Category: News

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Baby Boomers are Staying Put

As we kick off 2025, the housing market is witnessing a significant shift among Baby Boomers. Unlike past generations who downsized or relocated to new areas during retirement, many Boomers are choosing to stay put in their current homes. However, for those who are moving, downsizing remains the primary motivation.

Why They Are Staying Put

For years, the housing industry anticipated a wave of home sales as Baby Boomers transitioned into retirement. Yet, this expected surge has largely not materialized. Several factors contribute to Boomers staying in their homes longer than previous generations:

  1. Emotional Attachment: Homes are filled with decades of memories and hold sentimental value, making it difficult for many to leave.
  2. Favorable Mortgage Rates: Many Boomers secured low mortgage rates years ago, making it financially advantageous to stay rather than purchase a new home at today’s higher rates.
  3. Aging in Place: Advances in home modifications and in-home care allow Boomers to age comfortably and safely within their existing residences.

Downsizing as the Primary Reason for Moving

While a large portion of Boomers are staying put, those who are moving cite downsizing as their main reason. Downsizing offers several benefits, including reduced maintenance, lower utility costs, and the ability to tap into home equity. However, the process isn’t without challenges:

  • Lack of Suitable Options: Many Baby Boomers struggle to find smaller homes in their desired locations that meet their lifestyle and budget needs.
  • Competition with Younger Buyers: Smaller homes are highly sought after by younger generations, leading to bidding wars that can complicate the downsizing process.
  • Emotional Hurdles: Letting go of a long-time home filled with memories is never easy.

Implications for the Housing Market

The decision of many Boomers to stay in their homes contributes to the ongoing inventory shortage in the housing market. Younger buyers, particularly Millennials, face increased competition and rising prices due to fewer homes being listed for sale. On the other hand, the emphasis on downsizing among Boomers could spur demand for smaller, low-maintenance properties, driving developers to prioritize this segment in the coming years.

Looking Ahead

As we move into 2025, the Baby Boomer generation continues to redefine retirement living. Whether staying put or downsizing, their choices have far-reaching implications for the housing market. For those navigating these transitions, understanding the motivations and challenges unique to this group is key to making informed decisions.

Are you ready to explore relocating? Contact us for a consultation. We’re here to help.

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What are the taxes on lottery winnings?

At a recent holiday party, an individual created an adorable Christmas tree out of green scratch off lottery tickets. Cute, clever, fun and it had everyone talking. Eventually, someone said, “image the taxes you’d have to pay if you won!”

So, for fun, here’s some info on what that actually looks like.

  • Federal Taxes:
    • 24% withheld immediately by the IRS.
    • Potential total federal tax rate up to 37% (ordinary income tax bracket).
  • State Taxes:
    • Some states, like California and Florida, don’t tax lottery winnings.
    • Others, like New York, impose high rates (up to 10.9%).
  • Payout Options
    • Lump Sum: Immediate access to winnings, but heavily taxed upfront.
    • Annuity: Spread over 30 years, with annual installments increasing yearly.
      Taxes apply to each installment.

Minimizing Tax Burden

  • Consult a tax professional or financial advisor.
  • Make charitable contributions to lower taxable income.
  • Invest wisely to grow your wealth and offset taxes.

The Bottom Line

Winning the Mega Millions jackpot is life-changing, even after taxes. While the odds of winning are 1 in 302 million, someone eventually takes home the prize. And… hopefully they’ll be using ASRE to help shop for a new home!

Happy Holidays!

>>Read more on this topic from Kiplinger.

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The price of buying a home in Georgia.

As one of the fastest-growing states in the nation, Georgia added over 116,000 people between 2022 and 2023.

With hot summers and mild winters, Georgia offers an appealing climate. But what about homeownership costs? Here’s an in-depth look at the real estate market and the costs associated with purchasing a home in Georgia.

