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June 5, 2009
June 5, 2009
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Source: From the AARP Bulletin print edition | July 1, 2009 (taken from http://bulletin.aarp.org/yourmoney/socialsecurity/articles/kn07_experts.html)
Q. I’m 55 and about to retire. I plan to file for Social Security benefits when I reach 62. Will my benefit be reduced because I’m not earning wages for seven years until then?
A. Perhaps. Social Security benefits are based on your average monthly earnings during the 35 years in which you earned the most. If you continued working past age 55, and your seven years between ages 55 and 62 were high earnings years, those earnings could replace earlier lower-wage years. That might raise your average earnings and possibly increase your benefit.
Another factor to consider: If you collect your benefit early, you’ll receive about 30 percent less than if you wait until your full retirement age.
To find out more, see “Your Retirement Benefit: How It Is Figured."
By: Sid Kirchheimer | Source: AARP Bulletin Today | June 16, 2009
If summer means spending more time with the grandkids, one thing’s for sure: It’s a time when you can spend less money—or none at all—taking them and yourself to the movies.
Regal Cinemas, the largest theater chain in the United States, once again is holding its Free Family Film Festival , offering free admission to movies rated G and PG each Tuesday and Wednesday through August. The passes are available to anyone on a first-come, first-served basis, with shows beginning at 10 a.m.
AMC, the second largest chain, has its own bargain Tuesdays, providing anyone age 60 or older free admission at some theaters and discounts at others. Monday through Thursday, AMC offers a $5 special on unlimited popcorn and soda, as well as $1 admission on Wednesdays to family movies, with proceeds going to two children’s charities.
Others have also gotten into the act, even though the economic recession has proved to be a gold mine for movie theaters, with attendance up 13.5 percent this year as worried consumers seek to forget their real-life money troubles with reel-life escapism.
Carmike Cinemas, the nation’s fourth largest chain, recently launched “Stimulus Tuesdays” at its 250 theaters, selling 16-ounce drinks and 46-ounce tubs of popcorn for $1 each on that day.
Dates for these discounts vary around the country, so check your local theater.
By Jason Alderman
(http://www.practicalmoneyskills.com/personalfinance/experts/practicalmoneymatters/columns/20090515_vacation.php)
One of the first things many people trim from their budget during economic downturns is vacation. That's unfortunate because stressful times are when we most need to recharge our batteries. Taking on additional debt to finance a vacation is itself stressful, however.
With summer vacation just around the corner, here are a few tips for taking a well-deserved break that won't break the bank:
Staycations. Last summer's astronomical gas and airfare price hikes popularized "staycations," where people vacation close to home and explore their own backyard – sometimes literally. A few ideas:
- If gardening relaxes you, dedicate time to sprucing up your yard. If you hate it, splurge on a gardener.
- Use money you save by not traveling to hire a housecleaner after your staycation so you won't have to think about cleaning.
- Become a local tourist. Research what online travel sites and the Chamber of Commerce recommend for visitor activities. Many businesses provide local-resident discounts to encourage return visits.
- For a minor splurge, visit a local resort and take advantage of its amenities. Most offer off-days where rates are lower.
- Enjoy crowd-free shopping and errands while everyone else is at work.
Uncover hidden vacation costs. If you do travel, make sure to budget beyond normal airfare, hotel, rental car and meal expenses. Consider such items as surcharges for extra or overweight luggage, sales and hotel taxes, babysitters, tips, taxis, rail and transit passes, event admission costs and ticket-ordering charges, new luggage, sporting equipment rental, and special clothing or accessory requirements.
Don't have a vacation budget? Visa Inc.'s free personal financial management site, Practical Money Skills for Life (www.practicalmoneyskills.com/travel), features a summer travel budgeting center filled with tools to help you create a vacation budget, including a web-based calculator that suggests various travel options and then automatically tallies the results.
Double-check prices. You can find great deals on airfares, hotels and rental cars by comparison shopping online. But beware: Before clicking "confirm" to finalize your purchase, make sure the final price matches the initial quote. I've seen fares jump $50 or more in just minutes or had the seat I thought I was booking suddenly become unavailable.
