Dear http://www.sixtyandsingle.com/ readers. When we are in our 30s, retirement seems a long way off. There's a lot going on...family, careers, kids in soccer, vacations. But that's the time when women must seriously be thinking about retirement and what it will look like when they are over 60. Having said that, it's never too late to take charge of your long-term financial planning. My mother was an investor into her 80s.
Whatever your age, ask yourself these questions Or better yet, ask your daughter:
- What income will I need when I stop working and where will it come from?
- What plans do I have for being financially on my own if I lose my spouse?
- What can I do right now to bring my retirement goals in line with my current income?
- Worst case, what could happen and how can I prepare?
The 10 Facts listed below summarize what many women don't know but should know about retirement. We offer suggestions for what they can do about it:
Fact No. 1. By the end of our 60s nearly half of American women will be single and financially on their own because of the death of a spouse or a divorce. Women live longer than men and most of us will out-live our spouses. But 20 percent of single women in this country are living at or below the poverty line without savings for retirement. The standard of living for women drops substantially when they become single. For men, less so. What to do: Expect that you will be on your own and plan accordingly by saving more, investing wisely, if not aggressively, and discussing these issues with your spouse and your family.
Fact No. 2 Women don't save enough for retirement or plan for retirement on their own. That's because women are more likely than men to work in part-time jobs. Part-timers are less often eligible to participate in workplace retirement plans. Women also tend to spend money on short-term rewards such as shopping, vacations and kids and women are more likely to interrupt their careers to care for their families. That means less income, less time to participate in a 401(k) retirement plan and lower income to apply to future Social Security benefit payouts. What to do: Of the 61 million wage-earning and salaried women in the U.S. between the ages of 21 and 64, only about 46 percent participate in a retirement plan in any given year -- much lower than the participation rate for men, says the U.S. Department of Labor. Women should be putting the maximum amount allowed into a 401(k) plan or a self-directed Individual Retirement Account. The savings goal should be close to $1 million.
Fact No. 3: The average American woman who retires at age 65 is likely to live 19 more years -- about three years longer than the average man. Therefore men are less likely to need long-term care insurance because their wives will fill in as caregiver if they become ill. Women on the other hand may need long-term care services. What to do: Long-term care insurance is a way to protect core assets if expensive long-term care is needed. Women should carefully look into that option. There are numerous programs and coverages. Make sure you do your homework before purchasing coverage.
Fact No. 4: Working past full-retirement age is a good way to get the most bang for your retirement buck. Age 80 is the new 65. Regis just retired at 80 from his morning TV show. The number of women working into their late 60s has increased by more than a third in the past 10 years, many because they can't afford to stop working. What to do: Plan to work until your full retirement age of 66 or older. That way you get the highest Social Security benefit payout. This also gives your retirement nest egg more time to grow. Consider part-time work in something that you're passionate about as a way to delay tapping your nest egg.
Fact No. 5: Age-discrimination is alive and well in the workplace. The worst offenders are often younger women who see you as an obstacle to advancement. What to do: Keep your skills up to date, take on new challenges at work, expand your horizons. Be ready to accept change as organizations grapple with market challenges and budget issues. Make yourself valuable. Network for that next great opportunity.
Fact No. 6. Debt reduction is a sure way to a successful retirement. Paying off debt must be a top priority as you approach your 60s. Doing so will bring your lower retirement income in line with your ongoing living expenses and travel budget. What to do: Get rid of debt. Pay off your mortgage. Don't buy things on time. Always pay off your credit cards each month. Set goals that will give you control of your finances and keep you ahead of the curve.
Fact No. 7. You will need $1 million in retirement savings to live comfortably in your later years. That sum can spin off between $2,000 and $3,000 a month. Along with your Social Security benefits your annual income will be between $43,000 and $55,000. Not great but OK. What to do: Save like hell.
Fact No. 8. You can lose weight after 60. Weight loss is a sure way to feel younger and stay healthy. What to do: Losing weight is hard to do on your own. Find a program that works for you and stick with it.
Fact No. 9. In our 60s, some of our long-time friends will drift away as family priorities become more important or spouses retire or die. What to do: New relationships await for those who get out there and meet people.
Fact No. 10. You can continue to work part-time after retirement from the big job. That option gives you more flexibility to travel but still avoid tapping your retirement nest egg. What to do: Match up your passions with a new part-time job. Network with those who might find your skills useful.
Bonus Fact. Sixty is not old. Our 60s are an exciting time in our lives. We're young enough to get out there and explore the world, to live it up, meet new people and find friends or a companion with whom to share life's wonderful joys. It is possible to fall madly, crashingly in love after 60. What to do: Don't bother with expensive online dating services. Trust your friends to help you meet men who might be a good match. If you find someone, all you need is a pre-nup and some term life insurance to make everybody happy.
Saturday, January 21, 2012
Sunday, January 8, 2012
Insurance, boring but important. Here are 6 money-saving tips for retirees
Auto and homeowners insurance cost-savings tips for retirees:
1. Combine homeowners insurance and auto insurance in one account with the same company. Such consolidation can save you money.
2. Be open to a higher deductible. If you can bare a bit more risk, you will see greater premium savings. Make sure you are given several options for deductibles, coverages and premium rates.
3. Make sure your agent has details about you: If you have a college degree, a good credit score, that your mortgage is paid off, that you have no loans on your vehicles. Make sure your agent knows if there are young drivers in the household, They may qualify for "good student" discounts – 3.0 GPA or better. This is important if grandparents have grandchildren living with them... a growing trend. A better grade point for the grandson may translate into a lower insurance rate.
4. Change agents, if you're not satisfied with their service. Interview several agents. Conduct background checks through your state's insurance commission on agents and their firms. Make sure the company selling the insurance has a long track record and is rated among the best. Seek out agents that have earned industry designations such as the CIC (Certified Insurance Counselor), which means they have completed a course of study and take additional classes every year. Get recommendations from friends, co-workers, family.
5. Choose an insurance broker or agent who cares about you and your needs. Your agent should check in at least once a year to make sure nothing has changed and coverages are where you want them. Select an agent that conveys a sense of personal interest.
6. Meet at least once a year with your agent to talk about what's changed, what your agent should know about. Look for ways to hold down costs without sacrificing coverage.
By Julia Anderson
www.sixtyandsingle.com
If you are on a more or less fixed retirement income, saving money on your annual car and homeowners insurance bill is one way to reduce ongoing household expenses. That said, the bottom-line cost of your insurance should not be the only criteria for selecting an insurance agent or the company they represent. As with everything, there are trade-offs between quality service and cost.
In the past 12 months I've taken several steps to bring my ongoing household expenses in-line with my retirement income. Those steps include refinancing my home mortgage loan for a lower monthly payment, signing up for mandatory Medicare, which has reduced my health care insurance costs, and moving my insurance business to a new agency and consolidating coverages at a reduced cost without sacrificing too much on coverages.
