The Boomer Generation Blog

Want the convenience of vacationing in a luxury hotel -- with the benefits of ownership? Consider the condo-hotel. According to BusinessWeek, it is one of the hottest new trends in the real estate market.

It's like a typical condo, but with maid and room service. And in your absence, the condo-hotel can book your suite and you can earn 35-50% of the rental income.

"As the early 1970s consumer was to the condominium, the baby boomer will be to the condo-hotel," says National Association of Condo Hotel Owners President and Chief Executive Officer Dante Alexander. "A couple of years from now, we are going to wish we had built more."

Drawbacks? You may have as little as 30 days per year allotted for your personal use, and you might have to give as much as 60 days notice to reserve your room. And you can't hire a personal decorator because most of these properties will require approval for any remodeling or improvements -- including a fresh coat of paint.

Nevertheless, these luxury residences are springing up in all the get-away hot-spots, including Las Vegas, the Bahamas, the Dominican Republic and Manhattan.

(Biomedica)Once again, hopes have been dashed in the search of an alternative treatment for women suffering from hot flashes.

The popular herbal supplement black cohosh does not relieve hot flashes among women going through menopause, according to a study by researchers from the Group Health Cooperative, a Seattle-based health care system. The study is the first of its kind to compare various forms of black cohosh to a placebo and to hormone therapy (estrogen with or without progestin). The herbal interventions were no better than placebo.

Hormone therapy, on the other hand, significantly reduced the frequency of hot flashes.

"We were disappointed by the findings because many women want an alternative to hormone therapy, and many have assumed that black cohosh is a safe, effective choice," said Katherine M. Newton, PhD, associate director of Group Health Center for Health Studies and the principal investigator of the study. "While hormone therapy is still the most effective treatment for hot flashes, recent studies have shown that it poses serious risks."

As the ovaries produce less estrogen, the body's heat regulator -- the hypothalamus -- rapidly changes the body temperature. (FDA)Newton estimates that 80% of women experience hot flashes around the time of menopause, which typically happens between ages 45 and 55. The average age of menopause is 51.

With no strong evidence that herbal alternatives work for hot flashes, Newton suggests several behavioral changes women can make. These include dressing in layers, sleeping in a cooler room, keeping ice water and a fan nearby, and avoiding possible triggers such as very hot liquids and alcohol.

Newton also notes that hot flashes decreased during the 12-month course of participation in all the study groups, including the placebo group.  "We call this the 'tincture of time' — that is, over time, hot flashes nearly always go away on their own," Newton said.

The study was funded by the National Institute on Aging and the National Center for Complementary and Alternative Medicine and was published in the Annals of Internal Medicine.

Here's a landmark event we knew would get here sooner than later: Kathleen Casey-Kirschling, America's "first Baby Boomer," born in Philadelphia on Jan. 1, 1946, at 12:00:01 AM, will sign up for Social Security benefits Monday.

Casey-Kirschling opted for early retirement benefits at age 62 (undoubtedly to maintain her record of being first!) and will begin receiving benefits in January. But she won't be in line alone -- 80 million Americans born from 1946 to 1964 could qualify for Social Security and Medicare during the next 22 years.

The first wave of 3.2 million baby boomers turns 62 next year -- 365 an hour. About 49% of the men and 53% of the women are projected to choose early retirement and begin drawing monthly Social Security checks representing 75% of the benefit they'd be entitled to receive if they waited four more years to retire.

In 2011, they'll turn 65 and be eligible for Medicare. In 2012, those who didn't take early retirement benefits will turn 66 and qualify for their full share.

"Once it starts to happen, and it's going to start in January, you're going to see millions of baby boomers starting to take it," says Casey-Kirschling, a retired seventh-grade teacher and nutrition consultant.

By 2030, Social Security's caseload will be 84 million people, up from 50 million today. Medicare will go from 44 million beneficiaries to 79 million. That will leave barely more than two workers paying payroll taxes for every retiree. That means an estimated $50 trillion in future obligations over the next 75 years.

Medicare's hospital insurance fund now pays out more than it takes in. Barring action by Congress, Social Security will start doing so in 2017. In 2019, the hospital insurance fund is projected to run out of funds. If politicians don't take some kind of definitive action, experts predict that by 2041, the Social Security Trust Fund will run dry.

Perhaps we'll all want to get in line early.

