Retirement In the New Age

Are You Prepared For A Life of Leisure?

Consider These Numbers…

"At the end of WWII, there were 42 workers paying into Social Security
for each person receiving benefits. Today, barely three people contribute
for each recipient. Projections are that by 2030, when most baby boomers
will have retired, just two working people will contribute for each person
receiving benefits. (Social Security Administration, Trust Funds
Report, 1992)."
(Saperston Asset Management Inc.)

"Social Security benefits will replace only 16% of the income of married
couples earning $50,000 to $100,000 and only 9.5% of the income of married
couples earning $100,000 and only 9.5% of the income of married couples
earning $100,000-plus. (Office of Research and Economic Analysis, Pension
and Welfare Administration)."
(Saperston Asset Management Inc.)

"Working people tend to think their retirement lifestyle will be better than
their current lifestyle, but retirees report their standard of living has
declined. Example: Twenty-six percent of workers say they are "just
making ends meet," but only 16% think they will live this way in
retirement. Of retirees, 20% are "just making ends meet," while 16%
describe their pre-retirement lifestyle this way (Employee Benefit
Research Institute)."
(Saperston Asset Management Inc.)

Is this the reward for a life of ardent labor and selfless devotion?
I would like to think not. I did not write this article with the intent
to trouble you, instead I have written it in hopes of awakening you to
the issue before it's too late.

Now that we have discussed the problem, let's discuss some solutions.

If you're still in your youth, roughly between the ages of 20 and 35 you
still have time to start a traditional savings plan that will over time
build you a comfortable nest egg for retirement. But my main focus
in this article is to help those with much less time before retirement.

What do you do when you only have a few years left before retirement
and you realize that you don't have enough set aside to live the life of
luxury and leisure that we all hope for. Should you put your dreams
aside and continue to work through your golden years? No one
should ever have to do this. No, instead I propose you take fate into
your own hands, flip it upside down, and shake it until his pockets are
empty. Than pick up the cash dust yourself off, and enjoy your life.

Ways to "Flip Fate" - Retirement Plans & Solutions

Money is a game of self education. Those who have it prosper, those
who don't fail. It's that simple. So pick an option and get educated,
your retirement depends on it.

401(k)'s & IRA's
Time to put these bad boys into overdrive. Start plunging huge chunks
of your monthly income into either your 401(k) or your IRA. If your
company provides a lucrative compensation matching plan, than hit
that 401(k) hot and heavy as it has the potential to provide a return of
up to 25% 50% and sometimes even 100%!

Stocks & Mutual Funds
If you know what your doing, or have an Einstein of a broker, you may
want to take a look into this option, as the stock market is a proven
money maker for those who know the game. For those who don't stick
with mutual funds and a good broker.

Second Job
This is not a pretty one, but drastic situations call for drastic measures.

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These last two are quoted directly from MSN's "Money Central" and
are probably the two which are the most immediately lucrative choices
you have.

"Plan to sell your house and buy a smaller one or get out of the real
estate market altogether.
This is especially true if you're planning to move to a retirement
community with lifetime services. If you need your home equity for living
expenses, you can always take a reverse mortgage."

"Start a business on the side.
There are many benefits to this, especially if you're close to retirement.
First, you can usually contribute up to 25% of your self-employment
income to a tax deductible Keogh plan even if you're already putting
money in another plan.

The second benefit is that your new knowledge and experience makes you
more valuable to your current employer. Third, if you're laid off or
experience job discrimination in terms of a pay raise, you have another
income. Also, once you're officially retired from your primary job, you
have a nice business that can continue to generate income. It gives you
some great tax deductions and still allows you to sock away money for
retirement, whenever you finally decide you can afford to slow down."

Your financial future is dictated by the choices you make today. Don't
let retirement sneak up on you as it has so many others. Make a decision
to take action today. Good luck, and enjoy your retirement!

Wishing you success,
Michael Bosse
mike_jb2@hotmail.com

Health, Wellness & Wealth - The Freedom and Time to Enjoy
Life to it's Fullest! Be part of the next Trillion Dollar
Industry...Health! Benefit from the best health products
available, than share them and profit http://www.artofhomebusiness.com/V4L

Better Think About Buying Now!

Buying Now Ensures A Choice Location and Rental Income Helps Pay for the Home

As the Baby Boom generation ages, more and more of us are thinking of retirement homes. Dreaming of communities in the country, close to golf, theatre, art galleries and forested hillsides. Or maybe your dream is of Florida sands, palm trees and year-round heat. In either case, you’d be well advised to act on your dream sooner rather than later.

It’s a simple matter of economics and supply and demand. Real Estate prices are trending upwards. Property values appreciate annually. There are only so many award-winning, really choice resort retirement locations. And the baby boomers are getting ready to snap them all up.

Take Mt. Meadows in Ashland, Oregon. This resort retirement community on 31 acres has run out of property with only 26 units left to sell and 14 more on the resale market. Named the "Best Small Active Adult Retirement Community in America" by the National Council for Senior Housing and one of the 100 "Best Master-Planned Communities" by Where to Retire Magazine, Mt. Meadows is a good example of the kind of premier community most retirees are looking for.

