Are you on Facebook?  That’s the question more boomers and seniors are asking each other. Increasingly the answer to that question is “yes” with boomers and seniors among the fastest growing group of users.

Facebook, for those unfamiliar with it, is a social networking site lets you connect with friends all over the country – world actually – by sharing comments and pictures.

It’s an increasingly popular way for family members to stay connected.  You can find old friends and work colleagues.  And, you can follow celebrities, your favorite stores, and companies you like.   Some stores will use the site to post special offers and deals.  It can also be a way to get customer service assistance if you are not getting anywhere on the phone.

(See our Longevity Alliance page on Facebook.  Become a friend of Longevity Alliance and get updates on health, wealth and lifestyle information and share your ideas.)

Just as you do with any other website that holds your personal information, make sure you’re smart about what personal information you post and who has access to the information.

Here’s an article that provides tips on how to set your security settings on Facebook.  Even if you’ve been on Facebook you may find some of these tips helpful as the security settings changed recently.  Here’s a link to Facebook’s security site.

I just connected with work colleagues who I hadn’t seen in 20 years – fun to catch up and be reminded of people and events from a different time in your life.  Now it’s easier to stay in touch.  Last wedding I went to there were more boomers taking pictures and posting them to Facebook than 20+ year olds.  Even my dog has a Facebook page–and firends (both two-legged and four-legged).

What’s your experience been with Facebook?

The “Great Recession” is changing our view of home ownership and the types of neighborhood we want to live in retirement, according to new research from the Urban Land Institute (ULI).

 If they are right, it has broad implications for the role of housing in retirement planning.

 Two key predictions from the report, Housing in America, for the decade ahead:

        * Home appreciation will slow considerably, to about 1 percent to 2 percent annually; and,

       * The current U.S. homeownership rate, now at 67 percent (a decline from the record high of 69 percent at the height of the housing boom) will fall further, to about 62 percent.

Hard hit by the dips in home values are the baby boomers.  The report predicts that both younger and older baby boomers will be staying in their suburban homes –waiting for prices to increase – rather than downsizing or moving to retirement communities.  

They also predict that the younger generation (those in their 20s) will rent longer, less anxious to buy a home given what they have seen happen to home prices in the past year.

Here’s what they have to say about the housing preferences of baby boomers:

 *Aging baby boomers (55 to 64 years old) – Although they are nearing retirement age, many will keep working out of necessity or by choice. Some will be forced to stay in their suburban homes until values recover. Those who are able to move will not choose traditional retirement locations or senior housing, opting instead for more mixed-age living environments that cater to their active lifestyles. Suburban town centers with a walkable urban “feel” will appeal to this group.

*Younger baby boomers (46 to 54 years old), now in or entering their prime earning years – This group will also face a tough time selling suburban homes, hampering the ability of these boomers to move. Because the recession has left many younger boomers with flat incomes and less home equity, their ability to purchase second homes will be greatly diminished, curbing prospects in general for the second home market. However, like their older counterparts, they will be drawn to more connected, compactly designed communities when they are able to switch houses.  

Some seniors are already finding the housing market decline to have a disastrous impact on their ability to finance long-term care. The housing appreciation they hoped would pay for long-term care is gone and or they can’t sell their home to free-up money to move into a retirement community, assisted living or nursing home.  If you anticipate selling your home to finance future long-term care needs that may no longer be very realistic.  You might want to consider long-term care insurance that could help pay for care at home (some policies also permit funds to be used to pay for home modifications).  A reverse mortgages (for those 62 and older) are another way to help finance staying in your home as you age.   This article provides some tips on how home value plays into retirement planning.

Has the decline in the housing market changed your retirement housing plans? Do you think the report is right that traditional age-restricted retirement communities are a thing of the past?

Most of the time we buy health insurance through our employer, often life and disability insurance as well. 

 So, what happens as you approach 65 and no longer have an employer to purchase through and don’t have retiree health benefits and need to select a Medicare health plan?

 You are on your own.

 Your benefits office may have some guidance for you, the Internet can serve up an often dizzying choice of plans and your mailbox will probably start filling up with “turning 65” offers. And health care can be one of your biggest expenses in retirement, so selecting the right plan is important.  

 Here are 3 tips for finding your way through the Medicare health plan maze:

1. Don’t Assume Your Current Insurer is the right choice for your Medicare Plan.

Not all companies offer all plans.  Some health insurance companies offer either Medicare Supplement or Medicare Advantage plans, others offer both.  Those who offer Medicare supplement plans may offer only a few – the most popular–of the standardized plans available.

If you are selecting a Medicare Advantage plan check and compare plans carefully to see what is included and not included.  If keeping your current doctors is important, start by comparing plans from companies that your doctors accept. Then compare co-pays, premiums and benefits.