In that process I came to know Audrey Brouwer, a certified insurance counselor in my home town. She expertly walked me through my options for coverage and the cost of that coverage for home, farm and auto.
Over lunch, I followed up with her for what general (insurance) advice she might offer retirees, particularly women on their own.
"Buying insurance," she said, "should not be complicated. Insurance is understandable...you ask questions and then you can make informed decisions."
In many households, however, one spouse may handle all financial matters. In older couples it's usually the husband. Younger couples more often work together, she said.
A newly 60-and-single woman should feel comfortable asking questions, getting the hang of insurance lingo and finding an agent who has her best interest as their No. 1 goal. Look around until you find the right fit. This meeting to establish a relationship and evaluate premium coverages is important. For those who like studying up on topics, get a copy of Insurance 101, a what-you-need-to-know brochure from the American Insurance Association.
Building a relationship
Consumers of all ages should expect a solid ongoing relationship with their insurance broker, Brouwer said. People approaching or moving into retirement likely have worked hard for their assets and want to protect them. They need an adviser who is interested in their needs, first. That may sound like so much industry hype but I switched brokerage firms last year because every time I called that office, I talked to someone different who really didn't know my story or my concerns.
If you are newly single, an appointment with your insurance agent should be near the top of your to-do list. And if you start a new relationship or re-marry, insurance coverages must be discussed. There's money to be saved through consolidation without sacrifice.
"Clients must take the time to sit down, be willing to talk about what's going on in their lives and what their needs are in terms of coverage and cost," Brouwer said. "They need to ask questions and make sure their agent or broker is taking time to answer questions and explain coverages and cost trade-offs."
A good agent should stay in touch at least once a year to find out what might be changing in your life. An ongoing relationship means the insurance agency is fulfilling its role as circumstances change, she said.
Be ready to answer these questions when meeting with an insurance broker:
1. What do you want protected? What needs to be protected?
2. What kind of trades off do you want to make in terms of coverages, their costs and your ongoing household budget?
3. Be ready to listen to your broker when she talks about risks faced by seniors and what you need to protect. Don't be so cheap that you endanger your core assets, if something bad happens.
4. Be ready to share information about yourself, your financial situation, your property and what's on your mind. An agent can't help you unless you tell them what they need to know. For example, do you have an RV, a vacation home? Make sure everything is on the table.
"Yes, you want to stay on a budget, but clients should consider several scenarios in terms of the risks they can take on versus the coverage needs," Brouwer said.
Finding an agent
When considering a new agent or new coverages, it should not be a one-time meeting across a desk. A first meeting would determine your needs. Once the agent knows those needs, she can go to the insurance companies she represents and come back with a summary of premium rate options. Those options should be discussed in a second or third face-to-face meeting as the dialogue continues.
"Buying for price alone can leave you with inadequate coverage," Brouwer said. "Each person has insurance needs specific to them. This is not a cookie cutter business."
For women who want to learn more about insurance costs and coverage, a good strategy is to take advantage of the training received by your insurance agent. Let them be a resource to identify risks and make sure you have the right coverage at the right cost. Long-term care insurance was discussed in a previous http://www.sixtyandsingle.com/ post. Annuities and term life-insurance were also addressed, previously.
Thanks Audrey for your help with this post.
For more:
Washington State Office of the Insurance Commissioner, click here.
Oregon Insurance Division, click here.
Tips for Choosing an Insurance Policy, click here.
Consumers' Guide to Homeowner Insurance, click here.
American Insurance Association, click here.
Directory of Insurance and government resources, click here.
1. Combine homeowners insurance and auto insurance in one account with the same company. Such consolidation can save you money.
2. Be open to a higher deductible. If you can bare a bit more risk, you will see greater premium savings. Make sure you are given several options for deductibles, coverages and premium rates.
3. Make sure your agent has details about you: If you have a college degree, a good credit score, that your mortgage is paid off, that you have no loans on your vehicles. Make sure your agent knows if there are young drivers in the household, They may qualify for "good student" discounts – 3.0 GPA or better. This is important if grandparents have grandchildren living with them... a growing trend. A better grade point for the grandson may translate into a lower insurance rate.
4. Change agents, if you're not satisfied with their service. Interview several agents. Conduct background checks through your state's insurance commission on agents and their firms. Make sure the company selling the insurance has a long track record and is rated among the best. Seek out agents that have earned industry designations such as the CIC (Certified Insurance Counselor), which means they have completed a course of study and take additional classes every year. Get recommendations from friends, co-workers, family.
5. Choose an insurance broker or agent who cares about you and your needs. Your agent should check in at least once a year to make sure nothing has changed and coverages are where you want them. Select an agent that conveys a sense of personal interest.
6. Meet at least once a year with your agent to talk about what's changed, what your agent should know about. Look for ways to hold down costs without sacrificing coverage.
By Julia Anderson
www.sixtyandsingle.com
If you are on a more or less fixed retirement income, saving money on your annual car and homeowners insurance bill is one way to reduce ongoing household expenses. That said, the bottom-line cost of your insurance should not be the only criteria for selecting an insurance agent or the company they represent. As with everything, there are trade-offs between quality service and cost.
In the past 12 months I've taken several steps to bring my ongoing household expenses in-line with my retirement income. Those steps include refinancing my home mortgage loan for a lower monthly payment, signing up for mandatory Medicare, which has reduced my health care insurance costs, and moving my insurance business to a new agency and consolidating coverages at a reduced cost without sacrificing too much on coverages.
In that process I came to know Audrey Brouwer, a certified insurance counselor in my home town. She expertly walked me through my options for coverage and the cost of that coverage for home, farm and auto.
Over lunch, I followed up with her for what general (insurance) advice she might offer retirees, particularly women on their own.
"Buying insurance," she said, "should not be complicated. Insurance is understandable...you ask questions and then you can make informed decisions."
In many households, however, one spouse may handle all financial matters. In older couples it's usually the husband. Younger couples more often work together, she said.
A newly 60-and-single woman should feel comfortable asking questions, getting the hang of insurance lingo and finding an agent who has her best interest as their No. 1 goal. Look around until you find the right fit. This meeting to establish a relationship and evaluate premium coverages is important. For those who like studying up on topics, get a copy of Insurance 101, a what-you-need-to-know brochure from the American Insurance Association.
Building a relationship
Consumers of all ages should expect a solid ongoing relationship with their insurance broker, Brouwer said. People approaching or moving into retirement likely have worked hard for their assets and want to protect them. They need an adviser who is interested in their needs, first. That may sound like so much industry hype but I switched brokerage firms last year because every time I called that office, I talked to someone different who really didn't know my story or my concerns.
If you are newly single, an appointment with your insurance agent should be near the top of your to-do list. And if you start a new relationship or re-marry, insurance coverages must be discussed. There's money to be saved through consolidation without sacrifice.
