Cool Georgia Towns for Retirees & Seniors

Georgia is becoming a magnet for retirees and seniors attracting them with affordable housing, tax advantages and a relatively low cost of living compared to other locations. Travel and Leisure came out with a list of the “8 Best Places to Retire in Georgia” that’s worth sharing.

  • Decatur
    Close to Atlanta, Decatur offers a vibrant, walkable lifestyle with ample dining, entertainment, and parks. Retirees enjoy tax reductions, and Emory University provides ongoing education and cultural events.
  • Dalton
    Known as the “Carpet Capital of the World,” Dalton boasts affordable housing, rich outdoor activities, and a lively downtown. Ideal for retirees on a budget or those seeking part-time work.
  • Sandy Springs
    With Chattahoochee River views and abundant healthcare facilities, Sandy Springs is perfect for active retirees. Enjoy amenities like the Benson Senior Center and nearby performing arts venues.
  • St. Simons Island
    This barrier island offers beach access, golf, kayaking, and scenic beauty. The small-town feel and ocean views make it a sought-after coastal retirement spot.
  • Cartersville
    A charming town with affordable homes, Cartersville offers history, art, and accessible healthcare, along with transit services for seniors and proximity to natural areas.
  • Woodstock
    Known for its scenic trails and active lifestyle, Woodstock attracts retirees from out of state. The walkable downtown and range of housing make it popular for those seeking community.
  • Athens
    Home to the University of Georgia, Athens has educational and cultural opportunities, plus a blend of college-town energy and a small-town feel that appeals to retirees.
  • Augusta
    This historic city offers scenic river views, outdoor activities, and affordable housing. Augusta’s health facilities and the annual Masters Golf Tournament make it a lively yet budget-friendly option.

From bustling cities to serene retreats, Georgia has a retirement spot for everyone!

>>Click here to read the full article from Travel & Leisure.

How Georgia is Attracting Seniors & Retirees

Seniors and retirees have long sought retirement destinations in the south largely because of the milder weather but there are so many other great benefits for seniors. Grace Zhu from TheStreet.com recently looked at some of the local and state tax benefits that are luring seniors to the Peach State.

  • Flat Tax Rate:
    Georgia moved to a flat tax rate of 5.39% as of April 2024. Potential annual reductions could bring it down to 4.99% by 2028.
  • Social Security and Medicare Benefits:
    Exempt from Georgia state income tax, allowing retirees to retain more of their benefits.
  • Pension Income Deductions:
    • Retirees aged 62-64 can deduct up to $35,000.
    • Retirees aged 65 and older can deduct up to $65,000 from pension income.
  • Increased Exemptions:
    • Personal exemption raised to $12,000 for singles and $18,500 for married couples.
    • Dependent allowance increased to $4,000 per child.
  • Investment Income:
    No special tax treatment; interest, dividends, and capital gains are taxed at 5.39%.
  • Capital Gains Exclusion on Primary Residence:
    • Up to $250,000 for singles.
    • Up to $500,000 for married filers.
  • 529 College Savings Plan:
    • Contributions are tax-deductible up to $4,000 for singles and $8,000 for joint filers.
    • Contributions can be made until the tax filing deadline in April.
  • Retirement Account Distributions:
    401(k), 403(b), and IRA distributions are taxed at the state level but enjoy deductions similar to pensions.
  • Military Retirement Exemption:
    • Military retirees aged 62+ can adjust their state tax returns.
    • Those under 62 can exclude $17,500 of military retirement income, plus another $17,500 if they have over $17,500 in earned income.
  • Property Tax Relief:
    • Property assessed at 40% of fair market value, with possible local homestead exemptions.
    • Exemptions available for seniors, including a school tax exemption at age 62 and additional $4,000 exemptions at age 65.
  • No State Estate or Gift Tax:
    Georgia has no estate, inheritance, or gift tax, aiding in estate planning.

For a smooth transition into retirement in Georgia, consider these tax benefits and exemptions that could help maximize your income and savings.

>>Click here to read the full article on TheStreet.com or contact us at Atlanta Seniors Real Estate if you have any questions.

Social Security Rules That May Affect Your Benefits

Social Security provides benefits to around 1 in 5 citizens but there are some little known rules that can impact their benefits. This often comes up as we speak with seniors as they plan to downsize and relocate. These rules need to be figured into financial planning.

An article from The Motley Fool looks at two Social Security rules that are particularly relevant today as many seniors are still in or returning to the workforce.