Try haggling. With so many people cutting back on travel, many hotels, airlines, restaurants and other tourist-oriented businesses are hurting. Don't be afraid request incentives like an extra night's lodging, free parking or shuttle service, meal vouchers or spa treatment discounts. At worst they'll just say no or perhaps offer some other perk. And always ask for member discounts if you belong to organizations like AAA or AARP – 10 or 15 percent here and there can add up.
Be flexible. Unless you're tied to your kids' school calendar, try to avoid peak travel times and routes. Flying mid-week or from more remote airports can save a bundle. And with so many flights overbooked, airlines frequently offer cash rewards or free tickets to those willing to be bumped to a later flight. Just make sure you won't lose any deposits at your destination.
Don't forego vacation – you've earned it. Just be cautious about how expenses can add up.
by Ralph Roberts (http://realtytimes.com/rtpages/20090526_seniors.htm)
In the midst of the current credit crunch, we tend to overlook the financial needs of senior homeowners, especially those who own their homes free and clear or are pretty close to being debt free. However, these homeowners often experience their own credit crisis – having loads of equity locked up in their homes and not being able to get at it. President Obama's plan is not designed to bail them out, and many don't qualify for refinancing to cash out some or all of their equity.
Fortunately, homeowners 62 years and older can often bail themselves out of financial trouble with a reverse mortgage. With a reverse mortgage, the homeowners have no monthly mortgage payment. Instead, the "lender" makes payments to the homeowner out of the equity in the home. The payment plan can be in any of the following forms:
- Tenure: Equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principle residence.
- Term: Equal monthly payments for a fixed number of months specified by the borrower.
- Line of Credit: Borrowers draw payments against a pre-established line of credit until the line of credit is exhausted.
- Modified Tenure: Combination of line of credit with monthly payments for as long as at least one borrower continues to occupy the property as a principle residence.
- Modified Term: Combination of line of credit plus monthly payments for a fixed number of months specified by the borrower.
HUD's Federal Housing Administration (FHA) created one of the first reverse mortgage programs, called the Home Equity Conversion Mortgage (HECM). With HUD's HECM , homeowners don't have to repay the "loan" as long as one or more of the borrowers continues to live in the home and is able to keep the property taxes and homeowner insurance current. The initial loan is calculated based on life expectancy tables known as actuarial tables. Even if the homeowner outlives the statistical estimate, they will not have a mortgage payment.
According to HUD, the lender cannot take the home if the borrower outlives the loan.
"You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home. "When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs."
To qualify for a Home Equity Conversion Mortgage, the homeowner/borrower must:
- Be 62 years of age or older
- Own a residential property – single-family home or 1-4 unit home in which you live in one of the units (HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.)
- Own your home outright or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan
- Live in the home and use it as the principle residence
Encourage seniors who have plenty of equity in their home and are having trouble keeping up with monthly expenses to find out more about the reverse mortgage option. They can obtain an HECM through an FHA lender, so advise against paying a third-party service for a reference. HUD recommends that homeowners track down a lender on their own or by:
- Contacting AARP toll free at (800) 209-8085
- Calling the Housing Counseling Clearinghouse on (800) 569-4287 for the name and telephone number of a HUD-approved counseling agency
- Searching the directory of HUD Approved Housing Counseling Agencies
Caution: If you know homeowners in your market who are 62 years or older, are having trouble making ends meet, and have plenty of equity in their homes, encourage them to explore the reverse mortgage option, but stop short of recommending it. It is not the best option for everyone.
Homeowners should consider the following:
- Up-front fees, which can be very steep; for example, up to $12,000 on a $275,000 home
- How long they plan on owning and residing in the home – if they plan on keeping the home for only a few years, the up-front costs may not be justified
- The fact that they will be drawing equity from the property
- What their plans are for passing the property to their heirs
- Whether other, less costly, options are available for obtaining the cash they need Prior to signing for a reverse mortgage, homeowners should know the costs and what it will mean for them one, five, ten, and perhaps even twenty years down the road.
