Wednesday, May 31, 2017

Baby Boomers Look to Senior Concierge Services to Raise Income




In her 40 years as a photographer in the Denver area, Jill Kaplan did not think she would need her social work degree.

But when it became harder to make a living as a professional photographer, she joined a growing army of part-time workers across the country who help older people living independently, completing household tasks and providing companionship.

Elder concierge, as the industry is known, is a way for the semi- and fully retired to continue to work, and, from a business standpoint, the opportunities look as if they will keep growing. Around 10,000 people turn 65 every day in the United States, and by 2030, there will be 72 million people over 65 nationwide.

Some 43 million people already provide care to family members — either their own parents or children — according to AARP, and half of them are “sandwich generation” women, ages 40 to 60. All told, they contribute an estimated $470 billion a year in unpaid assistance.

Seven years ago, Ms. Kaplan, 63, made the leap, signing up with Denver-based Elder Concierge Services. She makes $25 to $40 an hour for a few days a week of work. She could be driving older clients to doctor’s appointments, playing cards or just acting as an extra set of eyes and ears for family members who aren’t able to be around but worry about their older relatives being isolated and alone. Many baby boomers themselves are attracted to the work because they feel an affinity for the client base.

“It’s very satisfying,” she said of the work, which supplements her photography income. Like others in search of additional money, she could have become an Uber driver but said this offered her a chance to do something “more meaningful.”

“We see a lot of women,” Ms. Kaplan said, “who had raised their families and cared for their parents out there looking for a purpose.”



Concierges are not necessarily social workers by background, and there isn’t a formal licensing program. They carry out tasks or help their customers complete the relatively mundane activities of everyday life, and just need to be able to handle the sometimes physical aspects of the job, like pushing a wheelchair.

Medical care is left to medical professionals. Instead, concierges help out around the house, get their client to appointments, join them for recreation, and run small errands. While precise statistics are not available for the elder concierge industry, other on-demand industries have flourished, and baby boomers are a fast-growing worker population.

Nancy LeaMond, the AARP’s executive vice president and chief advocacy officer, said: “Everyone assumed the on-demand economy was a millennial thing. But it is really a boomer thing.”
Ms. LeaMond noted that while people like the extra cash, they also appreciate the “extra engagement.”

A variety of companies has sprung up, each fulfilling a different niche in the elder concierge economy. 

In some areas, elder concierges charge by the hour, anywhere from $30 to $70, or in blocks of time, according to Katharine Giovanni, the director of the International Concierge & Lifestyle Management Network. Those considering going into the business should have liability insurance, Ms. Giovanni said.

One start-up, AgeWell, employs able-bodied older people to assist less able people of the same age, figuring the two will find a social connection that benefits overall health.

The company was founded by Mitch Besser, a doctor whose previous work involved putting H.I.V.-positive women together in mentoring relationships. AgeWell employees come from the same communities as their clients, some of whom are out of reach of medical professionals until an emergency.



The goal is to provide consistent monitoring to reduce or eliminate full-blown crises. AgeWell began in South Africa but recently got a grant to start a peer-to-peer companionship and wellness program in New York.

Elsewhere, in San Francisco, Justin Lin operates Envoy, a network of stay-at-home parents and part-time workers who accept jobs like grocery delivery, light housework and other tasks that don’t require medical training. Each Envoy employee is matched to a customer, who pays $18 to $20 an hour for the service, on top of a $19 monthly fee.

The inspiration for the company came from Mr. Lin’s work on a start-up called Mamapedia, an online parental wisdom-sharing forum, where he noticed a lot of people talking about the need for family care workers. He decided to start Envoy two years ago, after his own mother died of cancer, leaving him and his father to care for a disabled brother.

The typical Envoy employee works a few hours a week, so it won’t replace the earnings from a full-time job. But it nevertheless involves more interpersonal contact than simply standing behind a store counter.

