Category: Estate Planning
November 30, 2021 -- It is amazing how many times this question comes up, usually from people who we consider very proactive about their retirements. There are no easy answers to the question, but there are some guidelines. Adding to the mix, if the provision of the Build Back Better plan concerning Roth conversions is included in any final bill that gets congressional approval, there might never be a better time to consider it than right now.
The legislation being considered would prohibit the conversion of after-tax assets from traditional IRAs and employer-sponsored retirement plans into Roth accounts after December 31, 2021. No one knows what will happen in congress these days. But, if you think that law has a chance of passing, this could be your last chance to convert.
What is a Roth IRA?
Basically, in a Roth IRA you contribute after-tax income into a tax friendly retirement account. The money you contribute and future income and gains are shielded from future taxation. Unlike regular IRAs, you don't have to withdraw anything from it during your lifetime. And if you do, you won't pay taxes on those withdrawals. The SECURE Act changed the law on how long a period your heirs (except spouses, minor children, etc.) have to withdraw the money - it now has to be completed over 10 years. Unlike contributions to a regular IRA or employer-sponsored retirement plan, you cannot deduct the initial contribution from your current income.
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Published on November 29, 2021
Comments 5
Category: Best Retirement Towns and States
November 26, 2021 -- When it comes to lists of Best Places to Retire, one of the most consistent and "best" sources is US News. Their lists usually make sense, and rarely include bizarre choices in North Dakota or other places that don't take into account that most retirees looking to relocate want to move to somewhere where winter temperatures are warm. While their new Best Places for 2021-2022 lists uphold their sterling reputation for the most part, the fact that they left off the entire western half of the country seems like a very serious omission.
Florida came out on top on both of their new lists this year - "Best Places" and "Most Affordable Places to Retire". The Sunshine State garnered 8 of 10 spots on the Best Places to Retire list, and with 4 of the Most Affordable selections. Two of those Florida cities, Daytona Beach and Pensacola, made it onto both lists.
How they were chosen, along with our quibbles
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Published on November 26, 2021
Comments 12
Category: Health and Wellness Issues
November 2021 -- In Dr. Sanjay Gupta's book, "Keep Sharp: Build a Better Brain at Any Age", the neurosurgeon states early on that "you can make your brain better, faster, fitter, and yes, sharper". That is good news - we are not stuck with an aging brain that diminishes every day thanks to old age, too much drinking, or other bad habits. His book is about propagating brain cells and making our existing ones more efficient. Not to make us smarter, but to help us "navigate life" better. (Note: Topretirements earns a commission from some links to Amazon).
People tend to think that memory loss is something that comes automatically with old age, which is not the case. Cognitive decline is not inevitable. Just about everyone worries about memory lapses, like forgetting the name of the person you have known for years, but that is not as worrisome as some might think. "Keep Sharp:" is dedicated to the idea that you can have your own "sharp brain" program to improve your thinking and memory, no matter what your age.
The book has several sections, and the most important is probably his 5 pillars of brain health. We will venture to say that you will not be able to guess which pillar is number one.
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Published on November 20, 2021
Comments 3
Category: Medicare
November 18, 2021 — Who knows if it will ever pass a fractured congress, or even what would be in such a bill if it were ever signed into law. But as the Build Back Better bill stands today, there is a lot for older Americans to like. The…
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Published on November 18, 2021
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Category: Health and Wellness Issues
November 14, 2021 -- Gasoline and groceries aren't the only items seeing hefty prices increases coming out of the pandemic. Medicare just announced that Part B premiums will increase 14.5% next year, resulting in the heftiest dollar increase ever, $21.60/month for the majority of people receiving the benefit. The base charge for the Part B benefit will be $170.10 per month next year, as opposed to $148.50 this year. Individuals with higher incomes will pay more, as seen in the chart below. At the top end, those making $500,000 or more will pay $578.30.
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Published on November 14, 2021
Comments 3
Category: Active adult communities
November 13, 2021 — The Associated Press reports that a judge has ordered the giant Solivita 55+ community in Poinciana, FL to pay back homeowners $35 million for improper HOA fees. The case arises from a proposal by the developer to sell various amenities including a clubhouse, swimming pools,…
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Published on November 13, 2021
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Category: Best Retirement Towns and States
November 10, 2021 -- People in retirement have different needs and abilities. So finding a place to retire that offers the transportation, housing, social activities, and health care suitable for your age is important. Fortunately there are some organizations that are working to develop and identify more communities that are age friendly. The AARP, which now has 575 cities in its AARP certified network, is one of them. Many states have also developed programs to certify as retirement communities too.
Certified communities are working to provide safe and walkable streets; age-friendly housing and transportation options; access to needed services; and opportunities for residents of all ages to participate in community life.
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Published on November 10, 2021
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Category: Retirement Planning
November 9, 2021 -- A happy retirement is something people look forward to with great anticipation. But just what are the keys to a successful retirement; the things you can do to maximize your happiness and enjoy the fruits of all of those years working? In this article we will try to uncover the secrets that others have used to make their retirements live up to their expectations. We hope our readers will add more ideas from their own experience in the Comments section.
8 keys to retirement succes
Be prepared financially. In poll after poll, the number one fear retirees have is running out of money. So don't pull that retirement trigger until you have saved the number that will ensure a secure retirement. If that means lining up a part time job, downsizing, or moving to a more affordable home or location, take those steps before you turn in your notice. To help with that, make sure you have developed a realistic budget that balances income and expenses to backup your decision.
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Published on November 8, 2021
Comments 1
Category: Best Retirement Towns and States
October 27, 2021 - When it comes to naming the best places to be a snowbird many familiar towns come to mind. Most are in Florida, Arizona, California, Texas, and South Carolina for the obvious reasons, as they are the warmest contiguous states in winter. But this year a list by StorageCafe´ has come up with some winners that are not exactly household names.
The company used a number of criteria that make sense - miles of beaches, winter temperature, crime, housing costs, parks, internet speed, etc. Many of the choices are unusual, but most are familiar. Some we would have picked, others not (particularly in Arizona and Texas). But in the end the best place to be a snowbird is the place that you like the best, not one picked by someone else.
The winners:
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Published on October 27, 2021
Comments 3
Category: Life Care or CCRC
October 26, 2021 -- For most people, the answer to the question of the right time for moving to a Life Care community is - "when I get older". It pretty much doesn't matter how old the person is at the time; some undefined date in the future is always the answer. True, a minority make the decision when they are in their 60s or early 70s, but they are the outliers, often with a good reason for doing so.
Topretirements has some good friends who have wrestled with this decision for years. Their current situation, unfortunately, illustrates the problem so many people will face. He is in his mid 90s and she in her early 80s. She has wanted for some time to move from their town home into a Continuing Care Retirement Community (CCRC, often known as a Life Care Community). He, however, is never quite ready. Fortunately, they did put a deposit down at a Connecticut CCRC, but used a decision to wait for one of the larger units as a way to delay the move. He just had a serious medical incident requiring an extended hospital stay with an uncertain future, so now he is ready to take any unit that comes up. Although it looks like their deposit has secured them a place, they are about to have a very rough patch ahead. Two elderly people with mobility problems are not going to have an easy time moving, let alone dealing with culling down a jam-packed town home's contents to fit into a much smaller apartment.
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Published on October 26, 2021
Comments 16
