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Retirees Beware: 7 Risks to Your Retirement Income

2018-11-27T07:01:00

(BPT) – Thirty years ago, most Americans could safely rely on Social Security and a pension to provide the income they needed in retirement. That’s no longer the case. Today, you carry much of the responsibility for creating your own retirement income plan.

As Americans live longer, active lives, retirement is increasingly no longer an end stage but instead a transition point. That presents a problem, as it creates greater risk of outliving your retirement savings. An income mindset and a comprehensive retirement income strategy are essential to overcome this risk and live your ideal retirement lifestyle.

Whether plotting your own course or working with a qualified financial professional, you’ll need to develop a retirement income strategy that ensures your retirement portfolio lasts your lifetime and manages these seven key risks to retirement income:

1. Market Volatility

Market trends are one of the most important factors in ensuring assets last throughout retirement — perhaps second only to your withdrawal rate from retirement savings. You’ve likely spent decades saving for retirement, but once you stop contributing and start withdrawing, your nest egg becomes more susceptible to market risks. