Phased Retirement

If full retirement is unappealing or isn't financially feasible, perhaps a phased retirement is right for your clients. The passage of the Pension Protection Act of 2006 made it possible for employers to pay pension benefits to employees age 62 and older who are covered under a defined-benefit pension plan, even if they continue to work. Typically, employees swap a smaller paycheck for reduced or more flexible work hours. Several universities have embraced phased retirement options for faculty members. Perhaps such programs will become more widespread as corporate America begins to experience the brain drain as older Baby Boomers exit the workplace in droves. For more information and links to other resources for 50-plus workers, see an article at Monster.com. Additional information is available at the National Older Worker Career Center, Inc. Though phased retirement is often viewed as a recipe for happiness, it actually doesn’t guarantee happiness, according to research by Boston College's Center for Retirement Research.

Caring For Elderly Relatives

Clients caring for elderly relatives will be interested in a new website, www.Caring.com

It provides guidance, information, and an online community for those serving as caregivers for aging people suffering illnesses and disabilities. Content includes articles and checklists on health, housing, finance, and products and services. One of the site's articles concerns creative gadgets that help the elderly continue living in their homes. Among them are a watch that monitors a person's movement and heart rate and sends e-mail or instant messages to caregivers if it senses an emergency, and a similar monitor that sends an alert when someone falls. The story is timely, especially in light of the fact that a study commissioned by Clarity and the EAR Foundation, "Aging In Place in America," found Seniors fear moving into a nursing home and losing their independence more than death.

Consumer News, Smart Money Tips

Found Money

Because of job changes, name changes, and other circumstances, people frequently lose track of old pensions or 401(k)s. For information on locating lost dollars, see http://www.pueblo.gsa.gov/cic_text/money/lost-pension/lost-pen.pdf. Often, lost money can be located by contacting former employers. Other options include checking with the Department of Labor's Employee Benefits Security Administration at 866-444-3272 or by searching online. Two sites to consider are http://www.pbgc.gov (search under "missing participants") and https://www.unclaimedretirementbenefits.com/

Tax Tips

• If your clients' January mortgage is paid and posted before December 31st, they may be able to increase their 2007 itemized tax deductions for the interest.
• You might remind your under-65 clients that their 2007 retirement accounts must be opened before year end, even if contributions are allowed in the first few months of 2008.
• Another suggestion for Seniors who have sufficient cash flow to increase their tax deductions: pay as many expenses as they can in 2007. Move up those medical or accountant appointments or payment of property taxes to 2007.

Stop the mail!

Tired of an onslaught of unsolicited mail? Want to do your part in reducing paper waste? You and your clientele can get your names removed from catalog mailings by visiting http://www.catalogchoice.org Indicate the ones you want to opt out of and the site removes your name from those mailing lists for free. For a $1 fee, the Direct Marketing Association's Mail Preference Service https://www.dmachoice.org/MPS/ also can help you minimize junk mail. To opt out of pre-screened credit offers, visit www.optoutprescreen.com or call 888-567-8688.