Hardly a day goes by that we don't hear some voice of the government bemoaning the sad and unsustainable expense of Social Security. You know the drill: How can it go on with all the baby boomers reaching retirement age?
Here's Bernake at his most daring to date, addressing the Economics Club of Washington, which, we all know, wields much more influence than AARP: ''Reform of our unsustainable entitlement programs'' should be a priority. "The imperative to undertake reform earlier rather than later is great.''
But hold it a moment. Haven't all those baby boomers watched the Federal Government neatly extract FICA payments from their paychecks for the forty or so years they've worked?
So where's the money?
If you really take into consideration that the number of retirees will always pretty much equal the number of people who were recently working and kicking in their share of taxes toward Social Security, you arrive at the conclusion that all this talk about the unsustainable expenditure on "entitlements" as fiscally irresponsible is, in fact, an unsustainable bit of chicanery.
You may ask, What about inflation? Isn't it a factor? Of course, but, hey, what's new about that?
So we arrive at this very puzzling question? Why is it that with more people retiring, there is not more money available?
Don't tell me the FEDS raided the till for other priorities?
Anyway, bottom line is, if we burned up the retirement funds of the boomers on bombs and idiotic wars, it's time to moderate those expenditures, so the money that was slipped out of Social Security to fund those various insanities can be slipped back into it.
We promise not to notice its temporary absence.
______________________________________________________________
Resource:
Tom Attea, humorist and creator of NewsLaugh.com, has had six shows produced Off-Broadway. Critics have called his writing "delightfully funny," "witty," with "good, genuine laughs" and "great humor and ebullience."
News and information concerning the many issues Baby Boomer's face as we age.
Showing posts with label social security. Show all posts
Showing posts with label social security. Show all posts
Tuesday, May 29, 2012
Sunday, May 27, 2012
Considering Florida For Retirement: Part 3
Note: This is Part 3 of a 3 part article on Florida and its many different regions for retirement.
In Part 1 we laid out the basic facts about the Sunshine State and Part 2 we had descriptions of 8 different regions of Florida (my definitions):
- Panhandle
- Northeast Atlantic
- Mid-Atlantic – The Space Coast
- Central Florida
- South Atlantic
- Middle Gulf – The Nature Coast
- South Gulf Coast
- The Keys
In this article which I'll will call Retirement 303, I will provide my opinion about the pluses and minuses of these regions, and why certain ones might appeal more to different people.
Please note this is not a scientific study, merely a collection of opinions. These areas are quite large, so generalizing is definitely a hazard – there will be exceptions to everything.
The state is so big that people who can warm up to the idea of living in Florida could be happy in many, if not all, parts of the state.
1. Panhandle:
This area goes from Pensacola in the west to Tallahassee (Florida’s Capital) and the Big Bend Area. Much of the population is situated along the coast in the west, while the coast is almost totally unpopulated for a huge distance between Carrabelle and Homasassa Springs to the south. The non-coastal region is similar in terrain and feel to southern Georgia.
Pros
Long Coastline
Many Bays
Moderate Home Prices
Cons
Hurricane History
Spring Breakers
Coldest winter weather in Florida (but not that cold)
Not so great airline travel options
Who Might like living in the Panhandle
The area around Pensacola and Panama City has many military bases, so it is obviously very attractive to military retirees.
People who like beaches and boating will have plenty to do in the Panhandle.
2. Northeast Atlantic
Butting up against southeastern Georgia, this part of the state has the huge Jacksonville Metro and then goes down the coast with quite a variety of different towns – from posh Ponte Vedra to rough and tumble Daytona Beach. Jacksonville is like many other fast-growing American cities, although it is in Florida it could fit in anywhere.
Pros
Big city with major sports and culture
Beaches and barrier islands on the Atlantic Ocean
History around St. Augustine
Many developments to choose from
Reasonable home prices in many communities
Cons
Crime and traffic in Jacksonville
Snowbirds might be disappointed with cooler winter temps
Who Might like living in the North Atlantic part of Florida:
Jacksonville area multi-generational communities offers a way to live near children/grandchildren
Golfers will find plenty of courses including some very high end ones in Ponte Vedra.
St. Augustine offers history
3. Mid-Atlantic – The Space Coast
The central coast of Florida might offer the least traffic and congestion of Florida’s Atlantic coastline. It has beautiful barrier islands, plenty of birds to watch, and a lower key way of life.
Pros
Less traffic and congestion
Access to nature
Affordable real estate prices
Cons
No big towns nearby
Winter ocean is cold
Medical care
Who Might enjoy living on the Space Coast:
People who are looking for a less congested, slower way of life away from big towns and cities but close to beaches might enjoy a Space Coast retirement.
4. Central Florida
The region we define as Central Florida goes from Gainesville in the north all the way through Orlando and down to Sebring. It is a relatively flat interior region with many lakes, along with the giant Ocala National Forest.
Pros
Some of the most inexpensive real estate in the U.S.
A choice of hundreds of 55+ communities, some of them very big
Opportunity to live on a lake
Places designed to retirement towns, like Winter Haven
Quieter than along the coast
Orlando Airport
Cons
It’s a drive to the beach
The Orlando area has some high crime and traffic
Quieter than along the coast
Who might like living in Central Florida
People who want a very big active community like On Top of the World or The Villages.
Bargain hunters will find the best deals in Florida.
Folks who prefer the country to the coast, including horse lovers who might gravitate to the Ocala area.
5. South Atlantic Florida
The region I'm talking about is the Atlantic coast of Florida beginning in about Stuart and going south to Miami. This part of the coast certainly has the warmest winters. It is also the most congested, and offers the greatest variety of towns to live in. From the poor cousin Pompano Beach to Rolls Royce-afflicted Palm Beach, there are many towns to choose from. Miami is one of the most unusual and complex cities in the world. It has an Art Deco tourist section on the beach, super-affluent islands, ethnic neighborhoods and culture, a thriving international business community, and quiet neighborhoods for retirees.
