Move or Stay Put in Retirement?

Many retirees think they will save a lot of money on housing costs if they sell their house and move to a smaller house, condo or apartment. But it doesn't always work out that way. Check out the calculator from the Center for Retirement Research at Boston College to estimate how your expenses will change.

Figure Out How Moving Changes Your Finances

 Fixing up, selling, moving costs, property taxes, maintenance, HOA fees and much more need to be figured into the move. 

Check out the calculator: https://squaredaway.bc.edu/calculators/move-or-stay-put

Retirement Calculators and Resources

 "If you don’t have access to a financial advisor who can tell you what you need to do to best set yourself up for success when you retire, consider getting started by looking at retirement calculators. These resources can use your income and some mathematical formulas to help you determine how much you should be saving and what age you should expect to retire at and offer tips and tricks to help you create a good nest egg and get the most out of your income."

Here are just a few examples from this website https://indyfin.com/retirement-calculators-resources/ which has dozens of useful calculators:

Retirement Benefits Estimator
This calculator from the Social Security Administration calculates the benefit amount you can expect for your actual Social Security earnings. While this can give you an idea of what to expect, remember that these are just estimates, not hard numbers.

Retirement Calculator
A retirement calculator can help you plan the financial aspects of leaving the workforce in order to get a more comprehensive idea of what’s needed to retire comfortably.

Retirement Nest Egg Calculator
AARP has created a nest egg calculator to help you determine how much money you need to put away each month in order to comfortably retire at 67.

Thanks to Eli, Olivia and the All Saints family for pointing out this useful resource

 

Supporting Ukrainian Businesses and Charities: The Best Places to Spend and Donate Money

"Witnesses to the ongoing conflict in Ukraine are coming together to offer whatever support they can to victims and survivors. Charities and organizations worldwide are appealing to people everywhere for help, asking for monetary donations, supplies, and even your time. No matter how small, any donation could help provide victims with safe shelter and essential supplies."

"If you want to get involved and help those affected by the conflict, here’s a list of all the organizations you can support, including NGOs, Ukrainian businesses, and other government initiatives."

The list provides details on the focus of the charity and their website. 

Check out the list at Safety Detectives: https://www.safetydetectives.com/blog/supporting-ukrainian-businesses-charities/

Thanks to Olivia Sulaimani for this information.  

Considering Study Abroad?

 50 facts and statistics about the most popular countries to study abroad https://moneytransfers.com/study-abroad-facts-and-stats/ in 2022

If you or your child is considering study abroad, this publication provides a great overview of the reasons for study abroad and a variety of statistics.

"It’s often said that your university years are some of the best, most inspiring years of your life – made even more enjoyable and valuable if you choose to take a year out and study abroad."

"If you ask the graduates who have, they’ll likely agree that becoming an international student away from home can massively enrich your personal, professional, and academic lives. It’s no wonder millions of students choose to pack their bags and take the plunge every year."

While Russia was among the top ten countries for students coming from abroad at the time of the publication, I doubt that it will be a popular country for most students in the coming year. 

The publication also provides links to many additional resources. Check out https://moneytransfers.com/study-abroad-facts-and-stats/

 

Preparing Financially, Before the Storm Hits... Climate change affects all of us

 "The statistics are striking. Over the past 42 years, an annual average of 7.7 weather-related events caused at least $1 billion each in damage to residences, businesses and municipalities, according to an analysis by the National Oceanic and Atmospheric Administration," according to Washington Post writer Tara Barnard.

"Climate shifts are 'supercharging the increasing frequency and intensity of certain types of extreme weather that lead to billion-dollar disasters,' said Adam Smith, the climate scientist who led the NOAA analysis, 'most notably the vulnerability to drought, lengthening wildfire seasons in the Western states and the potential for extremely heavy rainfall becoming more common in the Eastern states.'"

"Assess risks. A variety of online tools can provide a starting point for assessing your home’s risk to earthly hazards.

Risk Factor has created a user-friendly tool that outlines flood, fire and extreme-heat risks (and soon other perils, including wind) for most homes across the country. Plug in an address, and it drills down to the property level, illustrating potential hazards."

I plugged in  my address and found that "This property faces risk from 2 of 3 environmental factors." There is a minimal risk of flood, minor risk of fire, and moderate heat factor risk for my home.  