"Clients must take the time to sit down, be willing to talk about what's going on in their lives and what their needs are in terms of coverage and cost," Brouwer said. "They need to ask questions and make sure their agent or broker is taking time to answer questions and explain coverages and cost trade-offs."
A good agent should stay in touch at least once a year to find out what might be changing in your life. An ongoing relationship means the insurance agency is fulfilling its role as circumstances change, she said.
Be ready to answer these questions when meeting with an insurance broker:
1. What do you want protected? What needs to be protected?
2. What kind of trades off do you want to make in terms of coverages, their costs and your ongoing household budget?
3. Be ready to listen to your broker when she talks about risks faced by seniors and what you need to protect. Don't be so cheap that you endanger your core assets, if something bad happens.
4. Be ready to share information about yourself, your financial situation, your property and what's on your mind. An agent can't help you unless you tell them what they need to know. For example, do you have an RV, a vacation home? Make sure everything is on the table.
"Yes, you want to stay on a budget, but clients should consider several scenarios in terms of the risks they can take on versus the coverage needs," Brouwer said.
Finding an agent
When considering a new agent or new coverages, it should not be a one-time meeting across a desk. A first meeting would determine your needs. Once the agent knows those needs, she can go to the insurance companies she represents and come back with a summary of premium rate options. Those options should be discussed in a second or third face-to-face meeting as the dialogue continues.
"Buying for price alone can leave you with inadequate coverage," Brouwer said. "Each person has insurance needs specific to them. This is not a cookie cutter business."
For women who want to learn more about insurance costs and coverage, a good strategy is to take advantage of the training received by your insurance agent. Let them be a resource to identify risks and make sure you have the right coverage at the right cost. Long-term care insurance was discussed in a previous http://www.sixtyandsingle.com/ post. Annuities and term life-insurance were also addressed, previously.
Thanks Audrey for your help with this post.
For more:
Washington State Office of the Insurance Commissioner, click here.
Oregon Insurance Division, click here.
Tips for Choosing an Insurance Policy, click here.
Consumers' Guide to Homeowner Insurance, click here.
American Insurance Association, click here.
Directory of Insurance and government resources, click here.
Monday, January 2, 2012
Opening another door. Helen Keller's simple message
"When one door of happiness closes, another opens; but often we look so long at the closed door that we do not see the one which has been opened for us." -Helen Keller, 1880-1968.
Sometimes it is the simplest of thoughts that have the most power to pull us forward, to carry us out of sadness and depression and the most power to motivate us to embrace the world we have, not the one we've lost. Looking back five years to the year of my deepest grief when I became 60 and single, I now see how beautifully in tune I was with the world around me. Every flower, every shadow, every loving look from my Black Labrador dog, every meeting with a friend meant something and presented an opportunity to be loved and more importantly to love. Every quiet evening alone offered opportunity to think about where I was in the world and where I wanted to go.
Being alone...as lonely as it is....gives one time to ponder profound truths, embrace your most creative self and to give love in the moment to all whom you encounter...including yourself.
The start of a new year is the perfect time to reconsider the universe and our place in it. Each new year offers an opportunity to learn something new, broaden our experience, express ourselves and to find satisfaction in the relationships with family, friends and work colleagues.
Becoming 60 and single opened my heart to a new life with new experiences, new relationships and provided a profound way to help other women in my age group cope with the challenges of modern American life. More than anything, I've learned that those who embrace the moment are most likely to see the door opening that Helen Keller speaks about. We walk through this door with a full heart...a heart filled with both sadness at our losses but also with hope. And hope, as my older son reminds me, will always beat hate.
The letter
Early in 2011, a woman contacted me by e-mail after reading my posts at http://www.sixtyandsingle.com./ She was (and still is) in the midst of the painful break-up of her long-time marriage and was shocked by how much it hurt, how devastated she felt. I recently checked in with her to find out how things are going.
Below is part of her response:
Julia,
"I am not really all over the place but it is weird to be so immersed in my feelings. It seems as if I was so stuck before in the marriage that I am so raw in the world. Everything is new and so often it feels like I’m not ‘good’ at anything, when I used to be excellent at so much. I’m not sure if you are familiar with the work of Brené Brown, but I’m working on accepting the gifts of imperfection and cultivating vulnerability.
I used your email (query) as a opportunity to pause and consider where and how I am now.
Thank you for asking. You have occasionally floated through my mind over the past months like a guiding star. A bit ago I had breakfast with a couple of gals that I hadn’t seen in some time, one of whom has been divorced for some time and in her mid 50’s. She is only now starting to see the possibility of her worth, of maybe there being a future of love with someone."
--- And, "I am almost divorced, it seems like we have almost reached a settlement, though now there is some debate over the values of retirements, as if he hasn’t been earning more than me from the beginning. It is so hard not to take personal these sorts of debates and having to continually provide proof and stand up for the black and white objective truth. It is just draining and also maybe this impacts the struggle to feel worthy in the fight with someone who I loved for so long."
---- "I have been so surprised to realize that I can imagine a future with someone else, that I hold that as a possibility and a desired one. I don’t know where my life will go, but I know that I want that even though I struggle to feel worthy of that. I have a place of pain and shame perhaps from being rejected, yet I don’t believe it owns all of me." Thank you for thinking of me.
Take care, Carol (not her real name).
Making the most of ourselves
In her ten guideposts, Brene Brown, author of "The Gifts of Imperfection: Letting Go of Who We Think We Should Be and Embracing Who We Are" (Hazelden, 2010) explores "how we can cultivate the courage, compassion, and connection to wake up in the morning and think, "No matter what gets done and how much is left undone, I am enough," and to go to bed at night thinking, "Yes, I am sometimes afraid, but I am also brave. And, yes, I am imperfect and vulnerable, but that doesn't change the truth that I am worthy of love and belonging."
Here at sixtyandsingle.com, our goal is to change the way women think about retirement and give women information and tools for managing their financial lives and their retirement on their own. I also spend time commenting on singleness, how it feels and why we must embrace life in the moment with courage, emotion and enthusiasm.
I've discovered that retirement for most women is not about sitting on a beach with a good book. It's about coping with loss, dealing with change on all fronts, wrestling with financial issues, managing new relationships and trying to help the people closest to us by giving love and sharing wisdom. As the New Year begins here are a few good quotes to get us on our way.
Quotes for the new year:
- "Let go of who you think you're supposed to be and embrace who you are," Brene Brown, in "The Gifts of Imperfection."
- "It’s not that some people have willpower and some don’t. It’s that some people are ready to change and others are not. -- James Gordon
- "You have to get to the point where going for it is more important than winning or losing," -- Arthur Ashe
- "The first step towards getting somewhere is to decide that you are not going to stay where you are," -- J. Pierpont Morgan
- "When we do the best we can, we never know what miracle is wrought in our life, or in the life of another." – Helen Keller.