2. Shop and compare prices. Medicare supplement plan prices vary widely. 

Medicare Supplement plans are standardized.  That means each company must offer identical benefits.  It doesn’t mean they have to charge the same price…and prices can vary a lot.  So once you decide on which plan (by letter Plan A, Plan B, Plan F, etc.) then get prices for that plan from 2 to 3 different insurance companies.

3. Compare benefits and premiums.

It’s not just the premiums when it comes to comparing Medicare Advantage plans and Medicare Part D plans.  You’ll want to look at co-pays, premiums, and additional benefits.  For example, some Medicare Advantage plans come with benefits like free health club membership.  If that’s not important to you, look at a plan without that benefit and see how it measures up. 

The Medicare website has tools that help you compare plan details as well as prices.  This also might be the time when you want to contact an expert in Medicare health insurance plans to help you find the right plan.  Your local area office on aging has resources that may be helpful.  Or contact an insurance broker who specializes in Medicare health plans and has a choice of companies for you to consider. 

Insurance rates are approved by each state’s  insurance commission.  So unless you are looking at a plan designed and marketed by a specific group (like an association), whether you receive a quote from the company directly or the agent, the rate for an identical plan should be the same.   So you can save yourself some time and effort by finding a source that can quote you plans from a variety of companies.

So as you approach 65, start gathering information and make sure you know the sign-up deadlines so you don’t get hit with a penalty. 

If you are 65 and still working, contact your benefits office to find out how your health insurance works with Medicare. 

The Medicare  and You 2010 book can help you get familiar with the ins and outs of Medicare.

So, you’ve decided retirement isn’t for you. Or you’ve been “right-sized” out of a job.  Now what? 

Whether it’s for the money or to stay engaged and meet new people or learn something new, the good news is that there are a lot of resources for baby boomers and seniors ready to embark on finding a new career.

 Check out these resources to get you started:

 Encore Careers

When this term first started being used it referred primarily to volunteer activities.  But the recession changed all that.  An encore career refers to a point in time when you finish up work in one field and switch to something new –usually in the non-profit or social mission area.

 One of the best sources on Encore careers is http://www.encore.org.   It includes information and resources no matter whether you are at the beginning or middle of your search.  There’s also a list of transition groups in different parts of the country to help you find local resources and people who share your stage of life.

 Here’s a Business Week article featuring 16 Encore success stories if you are wondering what type of opportunities to explore.

You should also check out the resources at the career website What’s Next  which includes resources, guides and links to career coaches.

 Going Back to School

A growing number of community colleges are offering courses specifically geared to helping people 50+ retool for a new career.  Here’s a map of community colleges with special programs.  

If your local community college is not listed, call them and find out if they have any special programs.  Your local senior center might also offer community college courses at a reduced rate (don’t shy away from the senior center because of its name – many of them have great resources).

You may also find special rates for people 60+ on classes and certificate programs at local colleges and universities.

 With the prospect of increased longevity and increasing costs on such basics as health care, an encore career might be just the right way to energize yourself and your retirement account.

Not pleased with your Medicare Advantage plan? Meant to switch before the end of the year, but never got around to it? You have one more chance to change your Medicare Advantage plan for 2010.

 If you didn’t get it switched during the November through December annual election period, you have one more opportunity to switch plans during what is called the open enrollment period from January 1 – March 31.  Here’s a link to a tip sheet from Medicare on enrollment periods and what you can do.

During the open enrollment period you can change Medicare Advantage plans if you feel you have the wrong plan.  Only one change per year is permitted.  So even if you changed plans in the recent annual election period (Nov. 15 – Dec. 31) you may be able to change plans during the open enrollment period January 1 – March 31.

Changes that can be made during the Open Enrollment Period include:

 *Medicare Advantage Plan with prescription Drugs (MA-PD) to a different MA-PD

*MA-PD to Original Medicare and a stand-alone Prescription Drug Plan (PDP)

*Original Medicare and a PDP to an MA-PD

*Medicare Advantage Plan without Prescription Drugs (MA) to a different MA

*Original Medicare to an MA 

Remember that if you switch from a Medicare Advantage Plan to Original Medicare (Part A and Part B) and want to purchase a Medicare Supplement plan you will likely to need qualify for the Medicare Supplement Plan by going through underwriting. That means that will look at your current health conditions and decide whether or not you qualify for their insurance policy.

 So make sure you don’t drop your Medicare Advantage Plan until you know that you are approved for a Medicare supplement plan to compliment Original Medicare.  Original Medicare only covers a portion of the costs (generally 80%), so a Medicare Supplement Plan is a wise way to cover the remaining health care cost risk.  It is best to work with an insurance agent or company who is knowledgeable about Medicare health plans.

