Fitness Over 50 How exercise can help you live longer
Playing Catch-Up Saving strategies as retirement draws near
A Blank Slate Media Special Section • February 12, 2021
20 Living 50 Plus • Blank Slate Media Newspapers, Friday, February 12, 2021
Making gifts before the limit drops BY PA U L M A R C H E S E A N D P H I L PA L U M B O In the United States we all enjoy something called a federal lifetime exclusion, which is a dollar amount given to each of us by the IRS that is most often used to offset any estate tax liability when a person dies. Although most taxpayers use their FLE “at death,” a taxpayer is also permitted to use their FLE during their lifetime by making large gifts. In 2017, President Trump doubled everyone’s FLA to its current level, which is $11.7 million per person. Legally, President Trump could not make the FLE increase permanent and so the exemption is scheduled to be reduced by 50 percent at the end of year 2025. As part of President Biden’s promise to raise taxes on the wealthiest 1 percent of Americans, he has proposed accelerating the drop in the FLA to this year or next year. Many savvy taxpayers have no desire to wait around to see what is going to happen. Using the law as it exists, and the ability to give away the FLE during life, they are making very sizable gifts now, so that if the FLE is reduced, they have effectively “locked-in” today’s high FLE through their gifts.
Clearly, the idea of giving one’s assets away during their lifetime has a limited appeal to many taxpayers and this is where the Spousal Lifetime Access Trust comes in handy. The true value of the SLAT plan is that a person can “gift” assets to a trust, use most or all of their FLE during their lifetime and, if the client lives for three years from making the gift, the gift is not “clawed back” into the estate for New York State estate tax purposes, thereby allowing the gifted assets to completely avoid NYS estate taxes. Further, when the FLE is lowered, the gift to the SLAT effectively “locksin” the client’s exemption at today’s rate. A SLAT is an irrevocable trust that works as follows: Husband would create a SLAT wherein wife, and say, the couple’s son, are the trustees. The trust would provide that as much of the income and principal of the assets in the SLAT are available to wife for the rest of her life. For gift and estate purposes, the Husband’s gift of assets to the SLAT is a completed gift and will use the Husband’s FLE. If the wife dies before her Husband, the assets in the trust can remain in the trust and, with the trust-
ee’s consent, the SLAT could loan trust assets to the husband should he ever need them. When both spouses die, the assets in the SLAT, and all the growth thereon, will pass to their children completely free from any estate taxes. From an income tax perspective, the SLAT trust is of a type that is called an “intentionally defective grantor trust,” which means that the tax ID number of the trust is the husband’s Social Security Number, resulting in the avoidance of filing a separate income tax return for the trust and enabling the taxpayer to pay the income taxes that are generated on the assets within the SLAT from their personal assets. If you consider the net effect of the foregoing ability, the taxpayer is in effect making additional tax-free gifts to the SLAT because they are personally paying from their individual, non-trust assets, the tax obligation on something that is not theirs, thereby allowing the trust to grow tax-free. Like with all planning, there are some downsides to the SLAT plan. For all gifted assets, there will be a “carryover” in cost basis for all appreciated assets gifted to the SLAT and there is an “all or nothing” nature to this type of gifting – if the taxpayer does not use
