Retirement – A Pause Before Your Next Adventure

Baby boomers are rewriting the rules of retirement. Few envision living a second act mirroring that of their parents. While mom and dad were satisfied with more time on the links and taking life easy, this generation has something different in mind. They will always make time to relax but that is not the main ingredient in their recipe for a fulfilling retirement.

Most of us first entering retirement initially focus on decompressing. After a stressful often times all-consuming career it is important to take a break. No one can run at 110 percent all the time. Our bodies and minds do better when given time to recharge.

Catch your breath. Take time to reflect upon a career spanning decades. It’s likely you have identified certain things you never want to do again. You now know better what motivates you, what gets you exited and ready to rumble. You may have discovered interests you never knew we had, perhaps a hidden passion or two waiting to be explored. Each career is a continuing education, a journey that comes to an official end with retirement. Or does it?

After reclaiming a certain life balance more and more boomers are looking ahead. What do I want to do next? Baby boomers are taking time to be introspective, to examine the life they have lived and imagine what could be. Retirement affords an opportunity to reset, to research and then embark on any of a myriad of possible new adventures. For the able bodied and mentally active retirement is far from the final destination.

Some open their new chapter with a part time job or second career doing what they genuinely care about. If money is not the main issue a new gig can be something they love perhaps similar to my working part time at a wine tasting room. The more adventurous may go so far as to start their own business utilizing skills learned during their career or even something all-together unrelated.

Not all will answer the “what do I do next” with a job. The beauty of this time in our lives is when it comes to how we choose to channel our energies we do not have to follow any script. We can be creative. We can paint outside the lines. We can satisfy our curiosity and try multiple things. We can do what we want with our time. Once the job you have to do is behind you are free to explore or create the “job” you want to do.

When I first retired (unplanned as it was) I was a bit nervous. Without the job, I was not sure what meaningful activities I would engage in. After the initial shock wore off I began to consider my options. I looked into those areas that had interested me in days gone by. Eventually I figured out a routine that occupied the hours and left me feeling somewhat satisfied at the end of the day. But something was missing – there had to be more.

Finding a part time job doing something I enjoy was the perfect solution. Not too many hours, no stress, working with people I like, learning about something I have always been interested in and engaging with happy folk typically vacationing or just celebrating life. I look forward to my next shift – a feeling long missing from those years spent navigating my career.

Retirement is only the beginning. Rather than view it as the end of the show it might be better seen as an encore. There will never be a more perfect time to uncover your particular interest/passion/dream and go for it. There is so much more to do and to be and retirement offers the freedom to explore. Rather than call it quits baby boomers are making their second act a finale worthy of applause.

LoveBeingRetired.com

Get Your Property to Do More for Your Retirement

Written by Sally Perkins

The economic crisis of ten years ago put a lot of things in perspective. One of the ways it changed retirement is by putting property assets on the same level as stocks and bonds because investors regard property as more stable. You can get properties to work harder for you in your retirement but be prepared, 43% of spending for those aged 75 years or older is on annual home-related expenses.

It can be difficult, but there is a lot of potential for return on investment if you manage your property intelligently. Whether you are a real estate mogul with several rental properties or just working with your home, there is more you can do to bolster your retirement funds.

Refinancing

For those with mortgages, it can be worth looking at refinancing to get a better interest rate. After so many years in the work force, those retiring or soon to retire often have much better credit scores than those they had when first mortgaging their homes.

Once your payments are down, you can use the savings to help pay off the principle. The sooner you can pay off the mortgage the sooner you can put the property to work increasing your income. To find out just how much money you can save try using a mortgage calculator.

Downsizing

Leaving a home that you have lived in for years can be tough, but scaling back to a smaller home has some serious advantages financial and otherwise. As we retire, our needs change and the homes we live in are no different. Maybe the kids have moved out, you don’t use the pool much anymore or your knees just don’t appreciate those stairs.

Not only can downsizing your home better meet your needs, but you’ll save a lot of money on maintenance and utility costs not to mention a reduction in property taxes. You can use the money that you save to reinvest and increase your income or just use it to prepare your new home for your new way of life.

Take Action Early

Many mortgages have strict lending requirements about work. Typical requirements include having to show that you have been employed for the last two years. You can explain away some of these requirements or find mortgages that aren’t so strict but those might be more expensive options. The easiest way to avoid that headache is to take action before you stop work if you have the opportunity.

Make Your Retirement Investments Help Each Other

Mortgage companies usually require higher down payments and interest rates for properties that the owner does not plan to occupy. Down payments can reach 30 percent of the price or more. Perhaps you don’t have the funds for a down payment of that size but you can use your IRA funds to help. Since the money in a Roth IRA has already been taxed, if you use it to buy property all of the equities and earning from it can grow tax-free.

