Prepping for the Upcoming Tax Season—And Beyond

Presented by Tim Traub

If you typically file your taxes early to receive your refund faster, you’ll have to wait a bit longer this tax season. Due to the partial government shutdown last year, the IRS won’t begin processing 2013 returns until January 31, 2014. (The April 15 deadline, however, remains the same.) That said, let’s review some important items to be aware of as you prepare to file your 2013 taxes, as well as look ahead to potential changes for 2014.

Filing your 2013 return

Americans—especially high-income taxpayers—are set to face a host of changes this tax season, both pleasant and not-so-pleasant. Highlights include:

·         New top tax rate. Individual filers who earn more than $400,000 ($450,000 for married couples filing jointly) will fall into a new 39.6-percent bracket, which replaces the previous 35-percent rate.

·         Higher Medicare taxes. An additional Medicare surtax of 0.9 percent applies to income over $200,000 ($250,000 for married couples filing jointly). There’s also a new 3.8-percent tax on net investment income for taxpayers with modified adjusted gross income above that same threshold. (The IRS explains what does and doesn’t count as net investment income at www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs.)

·         Limitation on itemized deductions. Reintroduced in 2013 by the fiscal cliff deal, the limitation affects taxpayers with adjusted gross income (AGI) above $250,000 ($300,000 for married couples filing jointly). For these taxpayers, itemized deductions will be reduced by 3 percent of the AGI amount above the threshold. The same income threshold also applies to phaseouts for personal and dependent deductions.

·         Simplified home office deduction. Instead of calculating actual expenses for a home office, you can take a standard deduction of $5 per square foot of home office space, up to 300 square feet—for a maximum of $1,500. The IRS estimates that the new option will save taxpayers 1.6 million hours of paperwork and recordkeeping annually.

·         New filing options for married same-sex couples. Legally married same-sex couples must file their federal returns as married, regardless of whether their current state of residence recognizes same-sex marriage. Keep in mind that some couples may need to file their state tax returns singly if the state where they live doesn’t recognize the marriage.

What’s in store for tax year 2014?

Although there’s been plenty of talk about the dozens of tax breaks that expired at the end of 2013, it’s important to note that this won’t affect your 2013 return. And, by the time next tax season rolls around, Congress may have extended some or all of the expired provisions for 2014. Of course, from a planning standpoint, it’s helpful to know what to expect.

Here’s a look at a few key tax breaks that may not be available in 2014:

·         Mortgage debt forgiveness. During the housing crisis, struggling homeowners were able to exclude from their taxable income up to $2 million in forgiven mortgage debt on their principal residence. Now that the housing market is improving, it remains to be seen whether the government will act to extend this tax break.

·         Charitable rollovers. If this provision isn’t renewed, people age 70½ and older will no longer be able to donate to charity directly from an individual retirement account, which allowed them to avoid recognizing the withdrawal as income and paying taxes on it.

·         Bonus depreciation provision. Small business owners may lose out on the 50-percent bonus depreciation provision, which allowed them to deduct half the cost of qualified property in the first year of use and immediately reinvest that into the company. For more information, visit the IRS website at www.irs.gov/publications/p946/ch03.html.

While we can only wait and see whether Congress acts to extends these and other tax breaks, one change that’s already set for next tax season is Obamacare’s “individual responsibility payment.” If you don’t have health insurance in 2014, you’ll pay either 1 percent of your taxable income or a flat fee of $95 per uninsured adult and $47.50 per child, whichever is greater, with a maximum of $285 per family. (The maximum increases to $325 in 2015 and $695 in 2016.)

Time to change your W-4?

Tax season is also a good time to consider adjusting your W-4 withholding. This may be especially relevant if you’ve recently seen a substantial change in income or if you plan to retire in 2014. The IRS offers a convenient withholding calculator, available at www.irs.gov/Individuals/IRS-Withholding-Calculator, that can help you determine if you’re having too much or too little withheld from your pay.

 

More to come . . .

We hope you find this information helpful as you prepare your 2013 taxes and begin to plan for 2014. As always, we’ll update you on the latest tax news as it becomes available, with an eye to helping you minimize your liability and keep your financial plan on track.

