Category: Retirement

Did you know that you have rights to appeal decisions made by the Social Security Administration on your behalf?  It’s true.

Let’s say that you’re being paid something less than you believe you are due. You’ve reached out to them via their toll-free number and you’ve been told what you’re being paid is right… but you are convinced it should be different.

If that scenario sounds familiar it’s because you aren’t alone. As of 2015, nearly 60 million U.S. citizens were paid nearly $900 Billion in benefits… and there were plenty of complaints that the numbers were off.

So the Social Security Administration has created a specific appeals process. Be prepared to spend a little money and time walking through the process but can be worth it… as of the writing of this article, the Social Security Department has publicly declared that if there are mistakes they want to address them.

What you need to know is that there are 4 appeal levels.

Reconsideration

This offers a comprehensive review of your situation by agents at the Social Security Administration who didn’t take part during the past evaluations. They will closely examine all the facts of your situation and why the benefits were set at your current levels. Sometimes, you may have an opportunity to submit additional information.

Administrative Law Judge

Assuming Reconsideration doesn’t go your way, the next step is to go before an Administrative Law Judge. Whenever possible, the Social Security department prefers to have meetings within a 75-mile radius of your location. If that’s a hardship, the case will be heard via an alternate method such as videoconference.  As in the “Reconsideration” stage, the judge has zero prior experience with your case or the original decision that you’re appealing.

The ALJ (Administrative Law Judge) will review the merits of the case. You’ll have the opportunity to bring witnesses and the judge may ask them questions. The judge may also call on experts to help clarify concerns.

Appeals Council

If the hearing before the Administrative Law Judge doesn’t go in your favor, the next step is to bring your case before the Social Security Department’s Appeals Council. Comprised of 3 members, this is the last review that can occur inside the Social Security Administration. They can hear your case, simply make a finding, or refer it back to an Administrative Law Judge for further review.

Federal Court

This is the final stage assuming all other appeal methods have been exhausted. At this point the decision making process is removed from the Social Security Department and placed in the hands of a Federal Court. Lose your case here and you have no more rights to appeal.

Should you be considering having your benefits case reviewed, here are some extra things to remember:

 

• You have 60 days to appeal starting on the date you received the Social Security decision.
• If you miss a deadline, tell the Social Security department why you were late and they may be able to still grant an appeal.
• You can have an attorney to help you organize your case and testimony. The Social Security Department strives to work with your representative. But you can just as easily have a good friend or family member also represent you while the process is internal to the Social Security Department.
• To start an appeal, there is a special form that should be submitted. Simply ask for the form when speaking with a Social Security representative.
• Bear in mind the appeals process can be quite lengthy.

Just in case, here’s a direct link to the Social Security Department’s Request for Reconsideration website page: https://www.ssa.gov/forms/ssa-561.html

And remember that if you are feeling squeezed by a Social Security Department finding, be sure to talk with your financial advisor and independent insurance agents to help you minimize expenses and get the best coverage for your specific situation.

Whether you’ve been out of the workforce for a while due to caregiving duties, or are a retiree who craves the stimulation of daily work and wants to get back in the game, there is a job waiting for you—you just have to find it.

Start by networking with your former coworkers.  Younger subordinates have likely advanced in your absence and may now be in positions where they have an influence on hiring decisions. Reconnect and let them know you’re looking for a way to reenter the workforce. If they don’t know of a suitable opportunity at their current place of employment, they may have valuable connections at other establishments that are hiring.

Consider enlisting professional help. Whether you’ve been away from your chosen field for a few years or more than a decade, a career coach or formal reentry program can provide helpful support as you update your resume, apply for jobs and prepare for interviews. You may also want to connect with your college’s alumni network and any trade associations connected to your field.

Take time to update your skills as well. If you’re unfamiliar with the latest software and other tech used in your field, you’re going to have a difficult time competing with younger jobseekers. You may be able to learn much of what you need through free online tutorials and manuals. However, depending on the position you seek, earning new certifications and taking a few college courses may be necessary.