- "If you can’t make it better, you can laugh at it." – Erma Bombeck.
- "I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands; you need to be able to throw something back." – Maya Angelou.
"The most effective way to do it, is to do it." - Amelia Earhart.
"If you don’t like being a doormat then get off the floor." – Al Anon.
- "Anything you want to ask a teacher, ask yourself, and wait for the answer in silence." – Byron Katie.
- "It is only when we truly know and understand that we have a limited time on Earth and that we have no way of knowing when our time is up that we will begin to live each day to the fullest, as if it were the only one we had." - Elisabeth Kubler-Ross.
- "When you forgive, you heal your own anger and hurt and are able to let love lead again. It’s like spring cleaning for your heart." – Marci Shimoff.
- "Forget about the fast lane. If you really want to fly, just harness your power to your passion." -- Oprah Winfrey.
- "Your own words are the bricks and mortar of the dreams you want to realize. Your words are the greatest power you have. The words you choose and their use establish the life you experience." - Sonia Choquette.
- "Life is not measured by the number of breaths we take, but by the moments that take our breath away." -- Maya Angelou.
- "I don’t think of all the misery but of the beauty that still remains." -- Anne Frank.
- "Life should not be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, chocolate in one hand, champagne in the other, body thoroughly used up, totally worn out and screaming….. WOO HOO…. What a RIDE!”
Happy New Year,
Julia
Sometimes it is the simplest of thoughts that have the most power to pull us forward, to carry us out of sadness and depression and the most power to motivate us to embrace the world we have, not the one we've lost. Looking back five years to the year of my deepest grief when I became 60 and single, I now see how beautifully in tune I was with the world around me. Every flower, every shadow, every loving look from my Black Labrador dog, every meeting with a friend meant something and presented an opportunity to be loved and more importantly to love. Every quiet evening alone offered opportunity to think about where I was in the world and where I wanted to go.
Being alone...as lonely as it is....gives one time to ponder profound truths, embrace your most creative self and to give love in the moment to all whom you encounter...including yourself.
The start of a new year is the perfect time to reconsider the universe and our place in it. Each new year offers an opportunity to learn something new, broaden our experience, express ourselves and to find satisfaction in the relationships with family, friends and work colleagues.
Becoming 60 and single opened my heart to a new life with new experiences, new relationships and provided a profound way to help other women in my age group cope with the challenges of modern American life. More than anything, I've learned that those who embrace the moment are most likely to see the door opening that Helen Keller speaks about. We walk through this door with a full heart...a heart filled with both sadness at our losses but also with hope. And hope, as my older son reminds me, will always beat hate.
The letter
Early in 2011, a woman contacted me by e-mail after reading my posts at http://www.sixtyandsingle.com./ She was (and still is) in the midst of the painful break-up of her long-time marriage and was shocked by how much it hurt, how devastated she felt. I recently checked in with her to find out how things are going.
Below is part of her response:
Julia,
"I am not really all over the place but it is weird to be so immersed in my feelings. It seems as if I was so stuck before in the marriage that I am so raw in the world. Everything is new and so often it feels like I’m not ‘good’ at anything, when I used to be excellent at so much. I’m not sure if you are familiar with the work of Brené Brown, but I’m working on accepting the gifts of imperfection and cultivating vulnerability.
I used your email (query) as a opportunity to pause and consider where and how I am now.
Thank you for asking. You have occasionally floated through my mind over the past months like a guiding star. A bit ago I had breakfast with a couple of gals that I hadn’t seen in some time, one of whom has been divorced for some time and in her mid 50’s. She is only now starting to see the possibility of her worth, of maybe there being a future of love with someone."
--- And, "I am almost divorced, it seems like we have almost reached a settlement, though now there is some debate over the values of retirements, as if he hasn’t been earning more than me from the beginning. It is so hard not to take personal these sorts of debates and having to continually provide proof and stand up for the black and white objective truth. It is just draining and also maybe this impacts the struggle to feel worthy in the fight with someone who I loved for so long."
---- "I have been so surprised to realize that I can imagine a future with someone else, that I hold that as a possibility and a desired one. I don’t know where my life will go, but I know that I want that even though I struggle to feel worthy of that. I have a place of pain and shame perhaps from being rejected, yet I don’t believe it owns all of me." Thank you for thinking of me.
Take care, Carol (not her real name).
Making the most of ourselves
In her ten guideposts, Brene Brown, author of "The Gifts of Imperfection: Letting Go of Who We Think We Should Be and Embracing Who We Are" (Hazelden, 2010) explores "how we can cultivate the courage, compassion, and connection to wake up in the morning and think, "No matter what gets done and how much is left undone, I am enough," and to go to bed at night thinking, "Yes, I am sometimes afraid, but I am also brave. And, yes, I am imperfect and vulnerable, but that doesn't change the truth that I am worthy of love and belonging."
Here at sixtyandsingle.com, our goal is to change the way women think about retirement and give women information and tools for managing their financial lives and their retirement on their own. I also spend time commenting on singleness, how it feels and why we must embrace life in the moment with courage, emotion and enthusiasm.
I've discovered that retirement for most women is not about sitting on a beach with a good book. It's about coping with loss, dealing with change on all fronts, wrestling with financial issues, managing new relationships and trying to help the people closest to us by giving love and sharing wisdom. As the New Year begins here are a few good quotes to get us on our way.
Quotes for the new year:
- "Let go of who you think you're supposed to be and embrace who you are," Brene Brown, in "The Gifts of Imperfection."
- "It’s not that some people have willpower and some don’t. It’s that some people are ready to change and others are not. -- James Gordon
- "You have to get to the point where going for it is more important than winning or losing," -- Arthur Ashe
- "The first step towards getting somewhere is to decide that you are not going to stay where you are," -- J. Pierpont Morgan
- "When we do the best we can, we never know what miracle is wrought in our life, or in the life of another." – Helen Keller.
- "If you can’t make it better, you can laugh at it." – Erma Bombeck.
- "I’ve learned that you shouldn’t go through life with a catcher’s mitt on both hands; you need to be able to throw something back." – Maya Angelou.
"The most effective way to do it, is to do it." - Amelia Earhart.
"If you don’t like being a doormat then get off the floor." – Al Anon.
- "Anything you want to ask a teacher, ask yourself, and wait for the answer in silence." – Byron Katie.
- "It is only when we truly know and understand that we have a limited time on Earth and that we have no way of knowing when our time is up that we will begin to live each day to the fullest, as if it were the only one we had." - Elisabeth Kubler-Ross.
- "When you forgive, you heal your own anger and hurt and are able to let love lead again. It’s like spring cleaning for your heart." – Marci Shimoff.
- "Forget about the fast lane. If you really want to fly, just harness your power to your passion." -- Oprah Winfrey.
