Category Archives for "retirement"

July 4, 2017

Saving Money Strategies Abound! A Nickel a Day May Be One of the Best

Choose Your Future with Either Saving Money Strategies or Wishful Thinking

AARP’s “Nickel Builder” strategy may be one of the best saving money strategies around. It’s simple and effective, and that is often the key to momentum.

The headlines constantly scream that you’re not saving enough money for retirement. But sometimes you don’t get workable suggestions on ways to make steady progress toward savings goals. Instead, the onslaught of financial information can be paralyzing.

Procrastination Is Often the Biggest Problem

So, how do we get off the “dime” (pun intended)? Well, I never could accept the fact that a small start could result in a big finish. Maybe you’re that way.

Or, I would always rationalize that I would make it “big” in time — no need for saving money strategies now. Have you been there? And now you’re 55, and that ship hasn’t come in yet. Panic time.

That’s life for many of us: no plan and plenty of pain later. But there’s hope . . . even at age 55.

This won’t make you a millionaire if you start at 55, but you might be blowing more than $18.25 a day on booze or even Starbucks. Think about it! Would an extra $122,855 come in handy when you retire at 75 by starting out with a nickel today at 55? Well, here’s how you can do that if you can get 5.5% interest:

a piggy bank is the icon for saving money strategies

This money-saving trick is especially useful for those of us on a budget.

Here’s how it works: You start by saving a nickel the first day, ten cents the next, and keep adding five more cents each day for an entire year. You never have to save more than $18.25 on a single day. At day 365, you end up with $3,339.75.

For many, the plan (http://bit.ly/2sPF456) is doable and practical. And it may help you banish those fears about cat food dinners during your senior years.

You Need a Vision. Is my twist on this a vision, or what?

Here’s my plan for you:

  1. Establish a deposit account that pays 2% interest.
  2. Start with a nickel today at age 55.
  3. Add a nickel every day for 10 years.
  4. Withdraw $134,000 at age 65.
  5. Retire to Abruzzo, Italy / Las Terrenas, Dominican Republic / Medellin, Colombia / Carcassonne, France / Algarve, Portugal / George Town, Malaysia / Tralee, Ireland / Cayo, Belize / Chiang Rai, Thailand / Puerto Vallarta, Mexico and live like a king/queen until you’re 132.
  • The biggest daily deposit in your first year would be $18.25.
  • If you deposited monthly, the largest monthly amount would be $518.25 in the first year.
  • The largest monthly deposit (in your 10th year) would be $5,445.75. That could be chump change by then. And six days later you retire.

If you want to see the details of this plan, download my spreadsheet here.

April 16, 2017

Retire and Continue Working in Silver Collar Cities

So you want to continue working after you retire, but you’re afraid that you’re too old to find a decent job? I know the feeling.

Don’t worry. There’s a solution.

So says government research, there are 10 exciting and amazing metro areas in the United States where you’ll absolutely have no problem.

According to the US Census Bureau’s American Community Survey, they are “silver collar cities.” So-called Silver Collar Cities are where a lot of workers keep working past retirement age. And a common theme is a lot of government employers and schools as well as retired white-collar execs who become consultants. In summary, this table shows where they are and how much of the workforce are retirees who continue working.

  • Washington, DC – 30.2%
  • Anchorage, AK – 28.6%
  • Madison, WI – 28.1%
  • Southern Connecticut (Bridgeport, Stamford, Norwalk) – 27.6%
  • Trenton, NJ – 26%
  • Houston, TX – 25.9%
  • Des Moines, IA – 25.9%
  • Salt Lake City, UT – 25.8%
  • Dallas/Fort Worth, TX – 25.6%
  • Denver, CO – 25.2%

What settings explain why these areas are called Silver Collar Cities? More than 15% of Americans aged 62 or older work. In Washington, D.C. that number is more than 30%.

Keep reading and you’ll find out why.

To Begin With, Federal Workers Retire Later

Joel Reaser is senior vice president at the National Older Worker Career Center in Arlington, Va. First of all, he says “It’s all the retired federal workers.” Federal workers don’t just retire after their public-service career is over at around age 53. Rather, they continue working as consultants or find other careers. And later they might really retire.

Anchorage, Alaska is a constant leader in over-62 workers with about 29% employed. Once again, the government appears to be the reason. According to a 2009 report by the Alaska Labor Department, state and local government employed the highest percentage of Alaskans aged 55 to 64. Their schools reported as much as 15% of their workforce was 65 or older. When you think about it, many people who actually do quit working after age 62 move to warmer climates.

The simple truth is, older folks can’t endure backbreaking work like digging ditches or pounding nails. But government jobs can employ workers for decades after normal retirement age. Some in a program that puts about 700 retirees to work at federal agencies are in their 90s.

Reaser says that “There’s a very large number of retired federal workers that consult and work for federal agencies.” The Department of Defense, he says, “has one of the largest concentrations of contractors.”

Beyond That, There’s The Urban Factor

There is a stark contrast between urban areas and the rest of the country. Census Bureau statistics show that 21% of the population aged 62 or older was employed in the 183 metro areas with populations above 250,000. That compares to 17% nationwide. Those numbers ranged from 30% in Washington to 4% in several Puerto Rican cities.

Why is this so?

Six of the top 10 cities with more than 10,000 workers over the age of 62 were state capitals. Hence, the pull of government. All, except the Bridgeport-Stamford area in Connecticut, had unemployment rates among retirement-age workers who wish to remain in the workforce below the national average of 9.1%.

What Does Weather Have to Do With the Trend to Continue Working?

Except for Houston and Dallas, all were north of the Mason-Dixon line. Miami and most other Florida cities showed 20% or less of retirement-age people still working. This is a trend that held in retiree-heavy Arizona as well.

As has been noted, retirement means retirement in those sunny locales.

It all boils down to this:

Would you be comfortable moving (if you have to) to one of these metro areas to continue working? This could be your solution to the fears about your age.

 

Retire and Continue Working in Silver Collar Cities