RetirementHomes.com - Credit and Debt

Do seniors deserve senior discounts?

aadmin — Fri, 01 Nov 2013 13:03:59 +0000

Across North America, one of the perks of growing older is that senior discounts suddenly become available. From local restaurants to dry cleaners, public transit and hotel chains, many vendors across Canada and the United States offer discounted rates to older people.

According to a 2008 Washington Post article, senior discounts began in North America during a period of economic difficulty for older people, and when they had less disposable income than younger age brackets. As a result, senior discounts were created to help equalize different parts of society.

However, that economic disparity has disappeared, and no longer are seniors the most economically disadvantaged age demographic in the United States.

From 1984 to 2009, according to the Pew Research Center, the median net worth for households led by people aged 65 and older rose 42 per cent. Conversely, in the same time period, the median net worth led by people under the age of 35 not only did not increase, it declined by a significant 68 per cent.

Even in just the last few years, in the wake of the Great Recession, the Federal Reserve Survey of Consumer Finances found that after the 2007-2009 recession, households led by someone aged 65 to 74 suffered less financial pain than any other age bracket.

So if statistics consistently show older people in the United States tend to have significantly higher median net worth than their younger counterparts, does that mean it is time to retire the senior discount?

Writing for USA Today last year, columnist Don Campbell caused waves with his article, ‘Why we should kill senior discounts,’ and argued that today’s Baby Boomers and seniors should not be recipients of lower prices at the expense of the rest of the population.

“The top income-earning years for most professional and skilled workers are from about age 50 to about age 62,” Campbell wrote. He added that senior discounts create a situation where “people who are making the most money and have the highest net worth are in effect being subsidized in the marketplace by a generation 20 and 30 years younger that often is struggling to pay off student loans, establish a career, start a family and buy a first home.”

What do you think? Do older people deserve to receive discounts off goods and services because of their age, or does their relatively healthy financial position render such discounts unfair? Tell us in the comment section below:

Tags:

finance

Categories:

Credit and Debt

Finances and Work

Will the fiscal troubles ahead hit you?

aadmin — Wed, 20 Feb 2013 19:06:30 +0000

Economists, policymakers and journalists are fretting about the imperiled state of retirement for the incoming generation of people. Is there any hope for a vast number to turn back the tide of bad news?

New research indicates that a majority of retirement-bound Americans will be financially worse off than their parents, putting at risk a long era of high living standards, reports The Washington Post.

The Great Recession and the weak recovery are considered the culprits

. The economic downturn destroyed 40% of the personal wealth of USA citizens
. High unemployment and low-interest savings accounts have made matters worse
. The surge in the stock market is mainly benefitting wealthy Americans
. A growing number of retirees may be living with children or seeking social-service programs

Possible solutions may be:

. Bolstering of Social Security benefits federal government
. Creation of a new layer of retirement help for future retirees
. Encouragement from employers and goverment to bulk up on retirement savings
. Education to discourage workers from using the money for non-retirement purposes

Obstacles to these solutions, include:

. Concern about the nation’s fast-growing long-term debt
. The political climate to reduce Social Security and other retirement benefits
. Rise in health-care costs
. Growing debt among older Americans
. Rise in employers shifting retirement benefits to workers

Teresa Ghilarducci, director of New York City's Schwartz Center for Economic Policy Analysis at the New School for Social Research, told the Washington Post: “This is the first time that Americans are going to be relatively worse off than their parents or grandparents in old age.”

Tags:

Categories:

The biggest scams of 2013

aadmin — Wed, 23 Jan 2013 18:53:36 +0000

Sometimes reporting on scams feels like a thankless task. Overall, people are getting smarter about avoiding scams — but crooks always seem to be a step ahead. Scammers can target anyone, so our best defense is to be aware.

To that end, the experts at Scambusters.org have released their list of top scams from the past year and predictions for the year ahead. Here are the top crimes we should be being watching out for:

1. Phishing and identity theft. One-off attempts to grab your cash are bad enough, but these scams take something more valuable: your information. Think of the damage a crook can do with your banking information gained through a phishing attack, and the havoc they could cause with your email passwords. Even collecting email addresses through fake surveys and sign-ups is big business: that’s how crooks can disseminate their scams.