- "Your own words are the bricks and mortar of the dreams you want to realize. Your words are the greatest power you have. The words you choose and their use establish the life you experience." - Sonia Choquette.
- "Life is not measured by the number of breaths we take, but by the moments that take our breath away." -- Maya Angelou.
- "I don’t think of all the misery but of the beauty that still remains." -- Anne Frank.
- "Life should not be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, chocolate in one hand, champagne in the other, body thoroughly used up, totally worn out and screaming….. WOO HOO…. What a RIDE!”
Happy New Year,
Julia
Wednesday, December 28, 2011
Tax-sensitive and age-related rules of retirement. What you need to know.
The process of retiring in our 60s is an age-related continuum with many options along the way. Do you start taking Social Security at 62 or do you wait till full retirement age or later? How long do you keep working? And how do you make that change, "cold turkey" or by moving to part-time?
What do you do with your 401(k) nest egg if you leave the big job? When should you start withdrawing from that account? What does your financial picture look like when mandatory withdrawals kick in during your 70th year. Below are a few answers:
For me it's been a continuous learning experience as I decided to start taking Social Security in January 2011 at age 64 and moved over to Medicare and Medicare-advantage coverage when I turned 65 in October.
The age-related changes continue. However two key pieces of my planning are turning out to be different than I first assumed.
Assumption No. 1: I could pay back Social Security for the benefits received by using inheritance when my mother died. Mom hasn't died and Social Security has changed the rules, eliminating the pay-back option.
So now I'm stuck with a lower-payout rate than I would have received if I'd waited until my full retirement age of 66. I'm at peace with this decision since I really had no choice because of my "early" retirement from my full-time job nearly two years ago. The combination of part-time work and Social Security has given me flexibility to travel, do pretty much everything I want and not have to tap into my real nest egg. Meanwhile this year, I refinanced my mortgage, reorganized my insurance coverage, went on Medicare and have applied for a reduced property taxes through a forest preservation program in my county. All that has reduced my everyday household living costs.
The good news: This year I couldn't make more than $14,640 in earned income without facing reductions in 2012 Social Security benefits. Now going into 2012 -- because I'll be 66 in October -- that threshold increases to $38,880. In 2013, there will be no limit on my earnings while also collecting Social Security benefits. However, up to 85 percent of my benefits in 2011 could be subject to federal income tax depending on how much I earn from other sources. I'll keep you posted on that when I get into my 2011 tax return reporting process.
Assumption No. 2. When I planned out my next 30 years, I expected to continue to accumulate wealth through my tax-deferred 401(k), now Rollover IRA account. I should have read the rules more carefully. Yes, I understood that I would have to start making withdrawals from my Rollover IRA at age 70 and one-half. What I didn't realize is that the government dictates how much those taxable income withdrawals must be. The mandatory amounts are much greater than I planned.
In fact, if I live as long as my mother who is going on 96, the federal mandatory withdrawals will mean I'm out of savings before I die. At least that's what I think could happen. I'm going to have to adjust my strategy....save part of what I have to withdraw from my nest egg, pay taxes on it and reinvest it. It turns out that there are BIG penalties for not making the withdrawals at 70 and one-half.
For all of you with Roth IRAs, good news: You are not required to take any withdrawals from any Roth IRAs set up in your name. That's because the taxes have already been paid.
Changes in Social Security at 70
At 70, the rules also require that you start taking Social Security benefits, even if you don't want to do that. Since I am already tapping my benefits, that's not a worry for me. If you wait until 70, your deferred benefits will be higher than if you start earlier. That's a good option if you don't need those benefits and can wait, and are in good health. As will all my reporting information, check this out for yourself, make sure you understand your options and don't take anyone's word for this. I have received information from friends who think they know what they're talking about and from brokers, who should know better.
In the coming year, I will:
1. Reexamine my long-term retirement and investment strategy in light of the mandatory Rollover IRA withdrawals.
2. Continue to adjust my household expenses.. that means.cutting, leaving more money for travel.
3. Ramp up my part-time income to the maximum allowed in 2012....$38,880. It's a matter of trade-offs in time, energy and effort. Working at home has its challenges and rewards.
4. Upgrade my www.sixtyandsingle.com Web site to make it revenue positive. Another exciting year in retirement. Yahoo!!!
For more on age-related milestones, click here.
What do you do with your 401(k) nest egg if you leave the big job? When should you start withdrawing from that account? What does your financial picture look like when mandatory withdrawals kick in during your 70th year. Below are a few answers:
For me it's been a continuous learning experience as I decided to start taking Social Security in January 2011 at age 64 and moved over to Medicare and Medicare-advantage coverage when I turned 65 in October.
The age-related changes continue. However two key pieces of my planning are turning out to be different than I first assumed.
Assumption No. 1: I could pay back Social Security for the benefits received by using inheritance when my mother died. Mom hasn't died and Social Security has changed the rules, eliminating the pay-back option.
So now I'm stuck with a lower-payout rate than I would have received if I'd waited until my full retirement age of 66. I'm at peace with this decision since I really had no choice because of my "early" retirement from my full-time job nearly two years ago. The combination of part-time work and Social Security has given me flexibility to travel, do pretty much everything I want and not have to tap into my real nest egg. Meanwhile this year, I refinanced my mortgage, reorganized my insurance coverage, went on Medicare and have applied for a reduced property taxes through a forest preservation program in my county. All that has reduced my everyday household living costs.
The good news: This year I couldn't make more than $14,640 in earned income without facing reductions in 2012 Social Security benefits. Now going into 2012 -- because I'll be 66 in October -- that threshold increases to $38,880. In 2013, there will be no limit on my earnings while also collecting Social Security benefits. However, up to 85 percent of my benefits in 2011 could be subject to federal income tax depending on how much I earn from other sources. I'll keep you posted on that when I get into my 2011 tax return reporting process.
Assumption No. 2. When I planned out my next 30 years, I expected to continue to accumulate wealth through my tax-deferred 401(k), now Rollover IRA account. I should have read the rules more carefully. Yes, I understood that I would have to start making withdrawals from my Rollover IRA at age 70 and one-half. What I didn't realize is that the government dictates how much those taxable income withdrawals must be. The mandatory amounts are much greater than I planned.
In fact, if I live as long as my mother who is going on 96, the federal mandatory withdrawals will mean I'm out of savings before I die. At least that's what I think could happen. I'm going to have to adjust my strategy....save part of what I have to withdraw from my nest egg, pay taxes on it and reinvest it. It turns out that there are BIG penalties for not making the withdrawals at 70 and one-half.
For all of you with Roth IRAs, good news: You are not required to take any withdrawals from any Roth IRAs set up in your name. That's because the taxes have already been paid.
