no.1/september 2011 senior living and retirement 3doc.mediaplanet.com/all_projects/8467.pdf · a...
TRANSCRIPT
AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO the MiAMi herALd
senior living and retirement
Discover new ways to live the retirement adventure of a lifetime
How strategic planning will carry you safely
into retirement
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no.1/september 2011
For planning a successFul
Future
senior living and retirement
For planning a
3tips
AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO the MiAMi herALd2 2 · SepteMber 2011
challenges
Planning for your dream retirement
Financial security and investment planning are two of the most important factors that will enable you to embrace retirement and enjoy the next chapter of your life.
Financial security and retirement are bright dreams for millions of Florid-ians 50 and over. Increasingly, how-ever, Floridians of
all generations are realizing that achieving this dream won’t be easy. It will take hard work, self-discipline, and thoughtful choices to make these dreams come true.
Rapid changes in financial markets, a struggling economic recovery, and questions about the future are clouding the retirement picture for some older Floridians. In fact, a Janu-ary 2011 survey by AARP showed that 44 percent of Floridians age 50 and over are planning to defer retirement if the economy does not improve.
savvy planning solutionsIn a tough environment, older Floridians are seeking trusted, effective tips and tools they can use. AARP suggests:
■■ Set goals. Do you want to travel? Relocate? Give back to
your community? Practice a sport or hobby?
■■ Decide how much you want or need to work. Remember, a passion or skill could be a way to earn cash. For example, a lifelong love for piano could be turned into a financial opportu-nity by giving piano lessons.
■■ Grow your network. “Social capital” is as real as bonds, and it can help you get things done. Nurture connections with other people.
■■ Evaluate your health. Health costs can wreck your plans. Take advantage of the new annual Medicare “wellness visit” to your doctor, and make preventive care a top priority.
■■ Figure out when to take Social Security. Hint: Later is often better.
raise your voiceAnd here’s one more suggestion from AARP—raise your voice. Protecting Social Security and Medicare is important to Florid-ians of all generations. Social Security pumps more than $4.1 billion per month in benefits
into Florida. AARP will continue to demand that Washington protect Medicare’s benefits and keep Social Security strong.
Florida not only benefits finan-cially from the retirees who live in our communities, but in other communities as well. AARP hopes you will join other mem-bers in what our founder, Ethel Percy Andrus, called “the army of useful citizens.”
On behalf of 2.7 million AARP members throughout Florida, thanks for reading this impor-tant publication; and best wishes on securing your retire-ment dreams.
Go to aarp.org to check out the Social Security benefits calcula-tor—it can provide precise infor-mation.
Jeff Johnson
a new take on retirementFran and richard torino joined the peace Corps after retiring from their jobs.
We recommend
pAge 4
take a stand p. 5On September 23, stand up for National Falls prevention Awareness day
protect your health p. 5September is National Life insurance Awareness Month — tips to protect you and your loved ones
“the most rewarding aspect was the people we worked with in our community . . . we felt like we made a contribution. We were inspired by them.”
Jeff JohnsonAArp Florida’s interim State director
set goals■■ Having a retirement plan will
help you achieve your long-term goals .
protect your health■■ Monitor your health through
wise nutritional choices.
Financial security■■ Have a plan for investment and
insurance coverage.
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retirement, First edition, sePtemeber 2011
publisher: tristan Vaughan [email protected] Developer: mandy [email protected] Designer: ariela [email protected] Director: eric [email protected] Manager: luciana [email protected]
contributors: robert baranoff, alistair bentley, Gary call, max Friend, Jeff Johnson michael Joseph, robert kerzner, ilana Polyak, rick steves, Peter Wood
Distributed within: miami herald, september 2011this section was created by mediaplanet and did not involve the miami herald or its editorial departments.
grow your incoMepost-recession, people are seeking financial solutions that won’t lose value and can help their money go the distance.Photo: istockPhoto.com
set up your Financial
plan
set up your
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AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO the MiAMi herALd 3SepteMber 2011 · 3
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aarp
■■ Question: how can you make sure that your family and finances are protected in case of an unexpected emergency?
■■ answer: Consider adding a life insurance policy to your financial plan for retirement.
Life insurance ownership is at an all-time low according to a recent study by LIMRA, a research associa-tion of life insurance and financial services companies.