During these tough economic times, homeowners must become aware of all the options and programs available for keeping their homes and making them more affordable. For homeowners 62 years and older who have a substantial amount of equity in their homes, cashing out that equity over time with a reverse mortgage may provide them with the supplemental income they need to cover their living expenses, catch up on unexpected bills, finance essential home repairs, and keep their home.
By: Bob Skladany | Source: AARP.org | May 22, 2009
As a career counselor, I receive many questions about work-from-home opportunities. For most people, the prospect of working from home is ideal—offering convenience, flexibility, availability to take care of family duties, extra income to help pay the bills, and space to deal with physical or medical limitations.
Most of the questions I get come from people who need to balance financial needs and family obligations. Financial pressures and family needs often create stress, anxiety, fear, and sometimes even desperation. People with these feelings are the perfect target for scams and frauds!
Private and government research estimates that more than 98 percent of work-at-home opportunities are fraudulent. That’s the assumption you should start with if you’re looking to work from home.
This isn’t the first time I’ve written about this subject. Here are several questions I’ve received recently, along with some helpful advice about legitimate work-at-home opportunities.
Q: I would like to work from home and make use of my computer and administrative skills. I have been an Internet user for several years and have really good customer relations skills. I’d like to work about five hours a day and use the rest of my time to care for my Mom, who lives with us. Many of the work-at-home opportunities I see on the Internet aren’t very clear about what I would be doing to earn the money—up to $2,000 each week. How do I know which ones are for real? –Margaret, Memphis, Tenn.
A: Margaret, working from home and capitalizing on your computer and customer-contact skills seems a natural way to make extra money and still be able to handle family obligations. But first off, any ad that suggests you’ll earn more than $10 to $15 per hour is almost certainly fraudulent. The testimonials with pictures of men and women holding up their “first week’s earnings” check for $6,400 are just a marketing trick. Don’t believe them. Here are several jobs and opportunities available from legitimate organizations:
1. Customer Service and Call Center – You’ll need a high-speed Internet connection, a land-line phone (not a cellular or Internet-phone service) with a headset and a work area that will allow a quiet and professional environment. Major traditional employers, such as JetBlue Airlines, employ call-center staff who work from home. You apply for these positions as you would for any job opening.
Most opportunities, though, are from companies such as Alpine Access, West, and LiveOps, which principally employ home workers. Expect to pay equipment fees, background-checking fees, and training fees. Don’t be put off by these fees from legitimate employers; think of them as the cost of getting into the work-at-home business. You handle customer service, order processing, and lead-qualification calls. Some of these jobs pay “by the minute” that you’re on the phone, and others pay hourly wages. You commit to a work schedule, and you’re expected to be available at the assigned times. Get all the details before you sign anything or send any payments.
2. Medical Services – This can include medical billing, claims, and records coding or file transcription. There are many legitimate firms looking for qualified individuals to work from home—but there are even more frauds and scams. Medical records and administration often requires training beyond high school and some relevant experience. MedQuist is a firm offering work-at-home medical administrative-service jobs. You should also consider contacting local hospitals, clinics, and doctors’ offices to get the names of the services they employ, and then apply with those services.
3. Virtual Assistant and Concierge Services – A number of organizations hire people to work from home as personal assistants or to provide concierge services. These include AssistU, Get Friday, and VIPdesk. From home, you’d provide the same services as an administrative or personal assistant or the concierge desk in a hotel. You’d need a complete computer, Internet, and phone setup, and you’d have to commit to specific hours of coverage. Prior experience is a plus.
4. Personal Care Assistance – There are organizations and people who might hire you to babysit, provide elder care, walk pets, and house-sit. The work may not be in your home, but you’ll work close to home. Care.com is an Internet site where you can register as a certified-care provider. The company would schedule your assignments to babysit, care for elders, and perform other personal-care tasks. There are several large and reputable eldercare providers, such as Home Instead Senior Care, Right at Home, and HomeWatch CareGivers. You would be paid by the hour, and your pay would reflect your qualifications—including training in medical nursing.