IE:G ?HK : ;>MM>K MHFHKKHP # (4'' 01 1$.+)#6+10 5'%10& 12+0+10 (+0#0%+#. 4'8+'9 (41/ 0'9 ;14- (+0#0%+#. 2#460'45 +0% U ƂÀi Þ Õ w > V > Þ «Ài«>Ài` v À Þ ÕÀ vÕÌÕÀi¶ U ƂÀi Þ Õ }iÌÌ } VÕÃÌ âi` ÃiÀÛ Vi > ` ÃÕ«« ÀÌ iViÃÃ>ÀÞ Ì i « Þ Õ >V iÛi Þ ÕÀ «iÀà > > ` w > V > } > ö U Ã Ì Ì i Ì }iÌ > ÃiV ` « ¶ º/ i vÕÌÕÀi `i«i `Ã Ü >Ì Þ Õ ` Ì `>Þ°» > >Ì > > ` 7i >Ûi Lii >`Û Ã }] ÛiÀÃii }] > ` V >L À>Ì } Ì i « ` Û `Õ> Ã] v> ià > ` LÕà iÃÃià «ÕÀÃÕi Ì i À w > V > Üi Li } v À ÛiÀ Ón Þi>Àð
ÕÀ } Ì >Ì Ì i] Üi >Ûi `iÛi «i` `ii« ÛiÃÌ i Ì iÝ«iÀÌ Ãi > ` > ii >L ÌÞ Ì i « ÕÀ V i Ìà >V iÛi Ì i À «iÀà > > ` w > V > } > ð Ƃ viÜ v Ì i w > V > « > } ÃÌÀ>Ìi} ià Üi ÕÌ âi >Ài\ 4KUM #UUGUUOGPV r &KXGTUKƂECVKQP r %CUJ (NQY #PCN[UKU >`` Ì Ì > vÀii] L }>Ì ] w > V > ÀiÛ iÜ vÀ iÜ 9 À > V > *>ÀÌ iÀÃ] V°] Üi Ü > à Ãi ` Þ Õ > HTGG EQR[ v ÕÀ /QPVJN[ /CTMGV +PUKIJVU] ÕÃÌ v À V Ì>VÌ } Õð * i>Ãi Ài>V ÕÌ Ì ÃV i`Õ i > >«« Ì i Ì\
*QYCTF #UEJ ^ ^ JCUEJ"P[HR PGV ^ YYY P[HR PGV 6HFXULWLHV DQG LQYHVWPHQW DGYLVRU\ VHUYLFHV RIIHUHG WKURXJK 5R\DO $OOLDQFH $VVRFLDWHV ,QF 5$$ PHPEHU ),15$ 6,3& 5$$ LV VHSDUDWHO\ RZQHG DQG RWKHU HQWLWLHV DQG RU PDUNHWLQJ QDPHV SURGXFWV RU VHUYLFHV UHIHUHQFHG KHUH DUH LQGHSHQGHQW RI 5$$ $GGLWLRQDO LQVXUDQFH VHUYLFHV RIIHUHG WKURXJK 1HZ <RUN )LQDQFLDO 3DUWQHUV ,QF ZKR LV QRW DI¿OLDWHG ZLWK 5R\DO $OOLDQFH $VVRFLDWHV ,QF
all or most of his or her FLE when gifting to the SLAT and the FLE is subsequently lowered, the “unused” part of the FLE will likely be eliminated with the reduction of the FLE. Taxpayers would be well advised to seek the advice of knowledgeable counsel to see if the SLAT plan is right for them before the door closes on this type of planning. Paul Marchese is a partner Marchese & Maynard, Manhasset, NY, attorneys focused on Wills, Trusts, Estates, Elder Law and Medicaid Planning. Phil Palumbo is the founder of Palumbo Wealth Management (PWM). PWM is a registered investment advisor. Advisory services are only offered to clients or prospective clients where PWM and its representatives are properly licensed or exempt from licensure. For additional information, please visit www.palumbowm.com. The information provided is for educational and informational purposes only and does not constitute investment advice and should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not account for any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your own attorney or tax advisor.
Blank Slate Media Newspapers, Friday, February 12, 2021 • Living 50 Plus
How exercise can help you live longer
JUST LISTED 61 Marino Avenue, Port Washington
Open House Saturday, Feb. 13th 1:00 - 2:30 PM Sunday, Feb. 14th 12:00 - 1:30 PM
T
here are many reasons to get in shape. Weight loss is a prime motivator, as is reversing a negative health effect, such as high cholesterol or increased diabetes risk. Routine exercise also can improve life expectancy.
of stress, helping the body adjust its flight or fight response accordingly, and help them cope with mildly stressful situations. While engaged in exercise, people may forget about their problems as they are focused on the activity at hand.
WebMD says exercise keeps the body and brain healthy. That’s why exercise should be an important component of daily life no matter one’s age.
Improve bone health Strength training and physical activity can stave off the effects of frailty and osteoporosis, which affects bone strength. A study published in the Journal of Internal Medicine in 2017 found that hip fractures are associated with diminished quality of life and survival among the elderly. One in three adults aged 50 and over dies within 12 months of suffering a hip fracture, and older adults have a five- to eight-times greater risk of dying within three months following a hip fracture. Building muscle strength, balance and bone density through exercise can reduce falls and frailty, helping to prevent fracture-related health risks.