 

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

 

IRS CIRCULAR 230 DISCLOSURE:

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Tips for Managing Your Finances After a Divorce

Tips for Managing Your Finances After a Divorce

Presented by Tim Traub

Divorce is often a stressful event, both emotionally and financially. If you’re in the process of a divorce proceeding (or have recently been through one), it’s normal to be worried about your financial situation. Settling into a new financial life takes time, but there are things you can do today to help prevent divorce from taking a bigger toll than necessary. Here, we offer guidelines to help you stay financially secure, today and into the future.

Your financial picture

Create a personal financial statement. A personal financial statement is a great way to keep track of your monthly income and expenses. Try separating basic, have-to-pay expenses from discretionary items so you can see where you have flexibility to make changes. Do you earn enough to continue your pre-divorce lifestyle? If the answer is no, figure out ways to trim your expenses, such as cutting back on dining out and looking for ways to save on groceries.

Continue to save. Even if your goal is to pay down debt, it’s important to set aside some money for an emergency fund and long-term savings. If you contribute to a 401(k) plan, be sure to take advantage of any employer match, which is essentially “free money.”

 Check on your credit. A divorce can play havoc with your credit through no fault of your own. You can request a free copy of your credit report from the three major credit reporting agencies—TransUnion, Experian, and Equifax—through www.annualcreditreport.com. If you notice problems that were caused by your ex-spouse, submit an explanation to the credit bureau.

Getting organized

Review the status of the divorce settlement. It’s a good idea to verify that both parties have completed their obligations, such as refinancing a mortgage into one name or removing the other’s name from credit cards. If a portion of your ex-spouse’s retirement assets was supposed to be segregated for you through a qualified domestic relations order, verify with the plan administrator that it has been done.

Retitle property. If you haven’t done so already, change the ownership of property according to the terms of your divorce settlement.

 Inform the social security office of your new status. One of the few things that can’t be done online, a name change requires a visit to your local social security office. Don’t forget to bring originals of your proof of citizenship and identity, as well as the divorce decree. After you receive a new social security card, you can update other identification, such as your driver’s license.

Organize your financial records. Whether they’re scanned and stored in your computer or locked in a safety deposit box, it’s important to keep your documents organized and at the ready. Give a list of their locations to someone you trust, along with a list of contact numbers for people who should be notified in an emergency.

Simplify your payments. Many banks offer online bill payment services that can help you automate your money management. Just set the future payment dates online and let the bank pay your bills automatically.

Insurance considerations

Review your policies and update beneficiaries. If you’re working, look into your employer’s disability benefits and consider a supplemental policy to replace your income in the event you become disabled. If you’re not working, explore long-term care insurance, which will allow you to receive care in your home if you can’t care for yourself.

Now that you’re single, be wary of letting your life insurance policy lapse, especially if you have family members who depend on you. Also check on your homeowners and auto insurance, and make any necessary adjustments.

In addition, don’t neglect to select new beneficiaries for your life insurance, retirement accounts, and transfer-on-death brokerage accounts (unless your divorce settlement prevents you from doing so).

Consider applying for COBRA health benefits. Under COBRA, you may be eligible to continue health insurance through your former spouse’s employer for at least 36 months. Keep in mind that there is a deadline to apply for these benefits.

Financial planning

Execute new estate planning documents. Your ex-spouse’s fiduciary appointments or beneficial interests are not necessarily terminated upon your divorce. Consider updating your will, trusts, powers of attorney, health care proxies, and living will.

Reassess your investing risk tolerance. We can review your investment plan with you and help you determine if it suits your new goals.

Taking control of your future

After the stress of a divorce, it never hurts to explore options for the future. This might mean considering a change of scenery, exploring a new career path, or maybe even going back to school. Whatever you decide to do once the dust clears, we’re here to help you create a financial strategy for your next phase in life.

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This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Encore Careers: Becoming Your Own Boss

Encore Careers: Becoming Your Own Boss

Presented by Tim Traub

When we think of today’s entrepreneurs, young technology developers like Mark Zuckerberg, creator of Facebook, or Sergey Brin and Larry Page, founders of Google, often come to mind. But while fresh-faced tech innovators may dominate the headlines, another crop of businesspeople is proving that it’s never too late to forge an entrepreneurial path.

