Financial $tuff

Aging in place technology

by

My aging Mom, who lives 800 miles away, prefers to live in her own home, and like many others who are aging in place, wants her independence despite several falls in the past year.  I spoke with Mom on the phone last week and she described a recent fall in the Walgreens parking lot after she drove there to pick up a few items.  While closing her car door, she fell backwards, her head hit the pavement and she bruised her tailbone.  Two people helped her to her feet, she went into Walgreens, shopped, and drove home.  She was lucky this time; no broken bones.  She is worried about whether she will be able to continue living independently as she wishes.

My Mom is 83, lives alone and does not wear a monitored emergency alert device nor does she own a cell phone.  No one in the family has the legal right to assist her; that right falls to a former employer and friend of hers (her decision). Feeling helpless, I prayed for guidance on how to aid her while also not upsetting her.  I decided on purchasing some items to help her daily:  two suction cup grab bars for her shower/bath area, an adjustable hand bed rail, and a call button alarm system from Amazon.   They will be delivered directly to her home this week.  I believe the alarm system, if she chooses to use it, could be useful if she falls at home or has an emergency.  The alarm should be loud enough to alert a neighbor.  While I wish I could afford the monthly fee associated with a 24/7 monitored emergency alarm system, I think the call button alarm system could help with alerting neighbors in the near future.

Technology designers have really embraced the problems seniors face when they want to age in place. This is a great article which describes some of the latest and greatest aging in place technology if you can afford them:

Choosing the right technology to assist aging in place

aging in place technology
care.com

By Matthew Campbell, McKnight’s Senior Living

March 2, 2017

“Older adults increasingly want to age in place, and many of them live alone.

If living unassisted, however, older adults are at risk for falls in and out of their residences, which can lead to injuries. A senior is treated for a fall in the emergency department in the U.S. every 13 seconds, according to a study from Carnegie Mellon University’s College of Engineering. Fear can prevent older adults from confidently living active lifestyles.

Simple technology, however, can discreetly monitor and assist seniors to help ensure their safety and health. Devices such as wearable mobile personal safety technology, or mPERS, and connected tech such as motion sensors, allow older adults to feel safe and never really alone.”

Read more about aging in place technology

Guard against identity theft

by
identity theft
news.sfimg.com

Identity Theft Takes a New Turn

By Terry Savage

February 15, 2017

       “If you think your finances are safer now that you use a chip card, think again. The latest Javelin Identity Fraud Study reports the number of identity fraud victims increased by 16 percent in 2016 to more than 15 million consumers. And the amount the thieves took grew by $1 billion to more than $16 billion in the past year.
      A large part of the increase came from ‘card not present’ fraud in the first year since chip cards became widely used. Fraudsters are resorting to more invasive ways of getting your identity details than simply counterfeiting mag stripe cards.
      So-called ‘phishing’ schemes have become far more sophisticated. Gone are the days of the misspellings and clumsy grammar that made fraud emails obvious. Fraudsters have gotten better at tricking you into clicking on a link in one of these emails. Once you do that on your computer or smartphone, these links deploy malware called ‘bots’ to collect all your data, including PIN and CV authentication numbers as you shop online.

      There’s also a growing trend of identity fraud crimes enabled by victims’ social media posts. Harmless items on your pages, including celebrations of your birthday, or a college graduation or reunion, give thieves information they use to open new accounts in your name. Fraudulent new credit accounts for more than half the increase in identity theft crime last year.

So what should you be doing to guard your identity? Here are some suggestions, which mostly involve common sense and a commitment to regularly review your finances:

  • Check online accounts regularly.
  • Check your credit report at least quarterly.
  • Guard your personal information.
  • Create two-factor authentication for your banking, credit and brokerage accounts.
  • Be aware of your vulnerabilities.”

Read specifics to guard against identity theft.

Terry Savage is a nationally recognized expert on personal finance, the economy and markets.  She responds to questions on her blog at TerrySavage.com.

Online money management can help you stay on top of things

by
online money management
mint.com

Online money management not just for young

Terry Savage, The Savage Truth

January 22, 2017

“If the very word ‘fintech’ makes you flinch, you’re not alone.

A 2016 Federal Reserve study found that only 18 percent of people over the age of 60 use mobile banking services (vs. 67 percent between the ages of 18 to 29, and 58 percent ages 30 to 44). In fact, only about half of Americans over 65 own a smartphone or tablet, according to a 2014 Pew Research study.

It’s never too late to start learning to use smartphone technology. The immediate incentive is to learn texting so your children and grandchildren will stay in touch. You don’t have to give up your friendly flip-phone right away. Just ask your adult children for a smartphone with its own number on their family plan, along with a lesson in texting and Skype or FaceTime.

Your smartphone offers you the convenience of controlling your life as you move about your day. If you don’t have adult children nearby to teach you, contact your local senior center because many offer courses. Apple has free seminars in its stores.

Here are three steps to start using smartphone technology to manage important parts of your life. You may want to start learning the basics on your home computer, then you can graduate to using your smartphone to track your money, your meds and your life.

Online bill payment and account information: Stop writing paper checks and start using online bill payment. You can use your home computer and also download your bank’s app to your smartphone. Use official banking apps from your financial institution’s website or through Apple’s App Store. Most financial institutions have a link to a page with their official app where it’s described and can be downloaded, Nerdwallet points out.”

I downloaded my bank’s app two months ago and now I can deposit checks easily from home.  If you can take a picture with your phone, you too can make deposits without going to the bank.  It’s a fast, safe and easy way to deposit your Social Security or pension checks.  Just call your bank and they will help you get started.