Research published in the journal Immune Aging found that how people age is 75 percent lifestyle and only 25 percent genetics, which underscores the importance of the lifestyle choices people make. Cardiorespiratory fitness Many health experts say that cardiorespiratory fitness may be just as valuable a metric to determine overall health as blood pressure and lipid levels. People with a high aerobic capacity can deliver oxygen to tissues and cells efficiently to fuel exercise, according to data published in 2014 in the journal Aging & Disease. In a study involving 11,335 women, researchers compared V02 max, also known as aerobic capacity, in women with mortality data. Women who were fit from a cardiovascular perspective had a lower death rate from all causes, irrespective of the women’s weight. Manage stress and mood Exercise has direct stress-busting benefits that can promote longevity. The Mayo Clinic says physical activity can increase the production of endorphins, which are the body’s feel-good neurotransmitters. In addition, exercise can imitate the effects
Addresses sarcopenia The health and wellness resource Healthline defines sarcopenia as the loss of muscle mass specifically related to aging. Doctors once considered this muscle loss inevitable, and it can affect stamina and lead to weakness. However, new indications suggest that exercise is the main treatment regimen for sarcopenia, particularly resistance training. This is designed to improve muscle strength and help balance hormone levels by turning protein into energy for older adults. These are just some of the ways exercise can help older adults live longer, healthier lives.
Port Washington Country Cape with Master on Main. Large Eat in Kitchen, 142 Ft. deep backyard, & 1.5 Baths, Full basement. Port Wash SD#4 Salem Elementary. Convenient to all. $649,000 Feel free to call me for a private showing.
Shelley Scotto Founding Member Licensed Associate Real Estate Broker 1695 Northern Blvd., Manhasset, NY 11030 Located in the Munsey Park Center 516.816.7428
! " %
" %
Real Estate Broker And Abides By Equal Housing Opportunity Laws.
21
22 Living 50 Plus • Blank Slate Media Newspapers, Friday, February 12, 2021
Enjoy senior discounts on recreational activities available vary. Auto insurance companies may provide a senior discount to drivers who are over 50. Certain restaurants offer these discounts for those over the age of 55. Retailers may begin offering discounts to customers who are over the age of 60. Many discounts can be used for recreational activities.
D
espite the efforts of Juan Ponce de Leon, there is no magical Fountain of Youth. Getting older is inevitable and it is important to see the silver lining of aging. Among the various perks that come with age, including increased knowledge and experience, are a whole host of discounts for the aging population. Men and women who have reached a certain age are entitled to key discounts if they know where to look. The ages at which discounts are
Dining out: Why pay full price for a meal if you don’t have to? A meal out with friends and loved ones becomes a bit more affordable thanks to the senior discounts available through many different restaurants, whether it’s chains or independently owned eateries. Hotels: Seniors booking their stays through select hotel chains may be eligible to reduce their costs by 10 percent or more. When making the reservation, check to see if you qualify for an age-related discount. Some may be affiliated with
Respect. Tradition. Compassion. For four generations, New York’s Jewish Community has turned to Sinai Chapels for guidance and comfort in their time of need. We honor and respect all Jewish traditions and customs, attending to every funeral detail according to each family’s personal and religious preferences.
To learn more, contact us today:
718.445.0300 | 800.446.0406
memberships in organizations like AARP. Theme parks: Before buying entry tickets or season passes, check with the membership office regarding senior discounts. Certain items also may be discounted throughout the parks. Movies: Movie theaters may offer special viewing days or times that are discounted. Flights/cruises: Discounted senior fares are available on select flights for Delta Airlines and American Airlines. British Airways offers up to $200 off flights and packages when booked online through British Airways’ AARP page. Seniors can enjoy discounts on select cruises through Carnival. Rental car companies also offer discounts for senior customers. Clothing: Looking your best for a night out may mean shopping for
new clothing. Kohl’s offers a 15 percent discount for customers ages 55 and over every Wednesday and Ross offers 10 percent off on Tuesdays when signing up for the Every Tuesday Club. Gym memberships: Individuals who are eligible for Medicare also may be entitled to a free SilverSneakers membership, which provides access to more than 13,000 participating fitness centers Park admission: Seniors age 62 and older can purchase a Senior Pass for $10 that’s good for more than 2,000 federal recreational sites and national parks in the United States. The pass is good for a lifetime. Recreational activities become a little more affordable when seniors take advantage of agerelated discounts.