Over the past decade, Americans ages 55–64 have been at the head of the startup pack, launching more businesses than any other demographic. Armed with knowledge, skills, and professional networks cultivated in their previous careers, this new wave of baby boomer entrepreneurs is showing that they have what it takes to launch successful businesses later in life.

Why the business boom among older Americans?

For many older entrepreneurs, retirement offers an opportunity to pursue lifelong passions and interests. After working in more structured environments for years, some boomers are attracted to the flexible lifestyle and supplemental income that running their own businesses can provide. And some are going into business for themselves out of necessity, having been laid off or fearing for their future prospects.

Of course, entrepreneurship has both its benefits and potential pitfalls. According to the U.S. Small Business Administration, half of new businesses fail within the first five years. The good news for older entrepreneurs is that they’re often better equipped than their younger counterparts to withstand the stress and hardships of business ownership. On the other hand, since they tend to have higher living expenses, greater family obligations, and less time to recover from failure, older entrepreneurs may also face greater risks.

Is entrepreneurship for you?

If you or someone you know is thinking about embarking on an encore career as an entrepreneur, it’s important to weigh every aspect of the decision. As you evaluate this major life change, here are a few tips to keep in mind:

·         Maximize your skills. Starting a business in your area of expertise will allow you to capitalize on your existing network and experience, increasing your chances of success.

·         Do what you love. Business ownership is hard work, so it’s essential to be excited about the product or service you plan to offer. If you’re 100-percent passionate about your business, you’ll be better able to deal with obstacles and remain energized when the going gets tough.

·         Conduct a self-assessment. Before moving forward with your business idea, be sure to gauge your risk tolerance. Looking back on your career, were you a risk taker? Do you consider yourself competitive and enjoy making decisions? Do you have the same drive that you did when you first started working? Be honest with yourself about how much risk you’re willing to take on and your level of motivation.

·         Test the waters. Worried about launching a business and then realizing it was a bad decision? Before investing money or leaving another job, try out the idea in your spare time. For example, if you want to open a restaurant, take a part-time job in a café to see if you like it as much as you think. If you’re diving into an industry in which you don’t have much experience, learn all you can by attending conferences and training sessions. Finding a mentor can also help you determine whether you’re cut out for business ownership.

·         Select the right business model. Franchises, sole proprietorships, and home-based or online businesses are often a great fit for older entrepreneurs because they’re less expensive to start and offer more flexibility.

·         Take advantage of your resources. It’s wise to work with your financial planner to estimate startup costs, tax changes, and how business ownership will affect your overall financial situation. For loan assistance, consider the following resources:

o   The U.S. Small Business Administration, www.sba.gov, helps facilitate loans with third-party lenders.

o   Biz2Credit.com, BoeFly.com, and Lendio.com pair small businesses with banks and credit unions that will lend to startup companies.

Pursuing a new business venture later in life can be risky, but it also presents the opportunity for great personal and financial reward. No matter your age, careful planning and the advice of a knowledgeable financial advisor can help pave the way to small business success.

Year-End Financial Planning

Presented by Tim Traub

With the end of the year quickly approaching, it is a wonderful time to begin organizing your finances for the New Year. We’ve put together a list of important financial planning topics that warrant consideration.

 Flexible spending accounts

Money that you’ve put away in your flexible spending accounts (FSAs) generally must be used by year-end or it will be forfeited. Recently, however, the IRS modified this rule to allow participants to carry over up to $500 of unused funds into the next year. Your employer plan must elect to participate in this option, so be sure to check your plan terms to see if you can take advantage of this new rule.

If your employer has not elected this carry-over option, now is the time to schedule those doctor’s appointments you’ve been meaning to attend to or to stock up on items that are eligible for flexible spending. Doing this as soon as possible may help relieve some last-minute headaches and ensure that you don’t lose your hard-earned dollars.

Additionally, open enrollment begins around this time of year for certain employee benefit plans. So if you’re not using an FSA, take stock of your average expenses that would qualify. This can help you determine whether setting up an FSA for 2014 makes sense for you. If you already use an FSA, assess how much extra you have left in the account or how much of a deficit you ran and use it to calculate your allotment for the New Year.