Half of U.S. households say they are underinsured with nearly a third acknowledging that they would have a hard time meeting basic living expenses if something were to happen to the primary wage-earner.
Today, we live in an economic
environment where many American households are living paycheck to paycheck. In fact, 75 percent of Americans say they only have enough savings to cover one month’s income.
LIMRA research found that more than 40 percent of Ameri-cans say a major reason they have not bought more life insurance is because they have other financial priorities, such as paying off debt or saving for retirement. While those are worthy financial goals, it’s a big gamble to wait to buy life insurance. It could leave those you love the most in a vulner-able financial position if some-thing were to happen to you.
Knowledge is power Many people do not understand the risks they take by not having life insurance, or do not know where to turn to educate them-selves. About a quarter of mid-dle-market households admit they don’t know how to reach their financial goals, including buying life insurance.
September is National Life Insurance Awareness Month (LIAM); sponsored by the non-profit LIFE Foundation and more than 100 of the nation’s leading insurance companies and indus-try groups, including LIMRA. The goal of LIAM is to make sure that Americans understand the importance of including life insurance in their financial
plans fort their own benefit.
review your financial planLIMRA encourages everyone to look at their current financial situations and ask themselves: Would your family be able to pay for their living expenses if something happened to you or your spouse? Do you have a safety net in place to protect your family should something unfortu-nate occur? If not, this September may be the time to do something about it. 1MetLife’s Study of the American Dream
RobeRt baRanoff
life insurance awareness month
news
“Life insurance can play a role in one’s financial plan for retirement. it can provide a safety net to protect your family if something bad should happen, and it can build cash-value over time.”
robert a. KerznerCLU, ChFC, president and CeOLiMrA, LOMA and LL global, inc.
invest in your FaMily’s FutureDecide if life insurance is right for you.Photo: istockPhoto.com
AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO the MiAMi herALd4 4 · SepteMber 2011
insPiration
Post-recession retirement mind-setamericans have emerged from the economic recession with a new set of expecta-tions around the purpose, timing and funding of their retirement. not only is retire-ment being postponed, but it no longer means an end to working—retirement is now a new chapter in life.
The SunAmerica Retirement Re-Set Study is a nationwide survey of Americans age 55 and older that takes an in-depth look at this new retirement mindset. The study reveals that while the recession had a financial and emotional impact, Americans are emerging from the tumult of the last few years empow-ered, and with a more pragmatic and disciplined approach to retire-ment and retirement preparation. Here is a summary of the key find-ingss:
retirement Mindset■■ Americans are recovering from
the “recession mind-bender.” The percentage of people who felt secure dropped dramatically dur-ing the recession but is now on the rebound. Similarly, people became more worried and angry during the recession but are now
increasingly optimistic.■■ A new outlook: today, 54 percent
view retirement as a new chap-ter in life, rather than a winding down—a significant increase over the 38 percent that held a similar view a decade ago.
timing and purpose■■ Retirement is being postponed:
Pre-retirees say they now intend to delay retirement by five years—from age 64 to age 69—triggered in part by increasing longevity, as well as the recession and financial need.
■■ Retirement no longer means the end of work: Almost two-thirds say they would ideally like to remain productive and include work in retirement.
■■ The top reason people want to work during retirement is “the stimulation and satisfaction” rather than the money.
values and obligations■■ 85 percent say they now appreciate
the importance of quality relation-ships with their friends and family even more after the recession.
■■ Asked how the recession affected their financial situation and invest-ment strategy, 96 percent say it’s
important to protect themselves and their families against financial uncertainties.
■■ Financial peace of mind is now six times more important than accu-mulating wealth: 82 percent name it their key financial goal.
■■ Protecting assets is now five times more important to investors than higher-risk returns.
Financial solutions■■ Three-quarters say the last several
years have provided a much-needed financial wake-up call, and 81 per-cent report they have learned impor-tant lessons regarding saving, invest-ing, and preparing for retirement.
■■ Americans believe they can still “get there from here,” and 78 percent say they can still have a fulfilling retirement by being more financially disciplined.
■■ Post-recession, people are seek-ing financial solutions that won’t lose value and can help their
money go the distance. ■■ Almost two-thirds (65 percent) now
want investments that are guaranteed not to lose value.
■■ 60 percent seek investments or insurance that can protect income from market loss—and guarantee income for life.
■■ 80 percent of employed people age 55 and older want education and advice on saving and investing for retirement at their workplace.