Hmmm... Heat factor risk: "A heat wave consisting of 3 or more consecutive days where the “feels like” temperature meets or exceeds the local definition of a “hot day” is an increasing possibility as temperatures rise. The “hot day” temperature for this property is 92ºF. 30 years ago, the likelihood of a 3 day or longer heat wave affecting this property was 17%." I can attest to the increase in hot days after living in the same house for 30 years. Surrounded by trees we used to get by without air conditioning but no more as the temps flirt with 100 degrees far more than in the past. and the prospects for the future are for grim, hot summers. 

Risk Factor (https://riskfactor.com/) is a fascinating tool with lots of information about your own home to help you prepare for a hotter future with more climate-related natural disasters. Check it out!

"The United States Geological Survey has hazard maps for earthquakes, while the Federal Emergency Management Agency and the National Flood Insurance Program maintain flood maps (which also determine whether a home with a federally backed mortgage is required to have flood insurance). The flood program has recently overhauled its rating methodology, called Risk Rating 2.0, but you’ll have to contact a flood insurance agent who can share more about your property’s unique risk, said Jeremy Edwards, a FEMA spokesman."

"Mitigate potential damage. Once you have a better idea of the risks, there may be things you can do to minimize damage if a flood or fire strike. The costs of mitigation will vary, but it may reduce your insurance premiums."

"Evaluate insurance needs. The insurance market varies greatly by locality and the hazards inherent to the area. Standard homeowners’ and renters’ insurance policies do not cover all hazards. Floods and earthquakes always require separate coverage."

 

Apps to help with the logistics of death of a loved one

 When my parents died I was the executor of their wills and trust. I used a variety of written resources (provided by insurance companies) and online (AARP) as a guideline for settling the estates. Now there are apps to help with the process! Thanks to Sophia Laurenzi writing for The Washington Post (and one of my sisters) for bringing the article to my attention. 

"What do you do after someone dies? Most people expect to deal with intense grief, but they might not realize how many logistical details arise after a death. Those tasks can feel overwhelming: deciding who to call, learning where to get death certificates, planning memorials and navigating finances."

There's an app for that!

Apps and websites such as Cake, Lantern and Empathy exist to help with the death of a loved one. 'Kat Reed founded EstateGrid after she published a workbook called “Begin Here: Helping Survivors Manage” to help her father manage the death of her mother.'

Check out the apps and websites and tuck this info away for when you need it.

Should you update your iPhone? (or any other phone brand)

 Save money and help the environment by only getting a new smartphone when it’s necessary.

"A new smartphone is a major purchase that can cost anywhere from $200 to $2,000. The companies that make and sell the devices would like you to believe it’s necessary to shell out for a new one every couple of years. In reality, a smartphone can live a long and fulfilling life with proper maintenance and, if needed, a few repairs" according to Washington Post writers Kelly and Alcanterra. 

5 questions to help you decide whether to update: 

1. How old is your phone?
2. Is anything wrong with your phone?
3. How important is camera quality to you?
4. What features are you currently missing and willing to spend money for?
5. How important is it that you be seen with the newest phone?   

You likely need a WP subscription to access quiz that will help you answer the question of whether to buy a new phone. But even if you don't have access, the 5 questions can help you decide whether to fork out the money and increase your environmental impact.

 https://www.washingtonpost.com/technology/interactive/2022/phone-upgrade-quiz/?utm_campaign=wp_post_most&utm_medium=email&utm_source=newsletter&wpisrc=nl_most&carta-url=https%3A%2F%2Fs2.washingtonpost.com%2Fcar-ln-tr%2F37ddae6%2F631a180cf3d9003c58c65501%2F5b8ff3adade4e20f4f60a387%2F28%2F70%2F631a180cf3d9003c58c65501&wp_cu=4cad85f430d2492e92d09d479b6e088c%7C752242DB42B02B72E0530100007F82AE

How to Avoid Predatory Lending

 Everyone thinks they are too smart to be taken advantage of but the history of lending in the United states is replete with scams and semi-legal methods that take advantage of consumers needing to borrow. 

"Even when credit risk is controlled, Blacks were 3.9 times more likely than whites to receive subprime loans, while Latinos were 2.6 times more likely."

"Knowing what’s a good deal and what’s not with personal loans is challenging. Predatory lending takes advantage of this by offering tempting deals that wind up being too good to be true. So it’s essential to know what to look for to avoid becoming a victim."

"This guide will provide you with practical tips for avoiding predatory lenders and advice to protect yourself from their various schemes."