Pros
Warmest winters
Great variety of towns and communities
Culture
Mass transit, big airports, cruise ship departures
Cons
Higher real estate costs
Traffic
Congested
Hurricane threats
Who Might like living in the South Atlantic part of Florida
Originally, and this is still somewhat true, the east coast of Florida attracted snowbirds from the Northeast – New Jersey, New York, Connecticut, New Jersey. If you are used to a fast-paced lifestyle, attention to status, and a strong interest in things cultural, this might be the place for you.
6. Middle Gulf – The Nature Coast
Starting below Tallahassee the west coast of Florida is sparsely populated and eventually ends in the bustling Metro of St. Pete/Clearwater/Tampa. The beaches aren’t generally as well developed or populated as elsewhere in the state.
Pros
Less populated and developed
Lower prices
Nature is less disturbed
Cons
It is not generally that exciting
Fewer choices in towns and communities
Who Might like living on the Nature Coast
People who like less development and more access to nature (like the Suwanee River or an an undeveloped coast) will enjoy this area. So it appeals to those who are looking for a quiet, as well as inexpensive, place to live.
7. South Gulf Coast
For our purposes this region starts with St. Petersburg and eventually ends in Marco Island, just above the Everglades. It includes the huge St.Pete/Tampa/Clearwater Metro, sophisticated Sarasota, sprawling Ft. Myers, and chi-chi Naples. The beaches are fantastic, such as those on Sanibel or the Keys off Sarasota. There are also dozens of little towns with a low profile.
Pros
Fabulous beaches
Warm winters
Tremendous choice of towns and active communities
Wide range of where to live – from big to small
Like most of Florida, great boating, fishing, golf
Culture
Cons
A history of hurricanes
Traffic and congestion
Suburban sprawl
Who Might like living on the South Gulf Coast
As the East Coast of FL was traditionally populated with northeasterners, so is the West Coast home more often to midwesterners. Lots of retirees here followed their friends down here from western Pennsylvania, the Midwest, Canada, and West Virginia. As a result many communities have a more laid back, less frenetic pace. As just about everywhere in Florida, if you like golf, fishing, going to the beach, and shopping, you will have found your retirement heaven.
8.The Keys
Our final district starts in the Everglades below Miami and ends in Key West, the Bohemian center 90 miles from Cuba that locals refer to as Paradise. Along the way are many narrow keys, some of which host small towns and bigger ones that are home to Islamorada and Marathon. This area is about as different from Florida (and the rest of the U.S.) as it could be.
Pros
Warmest winters of all
Arguably the best fishing in U.S.
A boating paradise
Ultra-relaxed
The Keys and Key West are unique in many ways
Cons
Some of highest real estate prices in FL
A hassle to drive to the mainland
Mandatory hurricane evacuations
Sophisticated medical care is a long ways away
Who might like living in the Keys
A lot of people who live here are escaping from somewhere else. Or they are obsessed with fishing, boating, or an artistic lifestyle. Or they want a very relaxed lifestyle where shoes and shirts are optional, or where you spend more time on your bike than you do your car.
Summary
Florida has just about something for everybody, except for cold winters and mountains. Its different regions are diverse and worth exploring to find which one offers you the best fit. There is no substitute for getting out and exploring different areas and towns to see what you like and don’t like firsthand.
Resouces
Part 1
Part 2
Directory of Florida Towns and Active Communities
Comments: I hope you have enjoyed this rundown of Florida by region. I would love to hear your reactions, agreements, and disagreements with these assessments. Please let me know in the Comments section below.
View the original article here
Saturday, May 26, 2012
Consider Florida For Retirement: Part 2
Note: This is Part 2 of a 3 Part series. In Part 1 we laid out the basic facts about the Sunshine State and divided it into 8 different regions. Now we'll get a little more discriptive about each of those regions.
Panhandle
First, in Florida’s Panhandle on the Gulf of Mexico you will find towns like Panama City and Pensacola. Both are relatively low key, lower cost, and very popular with retirees. Panama City has a reputation for attracting spring breakers in the springtime. Since there is several large military bases in the area, many military retirees have decided to retire here. There are great beaches here and numerous bays – fishing and boating are topnotch.
At the start of the Panhandle in the “Big Bend Area” is Tallahassee, a completely different kind of place. A college town, it is home to both Florida State Univ. and Florida A & M. Also the state’s capital, it is considered one of the more liberal enclaves in the state (although people who view themselves as conservatives will find like-minded people too). Though not on the water, it is only an hour’s drive to very peaceful areas of the Gulf, such as Apalachicola.
The real estate market is relatively stable and slightly below the state median price. Traffic can be bad. Winters are mild. Although there is an occasional frost, the prime vegetable growing season is winter.
Northeast Florida – Jacksonville to Daytona Beach
Jacksonville is one of Florida’s 3 big urban areas, along with Tampa/St. Pete and Miami. This one tends to attract the youngest residents. There are huge suburbs and new developments. Some of these include neighborhoods for families with children, along with others designed for the 55+ crowd, an approach that is attractive to many who want to retire near their grandchildren.
Going east from the city, Jacksonville Beach offers many little neighborhoods on the beach. Jacksonville has a great airport and some of the country’s top medical facilities.
As one goes south along the beach you run into very wealthy enclaves like Ponte Vedra, home to many famous and/or wealthy people. Historic St. Augustine is an interesting, if touristy town.
Palm Coast is a massive development originally started by ITT in 1969. Now a city, it is one of the largest developments in the country. It has multiple neighborhoods and developers, and attracts families and retirees for the recreation, newer homes, and attractive prices. At $120,000, 2011 home prices were lower than the Florida median.
Finally there is Daytona Beach, site of the famed speedway. The city on the beach has somewhat of a checkered reputation as first a destination for spring breakers and now for motorcycle rallies.
