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Retiring Baby Boomers Face a Choice – Rent Or Buy?

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As Baby Boomers retire, they often consider downsizing their home. This especially true of "empty nesters," whose children are grown and have moved away. More recently, many Boomers are losing their homes due to the Great Recession, whether it be through foreclosure, short-sales or walking away from an untenable upside-down mortgage. The question is, what should they do now? There are good arguments for both buying a retirement home or simply renting one from here on out.

It used to be that owning your own home was an investment that could be expected to appreciate over time. As we have learned, this is not necessarily the case. Given the state of the economy, it is unlikely that home buyers will see much appreciation in market values ​​for some time. In some areas, in fact, it may be ten years or more before the real estate market recovers to pre-crash levels, if ever. So let's simplify the decision of "buy versus rent" by removing any expectation of investment appreciation as a factor in our considerations.

Looking at "buy versus rent" as a strategy where the right answer is different for each person or family based on their unique circumstances, the benefits and risks associated with each choice can be generally summarized as:

Major Benefits of Buying a Retirement Home:

  • Postpone some or all of taxes on capital gains from the sale of your previous home.
  • After down payment, typically – but not always – have lower house payments.
  • Annual tax deductions help higher-income retirees.
  • Enjoy more control over a property than a tenant.
  • Creates estate value for heirs.

Major Risks of Buying a Retirement Home:

  • Property values ​​could decline further.
  • Not easy to relocate if necessary due to illness, job, divorce, etc.
  • Annual costs (PITI, maintenance, HOA fees, etc.) are usually much higher than renting.
  • Less liquidity – it can take a long time to sell a residence.

Major Benefits of Renting a Retirement Home:

  • May be only option if you went through a foreclosure, deed-in-lieu of foreclosure or short sale.
  • Takes less money to accomplish and it's faster to get into a retirement home.
  • Not tied down to one place – you can move if you want.
  • Savings may do better in financial investments other than the real estate market.
  • Savings have more liquidity than being tied up in real estate.
  • Annual housing costs are usually much less than owning a property.

Major Risks of Renting a Retirement Home:

  • Rent may go up over time.
  • Owner could sell out from under the tenants, forcing a move at the end of a lease.
  • Renters forego many tax breaks.
  • Depending on the amount and circumstances, you could be taxed on the profit from the sale of your previous home.
  • Stocks or mutual fund investments could decline in value while property values ​​increase.

Which choice is better? It really depends on each Boomer's unique circumstances. Retiring Boomers who have a nice financial nest egg and are in a higher tax bracket are generally better off buying a retirement home rather than renting. Those Boomers who have been financially hurt by the recession are likely in a lower income bracket and may have dings on their credit score too. They are probably better off renting. Remember, renting rather than buying a property preserves quick access to liquid investments that would otherwise be tied up in a real estate.

In the final analysis, much of it comes down to personal preferences. Many retiring Baby Boomers simply do not want to be tied down to one location. They would rather rent homes in different locations during their retirement years. Others desire the security of property ownership. As we have recently learned, owning a home is not for everyone, nor should it be. And Boomers may be the first generation in quite a while to abandon traditional home ownership during retirement in favor of mobility and more freedom.

New Food Delivery Service In Madison Area Brings Pantry Items To Seniors

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Seniors in the Madison area who qualify can already get ready-to-eat meals delivered to their houses through Meals on Wheels. But under a new pilot program — which began Oct. 1 — they’ll also be able to get free groceries.

Groups that advocate and help the elderly have teamed up with Madison’s largest food pantry to provide provisions to those who may lack transportation, are disabled or have other obstacles that prevent them from easily getting groceries.

“Many seniors have trouble just loading groceries into their car or back into their home,” said Katie Gallagher of NewBridge, a coalition of senior groups that is part of the food delivery program along with The River Food Pantry and RSVP of Dane County.

