Harriet Moravec retired in 1985. But it didn't last forever. Her retirement fund shriveled up, "and then in 2008 the government had fun with what was left," Moravec said. So what else could she do? About nine months ago, after more than 25 years out of the workforce, the 90-year-old Kenai resident got a job. And she's quite happy. Moravec is not the only senior on the Kenai Peninsula who has left retirement to rejoin the workforce. From 2005 to 2011, 5.7 percent more Alaska residents 65 and older and 4.4 percent more 55 to 64-year-old residents have joined the…
The recovery in the U.S. state pension system suffered a setback in 2012 as the huge funding shortfall in a large swath of state pensions swelled more than 20 percent, interrupting two years of improvement following the devastation of the financial crisis. The shortfall in 109 of the nation's state pension plans, which guarantee retirement for millions of public workers such as police, firefighters, and teachers, rose to $834.2 billion in 2012, up from $690.3 billion the previous year, according to a new report by Wilshire Consulting, a unit of independent investment management firm Wilshire Associates. The report highlights the…
Most seniors would prefer to remain in their homes, which is usually also their largest asset. However, since many people are living far beyond the life expectancy for which they planned (or did not plan in some instances), remaining in the home is becoming a financial burden, especially for elderly widows. A reverse mortgage is sometimes a way for a senior to stay in his or her home, tapping into the value of the real estate to give the homeowner the ability to pay the real estate taxes, make necessary repairs, pay off debt, or pay for long term…
In Maryland and across the country, baby boomers and other older Americans are drowning in debt, say credit counselors and economists. A growing number of older people in our region are seeking financial assistance and help finding work, as well as filing for bankruptcy. From 1992 to 2007, the percentage of households of people in their mid-50s and older with housing and consumer debt rose from 53.8 percent to 63 percent, according to the Washington-based Employee Benefit Research Institute's research using government data. The problem is even more acute for those 55 to 64, with 81.7 percent carrying debt. Over…
I attended Frederick’s 8 th Annual Economic Symposium, held at The Weinberg Center for the Arts. The speaker was Ginger O. Brennan CEBS with ING. Ginger Brennan discussed Behavioral Finance: the study of social, cognitive and emotional factors in understanding the economic decisions of individuals. She provided insight on how markets can be impacted by consumers, borrowers, and investors rational and irrational behavior. A ING study found that less than half of the respondents (48%) indicated that they feel “in control” of their retirement plan investments. The study, entitled “Shedding Light on Retirement,” found that while consumers want control and…
ING has some key features make your plan one of the best ways to save for your retirement: You’re in control of your savings potential. You can save automatically. You simply specify how much to save. The amount will be automatically deducted from your paycheck and deposited to your plan account—before you ever see the funds in your paycheck. Plus, your plan offers a variety of investment options managed by experienced professionals. Your contributions reduce your current taxes. Because your contributions are made with pre-tax money, you reduce your overall taxable income, which adds up to considerable savings. Put the…
Here are five reasons, states ING, why starting early to save for retirement makes sense: You may live quite a long time in retirement. Most people spend at least 15 to 20 years in retirement, so your life expectancy plays a key role in planning for how much money you’ll need and making sure your savings last. Your retirement lifestyle may be just as costly as your current lifestyle. Some people find that their expenses decrease in retirement—their house is paid off and children have moved away. Others find that their dreams for retirement come with big price tags. Depending…
For some seniors, a reverse mortgage represents a viable option for funding long term health care. Now don’t confuse a reverse mortgage for a home equity loan because there is a major difference. While a home equity loan requires you to pay back the cash you receive with interest, a reverse mortgage does not. Basically it allows you to enjoy the value of your home now while still being able to live in it and not make any payments. And in the case of a senior in need of assistance funding long term care, the cash advance can be a…
Many people wonder if it is a good idea to give their home to their children. While it is possible to do this, giving away a house can have major tax consequences, among other results. When you give anyone property valued at more than $13,000 in any one year, you have to file a gift tax form. Also, under current law you can gift a total of $5 million over your lifetime without incurring a gift tax. If your residence is worth less than $5 million, you likely won't have to pay any gift taxes, but you will still have…
Are you still reeling? August was a tumultuous money month (to say the least), but at least we can breathe a sigh of relief that it’s over. Hopefully the upcoming months will bode better. The S+P downgrade and the following correction, as well as several other market drops, hit and hurt a lot of people. Of course, if your Roth IRA was hit then you’ve also got a bit more work to do to protect yourself. As a recent SmartMoney article details, you can still un-do a Roth IRA rollover from 2010, at least until October 17, that is. Many…
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