Source: USA Today

The Baby Boom generation may be the most active senior adults in modern history, but with pleasure comes pain. Falls are the leading cause of accidental injury and death in people over 65. But now, a new computerized balance trainer may help Boomers avoid falls and possibly increase mental and physical coordination.

It's as much a workout as it is a video game.

The Korebalance system includes 3D software games displayed on a 17" video screen as part of the training. The participant stands on the platform and the pressure system can be adjusted to all levels. Ergonomic handlebars are included for safety and allow for weight lifting and other balance exercises, according to Lee Samango, Chief Executive Officer of Korebalance.

 "Our team of medical and scientific researchers designed this product to take the punishment out of exercise and rehabilitation. The trainer encourages all levels of activity and helps users perform physical exercise for a lifetime," says Samango.

"We now know that 'use it or lose it' applies to our brains just as it does to our bodies. Our brains can get stronger and make new ways of doing the same task. Due to this proven science, Korebalance radically improves muscle and mental agility to increase athletic performance," Samango adds.

Older adults consider quality of life and independence as top priority; by falling, they stand the chance of losing what they value most. Korebalance claims that strength and balance programs can reduce the risk of falling by up to 40%.

 "Improving confidence in seniors is essential because 50% of those who fall will fall again," says Samango.

It may be time to throw out another retirement myth: the need to replace 80% of your working income at retirement. A recent survey by Sun Life Financial shows that many baby boomers will need more income, especially early in retirement, than previously expected.

According to the survey, more than 70% of baby boomers expect their income needs to fluctuate greatly throughout retirement with the highest income amount needed in the first five years to fund the active lifestyles they're planning.

"This survey shatters the old rule that people should plan to live on a fixed 70-80% of their pre-retirement income," said Mary Fay, Senior Vice President and General Manager of Sun Life Financial's Annuities Division. "Boomers are eager to live life to the fullest, particularly in the early years of their retirement. To make that possible, they will need to create much more flexible retirement income plans that give them access to the money they need, when they need it."

Baby boomers expect to be far more active in retirement than previous generations. According to those surveyed, more than 80 percent cited domestic and international travel, hobbies, and a new career as the top activities they plan to pursue during the first five years of retirement. To fund this "retirement spending boom," the survey indicates boomers plan to draw from a number of possible retirement income sources including Social Security, pensions, and employer-sponsored retirement plans such as 401(k) plans.

Half of those surveyed indicated they would rely on rental and investment property income as well as the assets from the sale of a business. Eighty-six percent indicated they plan to earn income from some form of employment.

Boomers have high expectations for their early retirement years. In the first five years of retirement, boomers indicated they plan to pursue the following lists of activities. Percentages of the same activities drop significantly in mid-retirement (5-10 years into retirement) and late-retirement (10 years or later after retirement).

85% Domestic travel

83% Hobbies

82% International travel

81% Begin a new career

78% Spend more time with children/grandchildren

76% Start a business

73% Volunteering

72% Take classes or get a degree

61% Purchase a second home

56% Relocate to a new location

54% Assist charitable organizations

Baby boomers have influenced every aspect of life in the second part of the twentieth century, and will continue to play a huge role in determining trends in the new millennium. In fact, one of those new trends may ironically be a throw-back to pioneer days: log homes.

According to a recent consumer study, log homes are one of the fastest growing segments of the building industry. Log home sales have more than doubled since 1995, and the Log Homes Council of the National Association of Home Builders states that most of these homes are the owner's principal residence.

Log home plans are no longer just simply designed cabins; today's modern log home may incorporate many different architectural styles and can follow almost any floor plan. The log home of today is typically over 2,000 sq. ft. of living space with two or more bathrooms and may contain every conceivable option and upgrade such as gourmet kitchens, balconies, whirlpool tubs and walls of windows etc.

Studies have shown that, of the people who build or buy a log home, the majority are professionals working in high-stress positions, such as stockbrokers, police officers, or business executives. They want out of the stress caused by their everyday grind and are attracted to a home life of serenity and relaxation. They are looking for the warmth and peacefulness of a log home.

The French Quarter Festival is a less-intense but no less entertaining musical treat occurring this weekend, April 13-15 -- two weekends prior to its big brother, the New Orleans Jazz and Heritage Festival. You’ll find a generous sampling of musical genres – 150 acts in all -- on fifteen stages, street corners – even curbs -- scattered throughout the Quarter and the adjacent riverfront.

