stock market chart

Stock Market Jitters, Millennials? Relax

Back in December, the Vanguard Group predicted a stock market that would “remain placidly subdued” in 2018.   What a difference two months has made.

A Morgan Stanley analyst, echoing many on Wall Street, has now declared, “The long-anticipated return of [stock market] volatility has arrived.”  The Standard & Poor’s index of 500 stocks slid 10 percent in a few days in late January and early February, bounced back, and then dropped again last week: the S&P declined another 2 percent, and the Dow index was down even more, by 3 percent.

No one can predict the future, of course – not Vanguard or Morgan Stanley.  “Time will tell,” the analyst said.  But while baby boomers have been thrown around by the stock market and witnessed a recovery in their portfolios, young adults might not be so chill.

Here are some earnest words of comfort, Millennials: you are truly the lucky ones. …Learn More

older workers

Future ‘Retirees’ Plan to Work

Most people used to sign up for Social Security when they were fairly young – around 62, which is the earliest age allowed. Not today: fewer than 40 percent are filing for benefits at that age.

text box calloutSo what else are we doing differently?  Well, working in retirement is high on the list.

About one in three Americans calling themselves retired in a new AARP survey have worked or now work in part-time, seasonal and sporadic jobs or sometimes full-time.

Keeping in mind that people don’t always do what they’d planned, boomers’ expectations for work exceed what current retirees are doing. Well over half of workers over 50 plan to find some kind of work after they retire.

The seeming oxymoron – working “retirees” – plays out in various ways.  State and local government workers retire as early as their 50s if they’ve worked enough years to max out their pensions. Some of these civil servants find other jobs while collecting a pension. Boomers who’ve left career jobs but lack a pension cut back to part-time work in their field or find a full- or part-time job in a new field.

Money is a major reason, with a notable exception. Some people work into their late 60s or 70s because they just enjoy it. They’re usually the most educated and frequently see their jobs as a labor of love that sustains their personal growth, professional identities, or relationships. …Learn More

geriatric care manager

Geriatric Help Eases Family Discord

Family harmony and your parent’s desires are the top priorities during their final years of life – not long-simmering sibling arguments or what you may feel is best for him or her.

That’s why it’s critical for the entire family to gather around parents for caring and gentle conversations before a crisis occurs, such as a medical emergency or sudden cognitive decline.

Jennifer B. Warkentin

“These are the kinds of conversations that need to happen while a parent is still able to discuss the options and make their wishes clear,” said Jennifer B. Warkentin, a clinical psychologist specializing in geriatric care.

The Conversation.

Numerous conversations will actually be required to sort out myriad potential needs as a parent continues to age. The issues are both simple and complicated, from contacting Meals on Wheels and installing a shower chair to putting parents’ financial affairs in order, finding a suitable home health aide, and preparing legal documents.

Some parents are eager to have this conversation so they can get things squared away.  More often, however, the conversations are tricky, because they make parents uncomfortable with a perceived “role reversal,” said Warkentin, who works primarily with elderly people in skilled nursing facilities in Boston’s western suburbs. She also has clients in independent and assisted living facilities. …Learn More

geriatric care manager

What’s a Geriatric Care Manager Anyway?

Staging your parent’s 90th birthday party, accompanying him or her to a doctor’s appointment, or finding the best long-term care facility for the right price – geriatric care managers do all this and much more.

Geriatric care managers come into the profession with expertise ranging from gerontology and nursing to social work and psychology, and they bring a unique perspective to caring for the elderly. Their first loyalty is to your parent and her well-being, though they want to work closely with everyone involved – parent and adult children – to meet the parent’s wishes.

Suzanne Modigliani

Suzanne Modigliani

Suzanne Modigliani, an aging life care specialist near Boston, handles “all spheres of an individual’s life – physical, cognitive social, emotional, financial, community and family.”  She’ll even make referrals to geriatric care managers for a parent living in a different city.

An elderly person’s top choice for a caregiver is, logically, their spousedaughters are typically next. And credentialed geriatric care managers are not cheap: they charge anywhere from $100 to $200 per hour, depending in part on an area’s cost of living – hourly charges can be $400 in Manhattan.