Georgia’s Real Estate Market:
Median Home Price (June):
$389,000 (below the national median of $427,000)

Price Variations:
Atlanta: $434,460
Alpharetta: $777,000
Savannah: $345,000
Rural Areas: Generally lower prices

Monthly Mortgage Payments:
Example Payments (30-year loan, 6.8% interest, 20% down payment):
Atlanta home ($434,460): $2,266/month
Savannah home ($345,000): $1,799/month

Down Payment Requirements:
Conventional Loans: 3%

FHA Loans: 3.5% (credit scores 580+) and 10% (credit scores 500-579)

USDA Loans: No down payment if qualified

VA Loans: No down payment if qualified

Closing Costs:
Average Rate: 1.3% of home price
Median-priced home ($389,000): ~$5,000
Shared Expenses: Between buyer and seller
Includes: Mortgage fees, inspections, appraisals
Agent Commissions: May be paid directly by the buyer

Moving Costs:
Hourly Rate for Movers: $101
Total Costs: Vary by distance and amount of items

Homeownership Costs:
Maintenance: 1-4% of home’s value annually
Median-priced home ($389,000): Up to $15,560/year
Home Insurance: $1,965/year for $300,000 coverage
Property Taxes: Vary by location
HOA Fees: Vary by services and amenities

Strategies to Reduce Costs:
Opt for a Smaller Property: Consider condos or townhouses
Choose a More Affordable Location: Expand your search to include budget-friendly areas
Ask for Seller Concessions: Negotiate for repairs or closing costs
Monitor Mortgage Rates: Compare rates for the best deal

Next Steps: If you’re considering moving to Georgia, reach out to Atlanta Seniors Real Estate. Our expertise can assist you in navigating the market to find a property that suits your needs.

>>Click here to read the full article from Bankrate.com.

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Unmasking Elder Abuse: A PEARL of Protection

Here in Georgia, Rockdale County’s PEARL Program is a commitment to protect seniors and disabled adults from abuse. Elder abuse is a harrowing reality that plagues our society. It compromises the safety and well-being of some of our most vulnerable citizens—our seniors.

The term “elder abuse” encompasses five disturbing subtypes of mistreatment, each one causing untold suffering. Together with federal, state, and local partners, the PEARL Program (Protecting our Elderly and At-Risk with Resources for better Living) is unwavering in its commitment to combat these forms of abuse, shielding the elderly and at-risk individuals in the county.

5 Types of Elder Abuse

1. Physical Abuse: This includes visible signs of harm, such as bruises, black eyes, welts, lacerations, or rope marks, as well as more serious injuries like bone fractures, broken bones, or skull fractures. Open wounds, cuts, punctures, and untreated injuries in various stages of healing are also indicators of physical abuse.

2. Financial Fraud, Scams, and Exploitation: Elder financial abuse takes various forms, including scams, fraud, or exploitation. Seniors are often targeted for their financial assets, making them vulnerable to unscrupulous individuals seeking to exploit their savings or property.

3. Caregiver Neglect and Abandonment: Neglect and abandonment can manifest as a lack of proper care, hygiene, or medical attention. Signs may include malnutrition, untreated health conditions, or the caregiver’s refusal to allow visitors to see the elder alone.

4. Psychological and Emotional Abuse: Psychological abuse is less visible but equally damaging. Elders experiencing psychological abuse may exhibit sudden changes in behavior, anxiety, or withdrawal due to verbal or emotional mistreatment.

5. Sexual Abuse: This form of abuse encompasses any non-consensual sexual activity or exploitation involving an elderly or at-risk individual.

The PEARL Program uses a collaborative, multidisciplinary approach to ensure that seniors and at-risk adults are able to live free from harm and abuse. 

If you know of a case of abuse of an elderly or at-risk adult, report the abuse at this link:   Report Elder Abuse | Georgia Department of Human Services Division of Aging Services.

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When a realtor tells a senior NOT to relocate.

As a Seniors Real Estate Specialist (SRES), many of my consultations with older adults who are thinking about downsizing and relocating, (a good 10-15% of them) will lead to a discussion about aging in place.

Aging in place can also be about helping clients find a forever home to move to in a new location, which is conducive to the needs of the person and may even help them stretch their finances, depending on how they chose to finance the next place. In some cases though, I consult about staying put… Many wonder why I would do that instead of finding them another home to move to.

Well, the answer is simple… because sometimes the home is already their forever home, IF, and only if, they consider a few changes to ensure the home is better suited to their current needs. My goal is never to move someone who doesn’t need (or want) to move.

Here’s a case study as an example: I visited a lady who had a 2-story home with a guest bedroom and small bathroom on the main floor, and 3 bedrooms and 2 bathrooms upstairs, which included the owner’s suite. The space was open and spacious on the main level. She had recently become a widow and had paid off the mortgage as instructed by her late husband’s final wish. She loved the community she has lived in for 20+ years but thought it would be best to move to a smaller house. As we talked and did the research, we concluded that the equity in her house would not quite cover the purchase of a forever home and she was not willing to go back to having a mortgage payment of any amount.

