SRES Consumer Newsletter - April 2020

Consumer Newsletter – April 2020 US Edition; By Elyse Umlauf-Garneau	www.sres.org

IRS Extends Tax Payment Deadline

The Coronavirus is changing almost everything about daily life in America. That   includes federal income tax too.

Tax day is now July 15, 2020.

That means all taxpayers can defer federal income tax payments that normally are due on April 15, 2020, to July 15, 2020, without penalties and interest, no matter how much is owned.

You also don’t have to file an extension or fill out any forms to qualify for the automatic extension. 

However, if you’re expecting to receive a refund, file on time because those payments are still being processed.

For complete information, see: https://bit.ly/2wmoZYL

Keep in mind that the change applies to federal tax payments, not to state tax payments.

That said, some states, including California and Oregon, have extended the deadlines too. Check with your state to see if the deadline has changed.

Additional information on state taxes:

·        American Institute of CPAs -- https://bit.ly/2J5kBjv

·        Federation of Tax Administrators: -- https://bit.ly/33zkA0w

5 ways to use your social isolation time

With most dining and entertainment options shut down because of the Coronavirus,  Americans are spending oodles of time at home these days. Use your period of social isolation wisely. Here are five ideas.

1.     Finish up the undone home maintenance projects that you haven’t had time to get to.

2.     If you’ve been planning a Marie Kondo-style purge, now’s the time to do it.

3.     Pull out the programmable thermostat, LED bulbs, and low-flow showerheads and faucets that you stashed away. Install them now to start saving money on your utility bills.

4.     Think about your current estate plan and any modifications you may want to make. And if you don’t have one, start planning one and get a future appointment with your lawyer on the calendar. See: https://on.wsj.com/3a7Wmgj  

5.     Plan and design your spring garden. For tips, see: https://bit.ly/2Uj1SWQ 

How much time does $1 million nest egg buy in major cities?

Even for those who have been diligent savers, there are always nagging questions.  Can I afford to keep living in my house and will I be priced out of my city? How long will my money last?

GoBanking has answers.

It looked at 50 cities, examining things like average annual expenditures in each city for those 65 and older. It also factored in the average annual Social Security benefits and other data to estimate how long a $1 million nest egg would last in each place.

San Francisco provides the least mileage, and that $1 million nest egg would be used up in 8 years, 3 months, and 19 days. In San Jose, Calif., you’d get a little longer -- 10 years, 9 months, and 20 days.

Other California cities, including Los Angeles, Oakland, Long Beach, and San Diego, also are pricey, especially when compared to places where your dollars can stretch for a really long time.

Memphis, Tenn., is one such place, and $1 million can last 45 years, 4 months, and one day. Similarly, in El Paso, Tex., those dollars will carry you 40 years, 3 months, 22 days.

In Tucson, you can buy 33 years, 4 months, 1 day in the sunshine; and in Jacksonville, Fla., you get 32 years, 3 months, 16 days.

See exactly how the figures were calculated and check all 50 of the cities in GoBanking’s study: https://bit.ly/2U48yt0

Aging checklist

While you’re planning your downsizing strategies, it’s also worth taking a look at Forbes magazine’s aging checklist, http://bit.ly/37F8h3k. 

It offers some crucial to-dos six crucial categories. The categories and some of the advice are:

1.     Estate planning documents. Include up-to-date wills, durable power of attorney for finances and healthcare, and a healthcare directive.

2.     Finances. Provide contact information for financial advisors, lists of all accounts, and up-to-date beneficiary designations.

3.     Insurance. List insurance policies, review health insurance coverage, and other policies – homeowners, auto, umbrella liability – to be sure they’re still appropriate, and provide the contact information for your insurance advisors.

4.     Housing. Consider whether your house is suitable for aging and what modifications need to be made. Think about whether you should downsize and when such a move would be appropriate.

5.     Health. Keep an updated list of your doctors and medications.

6.     Technology. Keep a list of all your online logins for banks, investment accounts, social media sites, and so forth.

7.     Business. Create succession plans, if you own a business.

8.     Personal.  Specify in writing who will manage your financial, legal, and personal tasks.

Real Estate Matters: News & Issues for the Mature Market Coldwell Banker Premier Group 2203 S Big Bend Blvd St. Louis, MO 63117 Matt Wroughton -  SRES, PSA

SRES Consumer Newsletter - March 2020

Consumer Newsletter – March 2020 US Edition; By Elyse Umlauf-Garneau	www.sres.org

Walkability’s Worth

How walkable is your city and how much more will buyers pay for that convenience? Redfin has some answers.

It found that homes that allow people to walk to schools, shopping, parks, and other amenities sell for an average of 23.5%, or $77,668, more than comparable properties in areas where residents are dependent on a car.