Medicare enrollment

Open enrollment for Medicare started in October and ends December 7, 2013. For many, this is the only chance to change health and prescription drug coverage for 2014. If you want to make any changes, act now.

Recharacterization of Roth IRA rollovers or conversions

If you converted a traditional IRA to a Roth IRA during 2013 and paid tax on the conversion, mark your calendar now to allow plenty of time to meet the October 15, 2014, deadline for recharacterizing (i.e., undoing) the conversion.

Reporting losses on stock sales

Be aware of important deadlines regarding trading date closings. A trade to sell a long position must be executed by the close of the last trading date of the current year. Similarly, a trade to sell a short position must be executed so that it settles by the last trading date of the current year.

Retirement planning

Review your retirement plan allocation and contribution elections. If you’re not taking full advantage of any matching features or potential tax benefits for maximizing your contributions, now is the time to evaluate your ability to do that. Also, when it comes to qualified savings, assessing your allocation to ensure that it’s still in balance and pursuing your objectives will help you start the New Year off on the right foot.

Taking stock of savings

Did you set savings goals for the current year? Make a realistic assessment of how well you’ve met those goals and think about your goals for the upcoming year. There’s no reason why you can’t make some financial resolutions along with your other new year’s vows. If you determine that you are off track, let us help you develop and monitor a financial plan.

Taxes, taxes, taxes

RMDs and estimated taxes. If you’re turning 70½, you must devise the best strategy for taking required minimum distributions from your traditional IRA and 401(k) plans.

Be sure to take potentially large bonuses and a prosperous business year into account when considering your taxes for 2013. You may have to file estimated taxes or increase the upcoming January payment.

Managing marginal tax brackets. In 2013, the IRS added a 39.6-percent tax bracket, a 20-percent capital gain tax bracket, and a 3.8-percent Medicare tax on net investment income. Moreover, those in higher marginal tax brackets may be subject to an additional 0.90-percent withholding tax, as well as limits on and phase-outs of itemized deductions and personal exemptions.

If a taxpayer is on the edge of the new tax thresholds, he or she may be able to defer or accelerate income or deductions to help minimize taxes.

·         The 39.6-percent marginal tax bracket affects taxpayers with taxable incomes in excess of $400,000 (filing single), $450,000 (filing married), $425,000 (filing head of household), and $225,000(filing married but separately).

·         The 20-percent capital gain tax rate applies to those in the 39.6-percent marginal tax bracket.

·         Itemized deductions and personal exemption phase-outs affect those with adjusted gross incomes above $250,000 (filing single), $300,000 (filing married), $275,000 (filing head of household), and $150,000 (filing married but separately).

·         The 3.8-percent surtax is applied on the lesser of net investment income or the excess of modified adjusted gross income over $200,000 (individual) and $250,000 (married filing jointly).

Too little or too much withholding. Also of note is that workers with gross earned income of more than $200,000 may have had too little or too much tax withholding in 2013. Employers may have withheld an additional 0.90-percent tax on incomes over $200,000 without regard to the taxpayer’s withholding status, which would put these taxpayers at a higher threshold. Other taxpayers may have had too little withholding because of other income unknown to the employer due to second jobs. Employees should plan to take a credit on their returns or pay additional taxes.

Estate planning

To help ensure that your estate plan stays in tune with your goals and needs, you should be reviewing and updating it on an ongoing basis. If you haven’t done so during 2013, take time before the end of the year to:

·         Check trust funding

·         Account for any life changes

·         Update beneficiary designations

·         Review trustee and agent appointments

·         Review provisions of powers of attorney and health care directives

·         Prepare for the distribution of personal effects

·         Get a firm understanding of all of your documents

Consider seeking professional guidance

The above list of financial planning dates is not exhaustive. We are happy to go over deadlines that are most relevant to your personal situation, so you can better prepare for the coming year.

Whatever your planning may entail, we wish you a happy, healthy, and prosperous 2014!