Deed Street Capital offers a simple online guide to help consumers avoid predatory lenders. The guide includes the following topics: 

• How to spot predatory lenders
• The various types of predatory lending
• How to fight back against predatory lending practices

 Check out the guide at: https://deedstreetcapital.com/avoiding-predatory-lending/

Why complain about $4/gallon gas when paying $20/gallon for water?

 I am baffled by people who regularly buy bottled water unless they live in Flint, Michigan or other municipalities with known problems in the water supplies. Consumer Reports has tested so-called pure spring water and found it no better than municipal water supplies and sometimes much worse. Bottled water comes in plastic that is made from petroleum and is a major source of waste. 

Even the small percentage of plastic bottles that get sent for recycling don't always get recycled. Recycling is a n energy intensive process.

Time to do the math, consider the environment, and stop buying bottled water. Buy a steel water bottle and use it.

"Some noncarbonated bottled water products sold in the U.S. and tested as part of a new study contained potentially toxic PFAS chemicals, prompting calls for the federal government to set standards covering the chemicals.

The study, published in the journal Water Research and led by Johns Hopkins University researchers, detected PFAS substances in 39 out of more than 100 bottled waters tested, in some cases at levels deemed concerning by water quality experts."

Source: https://www.consumerreports.org/bottled-water/pfas-in-bottled-water-new-study-finds-a1111233122/

 

 

Student Loan Forgiveness

Under President Biden's federal student loan forgiveness program:

• up to $10,000 in federal loans (does not apply to private loans)
  
• up to $20,000 for Pell Grant recipients
• if income is <$125,000/individual or $250,000 for couples
• student loan payment freeze is extended to December 31, 2022
• interest rates remain at 0% until repayment starts
• if you voluntarily made payment during the repayment freeze, you can apply to your servicer for a refund. 
• Typically loan forgiveness is treated as income by the IRS, BUT cancelled student debt is exempt from federal taxes. 

• Borrowers in 7 states may be taxed on their student loan cancellation: 

  1. North Carolina
  2. Indiana
  3. Mississippi
  4. Arkansas
  5. Minnesota
  6. Wisconsin
  7. California

  "The U.S. government has instructed student loan servicing companies not to mail a federal 1099-C form to the millions of borrowers who receive debt relief. This matters, a lot."

  "In the past, the 1099-C form has been sent not only to borrowers who receive debt relief, notifying them of their tax burden, but also to state tax authorities."

  "This year, though, because debt relief is not considered taxable income at the federal level, the U.S. government won't be sending out 1099-C forms." Source: https://www.npr.org/2022/09/09/1121717824/biden-student-loans-debt-cancellation-taxpayer-impact
  

Stay tuned to the federal student aid website for details on how to apply.

About 43 million Americans owe federal student loans. One-third of students borrow to pay for college, with average balance of $37,667.

• 1/3 of those owe < $10,000
• 1/2 owe < $20,000
• The Department of Education estimates that almost 90% of the relief in the measure will go to those earning less than $75,000 a year
  

If you have trouble repaying federal student loans, apply for an income-driven repayment plan. 

If you worked for a government agency or nonprofit, you may be eligible for Public Service Loan Forgiveness Program. 

For readers who think this is a give-away to get votes, remember that Republicans have repeatedly (since Reagan) passed tax cuts for the wealthy, most recently in December 2017. Fifteen percent of the benefits went to people making under $75,000 a year, and 85% went to people making over $75,000 a year. People making over $250,000 a year got nearly half of the benefits of the GOP tax bill and are getting 0 dollars under this student loan forgiveness plan.

Remember, there was very little objection to the forgiveness of 10.2 million Paycheck Protection Program (PPP) loans to businesses, with $72,500 being the average dollar amount forgiven.  

After World War II, the U.S. funded higher education through a series of measures that increased college attendance while keeping prices low. Beginning in the 1980s, that funding began to dry up and tuition prices rose to make up the difference.  The shift to “high-tuition, high-aid” caused a “massive total volume of debt,” according to Assistant Professor of Economics Emily Cook of Tulane University.

I was fortunate enough to complete college and grad school with no student loans (I didn't own a car) because the taxpayers of the states adequately funded the land grant colleges that I attended, unlike today. Back then a student could work a minimum wage job and actually pay for a realistic amount of college costs. So folks who paid their way through college and/or repaid student loans may object to helping out today's student loan debtors but they may be the same people who vote for politicians who promise to NOT raise taxes or even lower their taxes.