More than 2,500 older adults in Madison and nearby Monona don’t get adequate nutrition, according to NewBridge. While some might be eligible for FoodShare, they aren’t currently particpating in the government nutrition assistance program, said NewBridge senior services director Sonya Lindquist, adding that others may stretch one meal they obtain from food sites or Meals on Wheels into several.

There are indications food insecurity is a growing problem. In May, The River Food Pantry started holding a lunch for older adults and veterans. The free meal drew 25 people initially and has since grown to 90 households, according to Charles McLimans, the pantry’s president.


Older adults enjoy a meal and the company of others at The River Food Pantry which began offering lunch in May 2019. Photo courtesy of The River Food Pantry

McLimans said advocates are trying to be proactive with the new food pantry delivery program — which is for those 60 years and older — because of the “silver tsunami” of aging baby boomers who lack savings and can’t afford food.

The delivery program is for those whose income is at or below 150 percent of the federal poverty level, which is $18,732 annually for an individual.

Organizers don’t know how many meals can be prepared from the groceries delivered to seniors, but expect to serve 60 older adults by next year and increase to 300 households by 2024.

The job of rounding up volunteers for the pilot program is where RSVP of Dane County comes in.

“It’s a neat program because the volunteer commitment can be as little as once a month and you’re helping someone who is low income and can’t get to the food pantry themselves, get some food to help them stay healthy and in their own homes,” said RSVP of Dane County executive director Margie Zutter.

In addition to meeting income requirements, particpants must also be a client of NewBridge which provides services to the elderly including help with chores, health care and housing.

Where are the Baby Boomers Planning to Retire?

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With baby boomers reaching retirement age, there is going to be a large number of retirees looking for a new place to live. With there being so many different places to move to, all with their own ups and downs to each, one really needs to do some research before making the move. Each state in the U.S. can be a fine place for retirement but this article is going to focus on three of the most popular retirement destinations, Florida, Colorado, and Arizona.

One of the most popular spots to move to for retirement is Florida. Florida offers much to people who have retired. The weather is beautiful (when there is no hurricanes) and the state has more beach front then almost any other state in the U.S. While some parts of Florida like Miami or Marco Island can have a very high cost of living, much of the state is still very affordable. Florida also offers retirement communities for any budget.

Retirement communities are very popular for seniors who want an active lifestyle. There is golf, cards, pot lucks and many other events to stay busy and have fun. Probably the biggest downside to Florida is the hurricane season. It seems that Florida has been hit especially hard over the last 10 years which makes for some inconveniences with having to board up your house and it can really make your insurance more expensive then what you might be used to.

Colorado is another popular state to retire in. Colorado offers beautiful mountains living, or if you prefer, you can live on lower grounds with a great view of the mountains from your house. Like Florida, there are some very expensive towns to live in that not everyone can afford, but there also are very affordable places to live with a lot to offer. One of the biggest benefits of living in Colorado is the Rocky Mountains. Living in the mountains or in the foothills can offer breathtaking surroundings for your retirement. The mountains and rivers provide some of the best in kayaking, hiking and fly fishing in the nation.

On top of that, Colorado also offers world classic downhill skiing. The ski towns are rather expensive, but you can live within a short drive of them for a fraction of the price. The Main drawback for some people is much of the state does get heavy snow in the winter and with the mountains this can mean many roads will close and things can stand still.

Another popular state to retire in is Arizona. Arizona offers many different climates all within a couple of hour drive from each other. The weather is beautiful in Arizona and while there is a lack of lakes and beaches, at least there are no hurricanes to worry about. Towns like Prescott or Flagstaff are in higher elevations with great wildlife and mountains.

Or you can live in the south near Tucson or Phoenix. It is really amazing to be in 90-100 degree weather one minute in Phoenix, then you can drive two hours north and there will be snow on the ground in the shade. Arizona offers much for retirees. It is a great state for golf and outdoor living. Towns like Sedona are also very popular for the beautiful red rock formations.