Blank Slate Media Newspapers, Friday, February 12, 2021 • Living 50 Plus
How often to see the doctor
COVID 19 TESTING AVAILABLE!
59
FLU SHOTS NOW AVAILABLE!
• No Appointment Necessary • Physicals • Pediatric & Adult Care • Sprains & Minor Fractures • Vaccinations Available (Incl. Pneumonia) • Work/Sport Injuries • Stitches Onsite X-Rays, EKG’s and Labs • Blood Work • Business Accounts Welcome Worker's Comp • No Fault • Seasonal Allergies and Asthma • Multi-Lingual Staff
Celebrating Over 14 Years of Dedicated Service / Most Insurances Accepted Now Scheduling Immigration, DOT/CDL Physicals
2090 JERICHO TURNPIKE, NEW HYDE PARK, NY 11040 (between Denton Ave. & New Hyde Park Rd., cross street is Denton Ave.)
516-352-STAT(7828) www.statmd.net OPEN 7 DAYS: Mon. -Fri. 9am-9pm, Sat.-Sun. 9am-5pm • All Holidays 10am -3pm
68%6&5,%( $1' 72'$< 6833257 /2&$/ -2851$/,60 3ULQW RU RQOLQH KWWSV WKHLVODQGQRZ FRP VXEVFULSWLRQ
R
outine health checkups are a key part of staying healthy. Older adults may feel like they’re always visiting one doctor or another. But what is an acceptable frequency for doctor appointments? The answer isn’t always so cut and dry, and many health professionals have mixed feelings even among themselves over the magic number.
The Centers for Disease Control and Prevention recommends adults over the age of 65 visit the doctor more than twice as often as 18- to 44-yearolds. According to Paul Takahashi, a physician at the Mayo Clinic in Rochester, Minn., adults should see their primary care physicians at least once a year to make sure diseases are being properly managed and to stay current on preventative screenings. Visiting the doctor more frequently does not necessarily add up to better health, and it actually can do the opposite. Dr. Peter Abadir, an associate professor of medicine at the Johns Hopkins University School of Medicine, says frequent visits to health facilties where sick people congregate puts one at a higher risk of illness or infection. Visiting the doctor only when necessary is one way to avoid risky exposure. Doctor visit frequency is not a onesize-fits-all answer. A yearly physical or checkup is a given, even for people who are healthy. People with a family history of certain conditions, like sleep disorders, cancer, high blood pressure, and other
conditions, may need to see a doctor more frequently than those with no such histories. In addition, patients may need referrals to certain specialists who work together to provide an overall health plan. That can increase the number of appointments and shorten the intervals between them. Johnson Memorial Health offers some statistics.
5HG *URXQG 5RDG 5RVO\Q +HLJKWV 1< ZZZ WKHLVODQGQRZ FRP
SEE YOUR WAY CLEAR
• People visit the doctor four times a year on average. • Studies show that poor or uninsured people prolong the time between doctor’s visits. • Individuals with high blood pressure may need to see the doctor four times a year to ensure medications are working properly. • Patients on dialysis see the doctor several times a week. Dr. Jennifer Caudle, a family physician and assistant professor at Rowan University School of Osteopathic Medicine in Stratford, NJ, says too often people visit the doctor only when they are really sick. That works to their disadvantage because the appointment will focus only on treating the illness instead of addressing other preventative care and screenings. Balance is necessary in regard to health care. Patients can work together with their doctors to develop screening schedules that are customized to their particular profiles. These schedules can be modified as health history information changes or as patients age. Doctors can dial back or increase health visits as needed.
Doctor available for exams in a safe, sanitized facility. By Appointment Only If you are over the age of 60, and it has been more than a year since your last eye exam, talk to us today about your vision care needs.