Do the Homework

With all the extra time afforded by retirement, you can do valuable additional research. Finding out potential costs like insurance, mortgage fees, taxes and possible maintenance costs will help you make informed decisions about the viability of individual properties. As in business, income properties are about balancing expenses and revenue.

Research can also help you decide on an area or property in which to invest. Learn the local occupancy and price trends. Area real estate agents, publications and even small local banks are all excellent sources of information. You might even find that getting loans from local banks is a better route than the big banks because the smaller banks have more knowledge and interest in their area.

Gifting Equity

Gifting property equity to your children, their spouses or grandkids can be an option that helps you avoid some tax situations. It is possible to move real estate equity to your kids year by year with no tax liability. There are annual limits but with enough management and recipients you can transfer quite a bit every year and it adds up. It is best to refer to a tax professional to be certain what will work best in your situation.

Diversify

While it is true that property investment can add to your retirement, it shouldn’t be the only thing working for you. Diversification of your funds into 401(k)s, IRAs and the like is still sound advice even in these uncertain economic times. Trust in real estate is high but diversification can prevent you from losing all of your income should the market fall in a particular sector.

Maximize Your Property’s Output

Retirement is a time to relax and enjoy life, but if you want to keep your income high to support your new lifestyle, a little bit of work is required. Property investment, in particular, requires some doing. Using a bit of time, effort and the advantages of being retired you can put your property to work funding your retirement.

Arthritis Friendly Retirement Activities

Written by Jessica Hegg

Freedom from job obligations is probably one of the biggest advantages of retirement, but the “take this job and shove it” effect is usually only short term.

Apropos of nothing, I’ve always found it interesting that a man who sang about quitting his job chose a stage name like Johnny Paycheck. There is probably a deeper meaning there that eludes me.

Back to the blog. Most of us who retire around 65 can expect to live at least another twenty years, because as they say, 60 is the new 40 and 80 is the new 60. All these days and hours will start to drag unless you have a sense of purpose, and since many of us define ourselves by our occupations, this intentionality is not always easy to find.

Somewhat complicating matters, many of us start experiencing chronic physical illnesses, such as arthritis, in our 60s and 70s. Although arthritis is not fatal or even terribly serious, it can transform previously enjoyable activities into chores. Furthermore, because of unwanted side effects, powerful muscle relaxers or painkillers are often not a very good option.

So, what are some arthritis-friendly ways to not only pass the time as we age, but also help us find purpose and meaning?

Low-Impact Exercises

Physical exercise is important at all ages, and the most recent research suggests that even a little bit of moderate exercise, such as a half-hour of brisk walking four or five days a week, has significant emotional and physical benefits.

Walking is very easy on the joints, so even folks with arthritic knees and/or ankles can do a few laps without much of a problem. A few light stretches after exercising should help ease any lingering discomfort.

No-impact water aerobics may be an option as well, and many people also benefit greatly from senior-friendly yoga classes. Such activities address not only the physical component, but the emotional component as well. Loneliness is a fairly significant problem among older people, even people who are married. Being around like-minded people of a similar age and station in life may help participants feel like they belong somewhere. Many class participants might go on to teach their own classes, thus giving them a sense of purpose.

Aquatic exercises place no strain whatsoever on joints, and yoga stretches might actually reduce arthritis pain, if for no other reason that the participant focuses on something other than achy joints for about a half hour a day.

Art Therapy

Some people communicate better visually than orally, and art therapy is simply an extension of that idea. Primarily, two types of people can benefit from this activity:

  • People who have experienced traumatic events in their lives and need to understand them, and
  • Those who are looking for personal development.

Many retired people fall squarely into that second category.

Similar to yoga, art therapy is a good way to stop thinking about arthritis pain for a few hours a week. As for using arthritic fingers to paint, many people ask “do arthritis gloves work?” The answer is a resounding yes. The compression and heat ease discomfort, and many gloves have no fingers, so fine motor skills, like holding a brush or manipulating a phone, are largely unaffected.

Volunteering

Practically no one has arthritis of the jaw, and there is no such thing as arthritis of the soul, so even more advanced arthritis cannot stand in the way of volunteering for a cause.

To find temporal fulfillment as well as emotional fulfillment, volunteering in this context probably means operating a soup kitchen instead of serving lunch a couple of times a week or being a higher level campaign operative as opposed to an envelope stuffer. While there is certainly nothing wrong with serving lunch or stuffing envelopes, and these activities are vital to their respective organizations, retired people have a near-limitless resource to share (their time), and this resource is arguably more precious than money or anything else.

You did not call in sick due to a head cold while working, and there is no reason to call in sick during retirement either, especially when there are so many available options.