By Elizabeth Alterman, Next Avenue Contributor

Ruth and Al Brod and family in their dining room

When Ruth Brod retired from her job as a probation officer in 2004, she and her retired husband, Al, decided to sell their 1,600-square-foot house in New Hyde Park, N.Y. and move into a 2,800-square-foot house in Delray Beach, Fla. Having ample room to accommodate visiting friends and family was only part of the reason the couple decided to upsize in retirement.

The home prices had risen dramatically in the area where I lived, so I was able to afford to buy a nicer home, Ruth explains. I couldve bought something just fine for half the price. But when youve worked hard all these years, its nice to be comfortable.

The Brods spacious ranch on a quiet cul-de-sac is part of a vibrant 55-and-up community which has given them a chance to make new friends and embrace a range of activities there.

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I really enjoy my home, Ruth says. Its not just a house; I bought a lifestyle.

The Brods are hardly alone in bucking the downsizing trend in retirement. People in their 60s are doing it for all sorts of reasons from finding a home that better suits them to buying one with room for a live-in parent or visiting family members.

People who choose to upsize in retirement often do so when relocating to a more climate-friendly area, such as Florida or Arizona, says Cara Ameer, a real estate agent with Coldwell Banker Vanguard Realty in Jacksonville, Fla."Many times, they want to find their dream home and feel it is time to make that happen.They dont want to sacrifice on location, finishes, and, most importantly, a view.

For some fortunate people, upsizing in retirement can mean trading up apartments to live the luxe life theyve envied.

Says Manhattan-based real estate broker Susan Landau Abrams of Warburg Realty: We have been involved in several transactions where empty-nester clients moved from three-bedroom owned apartments to four- and five-bedroom owned apartments. They are at the pinnacle of their success and want to enjoy life and live graciouslyThey want spacious master bedrooms, his and her master bathrooms, an office/library and a chefs kitchen. Several of our clients have dedicated an entire bedroom to create the ultimate luxury in Manhattan: a huge walk-in closet.

Next Avenue recently wrote about the trend of some empty nesters in their 60s moving from the suburbs into the city. New York City-based real estate broker Michael J. Franco of Compass says hes noticed that as an upsizing trend, too.

Ive seen a lot of baby boomers coming back into the city and spending more money on residences than they made selling their houses in the suburbs, he says.

In certain instances, they leave modest houses in the suburbs to lavish apartments in Manhattan to pursue a more active lifestyle. In others, theymove from smaller apartments to bigger ones to accommodate grandchildren or other guests. They want room for kids and grandkids in hopes of them visiting more, says Franco.

Still, upsizing isnt the norm among people relocating in retirement.

An April 2019 survey of adults age 50 and 60 conducted by Del Webb, a leading builder of active adult communities, found that of those planning to move in the future, 43% prefer their next home be the same size as their current one and 22% want it to be bigger. Nearly a third of the Gen Xers surveyed desiring more space (29%) said theyd design their next home to accommodate their parents.

And sometimes, the upsizing happens by moving from one home in a retirement community to a bigger one there.

Thats what Ken and Sharon Thomas did. They live in Del Webbs Sun City Peachtree active 55-plus community in Griffin, Ga., and recently moved from a 2,690-square-foot home in it into one boasting nearly 4,000-square-feet. The couple moved to Sun City Peachtree in 2013 after Ken retired from Lockheed-Martin. They opted to buy the larger home in 2018 to accommodate Sharons mom, whod lost her husband and is not as ambulatory as she once was.

Says Ken Thomas: A lot of my generation is bringing their parents in, as opposed to putting them in retirement homes or assisted living where the parents would be moved into a foreign environment. Were very blessed to be in a position to do that.

Similarly, the Thomas neighbors, Patty and Chuck Leer, have decided to spread out a bit. Though their new home is only 300-square-feet larger, it offers more usable space that will afford Chuck the workshop he wants and additional room for Pattys interests, which include quilting, painting and card-making.

Our living room is about double the size it was, says Patty.We have one dining area instead of two, and our current sunroom will be traded for a much bigger screened porch.So, our reason to upsize was to put the space where we would best use it.