MEDICARE ASSIGNMENTS ACCEPTED Large Selection of Designer Frames for Prescription & Non-Prescription
70 OFF
30 OFF
$
$
Any Two Complete Pairs of Prescription Eyeglasses
Any One Complete Pair of Prescription Eyeglasses At time of purchase. Not retroactive. $100 min. purchase. Cannot be combined w/any other offer or Union plans. W/coupon only. Exp. /2 /2
At time of purchase. Not retroactive. $100 min. purchase per pair. Cannot be combined w/any other offer or Union plans. W/coupon only. Exp. /2 /2
OUR EXPERIENCE & QUALITY MAKE THE DIFFERENCE FULL-SERVICE, FAMILY OWNED OPTICAL CENTER SINCE 1982
$GUV 2) 7+( 0QTVJ 5JQTG 9+00'4
Focal Point Optical FAMILY OPTICAL CENTER
$GUV 2) 7+( 0QTVJ 5JQTG 9+00'4
GARDEN CITY PARK
COME IN FOR YOUR EYE EXAM.
2453 Jericho Tpke. (Between Herricks Rd & Marcus Ave) 516-746-3836
MOST UNION PLANS & MEDICARE ASSIGNMENT ACCEPTED. (We Accept Eyemed)
Visit Us At: www.focalpointgcp.com
60 Living 50 Plus • Blank Slate Media Newspapers, Friday, February 12, 2021
Evaluating seniors’ biggest expenses
6XEVFULEH WRGD\ DQG JHW \RXU )5(( )RRGLH &DUG 3XUFKDVH D QHZ VXEVFULSWLRQ RU UHQHZ \RXU H[LVWLQJ VXEVFULSWLRQ DQG JHW
DW RYHU UHVWDXUDQWV RQ /RQJ ,VODQG 'LQH LQ RU WDNH RXW 1(: &86720(56 21/< 6 + )(( $33/<
T
<(6 3OHDVH VHQG PH WKH %ODQN 6ODWH 0HGLD SDSHU LQGLFDWHG EHORZ $V ORZ DV IRU DQ HQWLUH \HDU 0DQKDVVHW 7LPHV
3RUW :DVKLQJWRQ 7LPHV
5RVO\Q 7LPHV
:LOOLVWRQ 7LPHV
*UHDW 1HFN 1HZV
+HUDOG &RXULHU 1HZ +\GH 3DUN
1DPH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB $GGUHVV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB$SW BBBBB &LW\ BBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6WDWH BBBBBB =LS &RGH BBBBBBBBBBB 3KRQH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(PDLO BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
(PDLO UHTXLUHG WR UHFHLYH )RRGLH &DUG IUHH RQH \HDU
3OHDVH PDNH \RXU FKHFN SD\DEOH WR %ODQN 6ODWH 0HGLD RU SD\ E\ FUHGLW FDUG BBB$PHULFDQ ([SUHVV BBB'LVFRYHU BBB0DVWHUFDUG BBB 9LVD
&DUG 1XPEHU BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB
N
ew parents may not be able to visualize that one day their largest expenditures won’t be centralized around providing necessities for their children. Adults go though many years of paying for diapers, toys, clothing, food, and education for their children. Yet, when the children have flown the coop, spending patterns change, and even more changes await come retirement.