2. Malware. It could be on your computer right now: a malicious piece of software logging every key stroke you make, spying on your activities or creating fake pop-ups like virus alerts. Malware won’t just infect your computer this year: experts predict that malicious apps and malicious ads on mobile devices could be one of the top online security threats in 2013.

3. Internet sales. Be careful where you spend! Scams involving online auctions, online classified ads and questionable online retailers continued to be a top complaint in 2012, according to Scambusters. Variations of these scams can hit both buyers and sellers, but both types will leave you with no merchandise and no cash.

4. Lottery scams. Who wouldn’t love to win a fabulous trip or a cash prize? Hopefully by now you know there’s a catch: you have to give away your information and pay to claim that prize you’ll never receive. According to Scambusters, this con is still surprisingly low tech with crooks often opting for snail mail and phone calls to tempt their targets — especially older adults.

5. Nigerian and advance fee scams. Does a foreign diplomat need your help getting millions of dollars out of the country? Think an up-front fee will guarantee you a good loan? Is the new online love of your life asking for cash or airfare to meet you? Scambusters reports it’s seeing a “much wider range” of these scams than ever before, so it’s no surprise they remain fairly high on the list.

6. Imposter/grandparent scams. Think twice before you answer that call or email for help! The scheme got the moniker “grandparent scam” because it usually involved a crook posing as a grandchild calling for cash in an emergency. Now the con can involve any imposter — a crook posing as a family member, friend or colleague — and any range of scenarios from a lost airplane ticket to a medical emergency.

7. Investment scams. With savings and investments yielding little return, the promise of a big payout is tempting. Crooks are getting more creative with their pitches too. Experts constantly remind people that there’s no such thing as a “get rich quick” scheme — not a legal one, anyway.

8. Economy-related scams. From services offering to lower your loan or credit card rate to too-good-to-be-true job opportunities, scammers continued to prey on people’s financial woes in 2012. With continuing turmoil in the U.S. and Europe, we don’t see these scams easing up any time soon.

9. “Hit-and-run” scams. No cars involved — this catchall category includes all those scams where crooks take your cash and take off. (Think charity scams and bogus contractors, for example.) These scams are especially insidious because they take advantage of current events such as natural disasters.

10. Skimming and ATM theft. Scambusters thought these crimes would rank #5 for the year, but notes its #10 ranking is because many incidents were more appropriately categorized as identify theft. Credit and debit card skimming devices can be hidden on ATM machines or gas pumps, for example, making the crime tricky to spot.

Travel scams didn’t make the list in 2013, but Scambusters notes it saw “plenty of evidence of this crime” regardless. Also popular in 2012 were extortion scams such as cons regarding kidnappings that never happened and fake police officers making people pay “fines” on the spot for crimes they supposedly committed.

What to watch out for in 2013

Wondering which scams you’ll face in the year ahead? The 2013 list doesn’t look much different that 2012′s. Here are Scambusters’ predictions:

1. Phishing and identity theft.
2. Lottery/sweepstakes/bogus prizes.
3. Bogus internet sales.
4. Malware.
5. Hit-and-run.
6. Economy-related scams.
7. Imposter scams.
8. Advanced fee scams.
9. Investment scams.
10. Dating/sweetheart scams.

You’ve likely noticed that sweetheart scams get their own category this year rather than being part of advanced fee scams. Scambusters predicts that crooks will take advantage of rising divorce rates and the growing popularity of online dating sites to ply their trade.

However, if you’ve read as many “top scams” lists as we have, you’ve likely noticed that the numbers often depend on how experts classify the crimes. Rankings don’t tell us the whole story — certain crimes may move up and down the list, but they never really disappear on a year-to-year basis. Certain crimes are more common in some areas, or may target specific groups such as teenagers or seniors.

Besides, some incidents are never reported — that could skew the data too. Ultimately, the numbers don’t change the fact that we need to aware of some of the common warning signs and keep tabs on the latest scams.

Tags:

Categories:

Are reverse mortgages a good idea for seniors?

aadmin — Tue, 16 Oct 2012 12:03:39 +0000

For many seniors who have seen their savings accounts depleted since the economic recession, reverse mortgages have been an opportunity to unlock much-needed money from their home equity.

But a recent article from the New York Times says reverse mortgages come with a host of conditions and requirements, and that many seniors who have relied on these have lost thousands of dollars – and sometimes even their homes.