The plan of action I suggested was to:

  1. Get quotes to remodel the guest bathroom on the main floor allowing that to become a true main level owner’s suite, accessible for her to live in as opposed to having to go up and down stairs every day.
  2. Get quotes to update the entrances to the home adding accessible features including universal design touch-ups that would allow her to age in place in the current home and not have to experience moving from a place and location she loved and could afford to keep. 
  3. Revisit after getting quotes to discuss the options again and consider if she would need additional information to fund the renovations or if moving would be back on the table as an option and how to do that without costing her too much in monthly expenses.

    My role as an SRES Realtor was simply to advise and refer contractors or remodeling companies that would incorporate the ADA/universal design features, as well as staying in touch to provide additional information until the homeowner had made their decisions.

We sometimes provide services without financial gain.

We always say real estate is more than property, it’s about the people!

We are available to answer questions you or someone you know has about aging in place or finding your next home. Contact us any time.

Additional Resources: AARP article on stylish updates for aging in place.

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The least tax-friendly states for retirees

You’re thinking about downsizing and relocating but, before you do, you may want to check out Kiplinger’s list of the least tax-friendly states in the US for retirees. The list looks at states with a heavy tax burden for seniors.

The Kiplinger article says, “State and local taxes can vary greatly from one place to another. The difference can easily exceed $10,000 or more per year for some people, which is enough to break the bank for a lot of seniors if you wind up in one of the worst states to retire in for taxes. To avoid this kind of bombshell, do your homework before settling on a new location. You can start with our State-by-State Guide to Taxes on Retirees.”

Click here to read the full article and see the list.

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Many will be feel relief from Medicare changes

Will the Inflation Reduction Act help you?

AARP is explaining how the Inflation Reduction Act will help seniors — especially those dependent on insulin. The Act is aimed at addressing inflation by reducing the deficit, investing in domestic energy production, and lowering drug prices.

(Article from AARP) For the first time in Medicare’s history, the amount of money that beneficiaries in drug plans will have to pay for their prescriptions each year will be capped, thanks to provisions of the Inflation Reduction Act of 2022. The new law makes other changes to the program’s Part D drug benefits, including putting a limit on out-of-pocket payments for insulin and making vital vaccines free. 

“There was previously no limit on how much a person on Part D could have to pay in a given year,” says Nancy LeaMond, AARP’s executive vice president and chief advocacy and engagement officer. “And 1.3 million enrollees spent more than $2,000 in 2020.”  

As with many of the other provisions in the new law, the changes to Part D out-of-pocket spending will roll out over the next several years. Here’s a look at how the new cost-sharing rules will work and when the savings will start. 

>>Read the rest — click here to go to AARP.com

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What is Swedish Death Cleaning or dӧstädning?

It sounds worse than it is – dӧstädning is really just the process of getting affairs in order.  It’s a Swedish cleaning exercise that involves the family and paring down what we have as we grow older.  Here in the US, we downsize and cleanout but dӧstädning is really about selecting those things we want around us and thinking about what will happen to our things when we pass. If you want a family member to inherit an item, go ahead and pass it on to them. Make your wishes known and enjoy life with less clutter and only those most meaningful items around you. And, let family and friends go ahead and enjoy the things you want to share with them.

Senior relocation company Caring Transitions introduces us to Margareta Magnusson who wrote the popular book, The Gentle Art of Swedish Death Cleaning.

(Published with permission of Mike DeLeon with Caring Transitions of Northeast Atlanta) A  decluttering phenomenon has swept the world, called Swedish Death Cleaning (SDC). Traditionally, this is an old tradition within Swedish culture known as, dӧstädning. Translated to English, it means “death cleaning.” Margareta Magnusson used this concept, giving it a modern update when she wrote her book, The Gentle Art of Swedish Death Cleaning.

Magnusson writes, “If you care for your loved ones then it’s only fair to spare them the emotional and physical burden of cleaning up your stuff.” This is the basic concept of SDC, letting go of the amount of items in your life because when you pass on. This way your loved ones are not handling a mountain of unmanageable items which could cause stress or, even worse, in-fighting amongst them.