Redfin looked at sales prices and Walk Score rankings on nearly 1 million homes in 16 U.S. cities and in two Canadian cities to see walkability’s effect on home prices.

Cities where daily errands can be done without a car get scores of 90 points or above and are considered a walker’s paradise. Scores of 70 to 89 indicate that most errands can be accomplished on foot, and when only some errands can done on foot, a city is labeled somewhat walkable and receives scores between 50 to 69. Scores between 0 and 24 are considered car dependent and residents need cars to do most or all errands.

Though buyers will spend extra for greater walkability, the premium they’ve paid for properties slipped 2.3% from 2016. That’s slide is attributed to affordable homes being in demand and the fact that they’re often located in less walkable spots. Since many  buyers can’t afford pricier walkable neighborhoods, they’re willing to trade walkability for affordable single-family properties.

Walkable Premiums by Region

Location	Premium for walkable homes	Walk Score
Boston, Mass.	$140,724	82
Washington, D.C.	$102,166	76
Seattle, Wash.	$86,331	74
Atlanta, Ga.	$74,741	48
San Diego	$60,225	51

For a complete list and more details on each of the markets Redfin studied, see: http://bit.ly/2HM9V8V.

SECURE Act and Your Retirement

SECURE Act and Your Retirement

The SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019), aimed at improving people’s retirement security, was signed into law at the end of 2019.

Some key changes of the SECURE Act (http://bit.ly/2HwrLfV) affect Individual Retirement Accounts (IRAs) and has implication for anyone planning for retirement. 

Required Minimum Distributions

Before, you were required to start taking money out of traditional IRAs – Required Minimum Distributions (RMDs) – by April 1 of the year after you turned 70 ½.

You now can wait until you’re 72 to start taking RMDs, which gives you extra time to save and to let your money grow.

Longer window for saving

You can keep contributing to your IRA for as long as you’re still working, whereas before, there was an age limit of 70 ½. The new law may help you save more for retirement.

Inherited IRAs  rule change

There also are changes for those inheriting IRAs. Before, those inheriting such funds could take distributions over their lifetime. But that timeframe has now been reduced to 10 years. Learn more about what it may mean for you at the SRES blog.

Throw a downsizing party

You already know that your kids and grandkids want little, if any, of your stuff. Decorative objects often don’t suit their taste, furniture isn’t the right style or scale for their apartments, and they already have all the kitchen gear they need.

Downsizing is never easy, and the added burden of having to label, pack, and get things to a suitable recipient can be overwhelming.

It’s why a downsizing party may be just the thing .

A recent Washington Post story (https://wapo.st/3bNGy3H) talked about how one Washington, D.C., couple, Karen and Fritz Mulhauser, threw a party and invited friends to cart away things – linens, glasses, books, decorative objects – from the house.

You never know who, among your friends, neighbors, and relatives, has had an eye on a particular collection, painting, sculpture, or decorative object and will be willing to take it off your hands.

For you, the party preparation couldn’t be simpler. You label or put out the things that you want taken away and invite friends to bring paper, boxes and bags and cart it out.

Provide some snacks and beverages – the Mulhausers were ready with 200 flutes full of champagne – and a little good cheer, and within a couple hours, your load could be lightened.      

	Real Estate Matters: News & Issues for the Mature Market Coldwell Banker Premier Group 2203 S Big Bend Blvd St. Louis, MO 63117 Matt Wroughton -  SRES, PSA

SRES Comsumer Newsletter - February 2020

Consumer Newsletter – February 2020

US Edition; By Elyse Umlauf-Garneau

www.sres.org

Seniors on the Move

Moving across the country is challenging, but when it includes frail, elderly parents, it becomes exponentially harder.

It’s why those who have gone through the process with a loved one suggest getting an early start, having a handle on the to-dos, and planning ahead.

But most families wait until a crisis before considering housing options and purging a house, according to Judith Kahn of Judith Moves You, a New York City senior move manager. “It’s not unusual for people to call me just weeks before a move,” she says.

She says it’s best to start sorting, cleaning, and figuring out the next steps a year prior to downsizing. “Frail seniors have physical and emotional limitations and can only work two or three hours at a time,” she says. When a move manager swoops in with just weeks to do their work, it increases seniors’ stress, particularly if they have dementia.

You’re fired

Still, parents and children resist. “Part of it is coming to terms with the idea that hiring me is staring mortality in the face,” Kahn says.

Sisters Rachel Wineberg-Kaufman of Hastings-on-Hudson, N.Y.,  and Johanna Kellman of Naples, Fla., came face-to-face with such resistance when trying to get their 90-something parents, Bernice and Julius, to downsize several years prior to their eventual 2018 relocation from Chicago to Naples. 

