Consider Going Back-to-School Post-Retirement - AGT The Safe Money Poeple

This fall, young people aren’t the only ones who are going back to school. Many colleges and universities have made it easier for older folks to get a degree, and retirees across the country are taking advantage.

People aged 65 and older currently make up a little more than 13 percent of the U.S. population and as the Baby Boomers age into senior-dom, that number will surely rise. 

While retirement may bring the promise of a warmer climate and all-day golf outings, many seniors are opting to go back to school either for their own personal enrichment or to work towards a degree.

According to an article recently published in the Chicago Tribune, Shimer College, is opening up it’s classrooms to people over the age of 60 for free. A small liberal arts school in Chicago, the hundred or so students at Shimer have the option to participate in a Great Books program that includes the works of Shakespeare, Kafka, Marx, Einstein, and Nietzsche.

“One of the things that is important to make that happen is to have a lot of different perspectives in the classroom,” said Shimer spokeswoman Isabella Winkler. “It is always valuable to have generational differences. We wanted to open the classes to senior residents who might have a desire to get involved in this sort of conversation. It would benefit our students as well.”

Shimer isn’t the only college that sees the benefit in class discussions having generational differences. All of the public universities and colleges in Texas now offer a tuition reduction program for people 55 or older. And the Texas Higher Education Coordinating Board provides a tuition exemption for Texas residents who are older than 65 years of age and want to audit classes at a public university. Aside from having to be a Texas resident and enroll at a participating university, this program requires that seniors “enroll in a class that is not already filled with students who are paying full price for their courses. (If the class is too small to accommodate both regular students and senior citizens, the regular students must be given priority.)”

A similar program is offered at on both campuses of Florida Atlantic University (Boca Raton and Jupiter) called the Lifelong Learning Society. The program was created in 1980 in Boca Raton and then extended to the Jupiter campus in 1997. The LLS program is offered from October through June and FAU professors teach all the courses, which range in subjects from foreign policy, music, art, philosophy, current events, and more.

According to the FAU website, “This community of learners with no age threshold enjoys a diverse and creative curriculum, along with concerts and entertainment. In establishing this program, FAU recognized the still unfulfilled demand for educational and intellectual stimulation for adults who are beyond the traditional university years.”

And in the entire state of California, you can attend one of the 23 state universities for free, regardless of income, through their Over 60 Program. Of the roughly 433,000 students who attend a public university in California, only about 1000 of them are participants in the Over 60 Program.

In a blog post on the San Jose State University website, Timothy Fitzgerald, 67, who, while living on Social Security and disability benefits has completed five degrees and three Master’s degrees at SJSU, was quoted as saying:

“I see it as a benefit that the state can offer older citizens, helping us pursue a life of the mind. I never would have had an opportunity to go to school unless there was support for tuition. I do not want to sit on the sidelines.”

And thanks to the many public programs that promote education for older adults, no one has to sit on the sidelines during their post-retirement years.

To see what your state might have to offer check out the Senior Citizen Guide for College blog.

Source: http://www.huffingtonpost.com/hilary-young/consider-going-back-to-sc_b_3894493.html

Are Baby Boomers too optimistic about retirement? AGT The Safe Money People

If you’re a Baby Boomer within sight of age 65, you’re probably thinking about your next move—and it may well be a career change instead of a traditional kick-back-and-relax retirement. Among 1,005 Boomers who haven’t yet left their full-time careers, 60% expect to keep working at least part-time after they “retire,” says a study from Bankers Life’s Center for a SecureRetirement.

The job market is ready for them. Of the 2,293 Boomers in the study who have already retired but have found other work, 80% reported it was “easy” to find the jobs they have now.

“As the next wave of Boomers retires, the competition is likely to intensify,” says Bankers Life president Scott Goldberg. “But, with part-time and freelance roles becoming more prevalent in the overall job market, there is good evidence to suggest that future retirees will have an even greater number of positions to consider, even if the competition for those roles gets more intense.”

Great, but anyone contemplating what lies ahead might want to consider two of the study’s less cheerful findings. First, it seems that most people overestimate their ability to choose when they retire. Nearly seven in ten (69%) of middle-income retirees would have liked to have stayed longer in their old careers, but had to leave earlier than they planned for “reasons beyond their control,” the report says—most commonly because of health problems (39%), being laid off (19%), or to care for a loved one (9%).