>>Click here to read the article and see an interview with Margareta Magnusson.

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Veterans Benefits Helping with Long Term Care

What you need to know about VA Aid and Attendance benefits.

As Seniors Real Estate Specialists, we come across many veterans who are preparing for alternative accommodation due to their health conditions and they are not always aware of some of the benefits that they may be eligible to receive. Our initial consultations often reveal details that allow us to offer support and or services that will assist them on their journey.

Veteran benefits are just one of the services we have shared with our clients that allow them more flexibility to afford their preferred senior living community. Such as in the case of Mr. & Mrs. B, who would have settled in a place not close enough to their adult children, if we didn’t help them find out about a veteran benefit that would help them. It provided them with more than $2,000 per month which would go directly toward their living expenses for a beautiful 2-bedroom cottage located in a Senior Living Community within 10 miles of their children (they were over 40 miles away before the move!).

In today’s economy, families are having to make tough financial choices, but some have relief available when it comes to long-term care for their loved ones. Veterans Aid and Attendance benefit (not widely known about), is a government program that can help families better manage the costs of caring for an elderly veteran or dependents.

So, what is Aid and Attendance?

VA Aid and Attendance is a monthly pension benefit that provides tax-free payments to Veterans who served during wartime. In addition to being available for Veterans, single surviving spouses and dependent children are also eligible for this benefit.

You may be eligible for this benefit if you get a VA pension, and you meet at least one of these requirements.

  • You need another person to help you perform daily activities, like bathing, feeding, and dressing, or
  • You have to stay in bed—or spend a large portion of the day in bed—because of illness, or
  • You are a patient in a nursing home due to the loss of mental or physical abilities related to a disability, or
  • Your eyesight is considerably limited

For more detailed information please visit VA.gov.

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4 Types of Value Attached to Family Heirlooms

(Published with permission of Caring Transitions of Northeast Atlanta)

What is a family Heirloom? Heirlooms are usually possessions passed down from generation to generation, holding a story about a piece of important family history. But not all heirlooms share the same type of value outside of your family circle. To most, that same heirloom isn’t worth much at all. That’s because everyone attaches a different value to their heirlooms, making it priceless in their mind.

There are four types of value we attach to family heirlooms — sentimental, functional, monetary and social. It’s beneficial to understand the value we put on items passed down from generation to generation — especially as we talk about these items with younger family members.

>>Click here to read more.

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Do you know the difference between dementia and Alzheimer’s?

You’ve probably had it happen with a loved one – they’ve forgotten something that is obvious, or their forgetfulness is completely uncharacteristic. You immediately think, “is it the beginning of Alzheimer’s?”

More often than not, it’s simply a natural part of aging. It’s important to know and understand the difference — and be able to recognize the signs of Alzheimer’s as early as possible to ensure safety and hopefully slow the progression.

Recently, Atria Senior Living published a great article explaining the differences between dementia and Alzheimer’s, as well as the signs to look for.

(Published by Atria) Dementia is not a disease, but a broad term that refers to various conditions of more serious cognitive impairment. It is caused by damage to brain cells which can affect thinking, behavior and feelings. There are many types of dementia including Lewy body dementia, mixed dementia, vascular dementia, frontotemporal dementia and more.  Alzheimer’s is the most common form of dementia – accounting for 60–80% of dementia cases.

What we know about Alzheimer’s

Alzheimer’s disease is one of the most prevalent health concerns among adults ages 65 and older and is the sixth-leading cause of death in the United States. It is a degenerative disease resulting from brain cell damage where dementia symptoms gradually worsen over time.

Scientists are working hard to identify what causes this damage. They do know that, as this damage spreads, the brain cells lose their ability to function and then die. This causes irreversible changes in the brain that leads to memory failure, personality changes and problems carrying out daily activities. A person with Alzheimer’s lives four to eight years on average after diagnosis, but depending on other factors, can live as long as 20 years.

>>Read more.

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What you need to know about long term care.

It’s not something we like to think about, but most Americans will face a time when they need assistance to care for themselves.  Whether you’re thinking of yourself or a loved one, we all must be well versed in long term care and other elder care programs in order to be prepared. 

AARP’s CEO Jo Ann Jenkins has written an article calling attention to what she refers to as a deeply flawed long term care system.  She explains what long term care is and what is at risk today. Take a few minutes and learn more about the system you may one day depend on.