Changes in Social Security at 70
At 70, the rules also require that you start taking Social Security benefits, even if you don't want to do that. Since I am already tapping my benefits, that's not a worry for me. If you wait until 70, your deferred benefits will be higher than if you start earlier. That's a good option if you don't need those benefits and can wait, and are in good health. As will all my reporting information, check this out for yourself, make sure you understand your options and don't take anyone's word for this. I have received information from friends who think they know what they're talking about and from brokers, who should know better.
In the coming year, I will:
1. Reexamine my long-term retirement and investment strategy in light of the mandatory Rollover IRA withdrawals.
2. Continue to adjust my household expenses.. that means.cutting, leaving more money for travel.
3. Ramp up my part-time income to the maximum allowed in 2012....$38,880. It's a matter of trade-offs in time, energy and effort. Working at home has its challenges and rewards.
4. Upgrade my www.sixtyandsingle.com Web site to make it revenue positive. Another exciting year in retirement. Yahoo!!!
For more on age-related milestones, click here.
Tuesday, December 13, 2011
Sixty and single: Is a good night's sleep possible? Maybe, yes!
Women 60 and single have a lot on their minds. All of those worries, issues and concerns can come to bed with you every night and prevent you from either going to sleep or staying asleep.
In my case, I often go to sleep but find myself awake at about 1:30 or 2 a.m. I can be awake for hours reading my smart phone, playing Solitaire and lately, watching episodes of the TV series about a high school chemistry teacher gone wrong called, Breaking Bad.
Yes, I know, that show is the last thing that's going to put me into a restful state. I'm into season No. 3, most of the viewing done in the middle of the night.
News flash: Last night, I may have found a solution. Instead of doing the usual middle of the night threshing, I used Google to do a smart phone search on "getting a good night's sleep." Up popped the Mayo Clinic Sleep Center Web site on the topic, which mentioned hypnosis as a possible tool. That in turn got me to thinking about smart phone apps. I went to the apps marketplace on my phone and did a search using one word: SLEEP.
There were many many apps to choose from with a download fee, most ranging from 99 cents to $4.99, but there also are many that are free. Since I wasn't too confident on the whole thing, I choose a free app labeled "Sleep Soundly Hypnosis" offered by Kym Tolson,a clinical social worker and therapist based in Chesterfield, Va. Kym's 10-minute hypnosis sleep session worked.
With my ear buds secure, I followed her softly spoken instructions to relax, get comfortable and take my mind to an uncluttered place where I could let go and go to sleep. The first time through got me to a level of relaxation that usually eludes me. I then went to sleep before the second round ended. When did I wake up? Seven hours later. I felt restored, if not liberated.
There must be tons of people who aren't getting a good night's sleep based on the billions spent advertising sleep medications on television. I've tried a few, myself: anti-anxiety medicine, prescription sleeping pills, over-the-counter medicines such as Tylenol PM. All of them have negatives from drug hangovers to allergic skin reactions.
My strategy is going to be to use Kym's relaxation-sleep hypnosis session every night for as long as it works. The good news is that there are many more sleep apps out there that I could switch to, if this one loses its effectiveness.
For those without a smart phone, may I recommend an iPod download or some other recorded way to set up a regular nightly "going to sleep" session. For me, the result was waking up feeling sane and rested.
For me, sleep makes the difference between coping with life's challenges and not coping with them.
Based on my first late night experience, I may have found something that will work for "getting a good night's sleep." Additional resources:
National Sleep Foundation, click here.
"Ten Tips for a Good Night's Sleep without Pills," click here.
In my case, I often go to sleep but find myself awake at about 1:30 or 2 a.m. I can be awake for hours reading my smart phone, playing Solitaire and lately, watching episodes of the TV series about a high school chemistry teacher gone wrong called, Breaking Bad.
Yes, I know, that show is the last thing that's going to put me into a restful state. I'm into season No. 3, most of the viewing done in the middle of the night.
News flash: Last night, I may have found a solution. Instead of doing the usual middle of the night threshing, I used Google to do a smart phone search on "getting a good night's sleep." Up popped the Mayo Clinic Sleep Center Web site on the topic, which mentioned hypnosis as a possible tool. That in turn got me to thinking about smart phone apps. I went to the apps marketplace on my phone and did a search using one word: SLEEP.
There were many many apps to choose from with a download fee, most ranging from 99 cents to $4.99, but there also are many that are free. Since I wasn't too confident on the whole thing, I choose a free app labeled "Sleep Soundly Hypnosis" offered by Kym Tolson,a clinical social worker and therapist based in Chesterfield, Va. Kym's 10-minute hypnosis sleep session worked.
With my ear buds secure, I followed her softly spoken instructions to relax, get comfortable and take my mind to an uncluttered place where I could let go and go to sleep. The first time through got me to a level of relaxation that usually eludes me. I then went to sleep before the second round ended. When did I wake up? Seven hours later. I felt restored, if not liberated.
There must be tons of people who aren't getting a good night's sleep based on the billions spent advertising sleep medications on television. I've tried a few, myself: anti-anxiety medicine, prescription sleeping pills, over-the-counter medicines such as Tylenol PM. All of them have negatives from drug hangovers to allergic skin reactions.
My strategy is going to be to use Kym's relaxation-sleep hypnosis session every night for as long as it works. The good news is that there are many more sleep apps out there that I could switch to, if this one loses its effectiveness.
For those without a smart phone, may I recommend an iPod download or some other recorded way to set up a regular nightly "going to sleep" session. For me, the result was waking up feeling sane and rested.
For me, sleep makes the difference between coping with life's challenges and not coping with them.
Based on my first late night experience, I may have found something that will work for "getting a good night's sleep." Additional resources:
National Sleep Foundation, click here.
"Ten Tips for a Good Night's Sleep without Pills," click here.
Friday, December 9, 2011
Medicare, Social Security, part-time work, guardianships. You name it.
As 2011 winds to a close, I'm feeling a need to update my readers at sixtyandsingle.com. You may have noticed that my posts have been a bit further apart as I continue to try to balance demands on my time from my freelance work as a business news writer, from family, my transition to retirement and travel with Ken.
In January, I started taking Social Security benefits. In October, I marked my 65th birthday...half way to 70! That meant signing up for Medicare. When people ask me what I'm doing since leaving the full-time job at the newspaper, I say I'm semi-retired. The reality is that I'm doing about as much writing as I did on the job. The difference is that I don't have a bunch of meetings to go to all day long. I write more about what I'm really interested in and less of the boring stuff. Nevertheless, the pace is hectic.
My freelance work is a top priority because the part-time income is allowing me to postpone taking money out of my rollover IRA. The IRA earnings only are taxable when I reach 70, so I'm trying to let the nest egg grow untapped until I really need it. Meanwhile, the weekly deadlines keep coming around.
Since I retired earlier than my full retirement age as determined by Social Security, I have to keep my freelance earnings at about $14,000 a year. This is a bit of self-imposed financial hardship. I'm definitely on a budget. If I go over that limit, Social Security will hold back benefits until I reach full retirement age.