Second, Boomers’ expectations about what they’ll be able to earn in their post-retirement careers seem overly optimistic. Only about one in five (21%) of the people in the survey who are still working in their primary careers say they’d be “willing to take a pay cut” when they move on to another job in retirement. That doesn’t jibe with the experience of current retirees who are working, almost three-quarters (72%) of whom report earning less on an hourly basis now than they did in their old roles. More than half (53%) say they make “much less.”

That doesn’t mean they’re unhappy. About 80% of the people who retired and then found new jobs say they like their current careers better than their old ones. They also report less stress and “better relationships” than the Boomers surveyed who haven’t retired yet.

Even so, the study’s message is clear. Given your druthers, you might stay in your pre-retirement career until you’re 65, 70, or beyond, and then move on to something that pays equally well. But, just in case that doesn’t work out, it’s smart to have a Plan B.

AGT is here to help plan that option B

Source: http://fortune.com/2015/08/07/baby-boomer-retirement/

Changes to Social Security – Primarily the file & suspend strategy | AGT The Safe Money People

Congress is putting an end to two Social Security filing strategies that many couples have used to add tens of thousands of dollars to their retirement incomes. But there’s a six-month window in which couples who are at least 66 years old can take advantage of them, as well as a partial reprieve for some others.

The implications of the new Social Security rules became clearer Friday after the Senate passed the budget bill that includes the changes. The measure will become law after President Barack Obama signs it.

The strategies under fire—known as file-and-suspend and a restricted application for spousal benefits—have made it possible for both members of a couple who are 66 or older to delay claiming benefits based on their own earnings records while one pockets a so-called spousal benefit based on the other’s earnings.

To do this, one individual files for benefits and suspends them, while the other files a restricted application to collect only a spousal benefit—not his or her own earned benefit even if it would be higher. That way, both individuals can take advantage of delayed retirement credits, which increase their earned benefits by 6% to 8% for each year in which they defer claiming between the ages of 66 and 70—and one gets some income from Social Security in the meantime.

Combined, the strategies can boost lifetime retirement income by as much as $60,000 or more, says William Meyer, chief executive of SocialSecuritySolutions.com, a service that identifies Social Security claiming strategies likely to yield the highest amount over a beneficiary’s life span.

While the new law shuts down the two strategies, some people can still take advantage of them—provided they act fast. For those for whom the strategies will be off limits, meanwhile, claiming decisions may become less complicated but also less lucrative.

Here’s what you need to know:

A six-month window before new rules kick in.

Under the new law, individuals will still have the ability to suspend their benefits. But Social Security will no longer allow relatives to submit a new claim for spousal or dependent child benefits based on the earnings record of a worker who has suspended his or her own benefits. However, that provision won’t go into effect for six months from the date President Obama signs the budget bill.

As a result, if you are 66 or older now—or will turn 66 within the next six months—there might be an advantage in filing and immediately suspending your benefit. That would give a spouse who is also 66 or older the option to file a restricted application for only a spousal benefit and receive that benefit while both of you delay claiming on your own records. But both you and your spouse must act within the six-month window.

There’s a similar window for individuals at full retirement age who have children under age 18 or disabled adult children. Those who are 66 or older—or will turn 66 within the next six months—can file-and-suspend so their children can claim dependent benefits. Again, both parties need to take action within six months.

If you won’t turn 66 until after the six-month window closes, your relatives won’t receive a dime unless you are already receiving your benefits, says Web Phillips, senior legislative representative at the National Committee to Preserve Social Security and Medicare, a nonprofit advocacy group.

Some people get a break.

Families who are already using these strategies will be grandfathered. Their benefits will not be changed or interrupted due to the legislation, says Mr. Phillips.

Also, if you turned 62 this year or are older, you will still be able to file a restricted application for only a spousal benefit starting at age 66. This will allow you to receive a spousal benefit while you defer claiming your own benefit so that it can grow larger.

After file-and-suspend is phased out in six months, to take advantage of this, your spouse must already be claiming a benefit, said Michael Kitces, director of planning research at Pinnacle Advisory Group Inc. in Columbia, Md.

When married individuals apply for a retirement benefit other than with a restricted application, they are deemed to have filed for both their own earned benefit and a spousal benefit, and will receive whichever is higher, instead of having a choice to get one and switch to the other later.

Flexibility on retirement vs. survivor benefits remains.

Generally, widows and widowers won’t be affected by the new law, says Mr. Meyer. And individuals who are eligible for both earned and survivor benefits will continue to have a couple of claiming strategies open to them, making careful comparison worthwhile.