According to a 2020 survey from the financial services firm Edward Jones, 68 percent of workers soon to retire said they had no idea how much they should be setting aside for expenses, particularly health care and long-term care. Professionals approaching retirement would be wise to analyze the Consumer Price Index - Elderly (CPI-E). It is a good reference to estimate which future expenses will cost the most after retirement. The Bureau of Labor Statistics looks at consumer spending and uses various data to determine the rate of inflation in key areas that apply to older adults starting at age 62. Individuals may be surprised to learn about where they’ll be spending the bulk of their money when they get older. Here’s a look at some key categories. Housing: According to data from the Employee Benefit Research Institute, in 2017, the most recent year for which data is available, housing accounted for roughly 49 percent of all spending for seniors. Focus should be centered on lowering those costs when a fixed income is imminent. The possibilities include paying off a mortgage; downsizing a home to
have a lower rent or mortgage payment; refinancing a home to a fixed-rate loan so that costs are predictable; and taking on a tenant to offset costs. Food: The cost of food will not change dramatically, but it can eat into your budget. Even though food costs may decline when there’s only two mouths to feed, food and beverage spending may go up due to more leisure time and dining out. Utilize senior discounts by shopping on days when stores offer percentages off purchases. Save money on restaurant spending by eating out at lunch instead of dinner, splitting plates or skipping appetizers. Healthcare: Experts warn that while many expenses decline in retirement, health care spending increases. According to Fidelity, the average 65year-old couple retiring in 2020 in the United States needed roughly $295,000 just to cover their retirement health care expenses. Those with family histories of severe illnesses or those with preexisting conditions will need even more. It’s also important to realize that roughly half of the population will need long-term care at some point, offers The Motley Fool, and that requires advanced budgeting as well. Many people find that Medicare supplement plans can bridge the gap in expenses that government-run plans will not cover. Saving through a health savings account (HSA) when employed also can create extra cash on hand for retirement expenses. Understanding which retirement expenses will be high can help people plan better for the future.
([SLUDWLRQ BBBBBB BBBBBB &9& &RGH BBBBBBBBBBB 1DPH RQ &DUG BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 6LJQDWXUH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 'DWH BBBBBBBBBBBBBBBBB
5HG *URXQG 5RDG 5RVO\Q +HLJKWV 1HZ <RUN ZZZ WKHLVODQGQRZ FRP
Downsizing a home is one way to reduce spending on housing in senior years.
Blank Slate Media Newspapers, Friday, February 12, 2021 • Living 50 Plus
61
Senior communities offering lifestyles
L
iving life to the fullest does not need to stop when adults near or reach retirement age. Agerestricted housing communities once bore the stereotype of having limited recreational options and dated surroundings. But modern senior homes and facilities are all about catering to active lifestyles — with some communities offering resort-like amenities and pristine properties. Furthermore, certain communities provide niche offerings for people who are looking for something even a little more different. Eligibility to live in these communities varies, but generally speaking one resident in the home must be age 55 or older. According to research by TRI Pointe Homes, of the 75 million people who comprise the Baby Boomer generation who are eligible for age-qualified communities, more than 32 million would consider living in such a community. The website 55places.com, which specializes in promoting age-restricted communities, indicates Florida has the most age-restricted communities in the country, followed by New Jersey. Arbutus Ridge Seaside Community for Active Adults was the first comprehensive retirement community built in Canada. Choosing an age-restricted community requires consideration of a host of factors, including the amenities residents most desire and the cost of a facility. The following factors can help people decide which community is most suitable for them. Style of home: Homes built in retirement communities are designed to be comfortable and convenient for aging residents. Many are singlefloor units. Certain communities may be comprised of apartments, condos or townhouses, while others may be single, detached residences.
Amenities: When comparing agerestricted communities, consider the amenities available. Do they include on-site dining, transportation, travel assistance, pools, fitness centers, walking trails, or outdoor sports facilities? Some communities have “aging in place” amenities, which means residents can move from independent living to assisted living to skilled nursing care as their needs change. Make a list of interests and then match them to a community that can fit your needs. Costs: Costs vary considerably. Investopedia advises seniors to consider the community’s location and what is being offered, as these factors will affect costs. In addition to rent or mortgages, most communities also have monthly maintenance or homeowners association fees that need to be compared and considered. Read contracts carefully to see which other costs are included. Specialized features: Unique men and women call for unique communities. If standard agerestricted communities do not fit the bill, 55places.com says there are specialized offerings for people who spend retirement in an RV; desire homes that align with their heritage; communities just for postal workers; or communities tied to a local college to continue lifelong learning. Age-restricted retirement communities are evolving and many specialize in catering to active lifestyles.