Prepare yourself for today’s workplace culture. The offices and organizations of today function a bit differently than those of thirty, twenty or even ten years ago. Email, instant messaging and video chat are commonly used communication tools among coworkers. Work-life balance is highly valued, and flexible schedules and remotely work opportunities are often prized. The more you know about these (and other) workplace trends and can demonstrate your comfort with them, the easier it will be for you to land a job.

Consider an internship or temporary job to get your foot in the door.

If you’re finding it difficult to get a new job after your hiatus, an internship or temporary assignment is a great way to prove to potential employers that you have the hard and soft skills required to succeed today despite your time away from the field. In fact, some major companies have developed apprenticeship and internship programs specifically for senior workers.

Less than half of retired Americans are very satisfied in their retirement according to a new study by the Employee Benefit Research Institute. Only 48.6 percent currently report that their retirement has been “very satisfying” (down from 60.5 percent in 1998), while those reporting their experience as “not at all satisfying” has increased to 10.5 percent (from 7.9).

While this downward trend was seen in every economic group, higher retirement satisfaction was still positively correlated with net worth and good health. If you’d like to be among the most satisfied in your golden years, you’ll need an aggressive savings plan as well as a willingness to explore a few of these adventurous suggestions to get more enjoyment out of your retirement.

Make your own excitement. Imagine all the things you can do once you’re no longer obligated to punch a time clock every workday. Forty hours a week is more than enough to write a book, learn a new language, take up an instrument, mentor young professionals, help those less fortunate or pursue any other passions you’ve previously ignored for lack of time.

Reconnect with old friends. Busy lives naturally create distance in all but the closest relationships, and chances are good that you’ve lost touch with a few friends over the years. Now that you’re retired, it’s time to reach out and reestablish those connections. Social media platforms such as LinkedIn and Facebook are great tools for locating old chums. If you don’t know how these sites work, your grandkids will probably enjoy showing you how to use them.

Build a few new friendships as well.Research has shown that a strong network of friendships can help ward off depression, improve health and lead to a longer life. You can meet potential new friends while volunteering for charity, working a part time job, taking a class, exercising at the gym, hiking the local trails, walking in the park or attending community events. Look for senior meet ups all over the world here, or find interesting volunteer opportunities in your area here.

Don’t get too attached to a routine. We all tend to be creatures of habit, and it’s far too easy to exchange the daily work grind for a repetitive post-retirement routine. Unfortunately, doing the same things over and over again, day after day and week after week, can lead to boredom and a decline in overall happiness and satisfaction. Spontaneity is the antidote. You can inject a bit of it into your everyday life by trying out new hobbies, checking out new restaurants, visiting new cities, traveling to new countries, or even doing something as simple as taking a different route home from the grocery store.

Whether you’re still years away from retirement or have already collected your last paycheck, it’s never too late to improve your retirement savings plan. We’re here to help you review investments, explore options, and make certain you get as much satisfaction out of your senior years as possible.

According to TransUnion, one of the nation’s three major credit reporting companies, many seniors undervalue the importance of their credit score after retirement. Their recent survey of more than 1,000 Baby Boomers found that nearly half of them believe this vital number matters less after the age of 70. Though 70 percent agreed that a high credit score is important when refinancing a mortgage, only 62 percent realized it is also important when co-signing a loan. A mere 32 percent understood that their credit score might be considered when they apply for nursing home care or move into a long-term care facility.

If it has been awhile since you purchased a home or car, or bought homeowner’s or auto insurance, you probably haven’t thought much about your credit score in some time. Unfortunately, if you haven’t been making mortgage or auto loan payments, or using your credit cards regularly, it’s very possible your score has declined. In fact, avoiding the use of credit in retirement can actually cause your credit report to become so sparse that you lose your score entirely. This can make it virtually impossible to obtain credit again should you need it.

Because much of your credit score is based on active credit, you should talk to your financial advisor about adding credit utilization to your financial plan. Payment history accounts for 35 percent of a credit score, while the amount you owe counts for 30 percent. The length of your credit history will make up 15 percent of your score, new credit 10 percent, and the types of credit you have in use 10 percent.