1. Working After Claiming Social Security Early: A Potential Reduction in Benefits: The first is for those who collect Social Security retirement benefits before reaching their full retirement age (FRA). Shockingly, between 25% and 50% of pre-retirees are unaware that continuing to work after claiming Social Security early can lead to a benefit reduction.

>If you receive Social Security retirement benefits before your FRA, your benefits will be reduced by $1 for every $2 you earn above an annual limit. For 2024, this limit is set at $22,320. The rules change in the year you reach your FRA, with a higher threshold of $59,520 and a reduction of $1 for every $3 earned above this limit.

2. Temporary Reduction: A Social Security Advisory Board report finds that only 30% to 40% of those informed about the reduction understand its temporary nature. The Social Security Administration rules mean benefits will no longer be reduced starting from the month you reach FRA and that your benefit amount will be recalculated to provide credit for any amount previously withheld.

So many retirees these days are engaging in partial retirement or they move in and out of the workforce before fully retiring and that trend is expected to continue. It’s all the more reason to be aware of the potential benefit reduction and the temporary nature of the reduction. A retirement strategy taking these rules into account will help ensure you make the most of your benefits.

>>Click here to read the full article from The Motley Fool.

Is a niche retirement community for you?

Today, seniors have more choices than ever before when it comes to retirement communities and senior living. Being a real estate agent, we’re often asked about different types of communities, what they’re like, which are most popular, what they cost and the questions continue.

A recent Kiplinger article quoted a lecturer at Georgetown University who sees niche senior communities as the “segment to watch.” It’s certainly growing fast.

There is literally something for everyone and even Disney has plans to get into the 55+ niche community game which already includes:

  • Latitude: In November 2017, when Buffett announced his first Latitude Margaritaville in Daytona Beach, Fla., an active-living property for people “55 and better,” more than 150 fans and other lovers of the flip-flop life camped out overnight at the sales-office for first dibs on 300 properties. Today, Latitude Daytona Beach is a planned community of 7,000 people and there is a waiting list for homes under construction. There is another Latitude in the Florida panhandle, one in North Carolina, and two or three planned for Texas.  
  • Enso Village: In 2016, when the Delaware-based Kendal Corp. announced Enso Village, a life-plan community devoted to Zen tradition in Northern California’s wine country, 1,194 people put down $1,000 for a priority reservation; when the 275 units went on the market in 2020, they sold out in four months; Kendal is now developing a second Enso Village in Southern California. 
  • Nalanda Estates: Near Sarasota, Fla., Nalanda describes itself as an Active Indian Retirement community of 83 homes, and states on its website that it is sold out.  
  • The Villages: Florida’s The Villages–renown as a hotbed of conservative politics and libertine social lives–has sold some 70,000 houses.  

If you’re interested in a niche community, Kiplinger suggests you:

  • Do a self inventory
  • Consider prices
  • Create a budget
  • Go on tours
  • Learn about its management

Georgia’s list of 55+ communities is growing fast and some niche communities that are open to everyone are even offering amenities designed for active adults. Contact Atlanta Seniors Real Estate to learn more about what’s available for you. We’re happy to answer any questions you may have.

>>Read the full article from Kiplinger.

The Biggest Expenses for Retirees

You spend years planning for retirement looking forward to days of a simpler life with years of savings spent on travel and leisure activities. But the reality is that some of the biggest expenses retirees shell out money for often surprise them and have nothing to do with leisure activities.

AARP did some digging and, after speaking with financial advisors, created a list of the top ten expenses that have retirees cutting into their savings and investments.

  1. Health Care
  2. Home Maintenance
  3. Travel
  4. Transportation
  5. Utilities
  6. Fitness/Wellness
  7. Kids/Grandchildren
  8. Taxes
  9. Charitable Giving
  10. Professional Services

Check out the full article from AARP including a deeper dive into each of the top ten expense categories – 10 Most Underestimated Retirement Living Expenses (aarp.org).

The Best Places in the World to Retire

Where are retirees truly prospering? In which countries do they have it easiest when it comes to the things we really value when we commit to retirement such as financial benefits and a strong health care system?

In one report, the US ranks 18th and our pension systems earned a not so glowing C+. So where are the top spots? Those countries where retirees are living a little easier? Here are the top five “best places to retire” and a peek at what earned them accolades.

  • Norway – robust pension system
  • Switzerland – read about their Retirement Residency Program
  • Iceland – top rated pension for local retirees
  • Ireland – low crime and low-cost government healthcare
  • Australia – friendly with universal healthcare

Check out this article from Kiplinger that details the top 10 countries and learn more about what it was that helped them earn spots at the top of the leaderboard. It also helps us understand why, according to the article, more than 440,000 retired workers are collecting U.S. Social Security benefits abroad.

