Resources to Help You Decide When to Take Social Security

At What Age Should I Take Social Security Benefits?

Are you confused about what age you should begin taking Social Security? I came across an article that clearly and efficiently summarizes information about the pros and cons of taking Social Security benefits at various ages. At the end of the post, I include links for other resources.

The article is “When Should You Take Social Security?” by Rande Spiegelman, CPA, CFP at the Schwab Center for Financial Research. It is a bit long but I like the article because:

• There’s a handy table letting you know “When can you get your full Social Security benefit?” by birth year. Retirees born in 1937 or earlier received full benefits at age sixty-five. If you were born in 1938 or later, the retirement age to receive full benefits gradually increases. People born in 1960 or later must wait until age 67 to receive full benefits.
• It gives specific figures on how much you will be penalized by the amount of months you retire before your “full retirement” age. It also let you know how much your monthly benefit will increase by the amount of time you delay in taking the check later. You don’t receive additional benefit for delaying past age 70. That shouldn’t be a problem for most people because over two-thirds take their Social Security benefit early.
• The article gives a list of factors to consider when making this decision.

Here are a couple of other links:

• U.S. Social Security Administrations benefit estimator
• Kiplinger’s has an index of articles on Social Security topics. “10 Things You Must Know About Social Security” covers a lot of the same information as the article above as well as some additional tips. Another short article that you might find helpful is “How to Check Your Social Security Statement Online.

How to Keep a Second Home Fun by Realistically Planning Future Expenses (Second in a Series)

Dreaming of that ideal vacation spot?
Captiva Island. (Click to Enlarge)

Realistic planning of future expenses is very important to keep your second home an escape from the stress of your day-to-day life. Who needs a huge financial obligation that wrecks retirement plans or adds worry to our lives?

This post will include a list of expenses we have encountered in maintaining our home. (Yes, I can be a drag sometimes.)

Each homeowner will have different expenses depending on the part of the country they live in, whether it is a condo or single-family home, etc. But here is our list, which can help you start your planning process:

•  Homeowner’s Insurance is a big one and can be higher than your primary home insurance. Our home in Southwest Florida requires three types of insurance: dwelling x-wind, flood insurance and wind insurance. Find out what is required in your area.

“5 Questions to Ask Before Buying a Vacation Home” by Melissa Neiman discusses factors that affect insurance rates.

• 

  Perhaps you want to enjoy the sun and the sea while fishing.

  Real Estate Taxes. Check to see if rates are different for state residents and non-resident homeowners.

• Utilities. Telephone, cable TV, Internet, electricity, water, sewer, etc.

• Homeowner’s Association Fees. Yard maintenance may be additional for single-family homes.

• Furnishings. Furniture, Dishes, Linens, etc.

• Surprises (large and small.) Appliances will need repair and replacement. Then there are the really fun ones like roof leaks and bursting pipes.
  

  Taking a Dip in the Beautiful Waters of Blind Pass. Between Sanibel and Captiva Islands. (Click to Enlarge.)

Since you won’t be occupying your second home all year, there may be expenses that you don’t have at your primary home:

• Home watch service. A good idea and sometimes required by mortgage companies.

• Contracts for pest control, air conditioning, and heating maintenance.

• We choose to offset some expenses by renting our home part-time. We find it convenient to use a rental agent, which leads to a 20% commission and small monthly marketing fee.

Despite the expenses, we’ve enjoyed our new home. One way to keep expenses down is to avoid buying an expensive trophy home. After all, if you are on vacation, you want to be outside enjoying yourself anyway.

Please enjoy some photographs from Sanibel, Captiva, and Useppa Islands in Southwestern Florida.

Do you like to walk and enjoy the vegetation? Useppa Island. (Click to Enlarge)

In our last post , we talked about the quality of life issues that Baby Boomers should consider when purchasing a second home. “Lifestyle Considerations When Buying a Second Home”

I’d like to thank my much older brother Jim for suggesting the topic of this series.
Please write in your suggestions for post topics in the comment section.

LIFESTYLE CONSIDERATIONS WHEN BUYING A SECOND HOME

Many Baby Boomers are using the real estate downturn as an opportunity to buy a second home.

Kayaking the East End of Sanibel (Click to Enlarge)

Quality of life features should be considered before making such an important decision.

We have all daydreamed about living in an exotic location that we’ve seen in a movie or a National Geographic special. But if you want to enjoy your vacation home as long as possible, you need to consider practical details as well as dramatic scenery.

What to Look For in a Vacation Community

An Environment that Encourages Physical Activity

Research has shown that regular exercise is key to a vigorous old age and good mental and cognitive health. Exercise that has a social aspect to it encourages people to get out. Many boomers are enjoying kayaking and biking clubs, as well as recreation centers. A mild climate helps.

Kayaking Sanibel Canals (Click to Enlarge)

Opportunities for Intellectual Growth

The average lifespan is increasing, creating opportunities to learn new things. It also helps us stay adaptable in a world that is changing rapidly.

Purpose in Life

Research has shown that people live longer and have less depression if they pursue an activity that is meaningful to them.

Patrica Boyle, PhD, a neuropsychologist with the Rush University Medical Center found that people with a higher purpose in life had lower mortality rates among older adults. Research has even shown that volunteering has a positive impact on health.

A Curious Site While Kayaking on a Sanibel Canal (Click to Enlarge)

Opportunities for Social Interaction

People often find that they have to make more of a conscious effort to see people after they retire. Check out the availability of clubs and activities. Of course, if you want the grandchildren to visit, make sure there are fun activities for them, too.

Easily Accessible, Good Quality Healthcare

Let’s face it. We are going to need to visit the doctor more often and you never know when an emergency will happen.

Reasonable Travel Times and Cost

Keeping travel costs and distances as low as possible ensures that you will use your new home more.

Some Baby Boomers are choosing traditional warm weather vacation spots. Others are choosing to purchase second homes in college towns. College communities provide recreational and educational opportunities. Small college towns may also have an intergenerational atmosphere that many find appealing .

Keep an eye out for a future post on financial details to consider when buying a second home.

Sources

“Under the Microscope: Purpose in Life May Protect Against Alzheimer’s Disease” Rush University Medical Center

“During the holidays and beyond, helping others will also help you stay healthy” Rush University Medical Center