>>Long Term Care: The Crisis Everyone Must Face

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How to help your parents downsize.

Helping your parents downsize is an emotional process for you and for them. With some compassion, tact, preparation, and possibly some outside help, it can be a smooth experience for everyone involved.

Caring Transitions of Northeast Atlanta offers some wonderful tips to help you begin and go through the downsizing process with older loved ones.

Before helping your parents, prepare yourself mentally and emotionally. Sometimes the emotional aspect of downsizing goes overlooked as you focus on the more practical aspects. Checking in with yourself and setting your perspective goes a long way in creating a more positive experience.

Recognize that this won’t be easy. Even with a plan, downsizing can bring up some tough emotions. Expect the process to be a little messy and stressful and be compassionate towards your parents and yourself.

Be patient. Downsizing can be especially difficult if your parents are leaving the family home, or if an upsetting circumstance triggered the downsize. On top of that, it often takes longer than expected, depending on how many possessions must be decluttered. Put yourself in your parents’ shoes as best you can. A little patience goes a long way.

Don’t try to take over. Unless there is an issue of impaired cognitive function, know that your parents are ultimately the decision makers. Trying to force them into anything will only be counterproductive. If your parents are losing cognitive functioning, still be respectful and involve them as much as you reasonably can, so they feel they still have some control.

>>Click here to read the remainder of this important article on how to help your parents and loved ones downsize with many more tips to help you.

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Is it time to sell your home? Or should you wait a little longer?

In a new CNBC report, analysts are trying to make sense of what’s happening with the housing market. They say things are changing and the root cause is simple — affordability.

“The housing market isn’t going to crash; a plateau is more likely”. 

Atlanta area SRES realtor Hilary Walker’s take on the report: “I agree with this statement and the report’s discussion completely. I think some buyers might want to consider purchasing now before the rates get any higher and then plan to refinance when rates drop. I also agree with the presenter’s statement about Adjusted Rate Mortgages – they are making a comeback without the scary subprime conditions that were part of the problem back in 2006/7. Just like the Reverse Mortgage/Home Equity Conversion Mortgage, the ARM is not for everyone but when you understand the product and how you can use it to your advantage it becomes quite attractive – more so now when conventional rates are going over 5% and the ARM rate remains around 4%.”

>>See the full report: https://www.cnbc.com/video/2022/05/25/housing-market-isnt-going-to-crash-a-plateau-is-more-likely.html?__source=androidappshare

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Baby Boomers on the Move

According to the National Association of Realtors (NAR), the fastest growing market in real estate is made up of clients age 50+. Baby-boomers and seniors are on the move selling long-held properties and opting for homes that are easier to age in. Perhaps it’s a single level; maybe it has a smaller yard; and is certainly more convenient to services they need or family members who can help them.

In a 2022 Atlanta Seniors Real Estate survey:

  •  67% of respondents indicated they are planning a move
  • 40% of those saying they are looking for a ranch style home or one with an owner’s suite on the main level

While those results aren’t surprising, the challenges of a later-in-life move, especially in today’s real estate environment, often catch seniors and their families by surprise. That’s why it is beneficial to find an agent who has earned the NAR’s Senior Real Estate Specialist (SRES) designation giving them unparalleled training and experience including:

  • Helping manage the financial and emotional challenges of selling a long-held family home
  • Creating a customized plan to market and sell a property
  • Understanding a senior’s unique needs and creating a customized plan to ensure the new home meets those needs now and in the future
  • Utilizing specialized knowledge in reverse mortgages, 401(k) accounts, and IRAs for the real estate transaction
  • Connecting senior buyers and sellers with a vast network of movers, attorneys, home inspectors, and other experts to help through the process

In the survey, respondents were asked whether they would use an SRES agent for a real estate transaction. While 60% said they previously were aware of what an SRES brings to the table, a clear 100% indicated they would prefer to use an agent with the SRES designation.

Atlanta Seniors Real Estate client Patti put it beautifully, “It takes a special person to be able to understand the challenges seniors face when confronting the prospect of moving at their late stage in life.  Managing them with respect and dignity and assuring their interests are being met is a delicate balance. We would highly recommend Hilary Walker to anyone looking to sell their home and, more specifically, to seniors faced with the daunting task of embarking on these changes late in life.”

