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Jan 28

Seniors Have Good Reasons to Celebrate in 2023

Here are five good reasons for seniors to celebrate in 2023:

1. Social Security Benefits Checks Will Have the Biggest Increase in 40 Years

Monthly checks for Social Security beneficiaries will increase by almost 9 percent in January 2023. This cost-of-living adjustment (COLA) is the largest increase to Social Security benefits in over four decades. On average, payments to beneficiaries will rise by about $140 per month.

If you are a Social Security beneficiary, you can get an estimate of how much more you will be receiving in 2023 by using the online My Social Security portal on the Social Security Administration website.

2. SSI and SSDI Benefits Will Also Increase

Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) beneficiaries will also see increases in monthly benefits checks in 2023. Beginning on December 30, 2022, SSI individual recipients will receive $73 more a month, and couples will receive $110 more in SSI benefits per month. SSDI benefits will also increase by about $119 more for those who are not blind.

You can access the list of all 2023 Social Security changes in PDF format.

3. You Won’t Have to Wait Months for Medicare Part B Coverage to Begin

Seniors will have improved access to health care coverage.

In the past, if you waited until the last three months of your Initial Enrollment Period (IEP) to enroll in Medicare, you would have to wait another two to three months before your coverage began. But as of January 1, 2023, if you enroll in Medicare during the last three months of your IEP, your Medicare Part B coverage will begin on the first day of the month after you sign up. You will not have to wait several months to receive benefits.

If you sign up for Medicare during the General Enrollment Period, which runs from January 1 to March 31, you used to have a coverage gap because coverage would not begin until July 1. However, starting in 2023, your coverage will start the first day of the month after you enroll.

4. Medicare Part B Premiums Are Lower

Medicare Part B costs will decrease for the first time in over 10 years. The Centers for Medicare and Medicaid (CMS) announced that the following will take effect in 2023:

The Medicare Part B basic monthly premium is decreasing by $5.20 per month (savings of $62 for the year).
The Medicare Part B annual deductible is decreasing by $7 per month (savings of $84 for the year).

Read more about this in the news release from CMS.

5. You Will Be Able To Contribute More Than Ever to Your Retirement Accounts

The IRS is allowing record increases in 2023 for contributions to 401(k)s, Roth IRAs, and traditional IRAs.

If you are working and have a 401(k), 403(b), or 457 plan, you can contribute up to $22,500 to that account in 2023. Working individuals who are 50 years and older can contribute an additional $7,500.

If you have a Roth IRA or IRA, you can now contribute $6,500 in 2023 (up from $6,000 in 2022).

Reference: 5 Reasons for Seniors to Celebrate in 2023, Elder Law Answers, December 21st, 2022

Jan 27, 2020

Cremation Now More Popular than Traditional Burials in America

Cremation became the top choice in 2015 and has risen in popularity ever since. According to statistics from the National Funeral Directors Association, more than half of all Americans who die this year will be cremated. The association predicts that 80% of the US will choose cremation by the year 2040.

One of the driving factors is cost. Funeral costs continue to climb, as well as prices for burial plots and other incidentals. In 2016, the average cost of a funeral was $8,000, and a casket alone was between $2,000 and $10,000. That same year a direct cremation cost a mere $2,400.

Changes in religious attitudes are also partially responsible for the trend. Fewer people consider themselves religious today than in the past, lessening the need for a traditional funeral in a church.

Family members are often scattered across the US, making it more difficult to arrange a timely funeral. It is much easier to opt for cremation and arrange a memorial service at a later time.

Today many funeral homes serve as “event planners” for memorial services, offering a variety of options and doing most of the organizing. Clearly, cremation is here to stay.

Reference: Cremation has Replaced Traditional Burials in Popularity in America and People are Getting Creative with Those Ashes, CNN, January 23, 2020.

May 11

10 Things Your Kids Don’t Want to Inherit

Dr. Elizabeth Stewart is an appraiser with three decades of experience.

She is a certified member of the Appraiser’s Association of America, and the author of No Thanks Mom: The Top Ten Objects Your Kids Do NOT Want (and what to do with them).

Here is her list of the top 10 items your kids do not want to inherit and what to do with them:

Number 10: Books
Unless your grown children are professors, they probably don’t want your books. However, if you believe your books have value, contact a book antiquarian.

Number 9: Paper ephemera
Things like family snapshots, old greeting cards and postcards are called paper ephemera. Old photos are worthless unless they picture a celebrity or are linked with an important historical event. Old greeting cards are not valuable unless handmade by a famous artist or sent by a famous person. Take all your family snapshots and have them made into digital files.

Number 8: Steamer trunks, sewing machines, and film projectors
Steamer trunks from the 19th century are so abundant that they are not valuable, unless the maker is Louis Vuitton or some other famous luggage house. Old sewing machines are not valuable. Thrift stores are full of old projectors for home movies. Unless your family member was a professional and the item is top-notch, yours can go there as well.

