Should I Retire?

Senior Thursday

One question more and more seniors are grappling with is whether or not it is the right time to retire.  With the cost of living going up, but income not keeping pace, coupled with the stock market collapse a few years ago, the question isn’t as easy to answer as it used to be. 

Another reason it can’t be answered easily is that everyone’s situation is unique.  We all have different levels of income, varying amounts of debt, and different health concerns.  Nobody’s portfolio (if you even have one) is the same, either.  Add factors such as health and life insurance coverage, ages of your children and grandchildren, your company’s pension plan and you start to see how the answer for you will be completely different from your neighbor or brother’s answer. 

If you’ve been earning a decent pay since college graduation, have put your children through school, and they are financially secure, you’ve grown your portfolio to six times your annual income, and your health is good, you can comfortably retire at 60 or 65.  However, if you’ve been living paycheck-to-paycheck all your life, have medical bills to pay and only one year’s income invested with no company pension, then you may have to work well past 60 or 65 just to make ends meet.

Your financial advisor and accountant can best help you answer this question.  In order to arrive at the best answer, though, you should have the following information/documents together for review:

·        Previous year’s tax return

·        Current pay stubs

·        Most recent statements from investments

·        Most recent statements from bank accounts

·        Summary of monthly expenses (mortgage/rent, food, pets, transportation, utilities, etc.)

·        Summary of assets (real estate, vehicles, savings accounts, etc.)

·        Most recent Social Security Statement

·        Most recent pension statement

·        Life Insurance policies

·        Health Insurance policies

You are never too old to start planning.  But beginning early will help make your retirement years as comfortable as they can be.

Adding Space to Small Kitchens

Tips for Tuesday

No matter the size of your family, a small kitchen can be a big drawback.  Where do you store your food, appliances, pots and pans, etc.?  It’s difficult preparing a meal or entertaining guests.  But there are some changes you can make to your kitchen to make it seem larger than it really is.  Here are some tricks of the trade:

·        Extend your upper cabinets to the ceiling.  The soffit above your cabinets is usually empty space behind the drywall.  Installing taller cabinets will give you space for storing those seldom-used items.

·        Use multi-purpose appliances.  Purchase a unit that chops and blends, or another that steams and deep fries.  Having less items to store will free up space.

·        Install a storage bench that can double as a seat for your kitchen table.  Use it to store linens, extra paper towels, or household files and bill-paying supplies.

·        Use the space under your upper cabinets.  Install hooks or magnetic strips for hanging knives or cooking utensils.  Install drop-down cookbook holders or spice racks.

·        Double the space on a shelf with a wire rack.

·        Use an island on casters so you can move it where you need it most.

·        Hang pots and pans from the ceiling.

·        Don’t buy in bulk, as tempting as the price is.  If you don’t have room to store it, it will be nothing more than clutter.

·        Downsize!  Get rid of everything you don’t need or use or like.  Be honest and brutal!  Peace of mind is worth more than the mugs you donate to charity.

Showing Your House Through the Seasons

Moving on Monday

As summer turns into fall, your house is still on the market.  You’ve been taking care of it, mowing the lawn and watering the gardens.  But now that the weather is cooler and leaves are starting to fall, there are other matters you must attend to for it to show at its best.

The most important part of your house when selling is the outside.  It is the first impression potential buyers have when they drive by or come for a viewing.  Before they even step into your house, they will be assessing the condition of the driveway, the size of the trees and bushes, and the amount of clutter on the porch.  If they are just driving by, they may decide to cancel an appointment with a real estate agent.  If they already have an appointment, they will probably still come in, but their opinions will be affected by what they saw outside, no matter how nice the house is inside.

So if you are showing your house during this change of season, make sure you keep up with maintaining the exterior of your home.

Rake the leaves, sweep the walkway and porch, and clean out the gutters.  Have your asphalt driveway sealed if necessary, or the cracks in your concrete fixed.  With the upcoming snow and ice, potential buyers know that little cracks can turn into large problems.

Clean all the cobwebs from the front door and windows.  This is what buyers look at when they are waiting for the agent to unlock the door.  All dead plants should be removed from the front porch, and replaced with fall foliage.  If there are any nests in the lights (bird or wasp), get rid of them, and any mess they may have left.  If the wreath or decoration on your front door is seasonal, swap it out for a fall version.

It gets dark earlier now, so make sure all the light fixtures are working properly.  Put both interior and exterior lights on a timer so buyers driving by at night can see the house lit up even if you aren’t home. 

Make sure your address is visible from the street both night and day.  Use numbers in contrast with your house color.  That is, use black numbers on a white house, or brass numbers on a brown house.  Look at your address as you drive up from both directions, both day and night.  Brass or silver numbers reflect the sun, making them difficult to read.  If your house is set back off the street, have your address on a mailbox or post near the street.

Finally, cut down flowers and plants as they die for the season.  If you have extensive landscaping with mature perennials and you want buyers to see what you have planted, then leave photos on the counter of what your house looks like in the summer. 

Keeping your house showing its best will keep you a step up from the competition.