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This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code, or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

Tips and Tricks for Smart Holiday Shopping

Tips and Tricks for Smart Holiday Shopping

Presented by Tim Traub

As the end of the year approaches, shopping malls and online stores will soon be bustling with bargain hunters on a mission to check items off their gift lists. Yes, the holidays are just around the corner, and, according to the National Retail Federation, the average person will spend about $740 on presents, decorations, and the like this year. Although the thought of crowded parking lots, long lines, and sold-out items may be daunting, these smart shopping strategies can help you ease the stress of gift-buying.

Plan ahead

It may seem obvious, but planning ahead is key to efficient holiday shopping. Knowing what you want from different stores and how much you can spend will help you make quick work of your list. Here are a few ideas for getting organized before the rush starts:

·         Make a detailed list. There’s nothing worse than forgetting someone and having to make a last-minute trip to the mall. In addition to friends and family members, think of any coworkers, teachers, or neighbors you’d like to acknowledge this year.

·         Set a budget. Before you spend a dime, ask yourself how much you want to shell out overall. (Be sure your total is realistic.) Then, break out costs for each individual on your list.

·         Do your research. It’s helpful to compare products and prices online before heading to the mall. Making a game plan for what you want to buy and where can help you avoid rushing from store to store looking for the items on your list.

·         Get there early. Some retailers program their registers the night before a sale, so shopping after 6:00 p.m. the night prior can be a great way to take advantage of advertised discounts before the crowds descend.  

Try shopping online

Visiting brick-and-mortar stores during the holiday season often means waiting in traffic and searching for scarce parking spaces, all to get inside and wait in another line at the register. Although some of the best deals may be found in-store, buying gifts online has its advantages. Here are some factors to keep in mind:

·         Consider the time value of money. It’s safe to say that browsing products online is much less time-consuming than wading through crowds at the mall, especially if you’re not sure what you want. Staying home and hopping on the Internet can save you time (and gas money), at least until you’ve figured out what you’re buying and where.

·         Weigh your shipping options. Many online retailers can ship your purchase to a different location than the billing address. This can be a useful feature if you’re traveling and want to send gifts directly to your destination. Some merchants also let you buy online and pick up the item at the store.

·         Check return policies. Stores’ policies vary significantly, so before you buy anything online, get the details on returning and exchanging items. For instance, who pays for return shipping? Can you return an item you order online to your local retail store?

·         Stick with trusted retailers. It’s best to do business with merchants you know and to avoid any too-good-to-be-true online promotions. If you’re interested in an item on an unfamiliar website, look for the site’s security and privacy seals or check out other customers’ experiences at www.bizrate.com.

Find creative ways to save money (and time)

Whether you plan to shop online or at the mall, saving a little money here and there can really help stretch your holiday budget. For example:

·         Compare prices on the go. If you need to check prices while you’re out and about, consider using a smartphone app like Red Laser, which lets you scan a product to see if it’s available anywhere else for less.

·         Use cash. Shoppers who pay with credit cards are likely to spend more than those with cash in hand. It’s all too easy to buy on impulse this time of year, and making cash purchases may help deter you from blowing your budget.

·         Outsource gift wrapping. Many charity groups offer gift-wrapping services in malls and stores. For a small donation, you’ll save yourself some time, not to mention the cost of supplies like ribbon and tape.

·         Don’t overlook coupons. During the holidays, coupon specials abound. Browse your local newspaper supplements, and look online for deals from retail stores you plan to visit. Apps like Coupon Sherpa can even deliver discount offers to your phone.

Make a post-shopping to-do list

After you’ve finished your shopping, there are still a few things you can do to avoid last-minute hassles:

·         Keep track of purchases. Save your store receipts and print out confirmations for online purchases. This can come in handy when checking your credit card or bank statements, and also if you need to return or exchange items.

·         Include gift receipts. As you wrap your packages, enclose a gift receipt so recipients can easily return the item, if necessary.

·         Get to the post office ASAP. If you plan to mail any packages, it’s best to do so as soon as your shopping is done. The U.S. Postal Service and other shipping companies only get busier and busier as the holidays draw near.

Here’s to a more peaceful season!

The holidays shouldn’t be stressful, but they certainly can be if you wait until the last minute to finish your shopping. We hope these tips will help make your preparations a bit more pleasant—and give you more time to celebrate with your loved ones!