To the careful observer who doesn't wander far from the downtown entertainment, you will still find signs of the tragic flooding that ravaged this storied city: abandoned buildings, washboard-rough streets with occasional buckled concrete that will jar your car’s suspension as well as your nerves, and quite a few closed store fronts. But within the blues-soaked confines of the FQF, those troubles are soon forgotten.

New Orleans’ hotel accommodations are coming back, as well. The Iberville Suites, a part of the Ritz-Carlton complex, have reopened. On a recent visit, the staff was eager, congenial and accommodating.

And Big Easy dining is still a taste bud treasure. Venture uptown and discover (or re-discover) Pascale’s Manale, (down St. Charles to 1838 Napoleon Ave.) for barbecue shrimp that contain no barbecue – just a peel-them-yourself spicy mess of butter and pepper.

In the Arts/Warehouse District you’ll find Tommy's Cuisine (746 Tchoupitoulas)  featuring "Classic Creole Italian", a culinary style developed in the late 1800's when Italian immigrants settled in the French Quarter. An adjacent wine bar is perfect for starting – or capping off – the evening.

For window shopping or a retreat from the unpredictable and ever-changing Louisiana spring weather, duck into The Shops at Canal Place. A typical, though upscale mall, you’ll find Sak’s, Brooks Brothers, Coach, Kenneth Cole, and all the rest -- but most of all a relaxing, soothingly-lit food court on the second floor. A perfect spot to cool your heals for a while.

Hidden tip: if you tire of the crowds and long lines but hanker a beignet from world-famous Café du Monde in the French Market, you’ll find a smaller, less-crowded location inside the Riverwalk Marketplace, within walking distance of the Quarter.

Getting objective investment advice may have just gotten a little easier. 

Big news just broke in the financial services industry, but you probably haven’t noticed a lot of headlines in the mainstream media – not yet.  A U.S. Court of Appeals ruling last week eliminated the Security and Exchange Commission’s so-called “Merrill Rule.” Without getting into a whole bunch of legal and investment jargon, here is what this landmark ruling means to you:

When you seek advice from a financial consultant, how do you know whether that advisor is working in your – or his firm’s – best interest? Of course, you’ll never have complete assurance that someone is strictly trustworthy, but now industry regulations may help tip the odds in your favor.

In the past, if you went to a stockbroker or other investment salesman, they could hold themselves out as a trusted advisor -- though in reality their recommendations might be based on commissions, fees or other financial incentives, rather than on the most prudent course of action for you. Brokers were exempt from the stringent rules of conduct that true registered investment advisors must adhere to. That exemption, called the “Merrill Rule,” may have given investors a false sense of security when getting advice from such “financial consultants.”

The confusion was further heightened when brokerage firms began marketing fee-based accounts for clients, in an effort to present themselves as being on “the same side of the table” with clients. Now brokerage firm advisors advocating such accounts must have the best interests of the client in mind with each recommendation, as well as disclose any potential conflicts of interest.

This latest court ruling may be further appealed – to the Supreme Court – or Congress could pass new laws that might make this complicated issue of trust between consumers and their financial advisers even more complicated, but in the meantime investment firms and the SEC have begun sorting out the ramifications of the new ruling.

If you have investment accounts at a traditional brokerage firm expect more paperwork, disclosures and agreements to be heading your way soon. Investment firms will begin the process of obtaining client approval to convert applicable brokerage accounts to advisory accounts in order to comply with the new regulations. Be sure to read these new agreements carefully – you may be surprised at the consumer protection language you find.

What can you do to sort through the confusion?  Here are five simple steps to follow in order to clarify your relationship – and your expectation of objectivity – with your financial advisor:

1. Deal with a Certified Financial Planner™ practitioner. Regardless of what type of firm they work with, you will have a better chance of a CFP© working in your best interest. Remember though, there are no guarantees in such matters.
2. Ask how your advisor is compensated. A fee-only relationship is best. Commission-based advisors can never really ensure that they are totally objective. An advisor that bases their compensation strictly on an hourly fee is most likely to render objective advice.
3. Ask if you will be opening an “advisory account” which will assess a fee rather than commissions and afford you the expectation of your interests being put first -- or a “brokerage account” – which will be exempt from the new “your interests come first” rules.
4. Whenever there is an investment product discussed, be sure to ask you financial consultant if there are any potential conflicts of interest that should be revealed as a part of your decision process. Are they, or their firm, receiving any additional compensation for the sale of the proposed investment?
5. And be sure to ask if there are any past or pending disciplinary actions against your advisor, and if so, get full details.