In addition to its familiar and comfortable design – just like an old-fashioned neighborhood – Mt. Meadows is special because it offers investors private ownership of its condominium residences. This preserves a buyer’s capital; includes the ability to sell at any time or to enhance income through a reverse mortgage; and, enables purchasers to leave the property to their heirs. The owners also control management of the development. There is no "corporate headquarters" dictating increased fees or changes in popular policies.

Not all retirement properties are structured in this manner. In many cases, investors are buying a "building". In these single-building retirement developments, residents are housed in an apartment with a very small kitchenette. The building has a lobby and a dining room; and, occasionally meeting rooms or a library.

Residents often do not "own" their apartment units, and there can be "buy-in" fees in addition to monthly charges in these buildings. A vast majority of retirement facilities and developments in the country are corporate owned. Changing economic conditions or a change in management can influence staff, policies and fees for facility residents.

It is incumbent on investors to review the many kinds of retirement developments, their management structures and financial models, before deciding where to buy. It is wise to include the family accountant, financial advisor and/or attorney in these considerations. But there’s one more thing to think about…

We’ve all heard real estate’s golden rule: It’s all about location, location, location. And that’s why it’s important to start looking for your retirement home now and to be ready to purchase once you find your match. Premier locations are being developed, and soon won’t be available to buyers. That’s reason enough for most 50 year-olds to start looking tomorrow.

Getting into your dream retirement home with very little down and utilizing rental income to help finance the purchase is an even more compelling reason to consider investing in a retirement home today. There are several scenarios that come to mind. You may have recently become empty nesters and are considering downsizing your long-term family home – in which you have considerable equity. This is one of the very few times in life that the IRS allows you to take your profits, up to $500,000, tax free. You can buy a smaller, more inexpensive home with some of the profits, and use a portion of the remainder as a down payment on your dream retirement home. Depending on the down payment, monthly rental fees may just cover mortgage payments, helping pay for the home until you are ready to move in.

In another scenario, buyers can use the proceeds from a 1031 exchange to fund the purchase price or down payment on a retirement home. To qualify for this tax exemption, you must rent your retirement home out for a couple of years. That fulfills the IRS requirement that you move money from one investment property to another property intended as an investment. At that point, or any thereafter, you can sell your primary dwelling and "convert" your investment property from a rental into your new primary dwelling – thus avoiding any tax on the entire transaction. If you use equity from your existing home, or the proceeds from a refinance to fund the down payment, you get into your dream retirement home without any significant outlay of your personal capital. And if you rent the property until you are ready to retire and move, your renter’s money helps pay for the home.

What should investor’s look for in a retirement home that they intend to rent before occupying? Again, location is a priority consideration. Most retirement homes are located within an hour’s flight from the buyer’s previous, principal residence. Most are located in areas that have a mild climate; outstanding recreation, cultural resources and health care facilities; and, are easy to get to – like many parts of Southern and Central Florida, known for their retirement communities, and like Ashland, Oregon – where Mt. Meadows is located. Ashland is home of the Tony Award-winning Ashland Shakespeare Festival, Southern Oregon University and the Mt. Ashland Ski Resort.

A mountain-side college-town, Ashland has been named one of the Top 10 Small Art Towns by John Villani in his book The 100 Best Small Art Towns in America. It boasts some of the best restaurants in the Northwest. The area is close to nine lakes and three major rivers including the wild and scenic Rogue and Klamath Rivers. And, there’s a major airport served by three airlines just minutes away in Medford. Wal-Mart and a host of other shops, from outlet stores to boutiques and galleries, are just five minutes away.

In addition to location, buyers should consider their own unique financial circumstances. Purchasing a retirement home is a strategic decision with implications for the future. It is important to maximize the flexibility and minimize the financial burden of such a purchase. Resort retirement developments that allow residents to purchase their properties provide superior flexibility and a number of creative ways to allocate the costs.

Sometimes the adult children of a retiring couple will fund the purchase price or down payment for a Mt. Meadows condominium – and their parents pay a monthly "rent" that covers the mortgage payment and fees. In this scenario, the kids share the depreciation of the unit for tax purposes – as well as the appreciation in real dollars for future profit.

In another version of this model, well-off parents gift their adult children and wives with the maximum $10,000 allowed – tax free – on an annual basis. The children then use these funds to make the down payment on the retirement property – which they own. In other cases, residents have "loaned" their adult children the funds necessary to purchase a Mt. Meadows unit, then left the property to their kids in their wills. The value of the property in these cases is calculated based on the day of death, and thus the heirs avoid any previous profits or appreciation.

However you decide to fund your resort retirement home, the time to start looking for a premier property that offers you and your family the maximum in flexibility and investment potential is right now. In fact, savvy buyers can get into a retirement home in a number of creative ways and even leverage rental income to help make monthly mortgage payments until they are ready to move in.