 Resources:

Understanding Medicare Enrollment Periods tip sheet

 Medicare.gov

 Medicare and You 2010 government brochure 

Longevity Alliance – Information and quotes on a choice of Medicare Health Plans

As the horror of the magnitude of suffering continues to unfold in Haiti  the call for donations to help continues.  As you consider your donation options, make sure you know where your money is going and that it is being directed to efforts in Haiti.

Unfortunately, online and telephone phishing scams will  proliferate. Here’s an article from SmartMoney with tips on how to give during this crisis.

 The article recommends:

* Stick with established groups.

* Assess the charity’s plans – how will your donation be used; what’s the charity’s history of the amount of a donation that goes toward administration and toward relief.

* Designate your gift – if you want your donation to be used specifically for Haiti relief efforts, say so.

* Write a check rather than use plastic – less of your donation will be eaten up by fees.  If you are texting a donation, the transaction fee may be waived. Find out.

* Watch out for phishing scams – make sure the site you are at is the “official site”.  If you get a call, don’t provide your credit card number.  Your best bet is to ask where you can send a donation by mail or call them directly to make sure you are reaching the official charity.

 The U.S. Better Business Bureau runs this website where you can check whether the group you are thinking of donating to is legitimate.

 A list of groups and links from Google.

The Clinton Bush Haiti Fund

As the housing market doldrums continue, it’s likely that older homeowners will turn more frequently to a reverse mortgage to help cover some of their expenses.

A reverse mortgage might be just the right thing to do.  Or it might not.  Like any financial transaction it all depends on your individual circumstances.

A word of advice for anyone considering a reverse mortgage:  understand your commitment and the costs involved in a reverse mortgage.  Do the retirement planning math to determine if it is the best way for you to generate the cash you need.

It’s particularly important as the economy and housing market remain sluggish and the marketing hype by less scrupulous lenders picks up.

Reverse mortgages are available to homeowners age 62 and older who have equity in their real estate and want to turn it into cash to cover such things as daily expenses or long-term care or medical bills.

Regulators have grown increasingly concerned about seniors’ lack of understanding of what they are signing up for.  Some of that comes from misleading marketing and advisers.  While counseling is required before taking out a reverse mortgage, we know that many of us don’t fully comprehend the details, especially if we’re under financial stress.

So here are some warnings from the current proposed rules for lenders. 

 * Understand the costs.  Don’t be fooled by marketing that calls reverse mortgages low cost or low risk or a government benefit.  It is a financial transaction with some fairly substantial upfront costs.  There may be some other ways to tap the equity in your home that would make more sense for your financial situation. Also, the income you receive may impact your ability to receive assistance from government programs. Look at the whole picture – today and in the future. 

 * Understand your ongoing obligations. This is a mortgage that requires repayment – it’s just usually happens from proceeds of the loan. You are still responsible for maintenance of the home, property taxes and hazard insurance.  If there is no escrow attached to the reverse mortgage the homeowners need to pay those fees on their own.

 * Watch Out for Cross-selling of Products.  Walk away from agents who try to push you into taking proceeds and then investing the money in annuities or other investments, or any type of additional services.  How the proceeds are paid out is an important financial decision for you.  Make sure it’s not influenced by the commission your agent would be receiving for selling you additional products.

A reverse mortgage can be a great resource for helping you stay in your home and there are reputable companies that can help you determine if it is right for you.  But make sure you fully understand the costs and obligations that come with it. And don’t get caught by a scammer, masquerading as a reverse mortgage lender but really just trying to get your data or sell you an investment.

Here are 10 tips from the government about reverse mortgages.

A Washington Post article about potential pitfalls of reverse mortgages.

Article on reverse mortgage mailing that’s sounds like an official government program – but it’s not.  Don’t get caught.

For some Americans who are enrolled in Medicare and have trouble paying their prescription drug costs, a change in the law might bring some welcomed help.  It’s called the “extra help” program and is available to those with low income and limited resources. 

The extra help program currently provides assistance to more than nine million senior and disabled Americans — saving them an average of almost $4,000 a year on their Medicare prescription drug plan costs.  

Beginning Jan. 1, a new Medicare law eases the income and resource requirements in two ways:

 1 It eliminates the cash value of life insurance from counting as a resource.  

 2. It eliminates the assistance people receive from others to pay for household expenses, such as food, rent, mortgage or utilities, from counting as income. 