Starting at age 60, a survivor can take a reduced benefit based on his or her deceased spouse’s benefit—and then switch to his or her own benefit later if it is higher. Alternatively, the survivor can start with his or her own benefit as early as age 62 and then switch to a full survivor benefit at full retirement age.

One of these strategies is often better than simply sticking with one benefit or the other.

If you’re divorced.

The restricted-application changes also apply to people who are divorced.

Under current law, a divorced individual who is 66 or older and was married at least 10 years but is currently unmarried can claim a benefit based on the ex-spouse’s earnings record while allowing his or her own benefit to grow. A former spouse is generally entitled to file such a claim once an ex turns 62, says Mr. Phillips.

But under the new law, only those who turned 62 this year or are older will be able to file to do this when they turn 66. Younger divorced people will receive either their own earned benefit or a spousal benefit—whichever is higher—instead of having a choice to take one and switch to the other later. You must be unmarried to get a divorced spouse benefit.

The fate of one key difference in the rules for those who are divorced is unclear: Under current law, you can collect a benefit based on an ex’s work record even if he or she isn’t yet collecting a benefit, as long as the ex is at least 62. But due to the new rule on file-and-suspend, it’s unclear what would happen to a spousal benefit claim if an ex had suspended his or her benefit.

“This was likely not intended and will hopefully be fixed,” says Mr. Kitces.

Assessing Risks Reduces Severity, Frequency of Falls - AGT The Safe Money People

Following the adage “Knowledge is power” can literally keep us from falling down. In the U.S., one out of every three people over 65 takes a tumble each year, and 20 to 30 percent of those who survive incur moderate to severe injuries. Yet, those who have taken the time to assess the risk of falling in their homes are less likely to be in that one-third.1 It may not be surprising that, once someone has taken a spill, they inherently develop a fear that makes them more cautious about preventing another fall. For the majority of the population, that’s a good instinct. But for seniors, it can make them withdraw from certain activities. Ironically, this new caution can increase their risk of falling again, particularly by preventing them from taking routine walks or another form of exercise. To help address this phenomenon, the U.S. Department of Health and Human Services sponsored a study to measure whether a personalized program of intervention could help reduce the risk of an older person taking a fall. The program includes an in-home physical, emotional and cognitive functioning evaluation, a detailed record of a person’s history of falls, an assessment of the home environment and an inventory of current medications that may impact the person’s sense of balance. All of these factors are taken into consideration and used to create a customized recommendation for the individual. Some risk factors are intrinsic, meaning they are linked to the person’s health and habits. Other risks are extrinsic, which refers to those associated with the home environment.” As part of the study program, participating seniors are educated on both types of risks and how they may be avoided. For example, someone who routinely gets up to go to the bathroom in the middle of the night may have been doing it for so long they do not need to turn on a light. However, as they age, their senses may not be as sharp and they may not notice a new obstacle in the path. Installing a nightlight to guide their path to the bathroom could be a simple solution that greatly decreases their fall risk. Participants in the study who received intervention training and recommendations experienced a 13 percent lower rate of falls than ones who did not, and those who did experience falls were less likely to suffer a serious injury. Moreover, their long-term insurance claims were 33 percent lower over a three-year period, suggesting that this awareness may have had a long-term impact on both cognitive and physical health. This isn’t terribly surprising, seeing as the study also found participants were nearly 20 percent more likely to make fall-preventing modifications to their home than nonparticipants. 1. ThinkAdvisor.com. Aug. 3, 2015. “Elders’ Risk of Falling Is Falling.” http://www.thinkadvisor.com/2015/08/03/elders-risk-of-falling-is-falling. Accessed Aug. 5, 2015.