NASSAU KNOLLS CEMETERY & MEMORIAL PARK
Lovely & Quaint Grounds Open Daily Open To All Faiths Headstone, Flat Marker & Cremation Grave Sites and New Mausoleum Payment Options Available For Pre-Need
500 Port Washington Blvd., Port Washington
944-8530 Est. 1900
We accept
62 Living 50 Plus • Blank Slate Media Newspapers, Friday, February 12, 2021
Saving strategies as retirement draws near
P
rofessionals on the cusp of retirement are often excited about what lies ahead. Some prospective retirees may look forward to traveling once they no longer have to go to work each day, while others may plan to return to school. Regardless of how adults envision spending their retirement, they’re going to need money when they’re no longer being paid by their employers. As retirement nears, some professionals may be concerned that they haven’t saved enough. There’s no one-size-fits-all answer in regard to how much money people will need in retirement. People who are worried they haven’t saved enough can try various strategies to build up their account balances before they officially call it a career. Take advantage of catch-up contributions. Adults who are 50 or older are eligible to take advantage of catch-up contributions. These are designed to help people over 50 contribute more to certain retirement accounts, such as a 401(k) or IRA, than statutory limits would otherwise allow. There are limits that govern the amount of money people can designate as catch-up contributions, but taking advantage of this perk can help people save more as retirement draws closer. Consider relocating. A recent study from the Employee Benefit Research Institute found that
housing costs accounted for 49 percent of seniors’ spending. Professionals nearing retirement who live in areas traditionally associated with a high cost of living can begin to rethink their long-term housing strategy. Relocating to an area with a lower cost of living is one option, while those who prefer to remain in their current town or city can consider downsizing to a smaller home to reduce their property taxes and monthly utility bills. Continue investing. Conventional wisdom suggests moving away from investing in stocks the closer you get to retirement. Though that’s a sound strategy, professionals who are trying to build their retirement savings in the final years before retiring could be missing out on significant growth by abandoning stocks entirely. Speak with a financial advisor about stock-based investments and your risk tolerance. Maintaining a diversified portfolio with a little risk can be a great way to grow your savings as retirement draws near. Professionals approaching retirement may be dealing with a mix of excitement and anxiety, particularly if they’re concerned about their retirement savings. Various strategies can help quell such anxiety and make it easier for professionals over 50 to build their savings as retirement nears.
What to know before claiming Social Security benefits H
ardworking adults spend years striving to achieve their professional goals. Along the way, planning for retirement is a way to ensure all that hard work pays off when the time comes to call it a career. In the United States, men and women nearing retirement age may be thinking about when they should begin collecting their Social Security retirement benefits. Social Security is a social insurance program instituted by President Franklin Delano Roosevelt in 1935. The program consists of retirement, disability and survivor benefits, and workers in the United States contribute to Social Security each week. The decision about when to claim Social Security retirement benefits is one all those who have contributed to the program must eventually make. In recognition of the difficulty of that decision, the Consumer Financial Protection Bureau offers the following tips to people wondering when they should begin collecting their Social Security benefits.
Confirm your full retirement age. Full
retirement age refers to the age at which people can begin collecting their full benefits. Depending on the year you were born, you can begin collecting your full benefit at age 66 or 67. Claiming your benefit before you reach full retirement age will lead to a permanent decrease in your monthly benefits. Conversely, claiming after you reach full retirement age will lead to a permanent increase in your monthly benefits. Since the stakes are so considerable, it’s vital for adults to confirm their full retirement age before they claim their benefits. Delay claiming if you can. The CFPB notes that you can expect to get an additional 5 to 8 percent in monthly benefits for every year you wait to claim your Social Security benefits after age 62, maxing out at age 70. If you can afford to do so, wait to claim your full benefit until age 70, as doing so can translate to a benefit that’s 32 percent higher than it would have been had you claimed your benefit at age 62. Budget for retirement. Short- and long-term budgeting for retirement can help you assess
how much money you will need to cover your expenses when you stop working. This step can help you understand how much a reduced or increased Social Security benefit will affect your bottom line in retirement. Continue working. Remaining in the workforce full-time or even part-time can have a considerable impact on the size of your Social Security benefit. The CFPB notes that continuing to work for one or two additional years can replace low- or no-income earnings from your earnings record, thereby increasing your benefit. Consider the long-term needs of your spouse. Surviving spouses receive the higher of the two spouses’ benefits. So it makes sense for the higher earning spouse to wait to collect his or her benefit until he or she reaches full retirement age. The decision about when to collect your Social Security benefit is complex. Discussing your options with your spouse and financial advisor can help you make the most informed decision.