Mid Atlantic – the Space Coast
From Titusville to Port St. Lucie, Florida’s Atlantic Coast tends to be overlooked. The traffic isn’t as bad, and the climate is a bit warmer in winter. Real estate is quite inexpensive, with the median home in Melbourne going for $120,000 in late 2011.
The area generally has inhabitable barrier islands that many of the nicest neighborhoods are on. It is quite easy to live very near the water. The bigger towns are on the inland side.
A drawback is that in otherwise great retirement towns like Vero Beach it is a long drive to the nearest big airport. Parts of this area were severely walloped by hurricanes in the mid 2000's. A significant percentage of the people who live in this area are retired.
Central Florida
Moving away from the coast there is the gigantic center portion of Florida, which runs from the college town of Gainesville (University of Florida) in the north to Ocala’s horse country, the major metro of Orlando, and on down to Lakeland, Winter Park, and smaller towns below that. The climate is different in central Florida – humidity is a bit lower and it gets hotter in the summer.
The area is filled with countless lakes – in many areas like Lakeland and Cypress Gardens it often seems like there is more lake than land. The housing crisis has hurt this part of Florida as hard or harder than anywhere in the country. It is filled with inexpensive active adult communities, RV communities, and inexpensive communities of manufactured homes. As an example, the median price of a home in late 2011 was $80,000 in Ocala.
Nearer the huge city of Orlando the selection of communities is more varied, going from very low budget to gated golfing communities where all the homes sell for more than a million dollars. For budget-minded retirees, we like this area. Real estate prices are cheap and there are tons of communities to choose from.
Check out places like Mount Dora and Kissimmee. Famous active communities like On Top of the World and The Villages are in this part of the state. Many people believe that central Florida is the most conservative portion of the state.
South Atlantic Coast
Stuart is not only a very cute town on the coast, it is reputed to be the northernmost part of Florida benefiting from proximity to the warming influence of the Gulf Stream.
From here south the coast gets more and more crowded, going through retirement towns like Boynton Beach, Delray Beach, Boca Raton, Palm Beach, and finally, the huge and most unusual city of Miami.
Here in this region the ocean and the beaches are beautiful. One can find any type of community for any budget here. The Century Villages (there are 4 of them) are old-line, very large active communities dotted throughout the region. Those are fairly inexpensive, but it is easy to spend plenty to live in very exclusive communities like Sailfish Point on Hutchinson Island near Stuart.
Middle Gulf – The Nature Coast
The Gulf Coast is surprisingly unpopulated in its northern regions below Tallahassee. The first town of any consequence coming from the north is Spring Hill. It has a lot of communities to live in, most of which are nothing special. It is a short drive to the beach.
Tampa/St.Petersburg/Clearwater is one of Florida’s biggest Metros. Tampa tends to be the commercial center, while St.Petersburg’s island location and many nice neighborhoods and beaches make it more relaxed. Although has a lot of interesting neighborhoods rather than 55+ developments, the city is filled with retirees. Home prices are low (about $70,000 according to City-Data.com).
Going south from there is Sarasota, a wonderful place to retire for people who are looking for culture, restaurants and a vibrant community. It has active adult developments and nice general neighborhoods. The beachfront barrier islands of Siesta Key and Longboat Key offer a chance to live on the beach but be right next to a city. Sarasota proper has a more liberal outlook than many other places in Florida.
South Gulf Coast
Fort Myers is the biggest community in this part of the state. It is a diverse community in its own right – from a very pretty and restored downtown area to sprawling developments to a very long coastline. Real estate prices are low and traffic in season is high. It has a terrific new airport and active cultural life. Towns around it and south of here offer different attractions.
In Cape Coral anybody can buy a house on a canal for well less than $100,000, whereas Punta Gorda is strikingly more upscale.
To the south Bonita Springs offers great beaches and plentiful golf. Naples and Marco Island, the last 2 towns before the Everglades start, are the decidedly upscale parts of the state. Naples has a wonderful downtown and beautiful neighborhoods on the beach, plus very expensive active adult communities on the bay.
The Keys
Starting below the Everglades on the East Coast of the State the Keys begin on a series of mangroves. Narrow Route 1 connects them to Miami over a series of bridges and narrow coral islets, ending in Key West just 90 miles from Cuba. In most places the Keys are less than 200 yards wide, although the principal towns of Marathon and Islamorada are bigger.
While great for vacationers who love the beach and fishing, the Keys are better for younger retirees than older ones. That’s because it can be a long way to Miami for healthcare, not to mention the problem of mandatory evacuations that can come in hurricane season. Property values in Key West, the tropical and bohemian paradise, are among the highest in the count
In the next post, Consider Florida For Retirement: Part 3, we'll get deeper into what would attract different types of people to the different regions.
Resources:
Directory of Florida retirement towns and active communities
Comments?
What are your favorite parts of Florida? Do you think I have characterized it accurately?
Let me know if you have any thought about it.
Panhandle
First, in Florida’s Panhandle on the Gulf of Mexico you will find towns like Panama City and Pensacola. Both are relatively low key, lower cost, and very popular with retirees. Panama City has a reputation for attracting spring breakers in the springtime. Since there is several large military bases in the area, many military retirees have decided to retire here. There are great beaches here and numerous bays – fishing and boating are topnotch.
At the start of the Panhandle in the “Big Bend Area” is Tallahassee, a completely different kind of place. A college town, it is home to both Florida State Univ. and Florida A & M. Also the state’s capital, it is considered one of the more liberal enclaves in the state (although people who view themselves as conservatives will find like-minded people too). Though not on the water, it is only an hour’s drive to very peaceful areas of the Gulf, such as Apalachicola.
The real estate market is relatively stable and slightly below the state median price. Traffic can be bad. Winters are mild. Although there is an occasional frost, the prime vegetable growing season is winter.
Northeast Florida – Jacksonville to Daytona Beach
Jacksonville is one of Florida’s 3 big urban areas, along with Tampa/St. Pete and Miami. This one tends to attract the youngest residents. There are huge suburbs and new developments. Some of these include neighborhoods for families with children, along with others designed for the 55+ crowd, an approach that is attractive to many who want to retire near their grandchildren.