“It’s not going to pay the rent,” Mr. Lin said. “They want to be flexible but also make a difference.”
Katleen Bouchard, 69, signed up with Envoy three years ago, after retiring from an advertising career. She gets $20 an hour working a handful of hours a week with older clients in her rural community in Sonoma County, Calif. She sees it as a chance to be civic-minded. “It’s very easy to help and be of service,” Ms. Bouchard said. 

Companies like AgeWell and Envoy are part of the growing on-demand economy, where flexibility and entrepreneurship have combined to create a new class of workers, said Mary Furlong, a Silicon Valley consultant who specializes in the job market for baby boomers. At the same time, many retirees — as well as those on the cusp of retirement — worry that market volatility may hit their savings.

The extra income from the job, Ms. Furlong said, could help cover unexpected expenses. “You don’t know what the shocks are going to be that interrupt your plan,” she added. 

Other organizations are looking to help direct older residents to vetted local service providers.
The National Aging in Place Council, a trade group, is developing a social worker training program with Stony Brook University. It wants to have a dedicated set of social workers at the council, funded by donations, who are able to field calls from seniors and their caretakers, and make referrals to local service providers. 

The council already works with volunteers and small businesses in 25 cities to make referrals for things like home repair and remodeling, daily money management and legal issues.
Another group, the Village to Village Network, has small businesses and volunteers working on a similar idea: providing older residents and their family or caretakers with referrals to vetted local services. 

In the Village to Village Network model, residents pay an annual fee, from about $400 to $700 for individuals and more for households. The organization so far has 25,000 members in 190 member-run communities across the United States, and is forming similar groups overseas as well.
“We feel like we are creating a new occupation,” said Marty Bell, the National Aging in Place Council’s executive director. “It’s really needed.”


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Wednesday, May 17, 2017

3 Ways to Use Your House for Retirement Income



People over 65 average $150,000 in home equity, according to the Center for Retirement Research at Boston CollegeThat amount dwarfs the rest of their assets combined. This generation of retirees is facing the decline of traditional pensions, while the 401(k)s that replace them are less generous and more uncertain.

So the case for employing one's home as a source of retirement income has never been stronger. There are three major paths to do that, depending on what your priorities are and the details of your current situation.
This is the simplest way to go. The Center for Retirement Research notes that there are a lot of advantages to choosing a home now that will allow you to age safely and happily in place. For example, you can move from a large empty nest to a single-story unit with modern, accessible updates like grab bars in the bathroom. Pick a townhouse in a development with a gym and swimming pool so you can exercise daily. Gravitate toward a walkable neighborhood. Or move closer to adult children and grandkids -- maybe all of the above! Housing costs are the single biggest item in most retirement budgets, hovering around 30 percent, so with a cheaper home you will save money each month. And aging homes have costly maintenance needs that grow over time. Moving, meanwhile, definitely doesn't get easier as you get older.
The profit from your sale will be free from capital gains taxes up to $250,000 for a single homeowner and $500,000 for married couples who file jointly. You can invest the proceeds in bonds, an annuity or an index fund and draw from the income, or you can use the cash to delay applying for Social Security.
--Consider a reverse mortgage.
For some people, leaving their longtime homes is just a nonstarter. Maybe you are already lucky enough to be near family or a "naturally occurring retirement community" full of old friends and neighbors.
Borrowers 62 and older who have home equity and need retirement income can apply for a home equity conversion mortgage. Essentially, this is a loan against the value of your home. You can stay in the home, spend the money now when you need it, and nothing needs to be repaid until both you and your spouse move out or pass away. In order for this to work, your home must be paid off or have a low remaining balance that will zero out with the proceeds from the loan. And you will still need to carry taxes, insurance and maintenance each month.
The good news is that because the income is a loan, it is tax free and doesn't affect your Medicare premiums or taxes on Social Security.
Reverse mortgages have had a poor reputation in the past, but a Federal Housing Authority home equity conversion mortgage is federally insured and comes with more protections. Ignore any solicitations you may get and reach out to the National Council on Aging at 800-510-0301 for phone-based counseling, or check the home equity conversion mortgage pages at Hud.gov.
--Rent out a room.
For those who need a more flexible, short-term solution than the two big steps above, becoming a landlord or landlady may be right for you. Maybe you can take on a roommate who provides companionship and mutual support as well as help with the mortgage. Or do a trade if you need household help.
Are you an entrepreneurial type? Have you already retired to your piece of paradise, or are you blessed to be in a great metropolis? Then you may want to look into a platform like Airbnb, which allows you to take in guests for as little as one night. The company says that women, who make up the majority of their top hosts, earned an average of $6,600 last year in the U.S.
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Monday, May 8, 2017