The two had raised the topic several times, but their parents refused to consider moving or even having help in their house. “My mom kept firing the aides we hired,” recalls Wineberg-Kaufman.

Recognizing the signs

But the signs that it was time for a change were there.

When the daughters visited, friends pulled them aside and told them that their parents really could use more help. They noticed piles of unopened mail and disorganization in their parents’ normally tidy condo.

But getting their parents to accept that it was time to downsize wasn’t easy, and the sisters wanted to respect their parents’ wishes.

Then, when Wineberg-Kaufman’s husband talked with his in-laws and suggested moving, they jumped on it (See more of the story in the SRES blog ___), opting to live near Kellman in Naples. A semi-neutral person, someone other than the children,  making such requests sometimes can be persuasive and effective.

Tip: When talking with parents about medical directives, ask about their wishes for long-term living arrangements, should aging at home become impossible. Wineberg-Kaufman says, “I wish I had asked, ‘How will I know that you’re ready to move? What signs should I watch out for?’”

Preview options in advance

After getting a thumbs-up from their parents, Kellman scrambled and started visiting and researching the independent housing options.

Kellman suggests doing some scouting years before a move. The choices are vast, confusing, and expensive.

In addition, it’s important to pick a place where your parents will feel comfortable.

When the building’s vibe? Do residents seem engaged and happy? Do the activities match your parents’ interests? Could you picture your parents living there?

“You really just have to find the personality that's right for them,” says Kellman.

Subhead) Editing a life

Once Kellman, an interior designer, chose an apartment in an independent living building, she took measurements and planned a layout.

House-sized coffee tables, couches, and so forth, typically are too big for the limited space in independent living apartments. But moving some furniture makes the space feel homier and less institutional.

That advance planning and measuring guided the sisters’ decisions about to bring.

They opted for a few pieces of furniture that were important to their parents, some quilts her mom had made, photos, and some books and mementos.

Managing the nitty-gritty

“If you don't have a sister who's an interior designer, hire somebody experienced in senior moves,” advises Wineberg-Kaufman.  

Such managers are expert in dealing with the big issues of a move and the nitty-gritty details, including packing and shipping, turning utilities on and off, and transferring insurance.

Their unique skills also entail scanning a room and knowing what can be donated, what’s saleable, and what need to be tossed.

Moreover, notes Kahn, they have pre-vetted connections with every type of service provider – movers, geriatric care managers, auctioneers, estate sale managers, and so forth – needed to execute a move seamlessly.

When their dad moved from independent to assisted living in the same facility after their mom’s death in 2019, the sisters marveled at senior move managers’ tricks of the trade.

For example, they photographed the medicine cabinet and drawers before packing so that everything was put in the exact same spot in the new apartment. Their dad didn’t have to hunt around for things, which minimized his stress.

Orchestrating farewells

A few weeks before the move, the sisters got in touch with their parents’ friends and asked that someone go out with them for a meal each day.

It was one way for their parents to enjoy their last weeks in Chicago, celebrate with friends, and bid farewell to their hometown.

And to diminish their parents’ angst, the sisters purged and packed after the actual move.

They left the apartment intact so that their parents’ last view of it was one of beauty, not chaos.

Finding new friends

In retrospect, Wineberg-Kaufman realized that another reason for parents to move to a senior building sooner rather than later is how challenging it is to make new friends, something her parents found difficult.

Wineberg-Kaufman notes that people in that age group may have hearing and memory problems and sometimes they’re too frail now to fully engage socially.

She also observed that sometimes interactions among residents can mirror those of young children who play next to one another but not together.

Had their parents moved they were younger, Wineberg-Kaufman thinks they would’ve been able to build a stronger social network.

Now that Bernice has passed away, Julius is isolated at his assisted living facility.

But when he was back in Chicago for his wife’s memorial service, he reconnected with old, lifelong friends and was sharp and engaged. “Because of that depth of friendship, they all just fell into conversation,” recalls Wineberg-Kaufman.  

The entire experience has caused her to consider a new model for aging. “Set up your own assisted living with friends,” she says. “Buy two condos: one for the friends and one for the caretaker.”

Resources:

If you’re planning a cross-country move with a senior, here’s a list of resources and checklists to get you started.

·        AARP: https://bit.ly/2Ryjn4b 

·        Caring.com: https://bit.ly/2RxTfGy

·        Family Caregiver Alliance: https://bit.ly/3aoM5gh

·        National Association of Senior Move Managers: https://bit.ly/2NKUH7c

	Real Estate Matters: News & Issues for the Mature Market Coldwell Banker Premier Group 2203 S. Big Bend Blvd St. Louis, MO 63117 Matt Wroughton – SRES, PSA

SRES Consumer Newsletter – January 2020

Consumer Newsletter – January 2020 US Edition; By Elyse Umlauf-Garneau	www.sres.org

Cities Aren’t Prepared to Accommodate an Aging Population

Take a look around to see how well your city or town accommodates its older residents. It’s unlikely that you’re living in a city that’s prepared to help you or future generations to age in place well. So says a to a report, Age-Forward Cities for 2030 (https://bit.ly/2M2J4YH),  by the Milken Institute Center for the Future of Aging, a Santa Monica, Calif., think tank.