From webfinancialplanner.com

Oh, Mexico! It sounds so sweet with the sun sinking low

Moon's so bright, like to light up the night

Make everything all right

James Taylor "Mexico"

Sweet Baby James had the right idea, and that idea is catching on. Mexico is quickly becoming a sought-after destination for resort real estate.

"Resort real estate purchases in the U.S. have been on the rise for the past few years, but some are starting to wonder if the market has peaked," says Lynne Bairstow, Marketing Director for DINE, the developer of Punta Mita, a luxurious gated community in Mexico. "Savvy buyers are starting to look beyond the U.S. border for new real estate options.”

Melissa M. Kellogg, writing in a recent issue of Wealth Manager magazine examines Mexico not only as a retirement destination, but also as a viable investment option. Kellogg quotes Mitch Creekmore and Tom Kelly, co-authors of Cashing In on a Second Home in Mexico, who predict that the real estate market for Americans in Mexico is on the verge of an explosion, as more mortgage financing becomes available and the Baby Boomer generation begins to retire.

“Mexico will be the ‘Florida’ of the Baby Boomer generation,” says Kelly. “Baby Boomers are looking for a more exotic, adventurous locale to retire.” And with approximately $70 billion of wealth coming to the Boomers over the next 10 years, Creekmore believes a good chunk of that will be used to invest in real estate — especially real estate in Mexico.

Bruce D. Greenberg, a real estate consultant and appraiser who has been valuing properties in Mexico for more than 10 years, believes that purchasing has become easier for foreign nationals in recent years. However, he cautions, “Don’t leave your brains at the border.”

Buyers must be familiar with property ownership laws in Mexico as well as tax laws both in Mexico and the U.S.  In 1994, Mexico changed the laws of property ownership for foreign nationals.  No longer are Americans restricted to leasing property from the Mexican government for 99 years. They can now own property in the restricted zone of Mexico — any land that is within 50 kilometers of the coast and 100 kilometers from any Mexican border — through a Mexican bank trust called a fideicomiso. The American owner is the primary beneficiary of the trust, which is renewable every 50 years. The buyer has all the rights and privileges of property ownership, such as making improvements or changes to the property, passing it down to heirs and selling it.  As a result of the more favorable laws, Greenberg estimates that American real estate holdings in Mexico are now over $30 billion.

“Mexico has a geography and topography for everyone and every type of interest,” adds Creekmore. Whether it be the calm waters of the Sea of Cortez with its great fishing and sailing or the more cosmopolitan lifestyle of Cabo San Lucas or Cancun, potential buyers should visit different areas and choose the one that is right for their families.

If they plan to use the home for rental income, potential buyers should consider a location close to recreational activities, restaurants and shopping -- making it more likely the house will rent out easily. However, if they have a higher investment risk tolerance and want more house for the money, they might want to try investing in a home in an up-and-coming area. Kelly and Creekmore also suggest researching areas where new airports are being built and where major resort companies are building new properties.

As the song goes, "Way down here you need a reason to move, feel a fool running your stateside games. Lose your load, leave your mind behind, Baby James. Oh, Mexico!"

Now that tune will be knocking around in your head for the rest of the day. Enjoy.

Buying the world a Coke (click to view: RetroJunk.com)78 million Americans are feeling ignored by television advertising — namely, Baby Boomers. According to a study from GfK Brand & Communications, nearly three-fifths (58%) of America's Boomers — the first generation to grow up with television — feel that TV is their primary source for information, but when it comes to purchasing products and services, almost half (45%) say they feel overlooked by TV advertisers.

Many marketers, fixated on reaching 18-to-34-year-olds, are just not creating ad messages that appeal to the Boomer generation.

"Boomers are one of the most difficult population segments to target," said Allan Dib of GfK. "Unlike previous generations, these individuals have more marketing savvy and disposable income but are less likely to show strong loyalty to particular brands. Marketers and advertisers must work harder to capture [their] attention."

But how?

Advertisers could start by being funnier. A majority (91%) of boomers say humor in television advertising strongly appeals to them. Additionally, 51% of boomers want to see people their age in TV advertisements, 73% say they find ads more believable if cast with people they can identify with and 75% say they pay more attention to commercials that portray situations they can relate to.

Finally, statistics that make sense.