So how do adult children know if their parent could benefit from having a geriatric care manager? Modigliani advises them to be on the lookout for unusual behaviors such as growing difficulty with routine financial matters that the parent has always handled, or a bare refrigerator at mom’s house during holiday gatherings.

Unfortunately, it’s often a medical or other crisis that suddenly alerts siblings to problems that have been developing for a while.  Waiting until a crisis, when tensions are high, is usually the worst time to deal with emotional issues – including finding a good care manager. Geriatric care managers have experience and can help smooth over these situations. …Learn More

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What’s New in Retirement Research

Millennials, longevity, Americans’ retirement outlook – these are among the topics economists tackle in five interesting research briefs.

Links to each brief below appear at the end of their titles. (Full disclosure: the researchers are at the Center for Retirement Research at Boston College, which funds this blog.)

  • “Will Millennials Be Ready for Retirement?” – They are the most educated generation. Yet they lag previous generations of young adults in their retirement preparedness. Student loan debt is one big reason.
  • “National Retirement Risk Index Shows Modest Improvement in 2016 – Rising house prices boosted individuals’ wealth, modestly improving our retirement outlook. But, again, Millennials face significant headwinds.
  • “Is Working Longer a Good Prescription for All? – Most households’ retirement plans would benefit from working longer, saving more, and delaying Social Security. Low-income and less-educated workers with the most to gain financially, however have fewer job options for postponing retirement. …
  • Learn More

Rewriting Retirement Header Illustration

The Ultimate in Travel: Retiring Abroad

retirees photo

Tami Fincher dives into projects head first. Two years into a 5-year plan to retire early in Central America, her short list – so far – is Boca Chica and El Valle de Antón, in Panama, and Guanacaste Province, in northern Costa Rica.

She and husband Stephen Fincher are making their plans to join the growing number of Americans-turned-expatriate retirees. In 2016, more than 603,200 Social Security checks were mailed to retirees, their spouses and widows living abroad. They are moving as much for the adventure as for the lower cost many countries offer.

An exotic retirement isn’t for everyone. Even if they could save on living costs, people who’ve never been keen on international travel might prefer to remain close to home and grandchildren.   But the baby boomer wave is pushing up the number of U.S. retirees living abroad – by 11 percent in five years, according to the U.S. Social Security Administration, which tracks its pension checks sent overseas. Ex-pat’s favorite countries include Japan, Mexico, France, Thailand, and Colombia. (More are listed on the next page.)

To assess the pros and cons of Costa Rica vs. Panama, the Finchers made their first exploratory trips, to Costa Rica last June for their 20th anniversary and to Panama over the New Year’s holiday. If Tami, age 53, has her way, they’ll retire in about three years and sell their Houston home to relocate. …Learn More

Boat that says "Tax refund"

Low Earners Save Their Tax Refunds

Cash-strapped workers understandably are tempted to spend their tax refunds, a sort of financial lifeboat that floats by once a year.

Financial experts see the windfall as something more: an ideal opportunity to sock money away. Yet only about 10 percent of low-income workers save their refunds, even though doing so could prevent the financial dominoes – past due bills, late rent payments, or delayed car repairs – from falling. These are common outcomes when their spending gets out of whack.

Past experiments that tried to encourage cash-strapped low earners to save had modest success. A novel research study looks for clues to what motivates them by examining who spends the refund versus who saves it. The central finding in a Journal of Consumer Affairs article: the people who saved had put some thought into predicting the size of their refunds at the time they filed their taxes. This held true whether their estimates were accurate or not.

The act of estimating in advance “appears to be a form of planning,” said the researchers, University of Rhode Island professor Nilton Porto and Michael Collins, director of the University of Wisconsin’s Center for Financial Security.

Porto said they don’t know the reason estimating leads to saving, but he had one idea. The connection between the two could stem partly from the taxpayer having some advantage, such as financial skill or superior knowledge – in short, they might have higher financial literacy. …Learn More

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