Contact Atlanta Seniors Real Estate to learn more about how an SRES designee can help you buy or sell a home.

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Voting in Georgia’s 2022 Primaries

Georgia’s primary elections are coming up, but you can go ahead and vote.  Georgia’s May 24th primaries will determine which candidates appear on November’s general election ballot for the U.S. Senate and House of Representatives, State Senate and House, governor, lieutenant governor and other state executive offices, as well as several state high courts.

AARP has all of the information you need to prepare for voting. Click below for their Voting Guide including links to getting your absentee ballot or what you need to know about early voting.

>>Read more in their 2022 Voting Guide.

 

 

 

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What will rising interest rates mean for senior home sellers and buyers?

What my clients are saying

My mature and experienced clients know that rates have been much higher than they are today (just 20 years ago they may have purchased a house with a 7% rate). So, today’s rate at just over 5% is still a good rate in their minds, although we’ve been spoiled with those extremely low 3% rates in recent years.

These clients are savvy and experienced to know also that increasing rates can be a detraction for buyers who want to buy now or very soon. So, now the baby boomers and older homeowners in my circle are calling to ask the very serious question…”How quickly do you think my home will sell if we put it on the market now and where do I go if I sell now?“

Here are two scenarios that I’ve seen first-hand.

First Scenario

A first-time home buyer (over 65) approved for a loan in late March prefers purchasing rather than renting because rent has increased by a significant amount for the last 3-years. We have been on the lookout for a home but have not yet found anything suitable.

Reasons for a delayed purchase in this case are:

  • wanting a home with all spaces on one level
  • low inventory in the area of choice with only one or two potential homes coming on the market each week
  • multiple offers on those few homes or they are in disrepair
  • and the buyer is searching with a lower-than-average price point (average house values for our local area rose from $278k to $338k)

    The first week of May, the lender informed us that the interest rates went up over a quarter percent since the buyer was approved in March so there will be an increase in mortgage payments. This makes the buyer nervous because they are on a fixed income. An interest rate hike above 5.5% may force this buyer out of the homeownership market so time is of the essence.

    Second Scenario

    Most of my clients are already retired, on a fixed income, or have a budget they are adamant to stick to, so overspending for another home is hard to do. I say “overspending” because that is the word of choice among some of my clients who have watched the market take an unprecedented boom of house prices and, while that is fantastic for the seller, it is a hard pill to swallow for the mature buyer.

However, those who need to move are acknowledging this is the market they are in and must move forward regardless. I have a few clients who are in the situation of needing to sell the large home where they raised their families or enjoyed their mid-life empty nest, replacing the space with their hobby or 2nd career or entertaining friends and family periodically. But the time has arrived that the house is simply too large. They are heating and cooling, and cleaning spaces they rarely use so they want to downsize or resize while they can get a good price for their home.

One of my clients wants to move out of their 5,000 square foot home while identifying a comparable smaller home at a mid-range price point – reasonable, at least so we thought.

The search was difficult for these reasons:

  • in the madness of the real estate frenzy of 2021/22 even homes in the higher price points were not presented as well as they should have been – a stark difference between photos online and in person
  • almost every decent home that came on the market received multiple offers within a day or two
  • their competition was no longer just another occupant buyer but now it was large fund investors vying for that property, too

In the case of these kinds of buyers, interest rates don’t bother them too much since, in most cases, they plan to use the equity they have in their current home to purchase the next home or they only plan to keep the mortgage for a few years before they pay it off and live mortgage free. In a couple of cases, they are choosing to use a Reverse Mortgage to help stretch their wealth, therefore, the interest rate is not an issue since they can choose not to make any mortgage payments on a monthly basis.

If you want to know more about how interest rates may affect your decision or that of a loved one to move forward with a sale or purchase, feel free to contact me.

>>Read more about interest rates from the National Association of Realtors.

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Making Long-Term Care Insurance More Affordable

The Long-Term Care Affordability Act, introduced in the House of Representatives, would reform the tax code to make long-term care insurance more affordable and accessible and help older adults better prepare for long-term care costs.

  • It would let people withdraw funds from their 401(k), 403(b), and individual retirement accounts to pay for long-term care insurance.
  • Up to $2,500 of a withdrawal used to pay for long-term care insurance would be excluded from income tax annually.
  • Withdrawals also wouldn’t be subject to the 10% early withdrawal penalty tax.