Studying to be a guardian
My family has also been eating up my time. Right now, I'm taking an online guardianship training class offered by the Idaho Supreme Court to prepare me to become my mother's guardian. This preparation is in response to a court petition by my bi-polar sister who is asking the court to make her my mother's guardian. This move blind-sided everyone including my mother's long-time attorney and my mother...who had been telling my sister for months that she didn't want a guardian.
All this happened after my mother fell at home and broke a hip. After hip-replacement surgery my mother spent nearly three months in convalescent care. When it came time to make a move from there, my mother decided to slide over to the assisted living unit in the same facility. It was a difficult decision not to go home but that became less of an issue since my sister meanwhile had torn out the farm house bathroom for a remodel. The project wasn't finished. Other issues complicated a move home. Among them that my mother's doctor said she needed 24-7 care to keep her from falling. The cost of that care at home would have been around $11,000 a month. Assisted living is running more like $4,500 a month.
While my mother still wishes she could be at home, she's telling me that she "prefers" to stay where she is. When she falls...there's someone there to pick her up. That happened twice in the past 10 days.
Meanwhile my sister's petition to be mom's guardian is alive in the local court system. I'm expecting there will be a hearing in January. The interesting thing is that in most, if not every state, all attorneys involved in such a case can submit their fees to the estate of the person (my mother, in this case) who would become a ward of the guardian. My sister's attorney, my mom's attorney and my attorney (oh yes, I've got to have my own lawyer) all are paid by my mother's trust, now managed by a bank.
The bill will be at least $10,000 but could be much more if we get into a "court like" contested hearing. The sad thing is that mother has tried to do all the right things....setting up a power of attorney, if she needed that. Setting up power of attorney for health care decisions. Putting her assets in a bank trust. An ordinary family would typically have come to some agreement about what was best for mom with her as a lively participant in the decision. Does she need a guardianship? If you look at the history of the past several years: There's been "serial" rounds of power of attorney assignments. There's been undocumented spending out of her checking account. She's not had control of her check book for a year. She doesn't know how much money is in her checking account and can't see well enough to read documents or know what she's signing.
At 96, she probably does need a guardian. The court will decide who that is.
Rehab on the ol' barn
On the farm front, we've just learned that we've won a grant from the Washington Archaeological & Historic Building Preservation Department to put more effort and material into saving our 1920s historic barn here on the farm. The work will involve new support beams, new footings and a drain around the upper side of the structure to manage water runoff. It's an exciting project, which will get started next spring.
Right this minute, we've got lots of plans for the holidays with gift-buying well under way.
New topics coming up at sixtyandsingle.com:
- How to get the best deal on insurance.
- Communal living for women, 60 and on their own.
- How to sell stuff your kids don't want.
- How the demographics are changing -- 80 is the new 65.
- Revisiting 5 Steps to a successful retirement.
Please send your ideas to grinnellroadfarm@gmail.com.
Thanks
www.sixtyandsingle.com
Julia
In January, I started taking Social Security benefits. In October, I marked my 65th birthday...half way to 70! That meant signing up for Medicare. When people ask me what I'm doing since leaving the full-time job at the newspaper, I say I'm semi-retired. The reality is that I'm doing about as much writing as I did on the job. The difference is that I don't have a bunch of meetings to go to all day long. I write more about what I'm really interested in and less of the boring stuff. Nevertheless, the pace is hectic.
My freelance work is a top priority because the part-time income is allowing me to postpone taking money out of my rollover IRA. The IRA earnings only are taxable when I reach 70, so I'm trying to let the nest egg grow untapped until I really need it. Meanwhile, the weekly deadlines keep coming around.
Since I retired earlier than my full retirement age as determined by Social Security, I have to keep my freelance earnings at about $14,000 a year. This is a bit of self-imposed financial hardship. I'm definitely on a budget. If I go over that limit, Social Security will hold back benefits until I reach full retirement age.
Studying to be a guardian
My family has also been eating up my time. Right now, I'm taking an online guardianship training class offered by the Idaho Supreme Court to prepare me to become my mother's guardian. This preparation is in response to a court petition by my bi-polar sister who is asking the court to make her my mother's guardian. This move blind-sided everyone including my mother's long-time attorney and my mother...who had been telling my sister for months that she didn't want a guardian.
All this happened after my mother fell at home and broke a hip. After hip-replacement surgery my mother spent nearly three months in convalescent care. When it came time to make a move from there, my mother decided to slide over to the assisted living unit in the same facility. It was a difficult decision not to go home but that became less of an issue since my sister meanwhile had torn out the farm house bathroom for a remodel. The project wasn't finished. Other issues complicated a move home. Among them that my mother's doctor said she needed 24-7 care to keep her from falling. The cost of that care at home would have been around $11,000 a month. Assisted living is running more like $4,500 a month.
While my mother still wishes she could be at home, she's telling me that she "prefers" to stay where she is. When she falls...there's someone there to pick her up. That happened twice in the past 10 days.
Meanwhile my sister's petition to be mom's guardian is alive in the local court system. I'm expecting there will be a hearing in January. The interesting thing is that in most, if not every state, all attorneys involved in such a case can submit their fees to the estate of the person (my mother, in this case) who would become a ward of the guardian. My sister's attorney, my mom's attorney and my attorney (oh yes, I've got to have my own lawyer) all are paid by my mother's trust, now managed by a bank.
The bill will be at least $10,000 but could be much more if we get into a "court like" contested hearing. The sad thing is that mother has tried to do all the right things....setting up a power of attorney, if she needed that. Setting up power of attorney for health care decisions. Putting her assets in a bank trust. An ordinary family would typically have come to some agreement about what was best for mom with her as a lively participant in the decision. Does she need a guardianship? If you look at the history of the past several years: There's been "serial" rounds of power of attorney assignments. There's been undocumented spending out of her checking account. She's not had control of her check book for a year. She doesn't know how much money is in her checking account and can't see well enough to read documents or know what she's signing.
At 96, she probably does need a guardian. The court will decide who that is.
Rehab on the ol' barn
On the farm front, we've just learned that we've won a grant from the Washington Archaeological & Historic Building Preservation Department to put more effort and material into saving our 1920s historic barn here on the farm. The work will involve new support beams, new footings and a drain around the upper side of the structure to manage water runoff. It's an exciting project, which will get started next spring.
Right this minute, we've got lots of plans for the holidays with gift-buying well under way.
New topics coming up at sixtyandsingle.com:
- How to get the best deal on insurance.
- Communal living for women, 60 and on their own.
- How to sell stuff your kids don't want.
- How the demographics are changing -- 80 is the new 65.
- Revisiting 5 Steps to a successful retirement.
Please send your ideas to grinnellroadfarm@gmail.com.
Thanks
www.sixtyandsingle.com
Julia
Monday, November 28, 2011
Retirement budgeting. How to save big bucks.
