Retirement Living News

February, 2008

HEADLINES  (Click on headline to read story)

• Miami Herald Says Florida is Losing Some of Its Luster
• State Taxes Are Key Factor in Determining Retirement Destination
• IRS Warns of Rebate Phishing Scams
• Web Sites Help Retirees Find Data on Real Estate
• Erickson Establishes Realty & Moving Services Company to Help Its Future Residents Move
• Kentucky Develops Certified Retirement Community Program
• New Book: Retire on Less Than You Think (Second Edition)

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NEWS STORIES

Miami Herald Says Florida is Losing Some of Its Luster 

In an editorial published in the Miami Herald early last month the paper urged state leaders to pay attention to retirees and to diversify the economy. It said that the word has gotten out that Florida is not the paradise that many people once thought it was. U.S. Census Bureau data says that the state's population grew only 1.1 percent in 2007 compared to 1.8 percent in 2006 -- the slowest pace in 10 years. 

Fewer people are moving in due to devastating hurricanes, expensive housing, high insurance rates and unfair property taxes. "These concerns have cast such a negative pall on Florida that 37 percent fewer people moved here in 2007 than in 2006," the paper said. 

Retirees in Florida provide about $4 in revenue for every $3 they cost in government services, according to a University of Florida study. While Florida may not want to recruit retirees as aggressively as in the past, the paper says they are a demographic group worth having and luring -- especially when other states are actively recruiting them. "Ignoring seniors, as seems to be the policy now, is a losing proposition." 

A second point the editorial made was that Florida's economy is highly dependent on population growth and it depends on this growth to fund essential services, such as education, healthcare, prisons and roads. It declared that this is a poor economic model. Being dependent on population growth means that Florida relies heavily on construction, home-building, real estate and related industries to keep state revenues flowing. 

Noting that the state survives on construction, tourism and agriculture, the paper believes it needs a broader base to carry it through the tough times.
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State Taxes Are Key Factor in Determining Retirement Destination

We have just completed the annual update of our Taxes by State section and noted that some states are becoming more friendly to retirees. Iowa will gradually phase out its Social Security tax levy from 2008 through 2014. In 2008 Kansas residents will be able to exclude Social Security income from their taxes if their adjusted gross income (AGI) is less than $75,000. Missouri will phase out its Social Security tax levy by 2010. 

Property taxes continue to be an important issue. States that are trying to attract retirees are offering some reductions but not to the level many would want. Based on data from the 2005 American Community Survey by the U.S. Census Bureau, the following five states have the lowest median real estate taxes per $1,000 of value. They are Louisiana ($1.72), Hawaii ($2.04), Alabama ($3.10), District of Columbia ($3.76), and Delaware ($3.95). The states with the highest median real estate taxes are Wisconsin ($18.20), Texas ($18.17), Nebraska ($16.69), Vermont ($16.35), and New Hampshire ($16.33). Of course, property taxes in any state are based on assessed value. 

Seven states do not have a personal income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. New Hampshire and Tennessee only tax dividends and interest income that exceed certain limits. Six states (California, Montana, Nebraska, New Mexico, North Dakota and Vermont) are particularly tough on retirees because they have a relatively high top tax bracket and fully tax most retirement income.
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IRS Warns of Rebate Phishing Scams

Last month the Internal Revenue Service warned taxpayers to beware of several current e-mail and telephone scams that use the IRS name as a lure. The agency expects such scams to continue through the end of tax return filing season and beyond. 

Phishing (as in "fishing for information" and "hooking" victims) is a scam where Internet fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victim's identity. Current scams include phony e-mails which claim to come from the IRS and which lure the victims into the scam by telling them that they are due a tax refund. 

In another fraud that is underway, the IRS cautioned taxpayers to be on the lookout for scams involving proposed advance payment checks. Although the government has just enacted an economic stimulus package in which the IRS would provide rebate payments ($600 for individuals, $1,200 for couples, and another $300 per child), a scam which uses the proposed rebates as bait has already cropped up. 

In one scheme, people receive phone calls telling them that they can receive a rebate only if they provide bank account information for a direct deposit. In another scheme, e-mails to individuals supposedly from the IRS, asks for personal information on a form that is necessary to obtain a tax refund. 

In a telephone scam, the caller claims to be an IRS employee and says the taxpayer has not cashed a refund check. The person is asked for their bank account number. 