Going east from the city, Jacksonville Beach offers many little neighborhoods on the beach. Jacksonville has a great airport and some of the country’s top medical facilities.
As one goes south along the beach you run into very wealthy enclaves like Ponte Vedra, home to many famous and/or wealthy people. Historic St. Augustine is an interesting, if touristy town.
Palm Coast is a massive development originally started by ITT in 1969. Now a city, it is one of the largest developments in the country. It has multiple neighborhoods and developers, and attracts families and retirees for the recreation, newer homes, and attractive prices. At $120,000, 2011 home prices were lower than the Florida median.
Finally there is Daytona Beach, site of the famed speedway. The city on the beach has somewhat of a checkered reputation as first a destination for spring breakers and now for motorcycle rallies.
Mid Atlantic – the Space Coast
From Titusville to Port St. Lucie, Florida’s Atlantic Coast tends to be overlooked. The traffic isn’t as bad, and the climate is a bit warmer in winter. Real estate is quite inexpensive, with the median home in Melbourne going for $120,000 in late 2011.
The area generally has inhabitable barrier islands that many of the nicest neighborhoods are on. It is quite easy to live very near the water. The bigger towns are on the inland side.
A drawback is that in otherwise great retirement towns like Vero Beach it is a long drive to the nearest big airport. Parts of this area were severely walloped by hurricanes in the mid 2000's. A significant percentage of the people who live in this area are retired.
Central Florida
Moving away from the coast there is the gigantic center portion of Florida, which runs from the college town of Gainesville (University of Florida) in the north to Ocala’s horse country, the major metro of Orlando, and on down to Lakeland, Winter Park, and smaller towns below that. The climate is different in central Florida – humidity is a bit lower and it gets hotter in the summer.
The area is filled with countless lakes – in many areas like Lakeland and Cypress Gardens it often seems like there is more lake than land. The housing crisis has hurt this part of Florida as hard or harder than anywhere in the country. It is filled with inexpensive active adult communities, RV communities, and inexpensive communities of manufactured homes. As an example, the median price of a home in late 2011 was $80,000 in Ocala.
Nearer the huge city of Orlando the selection of communities is more varied, going from very low budget to gated golfing communities where all the homes sell for more than a million dollars. For budget-minded retirees, we like this area. Real estate prices are cheap and there are tons of communities to choose from.
Check out places like Mount Dora and Kissimmee. Famous active communities like On Top of the World and The Villages are in this part of the state. Many people believe that central Florida is the most conservative portion of the state.
South Atlantic Coast
Stuart is not only a very cute town on the coast, it is reputed to be the northernmost part of Florida benefiting from proximity to the warming influence of the Gulf Stream.
From here south the coast gets more and more crowded, going through retirement towns like Boynton Beach, Delray Beach, Boca Raton, Palm Beach, and finally, the huge and most unusual city of Miami.
Here in this region the ocean and the beaches are beautiful. One can find any type of community for any budget here. The Century Villages (there are 4 of them) are old-line, very large active communities dotted throughout the region. Those are fairly inexpensive, but it is easy to spend plenty to live in very exclusive communities like Sailfish Point on Hutchinson Island near Stuart.
Middle Gulf – The Nature Coast
The Gulf Coast is surprisingly unpopulated in its northern regions below Tallahassee. The first town of any consequence coming from the north is Spring Hill. It has a lot of communities to live in, most of which are nothing special. It is a short drive to the beach.
Tampa/St.Petersburg/Clearwater is one of Florida’s biggest Metros. Tampa tends to be the commercial center, while St.Petersburg’s island location and many nice neighborhoods and beaches make it more relaxed. Although has a lot of interesting neighborhoods rather than 55+ developments, the city is filled with retirees. Home prices are low (about $70,000 according to City-Data.com).
Going south from there is Sarasota, a wonderful place to retire for people who are looking for culture, restaurants and a vibrant community. It has active adult developments and nice general neighborhoods. The beachfront barrier islands of Siesta Key and Longboat Key offer a chance to live on the beach but be right next to a city. Sarasota proper has a more liberal outlook than many other places in Florida.
South Gulf Coast
Fort Myers is the biggest community in this part of the state. It is a diverse community in its own right – from a very pretty and restored downtown area to sprawling developments to a very long coastline. Real estate prices are low and traffic in season is high. It has a terrific new airport and active cultural life. Towns around it and south of here offer different attractions.
In Cape Coral anybody can buy a house on a canal for well less than $100,000, whereas Punta Gorda is strikingly more upscale.
To the south Bonita Springs offers great beaches and plentiful golf. Naples and Marco Island, the last 2 towns before the Everglades start, are the decidedly upscale parts of the state. Naples has a wonderful downtown and beautiful neighborhoods on the beach, plus very expensive active adult communities on the bay.
The Keys
Starting below the Everglades on the East Coast of the State the Keys begin on a series of mangroves. Narrow Route 1 connects them to Miami over a series of bridges and narrow coral islets, ending in Key West just 90 miles from Cuba. In most places the Keys are less than 200 yards wide, although the principal towns of Marathon and Islamorada are bigger.
While great for vacationers who love the beach and fishing, the Keys are better for younger retirees than older ones. That’s because it can be a long way to Miami for healthcare, not to mention the problem of mandatory evacuations that can come in hurricane season. Property values in Key West, the tropical and bohemian paradise, are among the highest in the count
In the next post, Consider Florida For Retirement: Part 3, we'll get deeper into what would attract different types of people to the different regions.
Resources:
Directory of Florida retirement towns and active communities
Comments?
What are your favorite parts of Florida? Do you think I have characterized it accurately?
Let me know if you have any thought about it.
Friday, May 25, 2012
Consider Florida For Retirement: Part 1
There are people that “hate” Florida, and there are those that “love” it. Surprisingly, the people who don’t have a strong opinion seem to be a smaller group.