Staying on a budget is no small task especially with those cyber bargains are just a couple of clicks away. But year-round budgeting and cost cutting are the only ways to improve our financial profiles in the face of a fixed retirement income. For me it's about "finding" more money for travel, for enjoying my kids and grandson. It's about more money to do the things I want to do. I accept the need to cut back on certain expenses in order to have more money to spend elsewhere.
This won't be easy since I have always been what I call "careful." There's not a lot of wiggle room in my budget for more household cost-savings. But here's what I've done this year:
- Refinanced my mortgage loan from 6.1 percent to 3.7 percent for a monthly savings of $300.
- Signed up for Medicare and bought a supplemental coverage plan that cut my health insurance costs from nearly $400 a month to about $200 a month. This happens at age 65.
- Cut back on credit card spending related to clothing and eating out. Everything gets paid off, monthly.
- Negotiated for free barn siding through Washington state's Heritage Barn preservation program for a rehab project on our old 1920s barn where we store hay for the horses. I have applied for a grant for more work on the barn in the coming year.
- Consolidated home and car insurance coverage through a new brokerage firm with higher deductibles and other savings. Costs went down by several hundred dollars a year.
- Continued to work part-time rather than tap my "nest egg" IRA rollover savings. So far, so good.
- Shopped discount clothing stores and recycle stores such as Goodwill and a great Seattle store called Gather for real bargains. My best score was a clever, like-new vest with faux fur lining.
- Looked for cheaper entertainment options at smaller theaters in the Portland-Vancouver urban area where tickets are $15 to $25 per person rather than $75 and up. My toughest decision was deciding $100 tickets to attend a "Journey" concert in October were too expensive. Cheaper venues include the Alberta Rose Theater and the Aladdin Theater in Portland and the Old Liberty Theater in Ridgefield, Wash.
- PS: I dumped my satellite TV hook-up a few years ago. Cost savings: $600 a year.
There are still danger zones. I can spontaneously go off budget on clothing, eating out, my kids and gifts. But I am determined in the coming year to make more progress on cost-cutting.
Brett Arends, writing at Fidelity.com and the Wall Street Journal has come up with a list of great ways to save money. Here are a few of his ideas along with my editing and embellishments.
- Use loyalty programs aggressively to get discounts on car rental, air travel and other deals. Credit cards sometimes offer huge bonuses like a free airline ticket to new customers.
- Switch banks and credit-card companies for less expensive services. Drop cards that charge fees.
- Cut the frequency of services such as pedi-cures and house cleaners.
- Leave the car in the garage, ride a bike.
- Axe the landline and switch to a new Internet and phone provider.
- Refinance the mortgage home. (see above).
- Team with trusted friends or neighbors to make purchases through warehouse clubs.
- Don't pay someone else to do what you can do yourself. Your federal taxes, for instance. Home maintenance, for another.
- Use eBay and Craigslist more.
- Cut back on new books. Download classics from Gutenberg.org for free. Sell books back to Powell's Book Store in Portland or to Amazon.com.
- Use last minute websites such as vacationstogo.com to find savings on vacation deals. Swap your house instead of paying for a hotel.
- Go green. Stop wasting hot water and cut your heating bill by purchasing new lower-flow aerator showerheads and using cold water to wash clothes. Slowly move to LED and CFL lighting in your home. By a "smart strip" to turn off peripheral electronics when not in use.
- Volunteer to get in to music events for free.
- Go to happy hour for lower prices on drinks and food plates.
- "Return sanity to the holidays," say Arends. Set a budget, swap oraments instead of spending big bucks on gifts people may not need or want.
Good luck, Julia.
This won't be easy since I have always been what I call "careful." There's not a lot of wiggle room in my budget for more household cost-savings. But here's what I've done this year:
- Refinanced my mortgage loan from 6.1 percent to 3.7 percent for a monthly savings of $300.
- Signed up for Medicare and bought a supplemental coverage plan that cut my health insurance costs from nearly $400 a month to about $200 a month. This happens at age 65.
- Cut back on credit card spending related to clothing and eating out. Everything gets paid off, monthly.
- Negotiated for free barn siding through Washington state's Heritage Barn preservation program for a rehab project on our old 1920s barn where we store hay for the horses. I have applied for a grant for more work on the barn in the coming year.
- Consolidated home and car insurance coverage through a new brokerage firm with higher deductibles and other savings. Costs went down by several hundred dollars a year.
- Continued to work part-time rather than tap my "nest egg" IRA rollover savings. So far, so good.
- Shopped discount clothing stores and recycle stores such as Goodwill and a great Seattle store called Gather for real bargains. My best score was a clever, like-new vest with faux fur lining.
- Looked for cheaper entertainment options at smaller theaters in the Portland-Vancouver urban area where tickets are $15 to $25 per person rather than $75 and up. My toughest decision was deciding $100 tickets to attend a "Journey" concert in October were too expensive. Cheaper venues include the Alberta Rose Theater and the Aladdin Theater in Portland and the Old Liberty Theater in Ridgefield, Wash.
- PS: I dumped my satellite TV hook-up a few years ago. Cost savings: $600 a year.
There are still danger zones. I can spontaneously go off budget on clothing, eating out, my kids and gifts. But I am determined in the coming year to make more progress on cost-cutting.
Brett Arends, writing at Fidelity.com and the Wall Street Journal has come up with a list of great ways to save money. Here are a few of his ideas along with my editing and embellishments.
- Use loyalty programs aggressively to get discounts on car rental, air travel and other deals. Credit cards sometimes offer huge bonuses like a free airline ticket to new customers.
- Switch banks and credit-card companies for less expensive services. Drop cards that charge fees.
- Cut the frequency of services such as pedi-cures and house cleaners.
- Leave the car in the garage, ride a bike.
- Axe the landline and switch to a new Internet and phone provider.
- Refinance the mortgage home. (see above).
- Team with trusted friends or neighbors to make purchases through warehouse clubs.
- Don't pay someone else to do what you can do yourself. Your federal taxes, for instance. Home maintenance, for another.
- Use eBay and Craigslist more.
- Cut back on new books. Download classics from Gutenberg.org for free. Sell books back to Powell's Book Store in Portland or to Amazon.com.
- Use last minute websites such as vacationstogo.com to find savings on vacation deals. Swap your house instead of paying for a hotel.
- Go green. Stop wasting hot water and cut your heating bill by purchasing new lower-flow aerator showerheads and using cold water to wash clothes. Slowly move to LED and CFL lighting in your home. By a "smart strip" to turn off peripheral electronics when not in use.
- Volunteer to get in to music events for free.
- Go to happy hour for lower prices on drinks and food plates.
- "Return sanity to the holidays," say Arends. Set a budget, swap oraments instead of spending big bucks on gifts people may not need or want.
Good luck, Julia.
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