The Extra Help program can pay for the costs–monthly premiums, annual deductibles, and prescription co-payments–related to a Medicare prescription drug plan. To qualify for Extra Help:

• You must reside in one of the 50 states or the District of Columbia.
• Your resources must be limited to $12,510 for an individual or $25,010 for a married couple living together. Resources include such things as bank accounts, stocks, and bonds. Your house and car do not count as resources; and
• Your annual income must be limited to $16,245 for an individual or $21,855 for a married couple living together. Even if your annual income is higher, you still may be able to get some help. Some examples where your income may be higher are if you or your spouse:

                          * Support other family members who live with you;

                           *Have earnings from work; or

                           *Live in Alaska or Hawaii.

If you or someone you are caring for could benefit from the program, more information and an application form are available at the Social Security website or call Social Security at 1-800-772-1213 (TTY 1-800-325-0778).

As we age our metabolism slows.  But, maybe those few extra pounds aren’t just metabolism.  Maybe it’s too much time sitting…and snacking..and not enough moving.

Adding just 30 minutes of daily physical activity should top your list of New Year’s resolutions for a healthier 2010, says Peter Brubaker, professor of health and exercise science at Wake Forest University. Regular daily exercise is the most important step toward a healthier lifestyle, Brubaker says.

The benefits of increased physical activity include a reduced risk for heart disease, stroke, diabetes, colorectal cancer, breast cancer, bone and joint conditions, and sleep apnea.  Being healthier can also save money as you spend less on health care, medications and rates on a number of insurance products such as long-term care insurance, life insurance and health insurance.

Brubaker, who is the director of the healthy exercise and lifestyle programs (HELPS) at Wake Forest, offers these tips for how to increase daily physical activity:

 *Set a goal of 30 minutes a day of physical activity. It doesn’t need to be all at once. Five minutes here, 10 minutes there is fine. As long as it is done at moderate intensity, you will get sufficient health benefits.

*Walk. For most people, the easiest and most efficient activity is simply walking.

*Wear a pedometer. Recent studies have shown that people wearing pedometers increase their activity level by 25 percent.

*Build activity into your daily routine. Get up from your desk to deliver a message.

 *Take the stairs instead of the elevator. Add some extra steps when you are doing household chores. Find small ways to get moving.

* Record daily physical activity in a journal. Self-monitoring is important when making a lifestyle change and journaling activity levels can be good reinforcement.

* Don’t worry so much about weight loss. Realize if you are regularly active you can get significant health benefits even if you never lose a pound. People serious about weight loss should build in 60 minutes per day of physical activity.

* Find activities you enjoy and feel good about doing. Try a variety of activities. Variety is good for the body – and the mind.

* Get the support of friends and family. Challenge them to add 30 minutes of physical activity to their daily routine and you can hold each other accountable.

* Set realistic expectations. There is a risk in building up expectations that you’ll make a change Jan. 1.

The biggest obstacle to successful lifestyle change is expectation. People are unrealistic about what they can achieve and how quickly they can achieve it.  So start your new year with a new commitment to making a few small changes toward a healthier lifestyle.

Missed  Jan. 1?   Any day will do.  Jusst set a date with yourself to begin to work toward a healthier life in 2010.

Share what’s worked for your in reaching a healthier lifestyle.  What’s your health goal for 2010?

If you worry about the cost of long-term care, but are concerned about the cost of long-term care insurance, maybe you’re looking at the wrong insurance company. 

Costs can vary by as much as 60% from one insurance company to the next for the same level of coverage, according to a recent study by the American Association for Long-Term Care Insurance (AALTCI).  That’s why experts recommend you get quotes from 2-3 insurance companies before you make a decision. 

It’s particularly important to shop up-front for long-term care insurance since you are unlikely to change insurance companies once you purchase. Because the rates are based on your age and health when you apply, it seldom makes financial sense to switch carriers after you’ve held the policy for several years – very different from say, auto insurance which encourages you to save by switching.

 What age is the best time to buy long-term care insurance? That all depends on your particular situation, but the study found that over half of the individual applicants are between the ages of 55 and 64, and one third purchase a daily benefit of between $100 and $149.  Most opt for an inflation growth rider that increases the potential pool of benefit dollars each year helping the policy keep pace with health care costs. 

What’s the cost of waiting to buy long-term care insurance? The cost analysis priced typical coverage for individuals ages 55 and 65. The study reports that a married individual age 55 purchasing $172,000 in current protection will pay about $20-a-week ($1,084-per-year) by qualifying for available good health discounts. By waiting until they are age 65, they’ll likely pay $63-a-week ($3,275-per-year) because costs increase with age and one must buy more coverage to keep pace with inflation the report concludes. 

Costs vary, of course, depending on your health, age and the level of coverage you purchase.  A specialist in long-term care insurance can help you determine the right options for you to consider in building a policy that meets your needs. 

You can find more information about long-term care insurance and get quotes online from a choice of companies at Long-term Care Quote from Longevity Alliance.