If your score has fallen over the years, there are steps you can take to improve it. Your financial advisor may have additional suggestions, but you can start by:

• Asking for a limit increase. Credit cards with low balances and high credit limits can boost your credit score. Periodically ask your credit card issuers to increase your limits.
• Keeping your accounts open. It may be tempting to close accounts you haven’t used in years, but cancelling them will reduce the amount of credit you have available. This can decrease your credit score.
• Checking your credit report. Missed payments, late payments and collections all reduce your credit score. Review your report every year (you can get one for free at annualcreditreport.com) to look for errors. If you notice debt that isn’t yours, you may be a victim of identity theft. And if there are payments reported as late or missing that were actually on time, you can ask the reporting agency to make a correction.

If you’ve avoided credit for so long that you no longer have a credit score at all, you may want to get a secured credit card through your bank. A secured card allows you to deposit money into an account that becomes your line of credit. Using the card regularly and responsibly will help you rebuild your credit history over time.

Full time retirement by the age of65 is no longer the tradition it once was. According to the Employee Benefit Research Institute’s 2016 Retirement Confidence Survey, only 24 percent of workers expect to retire before they’re 65 years old. Twenty-six percent expect to retire at the age of 65, while 37 percent next to wait until later in life before retiring. Six percent say they don’t plan to retire at all.

In many cases—67 percent, in fact—retirees plan to continue to do some work for pay. Their reasons are many and include:

• Want to stay active and involved (82 percent)
• Enjoy working (80 percent)
• Want money to buy extras (57 percent)
• Need money to make ends meet (51 percent)
• Decrease in the value of savings/investments (43 percent)
• Want to keep health insurance or other benefits (32 percent)

Fortunately, if you’re among these seniors who just aren’t ready for full time retirement, you have plenty of options.

Phased Retirement

Some employers allow senior workers to gradually cut back their hours, slowly reducing the number of days per week or hours per day they work. It’s a simple way to ease yourself into retirement over a number of months or even years. Ask your company’s human resources or benefits department for more information on the process. And talk to your financial planner about how to phase in your retirement income as you phase out that regular paycheck.

Part-Time Retirement

Maybe your current job won’t let you cut back your hours. Or perhaps you want to try something totally new. A part-time job may be the answer. You’ll earn extra income, feel more connected to the world around you, and may even learn new skills. Required hours will vary depending on the type of job and employer you choose, but will most likely range between 10 and 30 a week. If you’re collecting Social Security benefits at the time, you’ll want to talk to your financial planner about how part-time work may affect them.

Seasonal Retirement

Let’s say you love to travel to warmer climates during the winter but enjoy your hometown during the summer. As long as your savings and investments are generating adequate retirement income, you can choose to switch from retirement to part- or full-time work on a seasonal basis. Employers that regularly need seasonal workers include parks, summer camps, recreation centers, outdoor pools, ski resorts, campgrounds and other tourist sites, and retail establishments (especially during the holiday shopping season). Again, talk to your financial planner about the effect any earnings will have on the retirement benefits you may be currently collecting.

Mini Retirement

These days, there are few—if any rules—when it comes to retirement. For example, you don’t have to work until you decide you just cannot work anymore before you take some time off to enjoy yourself. If you need more than a two-week vacation to travel, spend time with your family or pursue a hobby, you can take a mini retirement of several months to a year. Talk to your financial planner about the feasibility of dividing your traditional retirement into a number of mini ones instead.

Many Americans are financially unprepared for retirement. According to the Economic Policy Institute’s latest study, nearly 50 percent of working-age families have nothing saved in retirement accounts, and the median amount for the rest is only $5,000. Whether this describes your personal financial situation or not, it makes sense to save money where you can. For those over the age of 55, senior discounts are one way to do so.

1. Ask about senior discounts when shopping for clothing.

Kohl’s offers seniors age 55 and up a 15 percent discount on their purchases every Wednesday. Ross Stores offer seniors a 10 percent discount on Tuesdays. TJ Maxx, Goodwill and Salvation Army Thrift Stores also have senior discount days during the week.