How Boomers are Adjusting to Prospects of a Frugal Retirement



How boomers are adjusting to prospects of a frugal retirement

Several years into America’s economic recovery from the Great Recession, the benefits remain unevenly distributed. Among middle-income baby boomers, nearly two-thirds feel they haven’t personally prospered, according to a recent study from the Bankers Life Center for a Secure Retirement. Among the boomers who feel that way, more than half report that their savings are lower today than they were before the financial crisis.
Nevertheless, the Bankers Life report finds that most boomers are taking steps to manage their spending and enhance their investment portfolio. The key question: Are they doing enough?
The global financial crisis began unfolding in 2007 as the subprime mortgage crisis exploded. In the years that followed, millions of middle-income Americans experienced severe financial setbacks. The Bankers Life study reports that:
This last result was a serious loss, considering that most middle-income Americans have equal or more wealth in home equity than in financial assets, according to a recent study from the Boston College Center for Retirement Studies.
The Bankers Life study reports that two-thirds of boomers are worried about another financial crisis in their lifetime. That’s a reasonable concern, considering that in the past 30 years, the U.S. has suffered through four major meltdowns (the 1987 crash, the savings and loan crisis in the early ’90s, the tech bubble that burst at the beginning of the 21st century and the Great Recession).
Given that boomers may live for another 20 to 30 years, it’s inevitable that they’ll experience a few more financial crises. As a result, they’d be wise to prepare now.
Fortunately, boomers report taking steps to improve their financial situation, including:
  • Managing their spending (84 percent)
  • Reviewing their investment behavior (74 percent)
  • Expecting to work at least part time in retirement (48 percent)
  • Retiring debt-free (34 percent)
  • Building up an emergency fund (28 percent)
  • Saving a larger percentage of their paycheck than before the crisis (17 percent)
Unfortunately, one in four boomers no longer invests at all.
Retirees report that their primary strategy for managing their finances is to reduce their spending. According to the Bankers Life study, boomers have already started managing their spending in the following ways:
  • 54 percent have reduced their discretionary spending
  • 47 percent have reduced their regular monthly expenses
  • 35 percent created a household budget
  • 34 percent give less to family, friends, or charity
If you’re worried about another financial crisis, all the action items in these lists are good steps to take.
Almost four in 10 middle-income boomers expect to rely on Social Security for their primary source of retirement income. This percentage is up significantly from before the Great Recession, when fewer than one in three felt that way. These boomers may be disappointed, however, because Social Security was designed to be a safety net, not a primary source of retirement income.
Those who expect to rely on Social Security would do well to postpone starting their benefits to age 70 if possible, when benefits reach their maximum value. Currently, most Americans claim Social Security benefits well before this age, missing out on a key chance to increase their expected lifetime payout and protect surviving spouses, if they’re married.
Another step home-owning boomers should take is to explore how to deploy their home equity, including considering one of many uses for a reverse mortgage. This step could be particularly critical for boomers who are house-rich and cash-poor.
Manage spending, work longer, reduce debt, invest wisely, delay Social Security and thoughtfully deploy all your assets: These are the tough steps many Americans will need to take to have a secure and satisfying retirement.