>>Click here to read more.

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Gardening can offer older adults surprising benefits

It’s not just your imagination. Gardening is good for your health. Science tells us “interacting with plants can increase self-esteem and reduce feelings of anger, sadness and stress.”

This article, published in the Atlanta Journal Constitution March 2022, explains the science behind the good feelings you get while gardening.

As the weather continues to warm up, many of us will find ourselves back outside pruning, planting and playing in green spaces. This is good news for our bodies and minds, as gardening offers some big benefits for both physical and mental health.

Gardening can help combat depression, anxiety and loneliness

We likely know from our own experiences that bright blooms and warm sun can be a powerful antidote to a less-than-stellar mood. Getting outside and playing with the dirt, mindfully tending to a plant and watching it grow from seed, gives us both a sense of peace and accomplishment that can keep anxiety and depression at bay.

But science backs this up too.

A study from Texas A&M University AgriLife Extension Service found that interacting with plants can increase self-esteem and reduce feelings of anger, sadness and stress. It also helps keep people in touch with their communities and creates socializing opportunities. All of these factors are critical for maintaining positive emotional health.

Working in a garden keeps the brain sharp

One study found that daily gardening may reduce the risk of dementia by up to 36%. A 2019 study published in the International Journal of Environmental Health also found that planting a vegetable garden can improve brain nerve growth factors related to memory, and can improve functioning in the hippocampus, which is critical for memory, and cortical regions of the brain.

Gardening also helps combat stress and low mood and increases feelings of joy and happiness, all of which contribute to a healthier, happier, more resilient brain.

>>Click here to read the rest of this article from the Atlanta Journal Constitution.

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Clutter in the Attic: Why memory falters with age

 (HealthDay News) — Imagine a closet filled with treasures accumulated during a lifetime of rich experiences. Now, imagine going into that closet to find one specific object.

Only maybe you get distracted by another, more enticing item from your past. Or you find the object you’re seeking but it’s intertwined with six similar items, and withdrawing the one will drag out the entire tangle.

That’s how an old person’s memory works, a new theory claims. Seniors struggle with memory not because they have trouble remembering things, but because their minds are too overloaded with a lifetime’s worth of memories.

“There’s this prevalent idea that older adults’ memories are kind of impoverished, or they have weak memories that do not contain a lot of information,” said Tarek Amer, a postdoctoral research fellow at Columbia and Harvard universities, and lead author of a new paper in Trends in Cognitive Sciences that explains this new theory.

“But based on a lot of evidence, we’re actually arguing the opposite. Older adults store too much information, so in a sense they have a harder time focusing their attention on one piece of target information and exclude all sorts of other distractions,” he added.

When anyone attempts to access a memory, their brain quickly sifts through everything stored in it to find the relevant information, Amer and his colleagues write.

Young people don’t have as much prior knowledge tucked away in their brains, so it’s easier for them to find the memory they’re seeking without being distracted by irrelevant recollections. But older people have to dig through a huge amount of prior knowledge when looking for a specific memory. It’s more difficult for older folks to suppress irrelevant reminiscences, and they often pull out a gob of other memories that are stuck to the one they sought, according to behavioral and brain imaging studies cited by the researchers.

“If you know five different people with the same first name — five different Johns, for example — and you’re trying to remember the last name for one of the Johns you know, all the different last names will come to mind and essentially interfere with your ability to remember the last name you’re trying to remember,” Amer said, citing an example.

While this has been presented as a weakness of the aging mind, Amer said that’s mainly a function of the recall tests that are commonly used in psychology labs to measure memory.

Looked at in another way, this brain clutter actually gives older people an advantage over younger people when it comes to tasks involving creativity or wisdom, Amer said. Because of the way memory tests are performed, there are plenty of studies supporting the idea that too much clutter in seniors’ minds causes worse memory performance, he said.

“What still needs more work to provide more evidence for this theory is the other end, showing that these types of cluttered or enriched memory representations in older adults might be beneficial in tasks we encounter in daily life,” Amer said.

For example, studies have shown that seniors outperform younger adults when asked to perform an “alternate uses task” — a psychological test in which they’re handed a common object like a hammer and asked to come up with outside-the-box uses for it.

“You can think of older adults as having this extra information that allow them to form these broad associations between diverse bits of information,” Amer said. “Older adults are forming these cluttered memories, but then once it’s actually time to use this extra information they can perform better on these creativity tasks.”