People who received questionable e-mails are urged to alert the IRS via e-mail at: phishing@irs.gov.
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Web Sites Help Retirees Find Data on Real Estate

For years Web sites have helped homebuyers find places to live through real estate agency sites, a national database run by www.Realtor.com, and classified listings. Now a number of other sites have emerged that provide much more information. These sites can be particularly helpful for retirees who are seeking a home in a new location or wish to learn more about an area where a retirement community is located. 

www.Trulia.com - By entering a city, town or ZIP Code you can see a listing of every home for sale, sortable by price, address, number of bedrooms, broker or type of home (single-family or multi-family). 

www.Zillow.com - Site has information regarding taxes on individual properties, number of bedrooms, size of the property, price paid by current owner, when it was built, size of house, and a Zestimate of what the house is currently worth. At present there are 70 million homes in the database. 

www.StreetAdvisor.com - Site seeks input about a particular street from residents. Reviewers rate their street for its overall "vibe" which includes neighborly spirit and night life, among other factors; for its Internet and pay-TV access, cell phone reception, and health (cleanliness, noise level, and traffic); the cost of living and real estate values; and for services and amenities like public transportation, medical facilities, schools, child care and parks and recreation. The site is relatively new and does not have much content.

www.Rotten-Neighbor.com - For a different take on neighborhood life, this site lets users post complaints about their neighbors, so it can serve as a warning about friction in the neighborhood. Of course the information is opinions and there is no way to verify the postings. 

www.YourStreet.com - Site lets users find recent news reports and commentary from blogs for any location in the U.S. The material includes crime reporting but also covers the full spectrum of community news.
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Erickson Establishes Realty & Moving Services Company 
to Help Its Future Residents Move

Erickson Retirement Communities announced last month that it has established the framework for operating its own national realty and moving services company to help retirees sell their houses and move into Erickson campuses. The Erickson Realty & Moving Services (ERMS) was tested in Michigan, Illinois and Massachusetts last year and resulted in a total of 221 settlements. A national rollout is expected shortly. 

"People want to move into our retirement campuses," said Tom Neubauer, senior vice president of sales for Erickson, adding that more than 100 people have already moved since the start of 2008. "They need a little reassurance at this time that they are making the right real estate decision. We are putting the pieces in place to help them attain the retirement lifestyle that they want without having to worry about finances and moving logistics." 

ERMS involves a team of personal moving consultants, retirement counselors and a comprehensive resource network that encompasses specially selected realtors, downsizers, stagers, contractors, and movers. The program works with retirees to help them establish sales prices for their homes. Marketing assistance is also provided, as are logistical services related to moving/downsizing. 

The ERMS team prepares a customer's property to obtain the highest sale price within each market. ERMS also provides heightened exposure of the property and reduced days of market time. Advertising support includes an array of direct mail, newsletters and Erickson Tribune newspaper articles tailored to customers (and their needs) and specific markets.
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Kentucky Develops Certified Retirement Community Program

With a great climate, affordable housing, ample recreational and cultural opportunities and a location in the heartland of America, Kentucky believes its state is an ideal place for retirees who are still young at heart. Because so many Americans are choosing the state for their retirement home, the state's Department of Tourism under the Commerce Cabinet has developed a special program to certify communities that are "retirement ready." 

The Certified Retirement Communities, currently totaling eight, have met high standards in all of the amenities that retirees say are most essential for happy lifestyles. Some of the criteria include the state and local tax structure, housing opportunities and cost, climate, personal safety, employment opportunities, transportation, continuing education, leisure living, performing arts, and sports. Listed below are the eight cities. 

Campbellsville, population 10,500, is located in central Kentucky and is home to Campbellsville University. 
Danville, population 15,500, located in the heart of the Bluegrass, was named one of 10 successful small towns in America by Time magazine.
Glasgow, population 14,000, is situated in southcentral Kentucky near Barren River Lake State Resort Park. 
Madisonville, population 19,300, is in western Kentucky near the Land Between the Lakes National Outdoor Recreation Area, a 170,000-acre peninsula between two of Kentucky's largest marine empoundments - Lake Barkley and Kentucky Lake. 
Maysville, population 9,000, is an historic port city on the Ohio River in northern Kentucky. 
Morehead, population 6,000, is located on the edge of the eastern foothills of Kentucky on I-64. 
Murray, population 15,000, located in far western Kentucky, is home to Murray State University. 
Richmond, population 27,000, is in central Kentucky and boasts more than 100 buildings listed on the National Register of Historic Places. For more information on any of these communities, go to: http://chfs.ky.gov/agencies/os/dail/retirementcommunities.htm
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New Book: Retire on Less Than You Think (Second Edition)

In 2004 Fred Brock, the New York Times "Seniority" columnist for many years, wrote Retire on Less Than You Think. Now this best selling, hands-on retirement guide has been thoroughly updated and expanded to include in-depth advice on housing assets, health-care options, and more. Even if you bought the first book, you'll find the information has been updated and new material added. 

For the many people who ask themselves the question "Can I afford to retire," this book will provide insight into the reality of how much it takes to live in retirement and also what the financial investment industry says you will need. There is a chapter devoted to the question of whether you really want to retire - and if so, when. The book is very useful in helping you decide where to live and the costs that may affect your lifestyle. A lengthy but helpful chapter is devoted understanding health insurance and what your options are. 

This paperback book, list priced at $15.00, is available from Amazon for $10.20. For ordering details, click here. 
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