If youre thinking about upsizing in retirement, planning early can be the key to making the dream a reality.

John Bergquist, senior founding partner at Common Sense Financial in South Jordan, Utah, who has helped retirees reach this goal, has a suggestion.

If you are seeing this in your future, you definitelywant to incorporateit into your retirement plans, Bergquist says. That may mean prioritizing whats important.

Maybe you choose not to take the extra vacation trip or plan to do more staycations, so you can use the funds to buy that larger home. Maybe you decide to drive more economical cars to have the extra funds. It's just a matter of deciding what's most important to you.

And a piece of cautionary advice from Ameer: a larger home can mean super-sized utility bills.

A bigger home costs more to maintain no matter where you live, she says.And if the home has a swimming pool or a dock for a boat, she notes, that only further adds to maintenance and upkeep.

Upsizing, if you can afford it, offers plenty of upsides. But before you get your heart set on a sprawling abode, be sure to consider the costs that come with it.

Go here to see the original:
Upsizing In Retirement: Going Against The Grain - Forbes

If youre planning to retire at the end of this year, or are just curious about what happens to your application when the time comes, youre probably interested in retirement processing. During the summer, I dedicated two columns to this topic: 3, 2, 1...Retire! And What Happens to Your Retirement Paperwork. Later I wrote about a field trip I took to Boyers, Pennsylvania, to see firsthand how the Office of Personnel Management handles retirement applications.

A federal retirement application is still completed on a paper form, like it was in 1920 when civilian employees first were provided retirement benefits. But advancements now allow the information on the form to be passed to OPM electronically so that your retirement can be completed more accurately and efficiently.

Thanks to modernization, according to Ken Zawodny, OPMs associate director for retirement services, 74 percent of non-disability retirement claims are currently processed in 44 days or less. Although there are still cardboard folders, paper fasteners and metal file cabinets all over OPMs Retirement Operations Center, and full automation of the retirement claims process is still in the future, Zawodny is proud that OPM has incorporated Lean Six Sigma production management concepts in order to streamline retirement processes.

One way to shed light on retirement processing is to look at at some facts and figures:

30

The rough percentage of retirement claims that have a deposit or redeposit, which means money is owed to the retirement fund in order to credit a period of service towards eligibility and/or computation of a retirement benefitor in some cases, to avoid a reduction to the benefit. Before final processing, the new retiree is given an opportunity to pay unpaid deposits or redeposits.

40

The percentage of new retirement claims that are submitted via the Defense Finance and Accounting Service. Another 30% come from the Postal Service, along with 15% from the National Finance Center, 8% from the Interior Department Business Center, and 4% from the General Services Administration. The rest come from smaller independent payroll offices.

50

The percentage of new retirement claims placed in interim pay status immediately. Interim pay is generally equal to 80% of your basic retirement benefit and is paid to you while your claim is being finalized. There are some situations in which the figure is lower than 80%.

59

The number of data elements electronically transmitted from your payroll system to OPMs Retirement Operations Center when your application is submitted. This allows OPM to immediately begin processing your retirement claim.

85

The percentage of new retirement claims that are Federal Employees Retirement System applications. Just five years ago, claims were split about evenly between FERS and the Civil Service Retirement System.

115

The age at which a retiree's records are no longer retained. Records of thosewhose date of birth is 1904 or earlier are destroyed.

250

The approximate number of retirees who reach age 100 every month. These folks receive a letter in the mail from OPM upon reaching this milestone.

950

The approximate size of OPMs retirement operations staff: about 500 employees at the Retirement Operations Center in Pennsylvania, 150 at a call center (also in Pennsylvania), and 300 in Washington.

86,000

The approximate number of CSRS employees left in federal employment.

1 trillion

The dollar value of combined assets for retirement, health benefits and life insurance programs for federal employees that OPM oversees.

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10 Numbers That Tell the Story of Retirement Processing - GovExec.com

Imagine growing up under the poverty line, never graduating college, having $55,000 in debt and earning well below $100,000 and wanting to retire early.

That doesnt shape up as your typical early retirement story. Yet this Montana couple with five kids in tow paid cash for their house and managed to retire at the ripe old age of 32.