In Part 2 of this article I'll get into more about the regions and which ones might appeal to different folks better than others, but here in Part 1 I would like to provide a “Florida Retirement 101" crash course.
My objective is to help you understand this very large and popular state, which is diverse in more ways than you might think. You still might not like the idea of Florida, but at least you will know more about it.
First, a few facts
The 2010 household population was 18,800,000, the 4th most populous in the U.S. Median age is 40.7, higher than national average. Some 21% of the population is 62 and over.
Part of Florida’s geographic diversity comes from its unusual shape – it is both tall and wide. So tall and wide that it takes over a day to drive from Pensacola to Key West. Its different regions tend to attract different kinds of people, offering another kind of diversity.
Florida is the 22nd largest state, has the longest coastline in the contiguous states, and the only state to have a coastline on the Atlantic and the Gulf of Mexico. It is a very flat state, which is one of the things that people tend not to like about it (Mount Dora, at 185' is one of its “loftiest” towns).
Florida’s median home value in early 2012 was $120,600 (Zillow), about 20% lower than the U.S. median ($145,000 – Zillow, or $163,500 – NAR). According to Zillow.com the priciest metro in the state for homes is Naples ($199,000) and the most inexpensive is Ocala ($84,200).
From a tax viewpoint Florida is very friendly to retirees. There is no state income tax. There used to be a tax on intangible assets (stocks, etc.), but that has been eliminated. Sales tax is 6%. Florida has a homestead law, Save Our Homes, that protects full-time residents from property taxes above the rate of inflation.
One of the few economic negatives about Florida is that in many areas near the coast, property insurance is very expensive. Many private insurers have pulled out of the market after several bad hurricane seasons, leaving the non-profit Citizens Insurance Co. as the insurer of last resort.
Weatherwise, it is a well-known fact that Florida is pretty warm in winter and hot in summer. Along the coasts you can count on very high humidity. In the interior it will be less so. Hurricanes are a problem everywhere in the state, but worse along the coasts. Winters in the north around Tallahassee and Jacksonville will have an occasional frost, but generally warm up enough in the day for any outdoor activity. As you move south winter temps get higher and higher. Key West is the only true frost-free city in the continental U.S. – yes, even Miami has seen a few snow flakes on the rarest of occasions.
The Diverse Regions
Florida is quite representative of the U.S. from an ethnic and political basis. It has every ethnicity and political stripe – in fact many of its residents, young and old, have moved here from somewhere else. As Florida votes in our Presidential elections, so usually does the rest of the country as a whole.
We'll break the state into 8 regions:
The Panhandle
Northeast Florida – Jacksonville to Daytona Beach
Mid Atlantic – the Space Coast
Central Florida
South Atlantic Coast
Middle Gulf – The Nature Coast
South Gulf Coast
The Keys
In the next post, Consider Florida For Retirement: Part 2, we'll get into some of the differences in the 8 different regions
Resources:
Directory of Florida retirement towns and active communities
In Part 2 of this article I'll get into more about the regions and which ones might appeal to different folks better than others, but here in Part 1 I would like to provide a “Florida Retirement 101" crash course.
My objective is to help you understand this very large and popular state, which is diverse in more ways than you might think. You still might not like the idea of Florida, but at least you will know more about it.
First, a few facts
The 2010 household population was 18,800,000, the 4th most populous in the U.S. Median age is 40.7, higher than national average. Some 21% of the population is 62 and over.
Part of Florida’s geographic diversity comes from its unusual shape – it is both tall and wide. So tall and wide that it takes over a day to drive from Pensacola to Key West. Its different regions tend to attract different kinds of people, offering another kind of diversity.
Florida is the 22nd largest state, has the longest coastline in the contiguous states, and the only state to have a coastline on the Atlantic and the Gulf of Mexico. It is a very flat state, which is one of the things that people tend not to like about it (Mount Dora, at 185' is one of its “loftiest” towns).
Florida’s median home value in early 2012 was $120,600 (Zillow), about 20% lower than the U.S. median ($145,000 – Zillow, or $163,500 – NAR). According to Zillow.com the priciest metro in the state for homes is Naples ($199,000) and the most inexpensive is Ocala ($84,200).
From a tax viewpoint Florida is very friendly to retirees. There is no state income tax. There used to be a tax on intangible assets (stocks, etc.), but that has been eliminated. Sales tax is 6%. Florida has a homestead law, Save Our Homes, that protects full-time residents from property taxes above the rate of inflation.
One of the few economic negatives about Florida is that in many areas near the coast, property insurance is very expensive. Many private insurers have pulled out of the market after several bad hurricane seasons, leaving the non-profit Citizens Insurance Co. as the insurer of last resort.
Weatherwise, it is a well-known fact that Florida is pretty warm in winter and hot in summer. Along the coasts you can count on very high humidity. In the interior it will be less so. Hurricanes are a problem everywhere in the state, but worse along the coasts. Winters in the north around Tallahassee and Jacksonville will have an occasional frost, but generally warm up enough in the day for any outdoor activity. As you move south winter temps get higher and higher. Key West is the only true frost-free city in the continental U.S. – yes, even Miami has seen a few snow flakes on the rarest of occasions.
The Diverse Regions
Florida is quite representative of the U.S. from an ethnic and political basis. It has every ethnicity and political stripe – in fact many of its residents, young and old, have moved here from somewhere else. As Florida votes in our Presidential elections, so usually does the rest of the country as a whole.
We'll break the state into 8 regions:
The Panhandle
Northeast Florida – Jacksonville to Daytona Beach
Mid Atlantic – the Space Coast
Central Florida
South Atlantic Coast
Middle Gulf – The Nature Coast
South Gulf Coast
The Keys
In the next post, Consider Florida For Retirement: Part 2, we'll get into some of the differences in the 8 different regions
Resources:
Directory of Florida retirement towns and active communities
Friday, May 18, 2012
“You’re Never Too Old…”
“You’re never too old to set another goal or to dream a new dream.” – CS Lewis
What a great saying! So upbeat, so positive, so reaffirming.