New Job, Older Worker | AGT The Safe Money People

Some married couples watch a newly divorced friend re-enter the dating pool and think, “Oh thank goodness we don’t have to do that.” Similarly, many older workers who are secure in their career or job thank their lucky stars when they learn that another mature worker has been laid off or, for one reason or another, is having to look for a new job. Let’s face it, some things are simply easier for young folks, and dating and job seeking are generally two of them. But the reality is, many mid-career workers have had to work hard to find a new job during this recent period of high unemployment. At the same time, more people are undergoing career changes midway through their career — and that in itself can cause stress. But here’s some good news: According to a 2014 survey by the American Institute for Economic Research (AIER), a large majority of mid-career workers who sought a career change (whether voluntary or forced) after age 45 found that their new positions led to less stress and felt their results were successful. In fact, 72 percent of respondents agreed with the statement, “I feel like a new person.” Sixty-five percent said their stress levels dropped. One explanation for the lower stress may be explained by another study that revealed older workers frequently move from a management position to a non-management position. And here’s some more good news: Half of the survey participants reported that although they may have initially taken a lower-paying position, eventually their pay increased. Other findings from the study reveal that people with some college education fare best when it comes to making a career change. First of all, workers with no more than a high school diploma are less likely to change careers. Second, professionals with graduate degrees are also less likely to change careers, presumably because they have spent so much time acquiring specialized skills and knowledge that it may be difficult to translate that experience into a new career. So it turns out that your basic college graduate with a general BS or BA degree is more likely to make a career change. Another interesting fact is that older men are slightly more likely to make a career change than older women. Income Differential If you are mid-career or later, you may have noticed that your salary bumps aren’t quite what they used to be. That’s because the greatest salary jumps come between the ages of 25 and 35, and then earnings begin to plateau. In fact, a recent study found that by age 45 to 55, earnings are considered to be shrinking because they no longer keep up with inflation. Here’s another interesting fact from the same study. Higher income earners who experience a salary disruption, such as being laid off, are less likely to recover their previous level of earnings than lower-income earners. At the lowest income levels, a negative shock is likely to return to a previous high level within 10 years, and subsequent increases generally continue. At higher income levels, an income decline may or may not return to a previous high level, and subsequent increases tend to be low. Age Discrimination Does age discrimination still exist in the job market? Most research concludes it does. In today’s job market, about half of all baby boomer job seekers say they felt they were discriminated against due to their age, at least in terms of working as much as they would have liked. One study — narrowly focused only on women seeking entry-level positions — nonetheless found that younger workers were 40 percent more likely to be called back for an interview than older workers. However, legal recourse for age discrimination is much harder to prove than it is for race or gender discrimination. For one thing, it’s difficult to tell if an employer rejects an older applicant due to age or because he or she is overqualified for the position and therefore seeking a higher salary than is necessary to pay for that particular role. It is also difficult to tell if an older worker is laid off due to his or her age or is one of many as part of a workforce reduction or reorganization. In order to win a lawsuit for age discrimination, there must be concrete evidence to that effect. For example, either written documentation (such as an email or memo) or witnesses to a verbal confrontation in which a supervisor referred to the worker as some type of derogatory term that indicates ageism discrimination. Late last year, another study found that it takes five months longer for an older worker to find a job than a younger person with similar qualifications. Unfortunately, the study could not determine if older people are less aggressive in their search because they have enough financial resources to be patient and discerning. Boston College Center for Retirement Research. April 23, 2015. “Late-Career Job Changes Reduce Stress.”http://squaredawayblog.bc.edu/squared-away/late-career-job-changes-reduce-stress. Accessed May 6, 2015. Boston College Center for Retirement Research. April 28, 2015. “Around 50, U.S. Workers’ Earnings Fall.”http://squaredawayblog.bc.edu/squared-away/around-50-u-s-workers%E2%80%99-earnings-fall/. Accessed May 6, 2015. Boston College Center for Retirement Research. April 21, 2015. “Employer Bias Against Aging Boomers?”http://squaredawayblog.bc.edu/squared-away/employers-bias-against-aging-boomers/. Accessed May 6, 2015.

Palliative Care: What It Is, What It Is Not

Palliative care emerged in the 1980s as a holistic, team approach to supporting patients suffering from serious medical conditions. It is not the same thing as hospice care. While both focus on making the patient more comfortable, the difference is that hospice is called for when the patient has a prognosis of impending death. Palliative care, quite on the other hand, focuses on life. The difference between the two is significant, but not widely known. In fact, more than 78 percent of adults in the United States are not exactly sure what palliative care is.

1 Even some members of the medical community believe that palliative care is just a synonym for hospice. Some doctors understand the difference but don’t recommend palliative care because they’re concerned the patient may interpret it to mean hospice and believe that they’re dying. Moreover, more than 50 percent of directors of nursing do not understand the basics of palliative care, according to new study. This research found that the more familiar the director of nursing was with palliative care, the greater the chances that their patient’s experienced end-of-life cares aligned with a higher quality of life focus. While hospice patients no longer receive curative treatment for their underlying disease, palliative care is available at any stage of illness and can be deployed in conjunction with curative treatment.

It is not associated with any particular age, illness or stage of illness, and is appropriate for anyone suffering from a serious illness, whether chronic or acute. Team Approach, Palliative care is provided by a team of professionals, usually in concert with the patient’s primary physician for a specific condition. This team is developed to meet the special needs of each patient and therefore can vary significantly. Examples of palliative care team specialists include trained palliative care doctors and nurses, social workers, psychologists, dietitians, nutritionists, massage therapists, pharmacists, chaplains and even art or music therapists — whatever is most appropriate for the patient.