>>Click here to read the article.

Ways to diffuse a retirement tax bomb.

You’ve retired and are enjoying perhaps a slower lifestyle, more travel, less stress, easier financials. Obviously, not necessarily true on that last point. Retirement brings new challenges when it comes to savings, retirement funds, taxes, asset management and more. It’s always a good idea to find and use the services of a financial advisor who is knowledgeable about retirement and estate planning, but you can also do a little bit of the information gathering on your own.

I recently found a great article from Kiplinger that looks at some of the retirement financial challenges and how individuals have managed them. Specifically, the author, David McClellan, looks at retirement contributions and where to put your assets…. as well as how to go about making those decisions to benefit you for years to come.

>>Click here to read the article and check out the links provided to other articles in the series.

Seniors Plan to Work During Retirement

A survey of seniors finds that most plan to work, at least part time, after they retire. It could be that seniors today are healthier and more energetic than ever before, and it could also be that they’re concerned about their finances with the news squarely focused on stories about inflation and recession.

An article on NASDAQ.com says, “The results show that more than half (58%) of Americans plan to continue working in their retirement. With 66% of Americans worried they’ll run out of money, 50% concerned about unexpected health expenses and 47% preparing for social security to be cut or end completely, it makes sense that people want to keep the paychecks coming.”

Today, working in your senior years doesn’t mean going into an office or being on your feet all day. The article looks at some online options for an extra paycheck including virtual assistants, online tutoring, and customer support gigs — all work that can be done from the comfort of your own home.

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

What’s the best way to pull money from retirement accounts?

Did you know there’s a certain strategic order to follow when withdrawing money from retirement accounts and other investments? Taking the right steps at the right time can make a significant different in your finances as you get older.

Kiplinger and SmartAsset.com offer some great suggestions for seniors who may be looking at tapping into their savings — in addition to encouraging seniors to find and use a qualified financial advisor.

Among the suggestions they have:

  1. Look at investment income first
  2. Hold off on claiming Social Security benefits
  3. Delay withdrawing from 401K and IRA
  4. Don’t tap into your Roth too soon

Check out their article which explains each of their suggestions above.

>>Click here to read the full article.

New Trends in Retirement Living

What are the latest trends in retirement living? There’s a definite move toward accommodating retirees focusing on health, wellness and nature. Here’s a great article from Next Avenue about the latest trends.

In 2008, Janice Barton was vacationing at Serenbe, a biophilic, or nature-centered, community in the Chattahoochee Hills about 30 miles outside of Atlanta. She fell in love with the village’s English-style cottages, outdoor artist studio, nature trails, local shops and café all within walking distance, and decided to buy her forever home there.

“In a typical suburb, you drive into your garage, shut the door and that is it,” explained Barton, who at 73 is a solo ager. “Maybe you know your neighbors on either side or across the street but you don’t have anything in common so you don’t want to invest the time and energy. At Serenbe, I feel younger because I am engaged and I’m living a more vibrant life.”

Serenbe and other new amenities-laden retirement communities illustrate how the senior living industry is going through a transformation that has accelerated since the COVID-19 pandemic. Pre-pandemic Americans age 65+ expressed the desire to stay living in their homes as long as possible; the social isolation imposed by the pandemic has solo agers — the 12% of the population who, according to AARP, are widowed, divorced or without adult children to care for them — rethinking the desire to age alone at home.

>>Read the full article from Next Avenue.

***What is Next Avenue? A very cool concept – click here to learn more about this resource for older Americans.

7 Ways You’re Blowing Your Retirement Savings

We’re fairly certain in this crazy economy, pretty much everyone is wondering if they’ll have enough money to retire comfortably.  This great article from AARP addresses just that and asks a few questions that might have you rethinking your current retirement strategy.

What keeps you up at night?

(By Donna Fuscaldo for AARP)  If worrying about running out of money in retirement is keeping you up at night, you aren’t alone. Untold numbers of older adults have that concern, and for good reason. Inflation is soaring, gas prices hit a national average of over $5 per gallon, and people are living longer. All of which means your money has to work harder to last.

“Everybody is losing sleep” about retirement, says Bryan Kuderna, a certified financial planner. “It’s definitely a bigger one for women, who have longevity in their genes.”

You can’t control inflation and gas prices, but you can take steps to control how long your money lasts in retirement. If any of the actions below sound familiar, it may be time for a reset.