■■ More adults 55 and older today have used professional financial advisors to assist with retirement planning than 10 years ago (49 percent versus 40 per-cent).
■■ The vast majority (68 percent) who have used financial advisors believe they have been very helpful. Those who sought professional advice are 72 per-cent more likely to feel very financially prepared for retirement and are also more likely to be financially informed and secure in retirement.
■■ Americans are now looking for something different from their finan-cial advisors. Effective communication skills now outrank competitive returns. 77 percent say an ideal financial advisor is one who speaks in terms they can understand.sunameRica RetiRement Re-set study
rick steves’ top tips from seniors who believe it’s never too late to have a happy childhood — “age matters only if you’re a cheese.”
planning
1 The Internet is an invalu-able resource for booking
flights, checking train schedules, researching and reserving hotels, and lots more. If you’re not already an Internet whiz, enlist someone to help you. Hometown travel classes (often offered by travel stores or libraries) are a good way to inspire you and help kick-start your planning.
when to go
2 Since most seniors are retired and can travel when-
ever they want, it’s smart to aim for shoulder season (April, May, Sept, Oct). This allows you to avoid the most exhausting things about European travel: crowds and the heat of summer.
Medications & health
3 Take a full supply of any medications with you. It
can be difficult and time-con-suming to fill a prescription abroad, and even non-prescrip-tion medications may not be available abroad in the same form you’re used to. Pharmacists over-seas are often unfamiliar with American brand names, so you may have to use the generic name instead. Ask your doctor before you leave for a list of the precise generic names of your medica-tions, and the names of equiva-lent medications in case of unavailability. If you wear hear-ing aids, be sure to bring spare batteries — it can be difficult to find a specific size in Europe.
long-term trips
4 Becoming a temporary part of the community can be
particularly rewarding. Settle down and stay a while, doing side-trips if you choose. You can rent a house or apartment, or go a more affordable route and “swap” houses for a few weeks with someone in an area you’re inter-ested in .
Rick steves
traVel tiPs
the adventure of a lifetime ■■ Question: how can you get
the most out of your retirement?■■ answer: think creatively
about outside-the-box goals and aspirations. try something fun and different.
While vacations to sunny beaches and exploring new hobbies often tend to define the transition from to work to retirement, Fran Tenorio and her husband Richard Becker were making other plans. A public school pre-kindergarten teacher and an administrator in a family court mediation program living in Washington DC, Fran and Richard sold their condo and all their fur-niture and joined the Peace Corps, devoting two years in their early sixties to aiding a developing com-munity in Nicaragua. According to Richard, “in addition to it being an opportune time to shift, the Peace Corps represented the opportunity to do something very constructive and have an adventure.”
giving back to the communityBoth fluent in Spanish, the couple had been curious about potentially moving to Latin America and chose to serve in that region of the world. Richard and Fran, working in the sectors of small business and agri-culture respectfully, contributed to impactful projects ranging from assisting an NGO distribute and installing solar ovens to cultivat-
ing school gardens, and mentoring teenage students in entrepreneur-ial practices. “It’s a time in your life when you’ve accumulated a lot of experience and knowledge and skills you don’t even realize you have, and you can share them,” says Fran.
learning to do more with lessBut the two volunteers also used their two years in Nicaragua to serve as a personal period of learn-ing—enriching their own outlook on life along the way. “We had the idea that The Peace Corps would give us good instruction on how to live more simply—we thought that it would be a very educational process,” recalls Richard. “We had anticipated retiring and we thought it would be good training on how to reduce what we thought we needed.” Enduring a hot and rainy climate where the norm included a lack of electricity, running water, and transportation, became an
opportunity to mentally separate the luxuries from the essentials—a handy perspective for those entering a later stage in life when employment salaries have been left behind for other pursuits. “It was a great experience to be doing more with less,” affirms Fran, who admires the resourcefulness she witnessed first-hand on behalf of the local Nicaraguans. “They were so ingenious in how they were able to make the most of what they had.”
choosing a different pathAt a time in their lives when oth-ers their age often retreat to more relaxing endeavors previously delayed by other priorities, Richard and Fran instead chose to focus on helping others—fostering friend-ships that prove more enriching than any retirement gift they could have given themselves. “The most rewarding aspect was the people we worked with in our commu-nity, as well as the Peace Corps
staff—their arms were wide open for us,” remembers Richard. “We got to make good friends with the people we were serving. We felt like we made a contribution. We were inspired by them; they were daz-zling, incredible people.” The expe-rience of human connection was made even deeper as Richard and Fran were able to welcome their daughters, as well as Richard’s sis-ter and mother, to the community they were serving during their time there.