Adam and Jillian Johnsruds family

Its the stuff of the American Dream, a true story that needs to be told, heard (and read), and taken to heart. If this couple could achieve that status with all the obstacles they faced its a real possibility for anyone else.

Thats what makes Adam and Jillian Johnsruds story so exciting. But it gets even better. Like a lot of people who retire early in life, Jillian now earns far more money than she ever did in her working years.

Thats one of the common apparent contradictions in the F.I.R.E. Movement (Financial Independence, Retire Early). Those who achieve it seldom kickback to enjoy a life of blessed nothingness. Almost inevitably free from the constraints of the daily struggle to survive they move on to something bigger and better in life. They may even discover their dream job or occupation.

Making the Decision to Pursue F.I.R.E

One of the most important details in the Johnsruds story is their decision to pursue a life of financial independence and early retirement was entirely intentional.

Early in their marriage, the Johnsruds made a conscious decision to commit to living frugally. They decided to concentrate their money in the areas of life they felt mattered most, and say no to everything else. Using that strategy, they managed to save $250,000 in 10 years, and retire very early in life.

But like a lot of young couples, they started with an uncomfortable level of debt. The total was $55,000, made up of student loans, credit cards and medical bills. If we add the debt pay off total to the $250,000 in savings, the Johnsruds actually saved the equivalent of well over $300,000 in a single decade.

As you might imagine, reaching that level of prosperity required a few unconventional directions in life.

Read More: The Forbes Guide To Fire

Extreme Frugality Strategies

During the 10 years leading up to early retirement, Adam and Jillian Johnsrud had a combined income that averaged between $50,000 and $60,000 per year. Using conventional means, thats not the kind of income that would enable you to amass a six-figure investment portfolio in a single decade. To save 50% of their income they turned to extreme frugality.

As Jillian puts it, We had 10 years of saying, this is nice, but we have bigger dreams.

That translated into frugality in almost every area of their existence.

Feeding a family of six has the potential to bust any budget. But Jillian gets around that by keeping food costs to no more than $1 per pound. Thats mostly a matter of shopping and literally searching out food items that cost less than $1 per pound. Since most items in grocery stores are listed by price per pound, Jillian simply focuses on those available for under $1.

That strategy also enables her to avoid the need to chase sales and clip coupons, two strategies that are usually considered foundational to extreme frugality.

Clothing is another issue with such a large family. To keep this expense low, they buy big lots of used clothing, often from friends. That also saves time on shopping, avoiding the need to chase sales or sift through the racks at thrift stores.

Other strategies include packing lunch every day (when they both worked), driving a beater car, and living in an old camper for a time so they could pay off their debts faster.

Says Jillian, Those hard choices gave us the amazing lifestyle we have now.

Buying the Ugliest, Nastiest Home

By the time the Johnsruds had amassed $200,000 in savings and investments, they were in the market to buy a home.

Now they could have gone the traditional route of buying the most expensive house they could afford. That might have meant paying cash for a $200,000 property, or even making a big down payment with a big mortgage on a dream home.

But with their commitment to a future of financial independence, they chose a non-traditional route.

Determined not to be sidetracked from their F.I.R.E. pursuit, Adam and Jillian instead opted to buy a small house for $50,000. Thats inexpensive even in a small rural market like Kalispell, Montana. But the price was that low in large part because it also had a flooded basement. We bought the ugliest, nastiest home that would accommodate the family we were hoping to have, Jillian reported. Then spent five years remodeling it.

It wasnt a decision that came without consequences. They spent the first year just making the home livable, and a total of five years fully renovating it. And since the home is small by the standards of the local market, they were forced to get rid of many possessions they seldom or never used.

But as a result of the choice they made, and the sacrifices that came with it, the family is now comfortably housed in a mortgage-free home. And while housing is usually the single biggest expense for most households, it barely makes a dent in the Johnsruds monthly budget.

As a postscript on the house, Adam and Jillian spent an additional $30,000 for renovations. But today the home is worth close to $200,000, and theres still no mortgage on it.

That was just the beginning. Armed with a practically non-existent housing expense, they continued to save. Just a few months after buying their first house, they bought and renovated a rental property and later, a second that now supply one of their three basic income sources.

