So Baby Boomer: Life Tips

Micropolitan Retirement Homes

America's almost 40 million Baby Boomers are nearing retirement age, and many of them are headed to micropolitan areas rather than large cities.

Retirees don't need to be close to metro employers, but they do want to be within driving distance of a major city and airport.  The census recently began paying closer attention to urban-style growth pockets, like the nation's 573 micro areas, which are outside larger metro areas. 

Many Baby Boomers are retiring early and moving away from the Northeast, where the cost of living is higher, said David Denslow, a University of Florida economist.  "It becomes very tempting for them to sell a house that has doubled in price up in Boston," Denslow said.

Denslow also said that more costly land prices in the Northeast and South Atlantic region are sending retirees to places farther away from metro areas.  "They can live farther out because they're not commuting in to work every day," Denslow said. "And being farther out, the land is quite a bit cheaper."

Source: Orlando Sentinel, October 30, 2005

Spoiled children to influential adults

American Heritage (October 2005 issue) offers a profile of the Baby Boomer generation that's been called a "distinctive tribe with its roots in time, rather than place or race."

"Relatively speaking, to grow up a middle-class American child in the 1950s meant wanting for nothing," the magazine says, referring to the kids of parents who grew up in the Great Depression and World War II. The boomers were also the students who "ultimately compelled the nation to confront inequalities that [earlier generations] hadn't" in the civil rights movement.

American Heritage notes that this was the generation that grew up along with TV, watching "family sitcoms like "The Adventures of Ozzie and Harriet," "Father Knows Best" and "Leave It to Beaver," all of which idealized the carefree, child-centered world of suburban America."

Now this generation is moving from working life to a different kind of retirement than the generations before them.

Source: Tom Walker, Cox News Service, October 25, 2005

Hepatitis C

Nearly four million Americans have Hepatitis C, a potentially deadly virus that infects the liver.

"Many of them are Baby Boomers who have no idea how they contracted the disease," says Dr. Melissa Palmer, a leading liver specialist who treats hepatitis C in her offices on Long Island. "In many cases hepatitis C remains silent and undiagnosed for decades. Many people getting sick today contracted the virus from the mid-'60s through the '80s, when infection rates skyrocketed."

According to the Centers for Disease Control and Prevention, the number of deaths due to hepatitis C is expected to triple within the next 10 years. But the virus can be treated.  "We can successfully treat more cases of hepatitis C than ever before," says Dr. Palmer. "In the last five years treatments have improved so we can now eradicate the virus more than 50 percent of the time."

Source: Genetic Engineering News via Newstream.com, October 26, 2005

Exercise Tips

Here are some tips for how to avoid injury while exercising as Baby Boomers age.

-Warm up and stretch first.  Muscles are not as flexible as they used to be.

-Don't be a "weekend warrior." People who exercise three to five days a week are at less risk for injury that someone who does nothing all week then goes full throttle on the weekend.

-Take lessons, even if you're not a newcomer to a sport.  Proper form and instruction reduce the chance of such injuries as tendonitis or stress fractures.

-Invest in good equipment.  Select the proper shoes for your sport, use them only for that sport, and replace them when they lose support or the treads show wear.

-Listen to your body. Pain, swelling and stiffness can be signals it's time to modify an exercise routine.

-Use the 10 percent rule. Increase activity levels in increments of no more than 10 percent per week, whether you're calculating miles walked or pounds lifted.

-Strive for balance. To prevent injury, and boredom, exercise regimens should include cardiovascular exercise, strength training and flexibility.

-Add new exercises with care. Devoted exercisers and sedentary beginners alike can get injured if they take on too many activities at once.

-Anyone who has had injuries such as tendonitis, arthritis, stress fracture or low back pain should work with an orthopedic surgeon on a fitness routine that promotes good health and minimizes injury risk.

Source: American Orthopedic Society for Sports Medicine, American Academy of Orthopedic Surgeons distributed by The Associated Press.

Households are doubling up

Granny flats, second master bedrooms and guest homes make up a growing trend in upscale housing developments.

According to the latest U.S. Census data, the number of households with three or more generations living under one roof grew 38% from 1990 to 2000, vs. 8% for those with just two generations.  Doubling up is most common in states where home values have soared as well as in places with large populations of immigrants from countries accustomed to multigenerational living.  Extended houselholds now account for 5.6% of California's total vs. almost 4% nationally.

Families say that by living together they're better able to meet evolving needs, from child care to eldercare.  If you're thinking about giving mom and dad the guest room or suspect you may soon be sharing close quarters with a boomerang child, here are some tips from families living in extended households:

Divide the decision-making in making rules for the kids and who has the final say over how the house is organized.

Be flexible and don't fight every battle.

Communicate regularly and when arguments occur, take time to cool off.

Think creatively to make living comfortable for all.

Source: BusinessWeek, October 31, 2005

Investing in second homes

Baby Boomers are still seeking a second, third or even a fourth home for investment purposes.

And despite talk of an impending break in the housing market bubble, those who own or want to own a second home are steadfast in their decision.

In 2004, nearly 23 percent of all homes purchased were for investment purposes, while 13 percent were purchased for vacation use.  And between 2003 and 2004, there was a 16.3 percent increase in second-home purchases.

“A number of people who are buying second homes for investment purposes are disenchanted with the stock market,” said Dolores Conway, an associate professor at the University of Southern California Marshall School of Business. “And some of the creative financing has made it easier for people to get into second homes.”