At the end of two years, Richard and Fran finally left their Peace Corps peers and Nicaraguan com-panions with whom they had toiled daily, making the conclusion of their journey bittersweet. “On a personal level,” shares Fran, “I miss the human contact with friends we made over there. They would want to share a story and invite you in.” Such profound connections cannot be quantified or measured against the value of traditional retirement pur-chases like a sportscar or timeshare, but rather remind us that we are always capable of improving the lives of those around us and growing as human beings as we do so. Feel free to watch a short video chronicling Fran and Richard’s journey on YouTube by searching “AARP Peace Corps.”
max fRiend
“it was a great experience to be doing more with less.”
Fran tenoriomakes dinner in nicaragua
t eaM worKFran torino works together with the local nicaraguan community .Photo: Fran, richard torino
thinKing aBout retireMent. the top reason people want to work during retire-ment is “the stimulation and satisfaction.” Photo: istockPhoto.com
explore new
Destinations
explore
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AN iNdepeNdeNt SUppLeMeNt by MediApLANet tO the MiAMi herALd 5SepteMber 2011 · 5
news
Falls Prevention awareness dayseptember 23 is Falls pre-vention Day in Florida. each year, more than 250,000 older adults living in south Florida fall and injure them-selves severely enough to require medical attention.
And aside from the actual inju-ries, the fear of falling often lim-its mobility, increases isolation, decreases muscle strength and ironically, increases the chances of falling.
Fall injuries reduce the quality
of life due to losses of indepen-dence and mobility. In addition, financial hardships can occur not only because of health care expenses in general, and Medi-care costs particularly, but the potential need for continuous care at home or in an institu-tion. One hip fracture can easily generate a $26,000 bill. These are among the reasons why South Florida must place a higher priority on fal l pre-ve n t i o n— e s p e c i a l l y s i n c e
most falls are preventable!
Fall prevention tips include:■■ Gaining or maintaining leg
strength, flexibility, and balance through exercise two or three times per week
■■ Consulting with a doctor about fall prevention and discussing gait analysis and medication review
■■ Installing grab bars in the bath-room along with other simple home modifications
More than 70 organizations
under the auspices of Health Foun-dation of South Florida’s Healthy Aging Regional Collaborative have made great strides to prevent falls across Miami-Dade, Broward, and Monroe counties. Thanks to their efforts, evidence-based exercise and fall prevention programs have been offered to thousands of older South Floridians.
PeteR Wood
Stand up for falls preventionFor Floridians 65 and over, falls are the leading cause of injury, death and hospitalizations. Falls are preventable. Health Foundation ofSouth Florida’s $7.5 million HealthyAging Regional Collaborative shineswith success stories from olderadults maintaining good health.
National Falls Prevention AwarenessDay is 9/23. Let’s make standing upfor older adults a daily observance.Visit: www.healthyagingsf.orgfor fall prevention classes.
2 South Biscayne Boulevard, Suite 1710, Miami, FL 33131 • 305.374.7200 • www.hfsf.org
Join Health Foundation of South Florida in lowering the rising number of falls
HFSFStripad4.1:Layout 1 9/6/11 1:36 PM Page 1
stay Fithealthy aging regional col-laborative’s enhance Fitness class participants at First presbyterian church of Fort lauderdale. Photo: health Foundation oF
south Florida
the first time that James Daoust visited his clients, Joe and theresa Mollicone, the couple rolled out a tray of desserts including cannolis. in 1983, James, a newly minted insurance agent, had never tasted the rolled fried dough italian pastries with sweet ricotta filling.
Over the next 27 years, he sampled many more Italian specialties in the couple’s home. “He got hooked on Italian desserts,” Theresa says. James Daoust’s close relationship with the Mollicones is the reason they are living comfortably today instead of struggling after a health crisis.