Number 7: Porcelain figurine collections and Bradford Exchange ‘cabinet’ plates
These collections of frogs, bells, flowers, bees, trolls, Hummel’s, and Precious Moments have no market value. Find a retirement home that does a gift exchange at Christmas and donate the figurines. Collector’s plates will not sell anywhere to anyone. Donate these to a retirement village as well or to anyone who will take them.

Number 6: Silver-plated objects
Your grown children will not polish silver-plated items, and they are not valuable. The exception may be silver-plated items from Cristofle, Tiffany, Cartier, Asprey, and other manufacturers of note. The remedy is to give these items away.

Number 5: Heavy, dark, antique furniture
There is a good chance you will have to pay someone to take this furniture off your hands. Instead, Donate it and take a noncash charitable contribution using fair market valuation. Use reporting services such as P4A.com to find where this class of furniture sells.

Number 4: Persian rugs
The décor of the average millennial does not lend itself to a collection of multicolored (and sometimes threadbare) Persian rugs. The high-end market is still collecting in certain parts of the U.S., but unless the rug is rare, it is one of the hardest things to sell. Like antique furniture, it may be best to donate.

Number 3: Linens
Try giving your daughter five boxes of hand-embroidered pillowcases, guest towels, napkins, and table linens. She might not even own an ironing board, and she definitely doesn’t set that kind of table. You can donate linens to costume shops of theaters and deduct the donation. A site like P4a.com has auction results to establish the fair market value of such objects.

Number 2: Sterling silver flatware and crystal wine services
Unless the scrap value for silver is high enough for a meltdown, matching sets of sterling flatware are hard to sell because they rarely go for “antique” value. Formal entertaining is not a priority these days. Sterling must be hand-washed and dried. Same goes for crystal.

Sites like Replacements.com offer matching services for folks who DO enjoy silver flatware and have recognized patterns. Because they sell per piece, and therefore buy per piece, sellers get a rather good price. Unless your crystal is Lalique, Moser, Steuben, Baccara, or another great name, you will not be able to sell your “nice set.” Give “unknown maker” sets away, fast.

Number 1: Fine porcelain dinnerware
Your grown children may not want to store four sets of fancy porcelain dinnerware, and don’t see the glory in unpacking it once a year for a holiday or event.

Like silverware, china is something to consider for sale to a replacement matching service like Replacements.com. Know your pattern to get a quote from one. Because such replacement companies buy per piece, the aggregate of the selling price is always more than a bulk sale at a consignment store, which might be your only other option.

Reference: Elizabeth Stewart, 10 things your kids don’t want to inherit, Market Watch (March 17, 2018).

May 04, 2018

Five Tips to Live Like This Active 98-year-old During Retirement

Cecilia Chiang is the 98-year-old former owner of the Mandarin Restaurant in San Francisco, which she opened in 1961 and sold in 1991. Her son followed in her footsteps and is a co-founder of the P.F. Chang’s restaurant chain.

Cecilia has a long list of accomplishments. She received the James Beard Foundation’s Lifetime Achievement Award in 2013, was featured in the book “200 Women: Who Will Change the Way You See the World” and was the subject of a PBS documentary called “Soul of a Banquet.”

Cecilia hasn’t slowed down in retirement. She is a consultant for San Francisco restaurants and works with charities. She goes to movies and the ballet. She still cooks at home and enjoys meals at restaurants in her neighborhood. “I like to work,” she told MarketWatch. “I enjoy what I’m doing. It makes my life more interesting.”

Cecilia Chiang is enjoying a long and active life well into retirement. And she’s planned for it. Advisers say that others should follow her lead. The average woman who turned 65 in 2015 has a one-in-three chance of turning 90, up from one-in-four chance 50 years ago. And for newborns — almost one in 10 girls and one in 20 boys born now will live past 100, according to the University of Southern California’s Leonard Davis School of Gerontology.

Here’s what to do to enjoy a retirement like Cecilia Chiang’s:

Enter retirement with a plan. Know what you would like to do in retirement, and have a financial plan.
Go into retirement debt-free. Debt is crushing at any age, but especially during retirement.
Get the right financial and legal advice. Do your homework and select reputable advisers.
Know what your expenses will be. Health care alone will cost at least $280,000 during the span of retirement for a 65-year-old American couple retiring this year, according to a recent estimate by Fidelity Investments. And those are out-of-pocket expenses that do not include long-term care.
Think about a side hustle. Future retirees expect employment to make up a quarter of their income (to supplement their Social Security benefits and retirement account withdrawals). As Cecilia Chiang said “I never really retired.”

Reference: Alessandra Malito, 5 Tips to Live in Retirement Like This Famous 98-Year-Old, Market Watch, (May 1, 2018).