2. Ask about senior discounts at the gym.

Regular exercise can improve your immune system and cardiovascular function as well as help you maintain bone density and lower your risk of diabetes and dementia. SilverSneakers is a no-cost fitness benefit—providing access to fitness classes and equipment at more than 13,000 gym locations across the U.S.—available to seniors with Medicare and some other group health plans.

3. Ask your utility companies about senior discounts.

Some utility providers offer discounted rates for senior customers based on age and income. Contact your gas, electric, water, sewer, phone, cable and Internet providers to find out if discounts are available and what you need to do to be eligible.

4. Ask about senior discounts at the movie theater.

Most big movie theater chains offer senior discounts. For example, visit an AMC Theatre and you can get 30 percent off your ticket price every day. Regal Cinemas offer a 30 percent discount to seniors as well. Some Cinemark and Century Theaters extend 35 percent off to seniors.

5. Ask about senior discounts at any National Park.

Whether you prefer to enjoy the great outdoors from the comfort of your car or like to hike, fish or camp, you can purchase aSenior Pass from the National Park Service for $10. You must be 62 years old or older, but the pass is good for the remainder of your lifetime at any federal recreation site or national park. At some locations, you’ll receive a 50 percent discount on amenity fees charged for facilities and services as well.

6. Ask about senior discounts at the grocery store.

Stock your refrigerator on the first Wednesday of the month and you’ll receive 10 percent off from Kroger if you’re at least 60 years old. Publix offers 5 percent off to seniors 60 and older every Wednesday.

7. Ask about senior discounts when traveling.

Many seniors choose to spend their golden years traveling, and they can save money while doing so. Most cruise lines offer discount rates to travelers who are 55 years old and older. If you prefer to journey by train, Amtrak offers seniors 62 years old and older a 15 percent discount. You can also find discounts on bus and plane travel.

As Dorothy said in the Wizard of Oz, “There’s no place like home.”The statement holds true for both 18- and 80-year-olds, and these days more of the latter are choosing to remaining in their residences rather than move into retirement communities. Known as “aging in place,” this requires the ability to remain independent and live safely in one’s own home. It’s a goal anyone can attain—provided they’ve properly planned to do so. Here are a few steps to get you started.

Evaluate your current and future health. While you can’t know for certain how your needs may change in the future, your current health can provide clues. Talk to your doctor about any chronic illnesses or issues you’re dealing with and the effect they may eventually have on your mobility and mental state. Depending on your situation, you may only need a little assistance with shopping, preparing meals or remembering to take your prescriptions in order to remain safely in your own home as you age.

Research sources of assistance. If you have family and younger friends in the area, they may be willing to help you out with day-to-day activities. If you don’t, you can still find someone to provide any kind of assistance you may need.

Personal Care – If you need help bathing or dressing, look for a part-time personal care aide.

Health Care – If you need help remembering to take medications, monitoring your vitals, completing rehab exercises or maintain medical equipment for a chronic condition, you may need to hire a home health aide.  Medicare may even pay for the service.

Homemaking – If you find it difficult to get to the grocery store, you can look into delivery services for both food and household items. A cleaning service can help you keep your home in tip-top shape, and a landscaping company can keep your yard neat and tidy.

Cooking – Meal delivery programs bring healthy, nutritious meals right to your door. You might also find a nearby senior center with a cafeteria, or hire a home care aide who will also assist you with meal preparation.

Modify your home as necessary. To remain safely in your home as you age, you may need to make a few modifications.  Consider installing a ramp to your front door, removing floor rugs, and adding grab bars in the tub or shower. Add extra light switches and nightlights in hallways, ensure stairways have sturdy handrails, and remove raised doorway thresholds. These and other changes can reduce your chances of dangerous falls.

Consider possible emergencies. If you suffer a fall or become ill, prompt treatment can be essential to a full recovery.  But if you’re living alone, you may not be able to easily get to a phone. Consider investing in a medical alert device that will enable you to alert the proper authorities at the touch of a button. You can find the top ten Consumer Affairs recommended services here.