Read more about online money management as well as tracking medical matters and budgeting

Terry Savage is a registered investment adviser and the author of four best-selling books.  She responds to questions on her blog at TerrySavage.com.

Need investment advice for 2017?

by
investment advice
cnbc.com

Economic concerns occur when a new President of the United States is elected. No one really knows for sure what is going to happen in the future, but if you are looking for some investment advice, then the following article may help you make decisions on your retirement investments this year.

Investment moves based on likely events this year

by Elliot Raphaelson, The Savings Game, Chicago Tribune

January 24, 2017

“Many readers have written asking for advice about how to invest for consistent income in 2017 with minimal risk. As I have emphasized many times, it’s impossible to reap high returns on your investments, whether it’s in the form of income or equity appreciation, without assuming some risk.

That being said, it is possible to predict likely occurrences in 2017 and make investments taking these into account.

What is likely?

It is likely that the Federal Reserve will increase short-term interest rates a few times in 2017. Most experts following the Fed agree. If that is the case, then bond markets will be volatile, and some long-term investments such as long-term Treasury bonds will likely decrease in value, even if only in the short term.

How do you approach financial planning?

by
financial planning
kiplinger.com

How Men and Women Think Differently About Money

by Janet Bodnar for Kiplinger Personal Finance Magazine

September 2016

“When I get a massage, as I do periodically, I like to park my brain in neutral and bask in the serenity. So imagine the jolt when, a few months ago, my massage therapist wanted to spend our hour talking—about Social Security. A divorced woman in her fifties, she had heard that she could apply for Social Security on her former husband’s record. Was that true, she wanted to know, and if so, would it have any effect on her ex-spouse’s own Social Security benefit?

So instead of parking my brain in neutral, I had to shift into overdrive to explain the nuances of Social Security (yes, if her marriage had lasted 10 years, she could apply for benefits on her husband’s record once she’s 62, and no, it wouldn’t affect his Social Security). So much for my peaceful massage.

A few weeks later, I sat down for my regular haircut, assuming I could zone out while my stylist snipped away. But she wanted to talk—about her retirement plan. She thought that as a self-employed person she could sock away much more than she could in a traditional IRA, but she was hesitant to raise the subject with her accountant. I confirmed that she was probably eligible for a Simplified Employee Pension or individual 401(k), and that triggered a discussion about retirement investments that lasted as long as my haircut.

It occurred to me later that both women were in tune with the Kiplinger’s subscribers we surveyed earlier this year to learn more about how they invest.”  Read more

Is travel in your future?

by
senior travel discounts
kiplinger.com

The Best Travel Discounts for Seniors, 2016

by Jane Bennett Clark for Kiplinger’s Personal Finance Magazine

December 2016

“Starting at age 62, you can get a lifetime parks pass from the U.S. National Park Service for as little as $10; the card gives you access to more than 2,000 national parks and federal recreation areas. At some sites, you can also use the pass to get discounts on parking, tours, boat launching, camping—even an ice cream cone at the concession stand.

If you’re 65 or older, you can get discounted fares on Southwest, United and American airlines. Discounts are off the standard fare and don’t necessarily deliver the lowest price for the seat. Still, senior fares have their privileges. For instance, unlike Southwest’s ‘Wanna Get Away’ fare, the senior fare is fully refundable and doesn’t require booking well in advance.

Travelers age 62 and older can get a couple of compelling discounts. Amtrak offers 15% off some fares and, better yet, at Washington, D.C.’s Union Station, you can go to the front of the line (along with business-class passengers), assuring you a seat in the often chaotic boarding process. At 62 you also qualify for a 15% discount or more at one of 4,000 Marriott hotels worldwide without having to book well in advance or forgoing full cancellation privileges.”

These picks are part of Kiplinger’s Personal Finance’s annual Best List, a roundup of the best values in all the areas we cover – from funds, stocks and ETFs to credit cards and bank accounts to cars, college, kid stuff, phone plans, travel and health. Discover all our Best List picks here.

The “Rule of 100” investment strategy

by
Rule of 100
business.financialpost.com

When I was in my late 20’s I started planning for my retirement.  I was not afraid of risk and so I purchased several mutual fund accounts focused mostly on foreign and domestic stocks.  When I retired from teaching at the age of 55 my investments were in a bit more conservative portfolio which included bonds.  I had followed the “Rule of 100,” which is a measure whereby you subtract your age from 100 to determine the approximate percentage your assets could be invested in stocks (more risk). The rest should be invested conservatively (less risk). For example, I am now 57 years old; 100 minus 57 is 43. So the Rule of 100 would suggest I have 57 percent invested in lower risk accounts (cash and bonds) and 43 percent could be placed in higher risk accounts (stocks). Therefore, the older you are the more conservative your portfolio should be since you don’t have time to make up any losses due to a downturn in the stock market.

This is my current asset allocation in my retirement investment portfolio at age 57:

  • 13%     Cash
  • 37%     Bonds
  • 28%     Large Cap Stock
  • 15%     Mid/Small Stock
  • 7%       International Stock

So, you can see I have 50% of my portfolio in cash and bonds (low risk) and 50% in stocks.  Pretty close to the Rule of 100 suggestion.  However, my online financial advisors at VOYA Financial suggest I put less in bonds (24%) and more in international stock (23%) since I have time to recoup any losses and current interest rates are low.  Their investment strategy does not follow the Rule of 100.  That Rule is no longer suggested due to low interest rates.  Read more about this and other common investment rules which no longer apply.

I may consider adding more international stock to my portfolio in the near future, making it a bit more risky, as our economy appears to be changing.  What is your current asset allocation?  Do you still follow the Rule of 100?