Income generating real estate is a smart strategy. David Wilson is a Certified Financial Planner and real estate investor in San Diego, CA, and a big proponent of residential real estate investing. People always need places to live, David maintains. And unlike commercial real estate, if things get bad and your properties arent renting, you can drop your rental rate and almost always get your property rented.

Being Out-of-Step with the Culture

Some people may be willing to buy a $50,000 wreck of a house to fix it and flip it for a profit. But far fewer would be willing to buy it as a place where their family will live. Jillian and Adam got some negative reactions for doing just that, especially as their family expanded when they adopted a sibling group of 3 kids. Almost everyone in their life kept asking, "So when are you going to move into a bigger place?"

And unlike a lot of young couples, they had to resist the urge to buy a brand-new car every few years. Then there were the restaurant meals and the expensive vacations they didnt take during their F.I.R.E. build-up.

But these are the price nearly everyone has to pay on the road to financial independence.

Jillian was prepared to pay that price, and may have had a built-in advantage from an unexpected direction. Growing up poor taught me I might have to work twice as hard, twice as long, and put up with a lot more crap just to make the progress, she claims. And I said, OK, if thats the price of admission, Ill pay it.

The Income and Expenses of Early Retirement

To retire, the Johnsruds draw income from three sources:

The safe withdrawal rate of 4% is a foundational issue for all retirees, but especially for early retirees. Many retirees have questions about how much of their portfolios can be withdrawn each year without running out of funds before they die, offersBenjamin Brandt, CFP of Capital City Wealth Management in Bismarck, ND, and host of the Retirement Starts Today podcast. Often times, retirees will look to the 4% rule for guidance, and only withdraw an inflation-adjusted 4% of their initial portfolio starting balance in retirement.Many retirees dont realize how conservative this strategy really is, as 96% of 30-year withdrawal periods end up with more money than they started out with!

The three income streams total $3,550 per month, or $42,600 per year. Thats well below the US median household income of $61,937 per year. But its more than enough for the Johnsruds, who are able to live on just $2,000 per month.

And because theyre able to live so far below their means, they can get by on just two of their three income sources. That enables them to continue to save an entire income source each month, to build their savings for the future.

They can live on that much money because they dont have the typical financial burdens of middle-class life. Theres no mortgage, no student loan debts, no car payments and no credit cards. The Johnsruds are largely able to sustain their low-cost lifestyle because they avoid debt entirely.

According to Jillian, their core living expenses are just $700 a month. That includes:

Over and above the basic monthly expenses, their groceries run about $700 per month, leaving them with $600 to cover whatever else they need or want. And fortunately, the familys health insurance is provided by the military, as a result of Adams time in the service.

The Payoff of Early Retirement

With their combination of three steady income sources, and a low cost of living, Adam and Jillian are no longer tethered to 9-to-5 jobs. That frees them to pursue activities and goals that they want to pursue.

One of those activities is spending plenty of time with their children. Without the need to report to a job every day, Jillian and Adam are able to spend most of their days with their kids. That also means more time for school-related activities, as well as leisure pursuits.

A major early retirement goal for the couple was to be able to travel with their family. They do it frequently, which is helped by the fact that they keep their trips low-cost.

They love to travel to national parks, and recently spent 10 weeks visiting 10 different parks with their family. Thats one of the perks of early retirement the ability not just to take vacations, but extremely extended ones. They own a camper, which eliminates the need to pay for lodging.

And while theyre away on vacation, they sometimes rent out their home to raise additional income. The income even covers the entire cost of some of their vacations.

The same frugality that benefited the Johnsruds when they were working their way toward F.I.R.E. is continuing to keep them comfortable now that theyve achieved it.

And along the way, they been able to travel to 42 states, 27 countries, and even spent a full four years living abroad.

Those are the kinds of life enriching experiences that many people dont experience even in traditional retirement.

F.I.R.E. Isnt Necessarily About Traditional Retirement

One of the distinguishing qualities of F.I.R.E. is that it bears little resemblance to the traditional notion of retiring to a life of perpetual leisure. While leisure is certainly part of the package, the desire to produce and accomplish figures significantly into the mix.

