big umbrella of "finance adviser," we variously mean financial planner, investment adviser, stock broker, and maybe even retirement counselor. The terms become crucial if we intend to talk to an adviser who is certified, registered, or somehow regulated. A good online resource to check is the Certified Financial Planner Board of Standards; the site has a concise list of descriptions of Financial Professionals.

Being assigned an adviser. Most of us don't select an adviser. We are assigned one by the firm we contract with. I've had two personal bankers, two personal stock brokers (before switching to discount brokers), and three investment advisers. Of that number, three have visited my home and a fourth even visited my classroom (to give a lecture, not to consult with me). That's a lot of personal contact, so you would think that I would put more effort into the choice of adviser. But my association with them has been accidental. Of course, the in-family adviser might make the same argument.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

18 August 2008

Choosing a Retirement Year


Boomer investments not booming. While not necessarily the best year to retire (market wise), some boomers "on the cusp" will make the move in 2008 or 2009, anyway. That's because they are 62-ish. The first of the baby boomers were born in 1946 and this is their year to qualify for early Social Security benefits. Depending on how you like to "do the math," you may decide that the best pay-out comes with early retirement. But here's an assumption: you have some investments to draw from. (If you retire with only Social Security benefits as income, you are likely to do some serious budgeting in order to survive.) But what if your investments are not in great shape?

Bearing with bear markets: You may decide to continue working for another year or two (until the bad times pass). This means pushing off Social Security, too. It is the safest strategy. It may also be the most frustrating. To make bearing with bear markets more bearable, you re-frame the delay as an "adjustment period" during which you intentionally change your pace, days off, travel, and spending/saving to approximate what you expect to do after you retire.

Risk outliving your investments: Or you may decide to bite the bullet and start drawing from investments, anyway (in addition to starting Social Security benefits). This is the risky strategy, of course. You start drawing from your 401K when it can least support that. The eventual consequence (20 or 30 years hence) is that the money is gone before you are.

Rely on younger spouse: The middle ground is the cusp boomer who takes early Social at 62 and relies on a younger spouse for income, pushing off the day to start drawing from investments. For the couple, this scenario means lower income, of course, and the household budget must adjust. The goal becomes to delay drawing on 401K/IRA as long as possible.

On a personal note: Oh, that's us. Does anyone see the inherent risk of my retiring this summer at the same time my cusp-boomer husband retires? Only a woman of the boomer generation would just assume that things will work out. Tomorrow: what our investment adviser said to us. ~ Lida

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

29 July 2008

Spousal Social Security: Bitter Boomer Women

My friend who retired from Social Security confirms: The most bitter comments he ever heard were from women understanding for the first time that their "spousal benefit" was higher than the one they earned on their own. Technically, it's the woman's own benefit that is paid first, but a combination formula based on 1/2 of the husband's Social Security benefit sometimes boosts pay to more as a spouse than as a worker.

"So, I worked for nothing." That's the common lament although, of course, the worker had income during the years of qualifying for benefits. My friend has suggested to me that there is little comfort to give a person who is realizing that low-income employment has limited reward in retirement. For the woman in this situation, 1/2 of her husband's benefit would be available to her even if she never worked outside the home.

Some Strategy of Interest: A Social Security "Electronic Booklets" web page called Retirement Benefits outlines a method for a woman in her 60s to improve the situation. At full retirement age, she can draw the 1/2 benefit based on spouse's benefits but continue working to improve her own record and (perhaps) increase her own benefit to exceed that spousal amount. (At full retirement age—that's 66 for most boomer women—there is no limit on earned income so she would not reduce her benefit being received.) It is an interesting strategy. And it only requires that a woman work forever....

Very Basic Text: What Every Woman Should Know (ssa.gov/pubs/10127.pdf). Unfortunately, this online file doesn't tell us Everything That Every Woman Should Know, so it is only a starter text. It does help explain the basics about benefits for divorced women, so it has value there.

X- and Y-Generation Women May Be Less Bitter: For baby boom women, the bitter pill is created by the gender wage gap. But we know that for post-boomer women, the wage gap is narrowed. Admittedly, we may be leaving them with other bitter pills surrounding Social Security benefits.

Benefit computation is complicated: The Social Security office provides guidance to retirees but as we are encouraged to file online for benefits, we lose the likelihood of "talking through" our options and understanding the many sub-parts of the regulations. We can read an increasing number of government publications available on the web and try to sort through the particulars. That helps.