Baby Boomers on the Move: What to Consider If You Are Planning to Relocate

You’ve worked hard and are nearing retirement age. Like many other baby boomers, with your kids out of the house and a surplus of empty space and time, you may be thinking about moving. To help you make up your mind—or make your transition go as smoothly as possible—we’ve compiled this list of tips.

Is downsizing right for you?

Downsizing in retirement may seem like a pretty clear-cut decision, but before taking any action, consider the following:

·         Can you take care of your current home? Even if the answer is no, moving is not the only solution. Other options include renovations to make your house more accessible, hiring help to do housework, or having a family member or friend move in with you.

·         Can you get income from your current home? If the only reason you are selling your home is to generate income for retirement, you may want to mull over these options:

o   Home equity loan or line of credit. Put your home up as collateral and receive a loan in return, possibly to finance home improvements.

o   Reverse mortgage. With this option, you take a mortgage out on your home, and, in return, the mortgage holder gives you cash until you decide to sell. Please note: Because reverse mortgages can be costly, they should be used as a last resort, and proceeds from reverse mortgages should never be used for investing in securities.

o   Renting unused rooms. Rent any unused rooms in your home to generate extra cash flow.

Money matters—searching for a lower cost of living

In the past, the main reason that retirees planned to move was climate, as they hoped to enjoy warmer weather more often. But in the wake of recent economic events, the cost of living and health care expenses have moved to the top of the list for why baby boomers want to move. If this is the case with you, you may want to weigh the following information and possibilities:

·         Paying down debt. Selling your current home and purchasing a more affordable one at a lower rate of interest can put extra cash in your pocket. Use the money to pay down debt or build up savings.

·         Tax-free gains. Married couples can exclude up to $500,000 in capital gains from the sale of their primary home ($250,000 for single sellers). In order to do so, you must have owned and used the home for at least two out of the last five years and may not have excluded a gain from the sale of another home within the past two years.

·         Cost of living. Research income, sales, property, estate, and inheritance taxes. Don’t be fooled by a low number for one category—typically, another tax will be higher to compensate for it. Property taxes are usually the most costly, so pay special attention to them. Please note: Tax credits and homestead exemptions may be available. Talk to your tax advisor before making any decisions.

o   Compare cost of living data across the country at www.bestplaces.net/col/.

o   Compare state and local taxes at www.retirementliving.com/taxes-by-state.

o   Find out which states are the most tax friendly at www.kiplinger.com/tools/retiree_map/.

·         Health care expenses. Find the prices and terms for medical facilities and insurance providers by checking www.healthcare.gov and www.medicare.gov.

·         Less space means less stuff means lower expenses. When moving to a smaller home, you can’t take all of your belongings with you. You may be able to earn a substantial amount of cash on the sale of items that you no longer need or want. You may also be able to cut future spending if you move to a smaller home because you will have less space to fill.

·         Time is money. Moving to a smaller residence means significantly less time spent cleaning—and more time for leisure or work. A smaller home can also release you from the responsibility of hosting family gatherings, saving time on preparation and cleanup.

·         Utilities. A smaller house means less money spent on heating, cooling, and electricity.

Looking to stay active and involved

Many baby boomers intend to continue working past age 65. But even if this is not the case, they still want to stay involved. For these reasons, college towns have become an extremely popular choice for retirees. If you are hoping to stay active in retirement, consider:

·         Recreation. Does the community offer arts, cultural, and outdoor activities? What about fitness classes, golf courses, beaches, sports leagues, or clubs to keep you busy?

·         Proximity to services. How easy is it to get to the nearest major city, airport, hospital, or gym? Are the public transportation services adequate? How far are you from family and friends? If you plan to continue working, how long would your commute be?

·         Job opportunities. If you are part of the 73 percent of baby boomers who plan to work during retirement, check out this list of employment websites: www.retirementliving.com/jobs-for-seniors.

·         A condominium. This housing option offers the benefits of a community of other retirees, organized activities, and home maintenance. Beware, however, of the monthly assessment fees that cover maintenance services.

Moving is never simple, but it can help you simplify your life. By following the tips offered here, you may find the perfect place to relax and enjoy your well-deserved retirement. Be sure to talk to your financial advisor about any questions you have related to moving, so you can better prepare for this exciting transition.