After all, most cities lack the housing, design, services, economic opportunity, transit, and amenities to fully address seniors’ needs.

That’s despite the fact that by 2030 those over the age of 60 will outnumber those under the age of 10.

For its research, the Milken institute talked with nearly 150 subject matter experts on aging, public health, urban planning, and related issues to assess what cities and towns need in order to service an aging population.

The report is a call to action to municipalities to prepare, and it provides a prescription that cities can consult “to create a better future for all residents, investing in solutions that deploy the human and social capital of older adults as community assets, change agents, and co-creators.”

Housing challenges

One crucial element of aging well is housing, and there’s much to criticize about what’s currently available.

For one, there aren’t enough properties that provide for the affordability, accessibility, and social well-being necessary for seniors’ quality of life.

Thus, developing housing that incorporates universal design features -- no-step entries; bedrooms, bathrooms, and kitchens on the ground level; wide doorways and hallways; variable counter heights; and lever-style handles.

The Milken report does point to several promising lifestyle trends that address seniors’ needs, including:

·        Co-housing -- People live in their own homes but have communal spaces like kitchens, living rooms, and dining areas where residents come together for meals and socializing.

·        Student matches – Older homeowners rent rooms to students, providing affordable housing for students and easing seniors’ housing costs. In addition, homeowners can get help with household tasks and forge deeper social connections.

·        Home sharing -- Adults living together bring benefits similar to student matches – sharing household tasks and easing housing costs and social isolation.

·        Multigenerational housing and granny units – Seniors living with family members or in an on-site granny flat or accessible dwelling unit (ADU) on the property can strengthen family relationships, keep seniors out of institutional settings, and lower the costs of caregiving.

The built environment

The built environment also can add to or subtract from a senior’s quality of life.

Thus, Milken recommends that cities embrace urban planning strategies like New Urbanism (principles that promote quality of life through things like walkability, mixed housing, interconnected street grids, and mixed-use developments) and Complete Streets (a design in which the entire right-of-way enables safety for all users – walkers, bikers, drivers and transit riders – making it easy to cross streets, walk to shops, and bike to work.)

Beyond removing physical barriers, cities also need to address economic barriers to successful aging and develop solutions for caregiving, employment, senior entrepreneurship, and social inclusion.

Some cities are making progress.

For example, Minneapolis changed its zoning to allow for the wider development of ADUs on properties with one- or two-family homes, and the city of Juneau, Alaska has given $6,000 grants to homeowners looking to build backyard cottages or ADUs.

The Safe-at-Home program in Washington, D.C., provides grants for home modifications for qualifying older adults, and DenverConnect connects Denver, Colo., seniors to local services.

The report isn’t just a call to action for cities, but for you too. How does your city stack up? What can you do to advocate for senior-friendly changes in your hometown?

And when you’re looking at places to retire, it may be worth investigating a prospective town’s plan for its aging population.

Share your caregiving experience

If you’re in the thick of caregiving, you have a chance to lend your voice and contribute to some research on the topic.

The Massachusetts Institute of Technology’s MIT AgeLab is looking for an online panel of caregivers who are willing to share their thoughts about the caregiving experience.

The AgeLab researches aging to understand the challenges of getting older and to improve the quality of life of seniors and their caregivers.

The caregiving panel will entail answering online surveys about every other month. In addition, there may be opportunities to participate in interviews, focus groups, and panel discussions.

To sign up, see: https://bit.ly/2S3RZwG 

For questions about the project, send an email to:  mit-caregiving@mit.edu

Best footwear to prevent winter falls

With winter in full swing, it’s a good time to consider your footwear if you live in a snowy, icy part of the country.

iDAPT, the research arm of the Toronto Rehabilitation Institute – University Health Network, has a footwear rating system, Rate My Treads (https://bit.ly/2O2ihgh).

In its lab, it tests footwear for slip resistance in different winter conditions by having real people walk back and forth on a floor made entirely of ice. 

Check out this year’s rankings of various footwear, including boots and over-shoe traction aids with metal cleats to find the safest shoes for winter walking.

Real Estate Matters: News & Issues for the Mature Market Coldwell Banker Premier Group 2203 S. Big Bend Blvd St. Louis, MO 63117 Matt Wroughton – SRES, PSA