Jillian has described this concept as Flexible FIRE. It involves a mix of activities and pursuits. For example, some weeks include leisure activities that are closely associated with retirement. The Johnsruds multiweek vacations are an example.

But other weeks they pursue income earning activities, mostly on a part-time basis. Then there are volunteer roles. For example, Adam serves on the board of a local low-income mental health facility, while Jillian serves on the board of the ChooseFI International Foundation that promotes financial literacy. And in still other weeks, they plunge into more significant projects.

Thats certainly been the case for Jillian. Once they reached financial independence, and cut the ties with their traditional jobs, she transitioned into entrepreneurship. She now coaches others on how to achieve the F.I.R.E. lifestyle her and Adam have attained.

Not surprisingly, theres a robust market for that kind of training. She coaches people one-on-one, runs paid groups, host events and speaks all over the country. She currently coaches 30 people each month, most of whom are involved in some sort of work transition. It might be someone selling a business, growing or scaling up a new business, finding a new job, or even preparing for retirement

She tells her story on her blog Montana Money Adventures, with the motto Helping People Custom Design Their Best Life with Passion + Passive Income. In addition, shes launching a podcast in January called Everyday Courage.

Final Thoughts

As is often the case, Jillian saw her income take off from her postretirement business activities. Thats not an unusual outcome when people begin pursuing their passions. In Jillians case, shes teaching others how to attain the life she has. Its a topic shes an expert in, because she and her husband created the lifestyle from very humble beginnings.

I had dreamed about being a writer or speaker, and just never thought that was an option, Jillian confesses. It only took becoming financially independent and leaving work life to find both.

Jillian found becoming financially independent allowed her to explore and discover her best work, and to transition into entrepreneurship. And while that had nothing to do with what she was doing in her previous employment, it had everything to do with the life shes been living for many years now.

Read more from the original source:
This Couple Retired At 32 (With 5 Kids) To Discover Their Dream Job - Forbes

ABCs Martha Raddatz asked whether McChrystal thought Trump was immoral.I think he is [immoral], he responded. If we want to be governed by someone we wouldnt do a business deal with because their background is so shady, if were willing to do that, then thats in conflict with who I think we are. And so I think its necessary at those times to take a stand.

James Stavridis

Rank: Four-star admiral

Notable experience: Supreme allied commander for NATO

Retirement: From the Navy in 2013

What hes said: Stavridis called Trumps plans to withdraw from northeastern Syria a mistake of epic proportions; earlier this year he took aim at the president personally in Time magazine, where he explained why he thought the retired generals who had served in Trumps Cabinet had left.

What attracted Trump to generals in the first place? It seems he was attracted to the macho, direct, domineering profile that many civilians associate with generals, like Jack Nicholsons portrayal of a Marine in A Few Good Men, Stavridis wrote in Time. He may have thought associating with them would burnish his own credentials as an alpha male. (Remember, he also hired General Michael Flynn, who later pleaded guilty to making false statements to the FBI.) But it has likely dawned on Trump that generals are more cerebral than he ever would have guessed, have a pesky habit of quietly judging him in ways that got under his skin, are more intellectual planners than operational Rambos, and dont quite care about the politics and media signals that the President holds dear.

Colin Powell

Rank: Four-star general

Notable experience: Chairman of the Joint Chiefs of Staff under George H. W. Bush and Bill Clinton, and secretary of state under George W. Bush

Retirement: From the Army in 1993

What hes said: Active in Republican politics in the 1990s, Powell has since said the GOP needs to get a grip and that Republican politicians are afraid to speak out, despite a foreign policy in shambles under Trump.

A couple [of] weeks ago, the president put a circle around Southeast Alabama, saying its going to get hit by a hurricane. He put it on top of the meteorological prediction, Powell said in remarks at the New Albany Community Foundation, in Ohio, in October. In my time, one of us would have gone to the president and said, Mr. President, you screwed up, so weve got to fix it and well put out a correction Weve got to remember that the Constitution started with We the People, not Me the President. This is not the way the country is supposed to run.