“There are many of the same red flags, including explosive growth and the fact that these loans are often peddled aggressively without regard to suitability,” Minnesota’s attorney general Lori Swanson told the newspaper.

According to the Times, many seniors are overwhelmed by the complicated options which come with reverse mortgages, and as a result they may make decisions which aren’t the best for their financial health.

A number of seniors who were interviewed said they decided on reverse mortgages because it was an opportunity for them to gain access to the equity from their homes, but when their spouses changed, the stipulations in their contracts meant they had to pay large sums of money in a short period of time. And if they didn’t, they would lose their homes.

What do you think? Are reverse mortgages a good idea to unlock home equity, or are reverse mortgages fraught with danger?

Categories:

Credit and Debt

Finances and Work

Back to Basics for Over 55 Living

aadmin — Wed, 15 Aug 2012 14:06:30 +0000

The 55 plus generation is feeling the pinch. The spectacle of London's Olympics that ended a few days ago, brought a shiny patina to the UK, that doesn't reflect the true conditions of its 55 plus.

In a recent article by The Telegraph, six reasons were given for the plight of the British 55 plus generation, that are applicable to other developed nations.

Aviva, one of the world's largest insurance companies, prepared a survey of 13,000 people who maintain premiums with its company.

Its conclusions:

1. There has been a reduction in disposable income due to the rising cost of living which has eaten into people’s finances. Spare cash has become sparse over the past few years.

2. People's finances have deteriorated as the cost of household bills and everyday items have rose over the last year.

3. Many over-55s discover a financial equation that does not add up. They are positioned to spend their retirement constantly scrimping and saving to meet monthly financial obligations while worrying about how to cope with unexpected expenses.

4. The biggest expenditure increase for over-55s has taken place in debt repayments – such as credit cards and bank loans – and mortgage or rent costs.

5. Over 55 Brits repayed almost £70 of debt per month this year, compared to last year. Average monthly mortgage or rent costs are £50 higher than last year. They are falling behind rather than catching up.

6. Brits are replicating the 'the sandwiched generation' in North America. A growing trend has developed; parents are financially helping their children, leaving over 55s with less money for themselves.

The London Olympics 2012 were a joy to watch. Can the British government put on an equivalent show for the over-55s?

Categories:

Credit and Debt

Do reverse mortgages work for seniors?

aadmin — Thu, 28 Jun 2012 17:27:26 +0000

You’ve probably heard of reverse mortgages before, probably on a television infomercial. The basic concept is simple: you can borrow against the equity in your home, and you don’t have to sell it. Instead of you paying a lender (as in a mortgage), the lender pays you.

But for all the benefits of reverse mortgages, especially to seniors, this financial tool is still frequently not fully understood.

A recent report from the Consumer Financial Protection Bureau said that many seniors do not fully understand how reverse mortgages work, and the lack of education is causing confusion for many people.

If you’re not sure whether reverse mortgages are right for you, here’s a quick primer.

Some quick facts about reverse mortgages:

- You can be paid in a single lump sum, monthly, or even a combination
- Homeowners pay interest to receive the money, but rates vary depending on the lender
- In the United States, you must be at least 62 years old to qualify for a reverse mortgage
- In the United States, to qualify you must live in the home and it must either be fully paid off, or will be fully paid off by the time of closing

Reverse mortgages may be best for seniors who are living in homes which are either paid off, or nearly paid off, but who still need additional money for retirement, either due to unexpected healthcare costs or simply longer life expectancy. Ideally, the more money a homeowner’s house is worth, the more potential equity is inside it.

No matter what, the most important first step for people considering reverse mortgages is education and research. A good place to start is SeniorSurance.com, with it’s own in-house reverse mortgage expert, and even a free reverse mortgage calculator which you can use to compare rates and see which options are available.

Visit SeniorSurance.com for more information.

Categories:

Credit and Debt

Finances and Work

More Baby Boomers are suffering with student debt

aadmin — Mon, 02 Apr 2012 10:58:28 +0000

Education is traditionally seen as the key to a good job and financial security. With more school comes more bankable skills, and with more bankable skills comes higher wages.

Most of the time, this is true: more school equals more money. But for a growing number of Baby Boomers and seniors, education has not only failed to create higher income, it has caused significant financial difficulties.