You should also prepare a durable power of attorney for healthcare. This legal document will enable you to name a proxy to make healthcare decisions for you if you ever become too ill or otherwise unable to speak for yourself.

Prepare for the cost. Some of the services and products you need to age in place may be covered by Medicare, Medicaid, private health insurance or long-term care insurance. Talk to each of your insurance providers about coverage under your policies. In the long run, even paying for some assistance out of pocket could cost you less than moving to an assisted living or nursing home would.

Depending on your situation, you may also be eligible for Federal, State and local government benefits. You can find out more about the possibilities at www.benefits.gov. You may also want to search the National Council on Aging’s benefits website for additional options.

Whatever your age, it’s never too early to plan for the future. Contact us today for retirement planning assistance.

According to data from the Pew Internet and American Life Project, 43 percent of Internet surfers age 65 and up report using social media. This number has more than tripled since 2009, with seniors increasingly turning to websites like Facebook to stay in touch with family and friends, view pictures of their grandchildren, and connect with others who have similar hobbies and interests.

 

While baby photos, funny cat videos, and the details of your cousin Velma’s hip surgery are all excellent sources of entertainment, social media has another use many seniors overlook: saving money. It’s not a secret that you’re among the fastest growing social media demographic, and retailers have taken note. Many are feverishly promoting their brands and products on Facebook, Twitter and within other social media sites and cell phone apps. Consider the following suggestions to help you reap the rewards.

 

Give Them a Thumbs-Up

You’ve seen the little symbol of a hand giving a thumbs-up on Facebook. The number next to it indicates how many people have clicked the “Like” button on a specific post or page—and you should consider joining them. When you “Like” a store or brand, you’ll soon notice special offers, coupons and sales notices popping up within your news feed. Many of these promotions are for Facebook fans only—and often for a very limited time—so paying attention is an easy way to save at your favorite retailers or on products you use regularly.

 

Get to Tweeting

Unlike many celebrities, you have better things to do than broadcast 140-character messages about what you ate for lunch or dreamt about during a nap. You’re retired not insane, after all. However, Twitter can pay off if you think of this social media site as a constantly updating news ticker where you control the content. Follow money experts for tips and advice. Follow the AARP for news and exclusive discount opportunities. Follow your favorite retailers and brands for money saving deals.

 

Don’t Hesitate to Check In

The popular social review site, Foursquare, can be used to “check in” at restaurants, stores and other vendors and retailers you visit. Doing so requires a GPS equipped cell phone (most are these days) and the Foursquare app (it’s free), but the installation is well worth it. Many establishments use Foursquare as a digital loyalty card, presenting frequent visitors with money saving in-app coupons. The more times you check in, the greater the reward.

Preparing for retirement requires more than just socking money away in savings and investment accounts. You must also deal with the various factors that will inevitably take a bite out of your carefully tended nest egg. These include common considerations like annual taxes and increasing inflation as well as (potentially) decreasing social security income. Unfortunately, many seniors stop there and fail to address the biggest risk to their post-retirement financial heath: a long-term care event.

 

Long-Term Care is Costly

According to DailyFinance.com, long-term care in an assisted living facility costs an average of $3,300 per month. An expense like that will devour $120,000 in savings in a little more than three years. A private room in a nursing home is even more expensive, averaging $222 a day. And these costs are likely to go up—they’ve already increased 6 percent annually over the last five years.

 

Fortunately, Seniors Have Options

If the idea of spending all your assets in the event that you develop a medical condition—like Alzheimer’s—is horrifying to you, take heart. Other options include relying on a family member to provide in-home care and buying long-term care insurance. Many seniors prefer the latter, and surveys have shown that “I don’t want to be a burden to my family” is often the main reason they choose to make a long-term care insurance purchase.

 

Long-Term Care Insurance Offers Nest Egg Protection

Health insurance and Medicare are of little use in a long-term care situation. They cover immediate medical expenses, while long-term care insurance helps with the costs of continuing care. Most plans cover out-of-pocket expenses—from dressing and bathing assistance to skilled nursing—associated with home care, assisted living facilities and nursing homes.