One of the main drawbacks to retiring in Arizona is the extreme heat in the summers in the south, the Phoenix valley rivals Los Angeles for Smog, and with it being a largely desert state there is a lack of water.

Florida, Colorado and Arizona are all worth considering for your retirement. Each state is a great place to live in their own right. Each state also has retirement communities or other great housing for couples or singles to enjoy.

Each of these states can be a wonderful place to retire.

Before you decide where to move, some of the key factors are going to be your budget, what kind of weather you prefer and do you prefer mountains, beaches or scenic desert climates?

Finally, consider how far away your family may live. You’ll want to see those kids and grandkids!

Hot housing market continues in Southlake

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Ask any resident of family-friendly Southlake and you’ll hear the same list of reasons the Southlake housing market remains strong. It starts with the schools, according to Wynne Moore, a top-ranked Realtor with Allie Beth Allman & Associates.

“Southlake continues to hold a strong home market due to our superior schools, ease of access to Dallas, Fort Worth and DFW International Airport and a variety of shopping, dining and care facilities,” said Moore.

“We have it all in our beautiful bubble.”

Moore, who heads the Wynne Moore Group, has helped hundreds of families find their ideal home in Southlake.

She is a leader of the successful Allman office that serves Southlake and the growing communities of Colleyville, Keller, Grapevine and Westlake.

Southlake is a relatively young community, she said. Almost 80 percent of its homes were built in the last 25 years. The median value of single-family residences tops $625,000. Most students attend schools in the Carroll Independent School District. Others attend schools in the Keller and Northwest school districts.

DFW International Airport terminals are about 10 miles away, making it attractive to professionals who travel for business and baby boomers who fly out for vacations, said Moore.

Southlake also offers proximity to the new network of highways to the North Dallas business district, which is 23 miles away, and is about 25 miles from downtown Fort Worth and downtown Dallas.

Shopping in Southlake begins at Southlake Town Square, an open-air lifestyle shopping district with more than 120 shops and dozens of fine restaurants spread over 130 acres. Recognized throughout the country, the shopping center offers boutiques, couture clothiers, an upscale Hilton hotel and a movie house surrounding fountains and green space.

Special events, including Oktoberfest and the nationally ranked Art in the Square, are held year-round.

“We have been watching the exceptional growth of Southlake for years. It was an easy decision to expand our reach and open an office near Southlake Town Square,” said Allie Beth Allman, founder and CEO.

“We have been able to attract some of the region’s top Realtors, who have joined our firm and helped so many families find the perfect home in northeast Tarrant County.”

To find your Southlake home, visit www.alliebeth.com or the Allman office at 550 Reserve St., suite 310.

Baby Boomers – Home-Based Business to Supplement Retirement Income

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As America’s Baby Boomers (76 million people born between 1946 and 1964) barrel toward retirement, many find that it is necessary to seek a home-based business to supplement their retirement income. Alarmingly, many pre-retirees are depending on declining Social Security income, not participating in any kind of employee sponsored retirement or pension plan, and have accumulated only scarce funds in retirement savings. With this looming crisis affecting nearly 80 million American citizens, solutions must be found fast to ensure financial security and quality-of-life during the so called “golden years.”

Although many solutions should be considered, one answer is a home-based business offered by Financial Destination Inc. (FDI). FDI offers an incredible opportunity to individuals of all ages to position themselves in the multi-trillion dollar financial services industry, harnessing the power of the internet to allow them to work completely from home and generate a significant passive residual income. Complete with a systematic method, marketing resources, and state-of-the-art support, FDI is a desirable and likely alternative to having to continue to work, or worse, go back to work in retirement years.

As there are over 100 million users on the internet today and that number growing by the hour, Boomers are diving in to keep up with the times as they make up a significant number of internet users. Of course any industry that the Boomers have ever touched has had a major impact on the marketplace (i.e. baby food, toys, fast food, cars, real estate, and now retirement). It only makes you wonder, “What impact will the Boomers have on the internet economy, when a great deal of them is out of the work force, and into the retirement force?” And the idea of withering away at 65 is out of the question as Boomers look toward their retirement years to live the dream life of freedom and independence, no longer having to punch a clock.