John Kelly

Rank: Four-star general

Notable experience: Head of United States Southern Command; served as Trumps secretary of homeland security and then chief of staff, and resigned in 2018

Retirement: From the Marines in 2016

What hes said: This fall, Kelly criticized Trumps Syria policy and his White House staff. I think that, with all due respect to the president, was a catastrophically bad idea [to pull out of northeastern Syria], he said at a political conference hosted by the Washington Examiner in October. And I would just offer, it didnt happen while I was there. A couple of other people recently left the administration and then he went with his instinct. But it was on a number of levels the wrong thing to do [I told Trump when I left] Dont hire someone that will just nod and say, Thats a great idea, Mr. President. Because you will be impeached I have an awful lot of second thoughts about leaving. Because whether you like Mr. Trump or not, hes the president of the United States.

Read more here:
Will the Generals Ever Crack? - The Atlantic

TOPEKA, Kan. (KSNT) A former director of Shawnee County Parks and Recreation is coming out of retirement to manage the new Evergy Plaza in downtown Topeka. Spectra, the company managing the plaza, announced Monday morning that John Knight will serve as manager of the Evergy Plaza.

Knight worked at the Shawnee County Parks and Rec for more than 30 years. He started serving as director in 2000 and retired back in April.

Knight says hes excited to get to work on the future plaza, which he says should be the future center of Topeka.

Kansas Avenue has been getting more and more events taking place down here, said Knight. All big announcements for the community could happen here. All of the walks, runs, parades all of those type of things could start and stop right here in the plaza and should.

The Evergy Plaza is currently expected to be finished in March 2020.

See the article here:
EVERGY PLAZA: Former Parks and Rec director coming out of retirement to manage downtown plaza - KSNT News

Five-million dollars sounds like a lot of money.

And for the 22% of Americans who say they have less than $5,000 set aside for retirement, saving that much may seem like an impossible goal.

But what if you could retire with $5 million by the time you were 67? The good news is that it is possible with persistent monthly saving.

Personal finance site NerdWallet crunched the numbers, broken down by age group, to demonstrate how much you'll need to stash away every month.

First, let's go over how it got there. The math assumes you are starting with no money in savings, that your investments will earn 6% annually and that you retire at 67.

You will need to take advantage of tools like your employer's 401(k), which is a tax-advantaged retirement savings account, or a Roth individual retirement account or traditional IRA. Investment options include low-cost index funds.

Now let's dive into the figures. This video takes a look at how to make it happen.

More from Invest in You:

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

See the rest here:
How much you'll need to invest each month to retire with $5 million at age 20, 30, 40 and beyond - CNBC

The answer depends on how on much you're planning to leave your heirs.

First off, retirement accounts such as 401(k)s, 403(b)s, traditional and Roth IRAs, and others are indeed a part of your taxable estate.

However, unless the total assets of your estate plus any taxable gifts you've already given exceed the lifetime exclusion amount, the IRS can't touch a penny. In 2019, this is $11,400,000, and in 2020, the exclusion is rising to $11,580,000. If you add up the entire value of your assets, only the amount in excess of the exclusion will be taxable. In other words, if you have a $12,000,000 estate and pass away in 2020, just $420,000 of your assets would be subject to estate taxes.

As another example, if your assets (including your retirement savings) add up to say, $5 million, your heirs won't have to pay any estate tax at all.

However, although they may not have to pay estate taxes, it's important to remember that withdrawals from most retirement accounts -- with the exception of Roth accounts -- will be considered taxable income. So, estate tax or not, if your heirs are in a relatively high tax bracket, inheriting your retirement savings could certainly add to their tax bill.

Lastly, it's also a good idea to check with your state. Some states have their own estate taxes and have lower exclusions than the IRS.

Link:
Ask a Fool: If I Leave My Retirement Savings to My Heirs, Will They Pay Estate Tax? - The Motley Fool

Many workers plan and save for retirement in the hopes that they'll manage to enjoy their golden years without financial stress. But if you're not careful, you could end up struggling during retirement despite all that forethought. Here are a few reasons why your golden years could end up costing more than expected.