But you’ve gotta ask, “Is it really true?” I’ve concluded that there may be a time when setting another goal or dreaming a new dream is indeed impossible – but (and this is a big BUT) – not being able to do so isn’t really related to your age. So I’ll tell you my bias right up front. When I’m around, don’t use “age” as an excuse for not achieving, or changing, or improving, or yes, even dreaming new dreams or setting new goals.
But if you live long enough, you’re bound to experience some of life’s difficult challenges. You may learn that sometimes a door that was open will be shut in front of you and regardless of how fervently you hope or pray or dream, that door will not ever open again.
Recently a 48-year old NH police chief was killed in the line of duty only 8 days before he was to officially retire. He and his wife had a month long vacation planned. His wife has seen the doorway to a wonderful retirement slammed fiercely in her face and she’ll no longer be able to set new goals or dream new dreams that involve her now deceased husband, but that’s not because she’s too old. It’s because life has intervened.
Some of us may have lost jobs – and may be having a tough time finding new work. It’s hard to be positive with that cloud overhead. But do keep setting new goals. Explore new avenues, hone your skills, network and connect. You may feel at times that you’re facing discrimination because of your age – and you may very well be right. But don’t let that keep you down. If a doorway has been slammed shut in front of you, move sideways instead.
Every time a door has been slammed shut in my face, (and there have been many slammings over the years), I’ve fought hard to rise out of the ashes and dream a new dream. Some may think it’s harder to dream new dreams if you’re After Fifty. Actually, After Fifty dreams are probably “better quality” dreams, as they’ve been honed by years of experience and the wisdom that comes with maturity. As a group, we’re probably more insightful about what will and won’t work.
So will we ever be too old to set a new goal or dream a new dream? I say age alone won’t prevent new goal setting. What about you – do you have a new goal, a new dream?
View the original article here
What a great saying! So upbeat, so positive, so reaffirming.
But you’ve gotta ask, “Is it really true?” I’ve concluded that there may be a time when setting another goal or dreaming a new dream is indeed impossible – but (and this is a big BUT) – not being able to do so isn’t really related to your age. So I’ll tell you my bias right up front. When I’m around, don’t use “age” as an excuse for not achieving, or changing, or improving, or yes, even dreaming new dreams or setting new goals.
But if you live long enough, you’re bound to experience some of life’s difficult challenges. You may learn that sometimes a door that was open will be shut in front of you and regardless of how fervently you hope or pray or dream, that door will not ever open again.
Recently a 48-year old NH police chief was killed in the line of duty only 8 days before he was to officially retire. He and his wife had a month long vacation planned. His wife has seen the doorway to a wonderful retirement slammed fiercely in her face and she’ll no longer be able to set new goals or dream new dreams that involve her now deceased husband, but that’s not because she’s too old. It’s because life has intervened.
Some of us may have lost jobs – and may be having a tough time finding new work. It’s hard to be positive with that cloud overhead. But do keep setting new goals. Explore new avenues, hone your skills, network and connect. You may feel at times that you’re facing discrimination because of your age – and you may very well be right. But don’t let that keep you down. If a doorway has been slammed shut in front of you, move sideways instead.
Every time a door has been slammed shut in my face, (and there have been many slammings over the years), I’ve fought hard to rise out of the ashes and dream a new dream. Some may think it’s harder to dream new dreams if you’re After Fifty. Actually, After Fifty dreams are probably “better quality” dreams, as they’ve been honed by years of experience and the wisdom that comes with maturity. As a group, we’re probably more insightful about what will and won’t work.
So will we ever be too old to set a new goal or dream a new dream? I say age alone won’t prevent new goal setting. What about you – do you have a new goal, a new dream?
View the original article here
Sunday, May 13, 2012
What You Think You Know about Social Security Could Hurt You – Part 1
Note: As we wrote this the public trustees of the Social Security programs reported that its fiscal health has significantly worsened. See our companion story in our Blog, “Social Security Crisis Worsens“.
We were vain enough to consider ourselves experts on when and how to start collecting social security. That is, until we heard a talk last week by Kurt Czarnowski. Boy, the things we didn’t know, and the others so misunderstood! This article will give a brief background on Social Security and then dive into successful strategies for optimizing your return from this important safety net.
Part 2 of this series will focus on issues related to claiming strategies for couples, the rights of divorced spouses, and frequent misunderstandings/questions about Social Security.
About Czarnowski ConsultingKurt Czarnowski is currently the principal in “Czarnowski Consulting,” a retirement planning company which provides “Expert Answers to Your Social Security Questions.” Czarnowski is the former Regional Communications Director for the Social Security Administration (SSA) in New England, a position he held from December 1991 until his retirement at the end of 2010.
First, let’s start with a quote from Kurt Czarnowski: “The myths and misunderstandings about Social Security are staggering”. This from a man who spent 34 years within the Social Security Administration, the last of those as a Communications Director. Given all the misinformation, it is important that we all address this topic with an open mind. Note that this article was prepared from notes as well as our observations. If there are any errors they undoubtedly stem from our misunderstanding and not as any reflection on Mr. Czarnowski.
Social Security – A Safety Net
This 76 year old program was designed as a safety net for seniors, widows, and the disabled. It was never meant to be the sole source of retirement income; rather it was meant to be the base to help supplement income from pensions, savings and investments, and other income.
To be eligible for a retirement benefit you first need to become “vested”, which means you have to have earned 40 credits from Social Security. In 2012 you get 1 credit for each $1130 you earn, with a maximum of 4 credits per year. Employees currently pay 4.2% on their earnings (up to a maximum of $110,100 in 2012). In addressing a question from the audience, Mr. Czarnowski commented that for an individual who has not earned their 40 credits, it might be worth while taking a job to do so, given the potential value of the payout over time (including some considerations about your Part B premiums).