Building trust The Clinton Township, Michigan couple met James because their names were on a mailing list he had purchased to pursue leads for his new business. The Mollicones were in the market for health insurance because as small business owners they needed an individual health plan. Joe owned an excavation business, and Theresa ran a cloth-
ing boutique. She also later opened an alterations shop. After several years, they bought life insurance through James and then disability income insurance as well. James also managed the couple’s retire-ment accounts. “I always felt com-fortable with him,” Theresa recalls.
When the disability income insurance expired on Joe’s 65th birthday, James, now a representa-tive with Michigan Financial Com-panies, suggested long-term care insurance. The Mollicones were hesitant. “You just never think you’ll need something like this,” Theresa says. In addition to long-term care insurance policies from John Han-cock, James suggested transferring assets from an individual retire-ment account to an annuity with a long-term care rider. They followed all of his suggestions because he had always given them sound advice. “Jim if you think we need it, we’ll get it,” said the Mollicones.
Less than six months later, Joe suffered a massive stroke that left him paralyzed on his right side and unable to speak. During his six-month stay in the hospital and a rehab facility, James would visit
regularly to check on Joe’s progress and to start the claims process. Three months after the stroke, the long-term care insurance policy started paying maximum benefits. James was also able to secure a refund for a premium payment the Mollicones made after the stroke. They haven’t paid a premium since.
still working hardSince Joe’s stroke in 2002, he has made progress. He can now sit and feed himself and he even enjoys outings to a race track owned by his daughter, Rosanna, and her husband. Initially Joe had around-the-clock care, but has pared back to just three days a week when The-resa works at her alterations shop. Joe’s policy had a $150 a day payout, plus a 5 percent step-up provision and a shared-care rider. That means that the policy began to increase in value once Joe tapped it. When he depleted his portion of it, Theresa’s share kicked in.
More recently, the Mollicones have begun receiving monthly payments from the annuity James helped them purchase. Because the annuity included the long-term care
rider and they are using the money to pay for long-term care services, the value of the annuity is enhanced and will help provide funding for Joe’s care for a longer period of time.
To improve his condition, Joe has needed intensive therapy, which included stem-cell treatment in Mexico. Had it not been for the thor-ough planning they did with James, Joe and Teresa would not have been able to afford this expensive care. Theresa also recently purchased her own long-term care insurance policy in case she becomes ill.
“Even though the original policies were written for a three-year ben-efit, we’re now in the ninth year of the claim,” James says. “The insur-ance company has paid out over $400,000 in benefits and they’re still paying.” Theresa is grateful that she followed their trusted advisor’s suggestions. “If we didn’t have this insurance, caring for Joe would have depleted all the savings we had,” she says. “Now I’m not afraid of running of out money.”
ilana Polyak
Protecting your health withlife insurance
saFeguarD your health
O the MiAMi herALd
sasas FeguarD
3tip
neWs in brieF
navigating medicareMedicare is a federal govern-ment health insurance program for people age 65 or older and younger people with qualifying disabilities. Medicare is available through the original government program or through managed care companies.
Choosing a Medicare man-aged care company for your ben-efits may provide extra benefits depending on the specific plan. Some examples include access to nurse advice lines, transporta-tion to medical appointments, dental coverage, case managers to help manage your care, and lower cost sharing.
how do i know if i qualify for Medicare? Most people age 65 or older who are citizens or permanent resi-dents of the United States are eligible for Medicare. You are eligible at age 65 if:
■■ You receive or are eligible to receive Social Security benefits
■■ You receive or are eligible to receive railroad retirement ben-efits
■■ Your spouse is eligible■■ You or your spouse (living or
deceased, including divorced spouses) worked long enough in a government job where Medi-care taxes were paid
■■ You are the dependent parent of a fully insured deceased child
how do i apply? If you are not already get-ting retirement benefits, you should contact CMS about three months before your 65th birth-day to sign up for Medicare. You can sign up for Medicare even if you do not plan to retire at age 65. You can call 1-800-MEDI-CARE (1-800-633-4227) or go to medicare.gov.
if i also qualify for Medic-aid, what do i do?Low income individuals may qualify for health insurance under both the Medicare pro-gram as well as their state’s Medicaid program. This group is known as “dual eligible.” Such individuals are eligible for a program called Medicare Special Needs Plans. If you are already enrolled in a Medicaid managed care plan, check to see if they also offer a Medicare Special Needs Plan. Having the same insurance provider for your Medicare and Medicaid benefits helps make sure your care is coordinated for both your benefits.
GaRy call, m.d.