The retirement years will be a struggle for many of the Baby Boomers as they compensate for insufficient retirement planning. However, ownership of a home-based business, that can maintain, and in a lot of cases create, much needed income, independence, and quality of life, just may be the solution needed to help Boomers enjoy a rosy retirement of financial freedom and security.

Economic Collapse By Demographic Decline, The Truth About The Baby Boomer Retirement Crisis

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Economic collapse is inevitable due to the demographic decline in the US. The social security and pension systems we designed were made for a growing economy. Now with less than projected sales and growth we look for the source. When asked recently to compile my thoughts on the greatest risk our economy faced. The truth is the demographic trends that have been underway for some time place the current economy beyond sustainability. With the largest generation moving into retirement we are now seeing a massive transfer of wealth. Many believe social security isn’t going to be there for them when they go to retire. In fact studies show most Americans are unprepared for what retirement might mean for them. The collapse of the economy is inevitable and the current struggles about interest rates have little bearing on the true risk of economic collapse posed by the baby boomer retirement crisis.

Baby Boomer Marketing – What You Need to Know to Be Successful

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If you are marketing for seniors and looking for the right topics for baby boomer marketing then you need to consider certain elements. These things include staying healthy, traveling, retirement, and more.

Staying healthy is the biggest topic you can cover when you consider baby boomer marketing. Baby boomers want to find ways to lose weight, eat healthy, and exercise. They want articles of the best anti-inflammatory foods that help improve circulation which result in a healthier lifestyle and a healthier body. You should market about daily exercise that is not too strenuous on the body as it ages. The best exercises for elderly people are walking, low-impact aerobics, tennis, and more. Losing weight is important for baby boomers because it promotes longevity to maintain a healthy weight. Longevity is the ultimate goal for baby boomers because they want to live the longest life possible. Marketing ways for seniors to live the longest through a healthy lifestyle is exactly what you need to do.

Retirement is another topic you need to consider when you are marketing for seniors. Seniors don't want to work up until the day they die. They want to be able to successfully retire and have the financial resources that will last them. It is important when marketing for the baby boomer era to provide plenty of information about retirement and ways of successful planning. This would include money saving ideas but also medical topics.

Baby boomer marketing should discuss travel issues. People set goals for traveling after they retire. There are many places around the world people want to see before they die. The top places the elderly like to travel to include but are not limited to Europe, Hawaii, and more.

Traveling is exciting and on almost every baby boomer's list. It is important to remember that most baby boomers are on a fixed income so your marketing efforts must include ways to travel on a tight budget.

You might consider marketing for baby boomers to include ways to become debt free. Some baby boomers want to find ways to pay off their mortgages and all of their debts. This is a hot topic for some and should be included in your marketing.

When you are marketing for baby boomers you have to consider what is important to them. You need to consider the planning and the goals that elderly people want to achieve before they die. This includes how they want to spend the last years of their lives. Most people want to travel the world and live life as long as possible. You need to market ways that people can promote longevity in their live by being healthy. You should talk about traveling and ways people can become debt free and have a financial freedom. This will allow people to retire quicker and enjoy their lives

What Makes a Winning Senior Living Development

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There is a lot of activity in the senior living market, but it takes a certain expert on the niche to make a successful senior living facility. Paradee Homes recently won active adult community the year with its recent development Altis in Beaumont, California. Senior housing requires deep industry knowledge and strategy to create a unique community that will attract baby boomers.

“It takes a lot of research, an outstanding team and a very strategic plan, one that creates a neighborhood with more meaningful and individualistic community placemaking and provides robust social calendars for diverse Baby Boomer interests both on and close to the property,” Francine Wallace, VP of 55+ operations at Paradee Homes, tells GlobeSt.com. “A great deal of exploration and dedication are required to create a transformative community.”