Apr 23, 2018

For Better or for Worse: Living With Alzheimer’s

There are estimated to be over 5.4 million people with Alzheimer’s disease. For every person diagnosed, numerous others are affected, such as spouses, siblings, and caregivers. The disease accounts for billions of dollars in direct medical costs and indirect costs to caregivers.

For 10 years, Dr. Jon LaPook, correspondent for 60 Minutes, has been following Carol Daly and her husband, Mike. Carol has Alzheimer’s disease, the primary cause of dementia, and her husband is her caregiver.

The story began in 2008, when Carol’s dementia was just beginning to reveal itself. Unable to concentrate, she lost her job, and had to give up reading books and watching movies. Despite her limitations, Carol was active and conversational, and was determined to make the best of her situation. The couple said that Carol’s illness had brought them closer.

By 2011, Carol had no idea how old she was, and required assistance with all of her activities of daily living. Her husband Mike had to dress her and apply her makeup. He also did all of the household chores. Mike had gained 20 pounds, and had started taking medicine to reduce anxiety and help him sleep.

One year later, Carol required constant supervision and complete care. When she couldn’t find the words to answer a question, she simply laughed. Mike acknowledged that their lives were challenging, but insisted that he would never put Carol in a nursing home.

In 2014, life was much tougher for the couple. Carol could no longer remember her last name, or her husband’s name. She also began to lose the ability to control her hands and feet.

By 2016, it was impossible to have a conversation with Carol. She couldn’t do anything for herself. Mike reached the point where he could no longer care for her by himself. He hired a home care aide to help him during the day. This cost $40,000 a year, and caused financial strain for the family. Mike’s stress level increased and he began to have chest pain.

In 2017, Carol spent most of her days sitting in silence because she was unable to understand or answer questions. Mike felt isolated and lonely. His own health was deteriorating.

By 2018, Carol was completely unresponsive and confined to a wheelchair. She required 24-hour nursing care. Mike confided that he felt that Carol was basically a “vegetable,” and he never realized that she might be in this condition some day. His thoughts became dark, and he began to consider suicide. He decided to place Carol in a nursing home.

When asked if he still loved Carol, Mike replied that he loved Carol when she was Carol. But now Carol is not Carol anymore.

Dr. LaPook noted that when Carol was still Carol, that would have been the best time to discuss the kind of care-giving decisions Mike eventually had to make alone. Mike hopes that sharing the intimate details of their lives will help others be better prepared than they were.

Reference: 60 Minutes (April 22, 2018) Following a Couple From Diagnosis to the Final Stages of Alzheimer’s.

Apr 16, 2018

7 Reasons To Review Your Estate Plan

Recent changes to the Federal estate tax laws have greatly reduced the number of people who will be subject to the Federal estate tax. However, there still are many non-tax reasons to review and update your estate planning documents.

1. Transfer of assets: Your estate planning documents serve to communicate your intentions. They designate how your assets will be transferred – whether outright to your beneficiaries, to an existing trust, or into a new trust that will be created under the provisions of your will (testamentary trust). Testamentary trust provisions in the will also may specify when beneficiaries will receive assets. Wills also contain bequests of financial and non-financial assets (family heirlooms).

2. Management of your affairs: Upon one’s passing an estate is created. The manager of the estate is the executor or personal representative. The executor is responsible for accounting for your assets and liabilities, working with the courts, and disposing of your assets in accordance with your wishes. If trusts are created under your will, the trustee(s) you select will administer them.

3. Guardianship for children: If you have minor or disabled children, your will is the document that specifies your choice of a guardians. Depending on your circumstances, you may want to provide financially for the guardian you select.

4. Design of trusts: There are many types of trusts. They allow for control over assets through distributions. This control may be important when providing for children, a person with disabilities, a person with addiction or spendthrift issues, or a financially unsophisticated spouse. Trusts can also offer various degrees of protection from divorce and the claims of creditors and predators.

5. Medical and financial documents: Along with wills and trusts, there are other documents that are important to the estate planning process, such as the health care power of attorney, health care directives (Living Will) and a general durable power of attorney over financial matters.

6. Tax planning: In the past, estate planners heavily focused on the titling of assets to avoid the Federal estate tax. Recent changes to the Federal estate tax laws have greatly reduced the number of people who will be subject to the Federal estate tax. However, many states have estate tax provisions that differ from the Federal tax laws. Accordingly, one may have a federally exempt estate that still carries a significant state tax. There are other tax provisions that require a review of existing estate documents.

7. Gifting: Gifting provides many tax savings opportunities, but can also create complications from the impact of the gifts on the recipient. Careful consideration should be made as to timing and whether gifts are made outright or in trust.

Although recent changes to the Federal estate tax laws have greatly reduced or eliminated the potential estate tax liability for many, it has not reduced the need for thoughtful estate planning.

Reference: Forbes (March 15, 2018) “7 Reasons To Review Your Estate Plan, Trump Tax Law Aside.”