Even if the primary physician is not technically a member of the palliative care team, he supervises the patient’s care and plays an active role in ongoing treatment. The healing scope of the palliative care team is broader than that of traditional doctors. Their focus is on preventing pain, alleviating suffering, improving quality of life and helping both the patient and his loved ones cope with the stress and burden of caregiving. The team works to make the patient become as independent as possible, emphasizing what the patient actually wants instead of what a traditional medical approach might dictate that he needs. This approach gives patients more control over their treatment plan. For example, an aging parent diagnosed with cancer may be worried about who will care for his mentally incapacitated adult son to the degree that he forgoes scheduled treatments to stay home with the dependent. This scenario may call for a social worker who is able to procure resources to help care for the son and provide transportation to and from chemotherapy sessions for the father.

 A palliative care team addresses physical, mental and social conditions, and studies have revealed that curative treatment can also be more effective when accompanied by palliative care. Access Because palliative care is not that well known, access is an issue. Most of the time it is recommended by the treating physician and frequently provided by on-site teams in a hospital setting. However, palliative care can be provided wherever the patient is located, including outpatient clinics, long-term-care facilities, hospices and even at home.

Palliative care also can be recommended via other sources, such as health and mental health agencies, day care and senior centers, schools, courts, child welfare and family service agencies, correctional systems, agencies serving immigrants and refugees, substance abuse programs and employee assistance programs. While the foundation of the program is to provide pain and symptom relief, these types of organizations may be engaged due to the patients’ lifestyle, socio-economic factors, immigration status and/or living environment. Social service agencies are frequently able to identify these factors and refer patients who would benefit from palliative care before their conditions are exacerbated and require more costly treatment.

Palliative care is generally covered all or in part by Medicare, Medicaid and most insurance plans. However, Medicaid coverage can vary depending on the state program.

1. Health Affairs Blog. March 10, 2015. “Effective Public Engagement To Improve Palliative Care For Serious Illness.”http://healthaffairs.org/blog/2015/03/10/effective-public-engagement-to-improve-palliative-care-for-serious-illness/. Accessed April 14, 2015.

 2. Journal of Hospice and Palliative Nursing. October 2012. “Opportunities and Challenges for Palliative Care Professionals in the Age of Health Reform.” http://www.nursingcenter.com/lnc/cearticle?tid=1429239. Accessed April 8, 2015.

 3. NYmag.com. “Many Nursing Homes Fall Short at Palliative Care.” March 24, 2015.http://nymag.com/scienceofus/2015/03/many-nursing-homes-fall-short-at-palliative-care.html. Accessed April 8, 2015.

 4. Pharmacy Practice News. March 2015. “Palliative Care a ‘Foreign’ But Vital Role for Pharmacists.”http://www.pharmacypracticenews.com/ViewArticle.aspx?d=Clinical&d_id=50&i=March+2015&i_id=1155&a_id=30832. Accessed April 8, 2015.

5. National Association of Social Workers. “NASW Standards for Palliative & End of Life Care.”https://www.socialworkers.org/practice/bereavement/standards/default.asp.” Accessed April 8, 2015. 6. GetPalliativeCare.org. “Frequently Asked Questions.”http://getpalliativecare.org/whatis/faq/#how-do-i-know-if-palliative-care-is-right-for-me. Accessed April 8, 2015.

Is Your Cash Gift Taxable?

Parents and grandparents often dole out “gifts” to the children to help with various and sundry expenses. But when is a cash gift taxable to the recipient? Gifts up to $14,000 from an individual (or $24,000 from a legally married couple) aren’t taxable, according to the IRS, but you may have to pay taxes on anything that exceeds that amount. Here are more considerations to bear in mind regarding non-taxable cash gifts: • Gifts made to a legally married spouse are never taxable. • Tuition or medical expenses paid directly to a medical or educational institution on someone else’s behalf are not taxable. • Gifts made to a political organization for its use are not taxable. • Gifts made to charities are not taxable. Also note that you may not be able to deduct the amount you gift from your income tax, with the exception of qualified charitable contributions. IRS.gov. April 1, 2015. “Seven Tips to Help You Determine if Your Gift is Taxable.” http://www.irs.gov/uac/Seven-Tips-to-Help-You-Determine-if-Your-Gift-is-Taxable. Accessed April 1, 2015.