Zero-percent-down home loans and relatively low interest rates have contributed to the popularity of owning a second home.  Cash-laden Baby Boomers are yet another reason why second-home sales are strong despite an otherwise flat-lined economy.

Many boomers are coming to a point in their lives where sinking more money into mutual funds and 401(k)s isn't as appealing as owning something tangible.  Such is the case for John Dorio, 44, who recently plunked down $1.25 million to buy a 3,000-square-foot home on the water in Lake Arrowhead.

“I don't want to sound materialistic, but it's nice to have something tangible after working so hard for years and years,” said Dorio, a mortgage broker from Orange County. “I also did it for the investment. Meaning, it's something the kids will be able to use in the future.”

Baby Boomers are prime candidates for 1031s because many already own second properties.  And if they don't now, Realtors are confident they will in the next decade.  When Baby Boomers start retiring, we're going to see the largest amount of money spent in the history of our economy.

Source: The Day Publishing Co. October 21, 2005

Buying homes before interest rates soar

There is a rush to buy empty nest/retirement homes before higher interest rates reduce Baby Boomers' purchasing power.   

Real estate buyer's agents say Baby Boomers who have waited to buy their ideal empty nest home (near a golf course and in a community where they can exercise, volunteer and enjoy their second life) are now seriously shopping before mortgage interest rates rise.

Today, it is important to search for a home on a local multiple-listing service ("MLS") database and a national "for sale by owner" MLS database.  There are more than 1,000 local MLS's in the U.S.  Most are owned by local organizations under the umbrella of the National Association of Realtors.  Large, established brokers usually dominate the boards of these groups and are attempting to maintain their middleman 6% real estate fees by relegating listings by discount brokers to a less prominent status while keeping sales by owners out of the local MLS.  That is why you want to check out for-sale-by-owner MLS for the best deals.

According to a survey last year by Del Webb, more than three-fifths of Boomers say they're emotionally prepared for finding their new empty nest home and more than a third believe their marriage will improve now that the kids have left home.  With more time to talk to your spouse and fewer things to argue about, Boomers associate the empty nest with a promising stage of life.

Source: The Wall Street Journal, October 12, 2005

Aging Eyes

Greek for "aging eye," presbyopia is a progressive condition that causes near vision to fade with age. 

Some 90 million Americans age 40 and over either have presbyopia or will develop it in the next decade, and many have had LASIK surgery to correct other vision problems earlier in their lives.

"Those Baby Boomers who were among the first to enjoy the benefits of LASIK to correct the vision problems of their youth now face the gradual reduction of near vision as they age," said Dr. Daniel S. Durrie, M.D., lead investigator of the study, who presented his findings at the AAO Annual Meeting in Chicago.  "Fortunately for these post-LASIK patients, initial results from this study indicate NearVision CK may be a good treatment option."   

NearVision CK is a quick (three-minute) treatment that uses radio waves, instead of a laser or a scalpel, to bring near vision back into focus without cutting or removing any tissue.  Boasting one of the highest safety profiles in the refractive market, NearVision CK already has U.S. Food and Drug Administration approval for the treatment of presbyopia and hyperopia (farsightedness).  Refractec is seeking expanded approval to improve near vision in post-LASIK patients.  The Phase Three multicenter post-LASIK clinical trial will involve 150 patients who, other than suffering from presbyopia, had normal vision.

SOURCE: Refractec, Inc.,  http://www.refractec.com

Flexibility with a fat wallet

With kids gone, second careers starting and divorces common, Baby Boomers are open to new experiences and purchases.

The 77 million Boomers' collective wallet will only get fatter as they continue working.  As a group, people age 50 to 60 are flush with more than $1 trillion of spending power a year, about double the spending power of today's 60-to-70-year-olds.  And people now in their 50s may well work longer than any previous generation, with more than 60% of men age 60 to 64 expected to be in the workforce in 2012.

They are likely to be vigorous consumers as they empty the nest, take on new jobs, relocate, go back to school, start a second or third career, remarry, pursue new hobbies and inherit money from their savings-minded parents.

Affluent Boomers seek homes near golf courses and communities where they can exercise, volunteer, operate a home-based business and enjoy their second life.  Today's fiftysomethings' flexibility stems from the fact that they came of age in the 1960s culture of unlimited possibility.  "This group grew up in a time when novelty and experimentation were higher on the priority list than during the prior generation," says Yankelovich President J. Walker Smith.

According to a survey last year by Del Webb, more than three-fifths of Boomers say they're emotionally prepared for finding their new empty nest home and more than a third believe their marriage will improve now that the kids have left home.  With more time to talk to your spouse and fewer things to argue about, Boomers associate the empty nest with a promising stage of life.

Source: BusinessWeek, October 24, 2005

Starting New Careers

Americans' dreams of early retirement, interrupted by the 2000 stock market collapse, live on.

They have been revived in part by the economy's rebound, soaring home values and the ambitions of Baby Boomers, although often accompanied nowadays by the realization that they still will need additional income.    

A Merrill Lynch survey last year found that 77 percent of more than 3,400 Baby Boomers polled planned to work in some capacity in their retirement, with second careers in the mix for some.  Money worries aside, starting a new career is within reach for most people, said Steve Vernon, author of the retirement book "Live Long and Prosper."

"The barriers are more psychological than financial," said Mr. Vernon, a consultant of Watson Wyatt Worldwide.  "People get used to a certain level of [guaranteed] income.  Also, a lot of people can't seem to find the motivation to make a change."

Source: The Washington Times, October 12, 2005, www.WashingtonTimes.com