  1. Too much spending in the early days of retirement
    Your entire working life was spent amassing money for retirement, so who can blame you if you want to spend it early on. But do too much of that and you may run into problems down the road. “One of the big things we see is as soon as people retire, they treat every day like it’s Saturday,” says Kuderna. “They go into retirement projecting their expenses today will stay that way the rest of their lives. A few extra vacations and trips with family and friends, and before they know it, they spent their retirement account in year one or two.”

    How to fix it? Rein in your expenses or get a part-time job to supplement your income. Not sure where to begin, AARP’s Money Map helps you create a budget and build emergency savings.

  2. Gifting too quickly
    It’s natural to want to help your children and grandchildren out, but too much of a good thing can leave you penniless. Before you book that cruise for the entire family or give your child the down payment for a home, make sure you can afford to. “The rule of thumb I tell my clients is first make sure you’re taking care of yourself financially,” says Matthew Curfman, a certified financial planner and president and co-owner of Richmond Brothers. “If you don’t take care of yourself, you can’t help others financially.”

    How to fix it: Learn to say no, at least for now. Make sure you have enough cash in the bank to live comfortably in retirement, and then lend a helping hand.

  3. Upsizing instead of downsizing
    Some people go into retirement with the intention of downsizing to a smaller home, but then end up doing the opposite. Instead of saving on housing, they spend more. “They think they will downsize and will have all this equity from the house, so they buy a little condo up north and a little condo down south to do the snowbird thing. And all of sudden they didn’t downsize, they changed the situation,” says Kuderna.​

    How to fix it: Don’t treat the equity in your home as a windfall. Count it as an income stream you can live off of in retirement.

  4. No long-term care plan to speak of
    Close to 70 percent of Americans 65 and older will need long-term care in their lifetime, according to the Urban Institute and the U.S. Department of Health and Human Services. Some have family members to rely on, but close to half will need to pay for long-term care on their own, and many have no plan to do so. “It’s a pretty expensive proposition to need a full-time nursing home or at-home care,” says Curfman. “If you do nothing and something happens, you’ll have to pay for it somehow.”

    How to fix it: Add long-term care coverage to your retirement savings plan. Depending on your situation, it may mean setting aside money, getting a long-term care insurance policy, or working with a financial adviser to devise another tax-efficient strategy.​ More the DIY type, check out Ace Your Retirement a chatbot that asks you questions and offers up retirement advice.

  5. You have a lot of debt
    Lingering or new debt can be a big blow to your retirement savings. It may have been easy to manage when you were collecting a paycheck, but it can hurt your cash flow and lifestyle when you’re on a fixed income.

    How to fix it: Try not to bring any debt with you into retirement. If you do, work on paying it off and resist accruing new debt.

  6. You’re living on pretax income
    Taxes are a big consideration when you begin withdrawing money from your retirement savings account. If it’s a traditional 401(k) or IRA, withdrawals are taxed as ordinary income. “It has a ripple effect on your overall tax situation and cash flow,” says Kuderna. “That $1 million is suddenly $700,000. It’s not going to last as long.”

    How to fix it: Move some of your retirement savings into a Roth IRA or convert your traditional 401(k) into a Roth 401(k). With both investment vehicles, you don’t pay taxes on withdrawals once you’ve had the account for five years and are 59 1/2 or older. Keep in mind that the conversion is a taxable event.

  7. Investments aren’t keeping up with inflation
    The great wealth-eroding factor has always been inflation. That’s worse in 2022, with inflation running at a 40-year high of 8.6 percent. Diminishing purchasing power isn’t the only problem in high inflationary environments. Your investments have to work harder to hold their value over the long haul. “People entering retirement at 65 think they should be all cash or fixed income,” says Kuderna. “That money is for when they are 80. It can be in the markets and keeping pace with inflation.”

    How to fix it: With inflation soaring, a portfolio checkup may be in order to ensure your investments are allocated properly. The goal is a well-diversified portfolio that has just the right amount of risk.

>>Read more from AARP – A Recession Guide for Retirees

 

Why 2022 has been a dangerous time to retire — and what you can do about it

A new CNBC report said it all, “It’s a scary time for new retirees. Stocks have plunged this year. Bonds, which traditionally serve as a ballast when stocks falter, have also been pummeled. Both trends are worrisome for seniors who rely on investments for their retirement income. High inflation also means retirees need to draw more income to afford the same items and make ends meet.”

So, what’s a baby boomer to do?
What steps should you take to protect yourself from loss?
Of course, the #1 recommended action to take is “spend less” but there are other things to be mindful of. Click here for the full article.