Healthcare is one of seniors' biggest expenses, and the unknowns of it make it downright terrifying. But while it may be difficult, if not impossible, to get a precise estimate of what medical care will cost you in retirement, you can rely on the data that's out there. To this end, you should know that HealthView Services, a provider of cost-projection software, anticipates healthcare costing $387,644 throughout retirement for the average healthy 65-year-old couple leaving the workforce today.

IMAGE SOURCE: GETTY IMAGES.

Of course, that's just one number, but if you're planning to spend much less on healthcare, you could be throwing your entire retirement budget off course. The takeaway? Read up on healthcare estimates to get a sense of what you're in for.

Many older workers avoid buying long-term care insurance because they don't want to foot the bill for those potentially costly premiums. A long-term care policy, however, could save you thousands upon thousands of dollars in retirement if you wind up needing extensive care. Or, to put it another way, if you don't buy long-term care insurance, you could wind up spending $90,155 a year for nursing-home care, which is the current average price nationwide for a shared room.

Home health aides and assisted-living facilities aren't much cheaper. Currently, they average $52,624 and $48,612, respectively. That's why a long-term care insurance policy could really pay off, and the ideal time to apply is around your mid-50s. At that age, you're more likely to snag a competitive rate on your premiums, and to get approved for a policy in the first place.

Many seniors enter retirement with their mortgages paid off, and assume that their housing expenses will therefore be minimal. But if that's your plan, don't forget that as homes age, they tend to require additional maintenance and repairs. The result? More spending on your part.

Another thing to keep in mind is that property taxes have a tendency to rise, even if home values aren't following suit. And while there are programs in place to help seniors in this regard, they're generally reserved for lower-income households. In other words, prepare to see your property tax bill climb, and factor that into your anticipated retirement spending.

The income you have access to in retirement might come from a number of sources, many of which are taxable. Take Social Security, for example. Unless you're a low-income household, you can expect to pay taxes on your benefits at the federal level, and some states impose their own taxes on benefits, too.

Then there's your retirement savings. Unless you're housing that money in a Roth IRA or 401(k), your withdrawals will be subject to taxes, as will (in most cases) income you collect from a pension. And if you have cash in the bank accruing interest, or investments in a traditional brokerage account earning money, the IRS will come after its share of that as well. Therefore, understand what taxes you're in for during retirement, so you can budget accordingly.

The last thing you want to do is find yourself cash-strapped during retirement. In the course of your planning, read up on healthcare costs and taxes, plan for homeownership costs, and look into buying a long-term care policy. Doing so could help you make the most of your golden years and avoid financial troubles throughout.

Read more:
4 Reasons Retirement Might Cost More Than You Think - The Motley Fool

Photograph by Kelsey Knight

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After learning to appreciate fine French wine, I sometimes wonder if the whole exercise was a good buzz spoiled.

For years, I prided myself on not spending more than $10 or $15 on a bottle, and often less than that.

Then I decided to retrieve the French I had learned as a young man. I listened to French radio on the internet. And I began weekly breakfasts with a French friend, Patrick, that continue to this day.

Patrick had a cellar full of French wine, much of it good stuff. He had his own way of finding wine. He didnt pay much attention to the hype for specific vintages that floods the internet these days.

Instead, he kept track of the good years for wine production in prime growing areas like Burgundy or Bordeaux. When he spotted attractively priced wine from a good vineyard in a good year, hed buy a case of it.

Following his example, I began buying wine. I never went wild. The bulk of my wine was acquired at $15 to $30 a bottle. But I paid as much as $60 for a few bottles, something the old me never would have done.

Ive put the brakes on my wine buying in the past year. Part of it was a health concern. My doctor told me to cool it on acidic foods and drink. Wine, alas, is quite acidic. I still drink it but only for special meals (or when in France).

Money is another factor. Now that Im working part time in retirement, Im trying to slash costs where possible. Wine is expensive. At a fancy dinner, the wine frequently costs more than the food. This makes no sense.

But the biggest reason Ive stopped buying fancy wine is more basic. It wasnt clear to me that I really know the difference between the good and the great when it comes to the grape.

This spring, I drove around France with another French friend, Mathieu. Our best meal came in Lyon. We ate at a bouchon, one of the traditional Lyonnaise restaurants that specialize in hearty fare. It had a sign on its door proclaiming it opened at noon, and that if customers were in a hurry to eat, they should go elsewhere.