The expected disclaimer: Please do not rely on my interpretation of Social Security literature. I'm struggling to understand it all myself. And, as stated already, benefit computation is complicated.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

28 July 2008

4-Hour Workweek? Really?

Last in America to review this book. I had only a vague idea of what Timothy Ferriss meant by his book title, The 4-Hour Workweek, and I resisted his tag line about the "new rich." Until finally a friend put a copy in my hands (actually, sent it to me via amazon) and I settled into a fun read. But is my review today timely? Hardly. We'll call it a review for late adopters.

The Ferris message. You won't be surprised by much of the advice in this book. Figure out how you want to spend your time. Take as many mini-vacations and mini-retirements as you can afford. Lead a balanced life. What's new in the message is a down-to-earth encouragement to just go ahead and try it.

What's the worst that can happen? For most of us, the worst that can happen after we make a big change in employment or lifestyle is that we'll have to un-do some part of it. There's a bonus: even if you have to go back to a previous status, it won't be the same as before. Just stepping away for a while will change your perspective and, likely, your priorities.

Example from a generation ago: As I challenge myself to change my lifestyle (maybe not all the way down to four hours of work), I recall a friend's growing up years. His father was a physician who retired every 8 to 10 years, establishing a practice and then retiring from it when able. Work 10 years at the most; take off 5 at a minimum. That man's medical license made him highly employable, of course, but most of us have some skill, talent, or resource to call upon for similar purpose.

4-hour web site. You can check out the book or just some aspects of it at www.fourhourworkweek.com. Ferriss is not a baby boomer, by the way, but his advice rings true for a lot of us who are.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

27 July 2008

The Post-Retirement Wars: Too Much Togetherness

Time with your partner. Well, if you have a partner, retirement certainly helps you draw swift conclusions about him or her. Chances are, you won't have had this much togetherness with this person since you were dating. That's when you wanted to spend long days together, lazing around your apartment with no more than a single outing to a cafe to break up the day. Now, you are in retirement with this person and the apartment is probably replaced by a house and yard—and the cafe is more likely the patio outside Starbucks, and it's actually the place you use as an escape. From your partner in retirement.

There is no such thing as preparation for the adjustment to retirement with a partner. You can fret over finances, set up annuities, reverse-mortgage your house, fund your 401K, and a host of other strategies to "prepare" for retirement. None of them addresses the challenge of sharing a home with time on everyone's hands. (Of course, some couples fix that: one of them keeps working, and it's sometimes only to keep the peace.)

It also doesn't matter how much you know, except when that's too much: It doesn't matter if you have a doctorate in family studies and can quote research on human development, family dynamics, and couple communication. (Oh, that's me.) That knowledge doesn't really arm you for the skills you need, mainly the ability to bite your tongue. And the knowledge can even cause a new problem: if you've studied longevity then you know that retirement may go on for decades. Ideally the adjustment to togetherness will take months, not years, but the thought of 40 more years of togetherness may be disheartening when the adjustment is still underway.

On a personal note: Tom Bold is the star of this column. I could hide the facts of his maddening habits at home (he sits either at the kitchen bar or on a favorite couch—that's all, just those two spots), of his lack of outside contact (he goes to Walmart and..., no, just Walmart), and of his primary pastime (he plays a computer game that I stubbornly do not learn the name of), but the greater public service is to tell you. These facts can either assure you that your own partner is not so unusual, or make you feel smug that yours is superior in habits. ~ Lida

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

22 July 2008

Retirement: When Minimum Wage is Maximum Wage

U.S. minimum wage going up: As of this week the minimum wage in the U.S. will be $6.55/hour. And for retirees between 62 and 66 who are already drawing Social Security, that will be (just about) their maximum earnings limit without offsetting some of their retirement check. Rounding the figures for convenience:

Minimum wage of $6.55 = $13K per year income
Maximum "extra" wages for boomer on Social Security = $13K

Early retirees draw a percentage of "full retirement." Leaving the workforce early (for the current crop of leading boomers, that's before age 66) is allowed but the Social Security benefit is reduced by up to 30%, with the reduction running 5-7% per year of age. I'm referring to retirees at the start of the baby boom, meaning birth year 1946 and later. For a full breakdown on percents and year of birth, see Full Retirement Age at Social Security Online (www.socialsecurity.gov, a site that is sure to need no SEO* in the coming years).