You can purchase long-term care insurance as an individual policy or as part of a group plan. Many employers offer a group long-term care insurance option as a supplementary benefit. If you’re not yet retired and your employer offers such a benefit, purchasing coverage through it will likely result in a premium that is lower than that of an individual plan. You can also forgo medical underwriting.

Of course, purchasing long-term care insurance as an individual is better than forgoing coverage at all. Premiums will be higher and increase steadily after the age of 60, as much as 6 percent to 8 percent per year under some plans. The underwriting process can also be quite thorough, including medical record review and memory recall tests to screen for age-related cognitive decline. And unlike health insurance, you can be denied coverage. For this reason the best time to apply, according to the American Association for Long-Term Care Insurance, is in your mid-50s.

Don’t let a degenerative health condition, advancing age or unexpected accident ruin your golden years. Experts say the probability of needing long-term care is one in two for women and one in three for men. If you’ve yet to consider the benefit of this nest egg-protecting tool, talk to your insurance professional about your coverage options.

One of the most vital decisions to ensure preserved legacy and proper estate execution is electing the right professional or family trustee for investing and properly distributing your estate. Being well-organized, well-rounded, and functionally capable of administrating your trust as per the document, and having a clear history of integrity concerning investment and legal issues are desirable characteristics of a trustee. Whether or not the family member named as the trustee is willing and capable of undertaking the long-term responsibility necessary to manage your trust assets is a big consideration. The family member can always hire a tax professional, lawyer, estate professional, or financial planner to assist them. However, you should still be confident that the selected trustee has sufficient financial skills and temperament to make quality decisions that will best benefit the well-being of your family. Most estate experts favor designating trusteeship to an adult child or spouse, just so long as there’s a cordial family dynamic and the relative shows financial competency.

Aside from financial know-how, common reservations frequently involve the health of potential trustees and rivalries or conflicts among primary family members. These reservations may spur concern beyond whether the potential trustee has the knowledge of applicable financial matters, and create questions of whether potential trustees have the emotional stability and diplomacy skills to serve as sole trustee of your estate. In the event that you have even the slightest reservation about fully trusting a family member to solely execute your estate, you might consider obtaining the services from a professional trustee; a trust company for example.

The following elements and information might be helpful for those considering pursuing a professional trustee, such a corporate fiduciary or a bank:

 

Select A Professional Trustee For Complex and Larger Estates

Most people are usually more likely to name a family member as a trustee in cases where their estate is small and financially simple. On the other hand, people with a large or financially complicated estate that’s difficult or overwhelming to administer are more apt to benefit from utilizing a professional trustee with the necessary skill, knowledge, and time needed to properly manage the complex interpersonal, tax, and investment issues of the trust.

 

Consider A Professional Trustee When Family Members Lack Good Dynamics And Financial Skills

After evaluating the dynamics of your family and the financial skills of potential trustees in relation to tax management and securities, you might find that potential familial trustees lack the ability to carry out the provisions and terms of the trust in a manner that would best suit the needs of the beneficiary, such as in minimizing estate and income taxes and investing funds for a maximum return. If you lack confidence that your family can get along or oversee the trust in a manner that best benefits your named beneficiaries, you might consider naming a family member as a co-trustee to a professional trustee -or- naming a professional trustee as sole trustee.

 

Choose A Trustee Based Off The Intent And Purpose Of Your Trust

Evaluate the intent and purpose of your trust, assess professional fees, and choose a professional trustee accordingly. For example, a trust with an objective to oversee asset distribution to minor and young children, might be best accomplished under a professional trustee that is keen and flexible to the evolving needs of the trust. Another consideration might be having a professional co-trustee to serve as a check and balance system for decision making in larger estates and trusts that involve a blended family dynamic.

In closing, keep in mind that a professional trustees will most often be accompanied by an annual fee, most often based on the specific responsibility of the trustee and a percentage of the trusts’ value. That said, choosing the most appropriate professional trustee can give you the peace of mind that your estate or trust will be handled with care and knowledge.