“Will I have enough assets in order to not run out of money before I run out of life?” is top of mind for all of us in the final third of our lives. In answering this, preservation, positioning and passing of accumulated wealth goes beyond traditional estate planning. It calls for all affected family members to be participants in a model that integrates health, housing and elder law considerations.
This past Saturday on the AgingOptions Radio Show a listener by the name of Tricia called in to inquire as to whether there might be some good alernatives to the AARP (American Association of Retired Persons)… similar organizations that could offer the same benefits associated with AARP’s vast membership “clout” in procuring savings on things like insurance products and discounts on services and products.
Turns out that there are! Membership groups that build upon the AARP model of “purchasing strength in numbers” include groups such as the Association of Mature American Citizens (AMAC) ,which bills itself as a “Conservative alternative to the AARP” and the American Seniors Organization being two such examples.
Here’s what it really comes down to… in all these membership groups there’s the “Products” side of the coin and the “Politics” side… and its up to the leanings and leading of each individual to come to an informed decision about which channel they want their $$$ to flow into and through.
Here’s the knock on AARP. They lobbied hard and heavy for “Obamacare”, but not without, shall we say, ‘mixed motives’. How so? Obamacare is slated to pull over $500 billion (Yes, that’s billion with a “B”) out of Medicare over the next 10 years to help foot the bill for itself. And what will seniors do who then have to go out and purchase more insurance coverage on their own to make up for that little “redistribution of wealth”? Yup, that’s right… turn to AARP to purchase such coverage from them. Can you say “Conflict of interest”?
This is precisely why alternatives to AARP have sprung up. Americans love freedom of association, but conversely, we hate being strong-armed into supporting political positions that we don’t agree with. Ask 66% of any and all union members how they feel about having their dues going to support Democrat politicians and policies and you’ll see why groups like AMAC and ASO now exist.
For those of you who want to dig a little deeper into the decision of what you want your membership dues going toward here’s an interesting interview done by radio show host Bill Bennett with the founder of AMAC.
… And What Does It Mean For Their Retirement Security?
Prudential Financial sponsored research by the University of Missouri to identify the key factors
that impact when individuals choose to retire. This research identified several factors that make
individuals more likely to retire in any given year, including strong equity markets performance,
the retirement status of a spouse, and participation in a DB plan.2 Some of these factors heighten
the retirement risks to which individuals are exposed.
For example, based on historical stock market data, retiring after periods of strong equity market performance increases the likelihood of experiencing negative equity returns just after retiring, which have a much more detrimental impact on an individual’s retirement security than negative returns experienced later in retirement. This article outlines the findings from the University of Missouri’s research, highlights the investment risks associated with individuals’ elective retirement decisions.
Workers will be eligible to contribute an extra $500 to their 401(k)s next year, the Internal Revenue Service announced this week. Employees with higher incomes will also be eligible to get a tax break for saving in a traditional IRA, contribute to a Roth IRA, and qualify for the saver’s credit. Here’s a look at how 401(k) and IRA rules will change in 2012. http://money.usnews.com/money/blogs/planning-to-retire/2011/10/21/401k-and-ira-changes-coming-in-2012
Medicare will cut payment rates to home health agencies by 2.3 percent in 2012 — the sixth consecutive annual decrease in fees to the industry. The decision, which will lop off an estimated $430 million from the program next year, follows concerns by a congressional advisory panel that the agencies are overpaid. http://seniorjournal.com/NEWS/Medicare/2011/20111102-MedicareCutsPayments.htm
It’s difficult to determine exactly how much money is enough to retire comfortably. Households earning $50,000 or more will need about 80 percent of their pre-retirement earnings to maintain their current standard of living in retirement, according to a new Center for Retirement Research at Boston College report.