What's wage got to do with it? Age 62 retiring boomers have an earnings limit of about $13,000 after which Social Security benefits are effectively "reduced" by about a third. So, if your Social Security benefit is $12,000, you can earn $13,000 from a job with no penalty. But if your total income goes above $25,000 for the year, your "extra income" will be offset by a reduction in SS benefit. Fancy math and a consult with the folks at Social Security may assure you that upon "full retirement" age, an "early" penalty may work in your favor eventually. The point is, you'll need to do some figuring. (After full retirement age, no figuring is needed as there is no limit on earnings from that point onward.)

The comparison between minimum and maximum wages: Just by coincidence, the 2008 increased minimum wage is approximately the same amount as the early retirees' maximum extra wage. $6.55/hour for 40 hrs/week for 52 weeks/year = $13,624. The earnings limit under Social Security was $12,960 for 2007; it will be $13,560 for 2008.

A handy formula that's realistic for converting hourly wage to annual income is to multiple $6.50 times 2000, because that's very close to a full year's work with a couple of weeks off. This formula permits you to quickly inform your threatening-to-drop-out adolescent relative that the outstanding job paying $7 an hour is actually only $14K a year. And the even more outstanding wage of $8 comes to only $16K a year. It's amazing how many adolescents marvel at the arithmetic. Eventually, they realize it was simple multiplication. (Or maybe if they drop out, they won't.)

*SEO: Search engine optimization, or processes whereby Internet publishers increase the volume of "traffic" to web sites. ~ Lida

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold (www.marybold.com, www.boldproductions.com, College Intern Blog) is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

15 July 2008

Retirement Living: The Home

The Home. Twice, residents at the Erickson property that I visited last evening referred to the "campus" as "the home." They spoke with humor and one warned, "not everyone likes that word." I was at the Highland Springs campus in North Dallas with a college Practicum (internship) class. A co-teacher was the organizer and I was the tag-along.

Senior, retirement, community. In a society that still prefers "aging in place," a move to a campus like Highland Springs isn't made lightly. Aside from the financial considerations, anyone making the decision is sure to be questioned by family and friends. This is pretty interesting because in my field we define the preference to age in place (meaning at one's home, typically the home of the past 10+ years) as being the aging person's preference. But it is one that is shored up by family opinion and community patterns.

NORC: One of those patterns is the NORC, or naturally occurring retirement community. It's what we commonly describe as an aging neighborhood. Children are grown and gone; the homeowners are retired or nearly so; activity shifts from families' needs to retirees' priorities.

The newer pattern: The planned retirement community (like Erickson and others) hasn't replaced the NORC but it does present retirees with a choice for maintenance-free housing and, usually, facilities that resemble a resort. Boomers may provide the tipping point for retirement housing, though that's likely some time off. The communities that require a "buy in" will interest boomers who can liquidate, most likely by selling a family home. For the boomers who make the move, the retirement community will then become the place for "age in place," which may mean for decades.

One a personal note: I see the retirement community model as a gift I can give my children in that I can age in a resort-like place and they can be spared several stages of decision-making about my ability to live on my own. I don't know the timing yet and Tom Bold does pose a problem because he only imagines living on his own. There is hope: last night I spotted poker tables in the pool hall near the dining room. Perhaps by the time I drag him into such a facility there will also be a salon for old guys and their computer games. Then, we'll be ready to negotiate.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

14 July 2008

Encore Career

Encore. Once more. Repeat performance. Except the encore career is not a repeat at all. It's the newly crafted career that replaces the one that came before. Bankers become adventure guides. And probably fewer adventure guides become bankers.

Boomers invented it. Boomers are responsible for the new concept of encore career. First, because they are the first generation living long enough to want/need a second career. Second, because they want the second career to be more fulfilling or more rewarding or just more fun.

Website guide: Googling "encore career" will produce about a zillion links. Here's the one I recommend as the first one: Encore Career. This link will take you to the home page, but I recommend you visit the "find" page, too. It is a great place to dive in. (If you see a pop-up box about google and APIs and maps, just persist. Or, check out the URL in that message and learn about embedded maps, which is pretty interesting, too.)