How Social Security determines your benefit
It is worth knowing how the Social Security Administration calculates your retirement benefits, once you become eligible and decide to start collecting. These are the 3 steps in determining your benefit:
1. Adjust prior year earnings to current dollars. This neutralizes your early year earnings, which are unreasonably low in today’s dollars.
2. Take the average of your 35 highest earning years. Non-working years are counted as 0's.
3. Adjust the benefit according to income. This progressive approach means is that lower earners get a higher percentage benefit (56%) relative to their earnings than do middle earners (41%). The highest earners get the smallest percentage (34%).
The average monthly Social Security retirement benefit paid in 2012 is $1,229, or $14,748 per year – hardly enough for a comfortable retirement by itself.
How much you collect depends on when you start collecting
The age you have attained when you start collecting has a major impact on the size of your monthly check. The program is designed to be neutral no matter when you start – assuming an average life expectancy.
For workers born between 1943 and 1954 (the baby boomers and a few years older):
Age 62 Benefit is 75% of the Full Retirement Benefit
Age 66 Benefit is 100% of the Full Retirement Benefit
Age 70 Benefit is 132% of the Full Retirement Benefit
Your benefit increases the longer you wait to start collecting – up to age 70. Note that you can start collecting at anytime after age 62 (for example, 63 years and 2 months). Your benefit will be adjusted according to a formula. Between age 62 and your Full Retirement Age (FRA) – 66 for baby boomers – the benefit goes up .5% per month. Between FRA and age 70 the benefit increases .666% per month, or 8% per year.
Myth busters – working in retirement
How your benefit is affected by working is one of the most misunderstood aspects of Social Security. In general Mr.Czarnowski and other experts all agree that there is no reason not to work, even though your social security benefits might be reduced if you claim your benefits and work before you reach your FRA.
The theory is that it is better to have more money, rather than less.
Between the ages of 62 to 65 there will be a reduction of your benefits of $1 for every $2 you earn above $14,640.
In the year you reach FRA your benefit will be reduced by $1 for every $3 you earn above $38,880.
Once you attain your Full Retirement Age there is no reduction in your benefits, no matter how much you earn.
Taxation of Social Security
About one third of social security recipients pay income tax. If you earn more than $25,000 (individuals) or $32,000 (filing jointly) you are required to pay tax on up to 85% of benefits received. Additionally, there are several states that tax social security (although most do not).
Collection Strategies
Mr. Czarnowski gave us the clearest explanation of various collection strategies we have ever heard. Which is not surprising since he is in demand as a consultant with leading financial planners, assisting individuals in their social security planning. Here are some of the key strategies he discussed.
Delay taking your benefits?
Mr. Czarnowski stresses that the decision on when to take Social Security is yours, but you do need to know the facts before you decide.
Social Security retirement benefits are structured to be neutral, regardless of when you start claiming, assuming that the average person lives to be 78.
If you die before then, you were better off claiming early. If you claim later to get a higher monthly benefit and then live to be 100, you will have hit the Social Security jackpot, because your monthly benefit would have been so much higher for all of those extra years beyond 78.
Factors affecting your decision
There are 4 major factors you need to consider when deciding when to start claiming your social security:
- Your health. If you have a serious health condition that might affect how long you will live, earlier collection is probably better.
- Family life expectancy. Assuming you are healthy, how long did your parents live? How about siblings? If your genes point to living into your 80's or beyond, delaying your claiming date might be wise.
- Do you need the money. If you got laid off and your job prospects aren’t that good, you might need to claim early just to stay afloat. But if you can live using other savings, you still might consider delaying.
- Are you still working. Since your benefit will be reduced if you earn more than a modest amount before your full retirement age, there is not much point in claiming before your FRA. Plus, if you are in your high earning years, there is even more reason to delay claiming your benefit. That’s because you might be able to drive up your 35 year earning average, which will increase your future monthly payments.
The effect on your surviving spouse also needs to be considered
When the first spouse dies the survivor has two options: he or she can keep their own benefit, or take over their spouse’s. For the couple with a higher earning spouse, the benefit of taking the delayed benefit is magnified. Not only does the higher earner get the higher benefit during his or her lifetime, but the surviving spouse will also benefit as long as he/she lives.
Next time – Issues related to couples and when to take Social Security
Married couples need to carefully consider their options before claiming Social Security in order to maximize their lifetime benefits. We will explore those options and different claiming strategies in more detail in Part 2, along with other issues such as the rights of divorced spouses.
For further reference:
Part 2: Marital Claiming Strategies, the Rights of Divorced Spouses, and Frequent Misconceptions
Exploding 5 Myths about Social Security (Jane Bryant Quinn for AARP)
It Pays to Work in Retirement
When Should You Start Taking Your Social Security Benefits
10 Things You Need to Know Before You Start Taking Social Security
Too Many Boomers Leave Money on the Social Security Table
Social Security Administration: Social Security Benefits Estimator
Comments? What are you thinking about your Social Security claiming strategies? Please share your thoughts in the Comments section below.
View the original article here
We were vain enough to consider ourselves experts on when and how to start collecting social security. That is, until we heard a talk last week by Kurt Czarnowski. Boy, the things we didn’t know, and the others so misunderstood! This article will give a brief background on Social Security and then dive into successful strategies for optimizing your return from this important safety net.
Part 2 of this series will focus on issues related to claiming strategies for couples, the rights of divorced spouses, and frequent misunderstandings/questions about Social Security.
About Czarnowski ConsultingKurt Czarnowski is currently the principal in “Czarnowski Consulting,” a retirement planning company which provides “Expert Answers to Your Social Security Questions.” Czarnowski is the former Regional Communications Director for the Social Security Administration (SSA) in New England, a position he held from December 1991 until his retirement at the end of 2010.