Paradee utilizes technology to create the perfect balance of amenities targeted to each community. “We utilize local data to offer a more boutique and curated approach to differentiate and deliver what local buyers want, such as fresh, modern designs; energy-efficient features; open, personalized floor plans; and thoughtfully designed, consumer-centric amenities,” says Wallace. “It’s not only about getting the designs and approaches to amenities to the highest level possible, the developer must meticulously match the property’s personal, community and aspirational components to the dynamic Boomer buyer of today. This generation is many in number and major in discretionary income, controlling more than three-fifths of this type of income in the United States, but developers must really dig deeper to get to know the customer and then give them a reason to move.”

For Paradee, the key components are vitality, adventure, connectivity and style. Altis hit all of these requirements. “It’s very important to appeal to an active and sophisticated buyer through thoughtful, modern and environmentally friendly design,” says Wallace. “While staying on top of trends is vital, there are limits to the broad-stroke approach. These 55+ consumers are accustomed to having quality options and choices. Paradee Homes created an advanced design studio to help them customize their ideal space. Residents are provided with features and options that sync with their unique sense of identity and style.”

As a result, the community won multiple awards for senior living in SoCal. “We were very honored to win three SoCal awards, including for exceptional concepts in design and community amenities,” says Wallace. “This is but one example of extending the realm of possibility for Altis residents. It feeds not only the aforementioned vitality, adventure and connectivity, but it also stimulates one’s imagination and spirit.”

 

Baby Boomer Characteristics Explained – Energetic? Me Generation?

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The US registers the highest number of baby boomers, also called the Me Generation due to their tendency to focus on themselves and their needs, met in full by their parents who survived and prospered both economically and politically after the Second World War (1946). The children born to WW-II survivors were an enigmatic and interesting lot: with so much more freedom, financial security, social license and political changes happening around them, they took it much as their right to rule over making radical and revolutionary changes in the fabric of the society they lived in.

Thus, these youngsters were responsible for new-age thought processes, highly cultural leanings, being politically aware of civil rights and related issues that fueled growth and development of the already affluent American nation.

Thanks to the increased birth rates registered between 1946 and 1960, America witnessed the highest number of baby boomers – the generation that challenged established norms, flouted conventions, sought answers and rode against the wave to empower their national economy and assist other global ones that were flagging, especially European ones.

Peace-time products and materials made in America were then shipped to other countries (ally nations) to support flagging economies, resulting in boosting business in the US and securing its citizens higher income jobs as well that enabled them to lead luxurious lives even after retirement . As a result, the standard of education and the lifestyle followed by the US families also registered a change for the better with baby boomers being able to afford more, earlier. Getting college degrees was easy and affordable for the highly paid families most baby boomers came from and so the US had more professionally qualified people joining its work-force and naturally became a super-power.

On the flip-side, with protests against Vietnam setting in, many of the young generation dodged drafting for military duty or did not show up after drafting, which was their way of recognizing communists and socialists as the bad guys and a means to become politically active was subsequently sought by them -through ensuring higher income jobs, which they excelled at. The baby boomer generation has political big-wigs like George W Bush and Bill Clinton among its dominant names, both of whom advocated and succeeded in leading America to the top with radical views and policies for boosting funds to the military services.

Thus, with nearly 28% of the American population today comprising of baby boomers – the group defined as post WW-II babies who are now mature adults and retiring late, sustaining creative, business and personal energies for their further development, there is as much a boost to the government decision making policies as much as there is concern over deciding changes for this generation's post-retirement health benefits planning.

Current changes on the anvil for the US government as far as baby boomers are concerned includes taking requisite steps for enhancing facilities for their healthcare budget and also for boosting their retirement benefits, 2 hitherto unexplored areas of progress for baby boomers and ensure national economic prosperity to be consistent.