On a personal note: I'm composing. That's to say that I have my date in sight and I have preliminary plans accomplished. Just a couple of months more. ~ Lida

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold is not under any circumstances to be regarded as professional, legal, financial, or medical advice. Or education advice. Or marital advice. Or even a tip.

08 July 2008

Retirement to the Apple Store

This column is not about retirement from Apple. It is about retirement to Apple.

San Francisco store: One Stockton Street. The Apple store in San Francisco resembles the store in Southlake, Texas, for about 10 feet. Then you reach the glass staircase. It leads to a top floor with just as much activity as below, plus a theatre. That’s theatre seating (really comfortable plush chairs) around a wall display. Experts on iPhones and iPods and even Adobe Photoshop present one-hour workshops nearly all day long, 7 days a week. (On one trip to the store, the projector wasn’t working so the expert led us to a work station for a hands-on tour of iWeb. We sat on stools and were slightly less comfortable, but learned a lot in that setting, too.)


Who’s retiring. It’s not that young workforce staffing the Genius Bar that I’m writing about today. It’s the gray-haired customers in the San Francisco store. The retired contingent is arriving for training. Whether weekend or weekday, gray haired customers are a noticeable part of the environment. They come for all topics. Some come with note pads. Most come with questions, happy about finding a venue for introductory lessons.

Retirement computing. I am reluctant to make assumptions about age and computing. I know old people who excel at WoW (World of Warcraft) and young people who fumble at a google search. Still, there are some givens that apply: those people in the stage of fluid intelligence can learn new computing strategies in one way… and those people in the stage of crystallized intelligence will learn in another way, probably building on previous knowledge (not necessarily knowledge about computers). People who are retired today were already in the crystallized stage when affordable (home) computing emerged. They were probably very purposeful in selecting hardware and application software, with a desktop CPU and email their primary concerns. Those early choices do not confine them today.

Crystallized and fluid intelligence. The neat thing about crystallized intelligence is that we keep learning after the shift from fluid intelligence in our 20s or 30s. The term crystallized is off-putting to some of my students, especially those residing in fluid intelligence. Fluid: learning is characterized by intuitive leaps, often without much structure. It’s what allows the young (primarily) to produce new theory. Einstein is the classic example, but only just an example. We all experience fluid intelligence and it is what allows us to explore as we learn. Crystallized: learning is characterized by scaffolding of ideas, building on foundational knowledge that we gained earlier. It is no less creative than fluid intelligence. In some fields, it is the preferred state: historians develop slowly and typically peak (academically) in middle and late age. Considering the types of intelligence can help us figure out how best to assist learning about computers. Apple’s theatre seating is a great fit for crystallized thinkers: they like to follow along, they like to see a display first, and maybe they just relate well to being taught in a lecture setting.

Venues for accessing beginner information. Why are the retired (with more boomers on the way, of course) flocking to Apple? For starters, the company’s stores are earning the reputation as the most helpful service sources for computing today. More important, Apple stores provide drop-in learning opportunities. Even the most accommodating community education source demands a commitment to schedule. Learn to surf the web, master Flash, and build your own website—all are available at low cost or free from community centers and colleges. But they are not drop-in. Only Apple keeps the appropriate teaching force—their sales force—on the job every day, ready to receive learners.

Meeting the training expectation. In smart fashion, Apple advertises to the young and then sells to all generations. For training on Apple products, does the San Francisco experience translate to other stores? Comparison to my store back home in Southlake is not encouraging. I’ve visited the Texas venue specifically for free workshops and never found them operating. Does it take a dedicated teaching space like the one in the San Francisco store? Yes, it probably does. At least for the crystallized thinkers, having that organized seating matters. If my Southlake store pulled out a dozen chairs and grouped them around a projector, would that suffice? Yes. It would also be the ideal place to point out to the small masses the concomitant lessons, like demonstrating the use of the DVI connector to the typical data projector. (Yep. That stumps a lot of boomers at professional conferences when they arrive expecting to make presentations from their MacBooks.)

No complaints. Hats off to Apple for recognizing the need for drop-in training venues. Special congratulations to Apple for making the San Francisco store the ultimate in that experience. And as more boomers have more time to partake of the offerings, my guess is that we’ll see growth in this style of customer support.

© 2008 Mary Bold, PhD, CFLE. The content of this blog or related web sites created by Mary Bold is not under any circumstances to be regarded as professional, legal, or medical advice. Or education advice. Or marital advice. Or even a tip.