Q: I worked as a teacher for 30 years. I’d like to take advantage of my lifetime of experience, but I don’t want to work for an organization and commute five days a week. I don’t have a clue how to build up a list of clients, and I’m not inclined to be a salesperson and promote myself. There must be organizations who would hire me to work from home on projects and assignments several days a week. –Kevin, Duluth, Minn.
A: Employers are increasingly willing to hire retired professionals to perform contract or project work from home. There are several professional fields that lend themselves to working at or close to home:
1. Writers and Editors – Many people want to be freelance writers or editors, working from the comfort of their sun-filled back porch and sipping tea while earning “big” money. There is work available, but it’s likely you’ll not earn more than $15 to $20 per hour, at best. Still, there are a number of organizations you should contact to arrange assignments, including WritersMarket.com, MediaBistro, Associated Content, Freelance Writing Jobs, and Writerfind.com. You might also be able to find assignments or part-time work through traditional employers, though the competition is fierce.
2. Tutoring – You can work in the local office of an educational company, such as Kaplan or Sylvan Learning, or you can get involved with the new world of online tutoring, in which tutors use the Internet and the phone. This is a rapidly growing area and has a number of legitimate opportunities, including Tutor.com and the National Tutoring Association. You could also consider starting your own tutoring business. With the right qualifications and experience, you can establish your own in-home business. Advertise in your community newspaper, craigslist, and by word of mouth. Private tutors can earn $25 to $60 per hour, but you’ll earn less if you work through an agency or tutoring company—probably $12 to $20 per hour.
3. Translation Services – If you’re fluent in a foreign language, you can work from your home or in the community. Most hospitals require translators in almost every foreign language. You can also work from home. Learn about opportunities at Telelanguage, the American Translators Association, or SDL. Again, you’ll need a complete computer, Internet connection, phone system, and a quiet work area. The pay can range from $15 to $40 an hour or more for languages in high demand.
4. Career Coaches – If you have a background in human resources, recruiting, or counseling, there is a tremendous demand for career coaches and job-search advisers. Unemployment is at record levels, and young and old workers alike need help with résumés, job searches, and career decisions.
Most career coaches have their own businesses and work from home, but you can join a career-services network, such as Career Management Alliance. This organization maintains a list of qualified coaches, and prospective clients can search it. Also contact the human resource associations and organizations in your community to learn about local career-counseling associations. Check the listings in your local Yellow Pages for “Career Coaches,” and network with these people for ideas.
5. Other Expertise? – Many people have an expertise in some area, whether it’s nuclear energy or crocheting. Register at the online site, LivePerson, and present your expertise to online searches for experts in your field. You’ll be paid by the minute (yes, by the minute), and LivePerson.com handles all the administration. You just need the obligatory phone, computer, and Internet connections and to commit to a schedule of your choosing.
So Who’s for Real?
There are countless articles warning us of how to detect fraudulent work-at-home opportunities. That’s great, but how do you know for sure that an opportunity is legitimate? Even the Federal Trade Commission, which is charged with enforcing fraud laws governing franchises and work-at-home offerings, advises that it cannot verify whether or not any particular offer is legitimate. The FTC can only report the names of organizations people have complained about, while at the same time, acknowledging that scam artists change their names and Web sites as often as most people change their underwear.
There is now more help. RetirementJobs.com, the provider of AARP.org’s job search engine, has been researching and verifying legitimate work-at-home providers for several months. The company has published its first listing of Verified Work-at-Home Opportunities™. Verified Work-at-Home Opportunities™ provides the names, Web sites, and work opportunities of organizations that RetirementJobs.com researchers have reviewed and found to be legitimate—both in terms of being businesses and being employers of work-at-home staff. The list will be continuously maintained and expanded to include more organizations and more information. You are cautioned to use the list with care. Even legitimate work-at-home providers may charge fees for various equipment and services.