First, let’s start with a quote from Kurt Czarnowski: “The myths and misunderstandings about Social Security are staggering”. This from a man who spent 34 years within the Social Security Administration, the last of those as a Communications Director. Given all the misinformation, it is important that we all address this topic with an open mind. Note that this article was prepared from notes as well as our observations. If there are any errors they undoubtedly stem from our misunderstanding and not as any reflection on Mr. Czarnowski.
Social Security – A Safety Net
This 76 year old program was designed as a safety net for seniors, widows, and the disabled. It was never meant to be the sole source of retirement income; rather it was meant to be the base to help supplement income from pensions, savings and investments, and other income.
To be eligible for a retirement benefit you first need to become “vested”, which means you have to have earned 40 credits from Social Security. In 2012 you get 1 credit for each $1130 you earn, with a maximum of 4 credits per year. Employees currently pay 4.2% on their earnings (up to a maximum of $110,100 in 2012). In addressing a question from the audience, Mr. Czarnowski commented that for an individual who has not earned their 40 credits, it might be worth while taking a job to do so, given the potential value of the payout over time (including some considerations about your Part B premiums).
How Social Security determines your benefit
It is worth knowing how the Social Security Administration calculates your retirement benefits, once you become eligible and decide to start collecting. These are the 3 steps in determining your benefit:
1. Adjust prior year earnings to current dollars. This neutralizes your early year earnings, which are unreasonably low in today’s dollars.
2. Take the average of your 35 highest earning years. Non-working years are counted as 0's.
3. Adjust the benefit according to income. This progressive approach means is that lower earners get a higher percentage benefit (56%) relative to their earnings than do middle earners (41%). The highest earners get the smallest percentage (34%).
The average monthly Social Security retirement benefit paid in 2012 is $1,229, or $14,748 per year – hardly enough for a comfortable retirement by itself.
How much you collect depends on when you start collecting
The age you have attained when you start collecting has a major impact on the size of your monthly check. The program is designed to be neutral no matter when you start – assuming an average life expectancy.
For workers born between 1943 and 1954 (the baby boomers and a few years older):
Age 62 Benefit is 75% of the Full Retirement Benefit
Age 66 Benefit is 100% of the Full Retirement Benefit
Age 70 Benefit is 132% of the Full Retirement Benefit
Your benefit increases the longer you wait to start collecting – up to age 70. Note that you can start collecting at anytime after age 62 (for example, 63 years and 2 months). Your benefit will be adjusted according to a formula. Between age 62 and your Full Retirement Age (FRA) – 66 for baby boomers – the benefit goes up .5% per month. Between FRA and age 70 the benefit increases .666% per month, or 8% per year.
Myth busters – working in retirement
How your benefit is affected by working is one of the most misunderstood aspects of Social Security. In general Mr.Czarnowski and other experts all agree that there is no reason not to work, even though your social security benefits might be reduced if you claim your benefits and work before you reach your FRA.
The theory is that it is better to have more money, rather than less.
Between the ages of 62 to 65 there will be a reduction of your benefits of $1 for every $2 you earn above $14,640.
In the year you reach FRA your benefit will be reduced by $1 for every $3 you earn above $38,880.
Once you attain your Full Retirement Age there is no reduction in your benefits, no matter how much you earn.
Taxation of Social Security
About one third of social security recipients pay income tax. If you earn more than $25,000 (individuals) or $32,000 (filing jointly) you are required to pay tax on up to 85% of benefits received. Additionally, there are several states that tax social security (although most do not).
Collection Strategies
Mr. Czarnowski gave us the clearest explanation of various collection strategies we have ever heard. Which is not surprising since he is in demand as a consultant with leading financial planners, assisting individuals in their social security planning. Here are some of the key strategies he discussed.
Delay taking your benefits?
Mr. Czarnowski stresses that the decision on when to take Social Security is yours, but you do need to know the facts before you decide.
Social Security retirement benefits are structured to be neutral, regardless of when you start claiming, assuming that the average person lives to be 78.
If you die before then, you were better off claiming early. If you claim later to get a higher monthly benefit and then live to be 100, you will have hit the Social Security jackpot, because your monthly benefit would have been so much higher for all of those extra years beyond 78.
Factors affecting your decision
There are 4 major factors you need to consider when deciding when to start claiming your social security:
- Your health. If you have a serious health condition that might affect how long you will live, earlier collection is probably better.
- Family life expectancy. Assuming you are healthy, how long did your parents live? How about siblings? If your genes point to living into your 80's or beyond, delaying your claiming date might be wise.
- Do you need the money. If you got laid off and your job prospects aren’t that good, you might need to claim early just to stay afloat. But if you can live using other savings, you still might consider delaying.
- Are you still working. Since your benefit will be reduced if you earn more than a modest amount before your full retirement age, there is not much point in claiming before your FRA. Plus, if you are in your high earning years, there is even more reason to delay claiming your benefit. That’s because you might be able to drive up your 35 year earning average, which will increase your future monthly payments.
The effect on your surviving spouse also needs to be considered
When the first spouse dies the survivor has two options: he or she can keep their own benefit, or take over their spouse’s. For the couple with a higher earning spouse, the benefit of taking the delayed benefit is magnified. Not only does the higher earner get the higher benefit during his or her lifetime, but the surviving spouse will also benefit as long as he/she lives.
Next time – Issues related to couples and when to take Social Security
Married couples need to carefully consider their options before claiming Social Security in order to maximize their lifetime benefits. We will explore those options and different claiming strategies in more detail in Part 2, along with other issues such as the rights of divorced spouses.
For further reference:
Part 2: Marital Claiming Strategies, the Rights of Divorced Spouses, and Frequent Misconceptions
Exploding 5 Myths about Social Security (Jane Bryant Quinn for AARP)
It Pays to Work in Retirement
When Should You Start Taking Your Social Security Benefits
10 Things You Need to Know Before You Start Taking Social Security
Too Many Boomers Leave Money on the Social Security Table
Social Security Administration: Social Security Benefits Estimator
Comments? What are you thinking about your Social Security claiming strategies? Please share your thoughts in the Comments section below.
View the original article here
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