The new theory “makes sense to me,” said Aaron Bonner-Jackson, a neuropsychologist with the Cleveland Clinic’s Lou Ruvo Center for Brain Health.

“Older adult brains are casting a wider net on whatever they’re trying to do, and that can have good and bad consequences,” he said.

This helps explain why storytelling is so much fun for older folks, especially when it tends to ramble a bit, Bonner-Jackson said.

“They may be asked a question and then because they have so many associations, that might trigger an old memory or the name of a person or something they did in the past,” he said. “Reminiscing can be very pleasurable for older people, because they can often make associations with more things.”

It also shows what elderly people can bring to the table, in terms of using their life experience to come up with better solutions to some problems.

“Sometimes they bring in a lot more associations to whatever they’re doing than a younger adult might make, and I think absolutely this could be a source of creativity and wisdom that would give them an advantage,” Bonner-Jackson said.

>>Click here to read more.

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Georgia Caregivers Act Critical for Family Caregivers

Sponsored by Representative Lee Hawkins, the Georgia Caregivers Act (House Bill 1304) would bring much needed support to family caregivers across the Peach State.

Family caregivers help their parents, spouses and other loved ones so they can live independently in their homes and communities—instead of in costly, taxpayer-funded institutions. They assist with meal preparation, managing finances, transportation, and much more.

Many family caregivers also perform medical or nursing tasks for their loved ones like complex medication management, wound care, and injections. Yet most receive little or no training for these important duties. That’s why AARP Georgia is asking the Georgia state legislature to pass a no-cost, commonsense bill called the Georgia Caregivers Act.

The Act ensures that:

  1.  Patients can identify a caregiver upon admission to the hospital
  2. The identified caregiver is notified of the plan to discharge the patient home
  3. The caregiver is given live instruction and training on the medical and nursing tasks to be performed at home.

In 2021, more than half of Georgia’s hospitals were penalized for excessive patient re-admissions. The Georgia Caregivers Act could help.

>>Click here to read more about the Georgia Caregivers Act from AARP Georgia.

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Russian Invasion May Impact Mortgage Rates

Mortgage rates in the U.S. have risen this year and are expected to continue doing so, but the conflict between Russia and Ukraine could throw a wild card into those projections.
A picture of a 2D wooden house miniature with question marks painted on small wood squares surrounding it.

© takasuu – iStock / Getty Images Plus

The 30-year fixed-rate mortgage climbed by 37 basis points over the first two full weeks of February, according to Freddie Mac. But last week, as Russia invaded Ukraine, rates dropped to 3.89% for the 30-year fixed-rate mortgage.
“When global investors sense increased uncertainty, there is a ‘flight to safety’ in the U.S. Treasury bonds, which causes their prices to go up, and their yield to go down,” says Odeta Kushi, deputy chief economist at First American. “Consequently, amidst heightened uncertainty due to the worsening events in Ukraine, there is a possibility that investors flock to U.S. Treasury bonds, which may result in a temporary, short-term decline in mortgage rates.”
The Federal Reserve has announced it would be raising the funds rate multiple times this year and says it will address this more at its next meeting, March 15 and 16. But how aggressive the Fed is with rates could change, predicts The Mortgage Reports. The Fed’s key rate does not directly affect mortgage rates but can influence them.

Published by the National Association of Realtors.  Source: “How Russia Invading Ukraine Could Impact U.S. Interest Rates,” The Mortgage Reports (March 1, 2022)
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How “tax friendly” is Georgia for retirees?

Baby-boomers and seniors want to retire and move to a tax-friendly state. So, how tax-friendly is Georgia? An Atlanta Journal Constitution article looked at that and found that it ranks pretty well for the following reasons:

  • There is no tax on Social Security retirement benefits.
  • Anyone 65 and older is offered a maximum deduction of $65,000 per person on all types of retirement income.
  • Sales taxes and property taxes are relatively moderate. The 4% sales tax puts Georgia in the bottom 20 of the country. Georgians pay below-average for property taxes. It’s around $870 per year in property taxes per $100,000 in home value.
  • There are no inheritance or estate taxes. 

>Click here to read the full article written by Kiersten Willis with the Journal Constitution.

>Click here to read a related article: Lack of inheritance and estate taxes makes Georgia a popular place to retire.