While we were pondering this, the door opened, and a disheveled man clutching a mug of coffee stepped outside. He said the restaurant normally required reservations, but since there were only two of us, he would make an exception.

Good thing. The meal was superb. It started out with grilled pigs feet and a huge block of pt that went from table to table. Then came a quenelle de brochet, or loaf made from fish, and a pot full of lentils and sausage.

We drank a table wine that the restaurant gave us for no charge. It was a local vintage made from the same Gamay grape as Beaojolais. It couldnt have been better.

From then on, I stopped fretting about the wine list in French restaurants. I usually ask for a glass of red or white, depending on what Im eating. The waiter almost always brings me something that does the job.

The French can be unromantic about wine. In 1976, I spent a month living with a couple, friends of my French grandmother, who lived north of Paris. The man, a retired stone mason, bought his wine in bulk for a few francs a bottle. He drank it mixed half and half with water. Drinking wine for him seemed as essential as breathing and about as fancy.

Patrick is a different breed. He has a T-shirt proclaiming: Life is too short for bad wine.

That doesnt necessarily mean expensive wine. He is clever about finding good wines at a cheap price. Several years ago, he was buying a surprising good 2005 Margaux for $25 a bottle produced by a famous vineyard under a different label. It was the equivalent of buying clothes at Nordstrom Rack.

My new bottom line is that almost any wine shared among good friends is a good wine. It doesnt particularly matter if the sharing concerns a $10 bottle or $100 bottle.

Questions? Comments Write to us at retirement@barrons.com

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Evolution of a Semi-Retired Oenophile: Its the People You Drink With, Not the Price, That Matters - Barron's

Ramsey Solutions financial expert and author of

While many Americans have little to no retirement savings at all,even young savers who do areperhaps too willing to draw from that stash to cover unrelated expenses.

A new survey from TD Ameritrade showed that millennials were more likely than either Generation X or Baby Boomers to tap retirement funds for non-pressing expenses, like vacations or taking a sabbatical from work.

More than half of millennials (53 percent) said they would draw from retirement savings to spend during a job loss, cover medical bills (52 percent) orcover their child's education (52 percent). Just shy of half said they would take pull from retirement savings to pay down credit card debt (48 percent), buy a house (47 percent), cover living expenses during a sabbatical (45 percent), cover living expenses during parental leave (45 percent) or make a move (45 percent).

More than 40 percent said they would do so to buy a car, pay for a vacation, cover wedding expenses or pay down education debt.

MILLENNIALS MAY SOON BECOME THE RICHEST GENERATION EVER

Molly Passantino, senior retirement specialist at TD Ameritrade, noted there are a variety of reasons why it is not advisable to withdraw funds if you can avoid it.

"There is typically a 10 percent penalty on the withdrawal (i.e. if you take out $100k, you really only get $90k),"Passantino said in a statement.

The penalty can be avoided if someone ispermanently disabled and cannot work, hascertain medical expenses, or hasa divorce settlement requiring the division of funds with a spouse or paying an IRS levy. Even under these circumstances, however, individuals will be taxed unless they are pulling from a Roth IRA.

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Americans overall saidthey were most likely to withdraw from their retirement accounts to cover medical bills (49 percent). That was followed by job losses (42 percent), as well as paying down credit card debt and covering a child's education (38 percent each).

Baby Boomers were the least likely to say they would withdraw from their retirement savings though the top expense was medical bills (48 percent). Only 30 percent of respondents said they would do so to cover a job loss or credit card debt, which were the next two likely expenses.

A majority of behind millennials (72 percent) thought they would be able to catch up on retirement savings, with about six in 10expecting to be able to retire by the age of 65.

The survey was conducted among 1,015 U.S. adults aged 23 and older with at least $10,000 in investable assets.

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Passantino recommends that individuals who anticipate having to withdraw from retirement funds for other expenses consider investing in an IRA, which allows withdrawals for certain payments. She noted, however, that people shouldn't make a habit of withdrawing from retirement accounts for other expenses.

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Millennials willing to tap retirement savings to cover basic expenses, study finds - Fox Business