As reported recently in the Washington Post, student loan debt is becoming a problem for many Baby Boomers as years pass and they are unable to pay off their student payments.

“A student loan can be a debt that’s kind of like a ball and chain that you can drag to the grave,” one expert, William E. Brewer of the National Association of Consumer Bankruptcy Attorneys, told the news source.

The newspaper quoted one Baby Boomer, 58 year-old Illinois resident Sandy Barnett who attained a master’s degree in psychology more than twenty years ago. Despite her advanced education, she was unable to find a high-paying job, and eventually when she lost her job her student loan grew to unbearable amounts. Today, she is living paycheck to paycheck, trying to pay back her loans.

Because the future costs of assisted living and Alzheimer’s Care communities also need to be factored in for many Baby Boomers, everyone considering further education should research which fields may be the best opportunities for solid career development.

Categories:

Credit and Debt

Finances and Work

Do cottages make sense for retirees?

aadmin — Wed, 01 Feb 2012 19:09:17 +0000

If you are fortunate enough to own a cottage during your working years, it may be tempting to hold onto that property and later use it as a retirement destination. Unless one is living in an assisted living or Alzheimer’s care community, such an idea sounds reasonable, but financial experts say that converting a cottage into a retirement home may not make financial sense.

According to a recent article on MercuryNews.com, potential cottage owners need to research the maze of data before purchasing anything. They need to look at how much they are putting down as a down payment, what their mortgage costs are, whether they plan to rent it out, property taxes, maintenance, and more. For many people, the amount of money being put into a second home would be better invested elsewhere, such as stocks or mutual funds.

The news article reports that with cottages, rental income typically does not offset the costs of maintenance, taxes and inflation, and in most cases, is not worth it, and any tax benefits will not be substantial enough to make up the difference.

Overall, according to the media outlet, Baby Boomers and soon-to-be retirees should keep their money in liquid assets so they can make an informed decision once they retire.

Categories:

Credit and Debt

Finances and Work

Retirement communities help ease seniors' downsizing

aadmin — Thu, 19 Jan 2012 18:48:21 +0000

Over the coming decades, millions of Baby Boomers in North America will retire, and many of them will move into retirement communities and assisted living facilities across the continent. Over the last couple years, however, many seniors have delayed moving into retirement communities because the value of their homes has fallen, making them harder to sell and to make enough profit necessary for the big move.

As reported by NaplesNews.com, the recent recession has forced many seniors to spend more time selling their homes, and as a result, they are looking for more affordable senior housing options. And retirement communities are helping seniors.

“We could no longer succeed in doing business as usual,” David Moreland, vice president of sales at Shell Point, a retirement community near Fort Myers, Florida, told the news source.

Some of the steps taken by senior living communities, according to the media outlet, include offering discounted entrance fees for many apartments, as well as introducing refund options.

While many retirement communities have offered flexible moving and payment plans for seniors, NaplesNews.com reported that more experts say 2012 is likely to be a better year for residential real estate, meaning it should be even easier for seniors to move into the community that’s right for them.

Categories:

Credit and Debt

Finances and Work

Charity helps poor seniors during the holidays

aadmin — Tue, 20 Dec 2011 12:56:12 +0000

For many, the holiday season is a time to spend with friends and family, and to feast and enjoy the simpler things in life. But for many retirement living seniors, December signals the beginning of a long and cold winter season, when it is harder just to live.

This year, seniors in five counties in Indiana and one county in Ohio received special gifts to help them get through the holiday season without starving or freezing. As reported in the Palladium-Item newspaper, seniors in the region received non-perishable food and money as gifts.

“There are hundreds of elderly citizens in this region who are living on $674 or less per month of income,” Tony Shepherd of Area 9, one of the agencies involved, told the newspaper. “These food items will bring a little extra joy and comfort to the poorest and oldest of our local elderly.”
One local family honored their parents by matching individual donations for up to $1,000.

The Indiana counties included in the charitable drive were Union, Fayette, Wayne, Rush and Franklin, and in Ohio, it was Preble County.
At this time of year, when many seniors enjoy food, and time with friends and family, seniors who are less fortunate shouldn’t be overlooked.

Categories:

Credit and Debt

Finances and Work