Hanging Door Organizers Not Just for Shoes

Frugal Friday

I am a big proponent of using vertical storage.  One product that is great for this is Over-the Door pockets.  They come in a variety of materials and sizes.  Some have large pockets for shoes, some have smaller pockets.  They are plastic, canvas or fabric.  And their uses are endless.  While these organizers used to be for shoes, now we can find many other uses for them.  Here are a few:

·        Bathroom--use for shampoo, toiletries, face cloths, hair accessories, etc.

·        Bedroom--use for small accessories like bracelets, scarves, bulky necklaces, and belts.

·        Bathroom--use for hair accessories like headbands, elastic bands, barrettes, and bows.

·        Pantry--Use for spices, small packages, small appliances, and appliance attachments.

·        Linen Closet--Use for medications, first aid supplies, and extra toiletries.

·        Bathroom--Use for cosmetics, brushes and nail polish.

·        Craft Room--Use for crafting supplies like scissors, glue, tape, and markers.

·        Use for toy storage, organizing pieces by toy, color or size.

·        Bedroom--Use for socks and tights.

·        Laundry Room--Use for cleaning supplies such as spray bottles, scrub brushes and rags.

·        Bedroom--Use for small stuffed animals.

And don’t forget to label the pockets so everything goes back where it belongs, and you know what to buy when the pocket is empty.

Doing It Yourself

Frugal Friday

We’ve all been there—the furnace goes out, a pipe bursts, a tree limb breaks in a storm.  So you call out the experts and have them take care of the situation.  Then they hand you the bill.  Often, it’s sticker shock.  And you think to yourself, “I could have done that myself for less.” 

But realistically you know that there are some repairs that are past your level of expertise.  There are, however, many things you can do yourself to keep repair bills down.

·         Maintain your equipment—furnace, hot water heater, car, etc.  If you take care of it and have it checked on a regular basis, odds are you will avoid major problems that cost large amounts of money to repair.

·         Learn how to make minor repairs yourself.  Anyone can change a washer in a leaky faucet or install a new belt in a vacuum cleaner.  Not only will you save money on repair bills, you won’t have to purchase a new item to replace one that is fixable.

·         Make your own cleaning solutions and supplies.  These will be natural, ecologically-friendly products, rather than harsh chemicals that will ruin pipes, countertops, etc.

·         Inspect your own house on a regular basis.  Look for signs of water seepage, cracks in the foundation, uneven floors, loose tiles, etc.  Handling these issues at the early stages will keep them from getting more serious.

Take care of your home and your home will take care of you.

Grandparents Raising Grandchildren

Senior Thursday

While historically, grandparents hand over care of children once their own are married and have their own families, today’s economy is forcing many extended families to live under the same roof or combine parenting services. 

Almost 5.8 children are living in homes with their grandparents in the United States.  Of these, more than 2.5 million grandparents are taking on the responsibility for these children.  Often it is because the parents are both working.  Sometimes it is because the parents are not emotionally or physically able to care for the kids. 

Whatever the reason, this places added stress on elderly grandparents who may be physically challenged themselves.  This may put a strain on family relations as well.  Here are some helpful hints on creating a secure, warm environment for these children, their parents and grandparents.

·         Remember that the parents are the decision-makers when it comes to their children.  Respect their wishes.

·         Keep the lines of communication open.  Even though the parents are the decision-makers, grandparents should voice their opinions on matters where the child may be better off otherwise.  For example, if a grandchild shares stories with the grandparent about issues at school, and the child no longer wants to attend after-school care, the grandparent should inform the parents of these problems. 

·         Don’t rely on grandparents 24/7.  They need a break from parenting also.  Ultimately, children are the responsibility of the parents, not the grandparents.  So let them have time off and go on vacations.

·         Keep extensive records on school, health, legal and financial records for the children.  Create a binder to hold all this information.

·         Strive for consistency.  Keep the family on a routine.  If everyone knows what to expect, days will go more smoothly.  Everyone should know bedtime routines, mealtime routines, etc. 

·         Make the home safe for everyone.  This should include child-proofing the house, and keeping grandparents safe from falls and such.  Children’s toys can create a hazard for seniors, who aren’t as stable on their feet as younger adults.

·         Everyone should have a sense of privacy.  This would be a room of their own, and private spaces for relaxing or having phone conversations.

Tips for Organizing Small Homes

Tips for Tuesday

When space is at a premium, finding a home for everything can be a challenge.  Even if you’ve de-cluttered and pared down your belongings, sometimes there just doesn’t seem to be enough room.  Here are some tips you can use in any area of your home to maximize use of the space.

 

 

·         Think vertical – Tall, narrow shelves use up less floor space. 

·         Install shelves on the walls wherever possible. This includes bedrooms and bathrooms as well as living spaces.

·         Hang hooks and organizers from the ceiling.  This is especially useful in kitchens and garages.

·         Use the backs of doors for shelving or pocket organizers. 

·         Use space under your cabinets for spice racks, utensil racks, etc.

·         Use the space under furniture (beds, sofas, etc.) for storage.  There are plastic containers built specifically for this purpose.

·         Purchase multi-purpose furniture-storage ottomans, storage benches, etc.

·         Install or place organizers in cabinets (wire racks, pull-out drawers, etc.) to maximize storage space.

·         Install hooks in small spaces to hold coats, belts, leashes, aprons, etc.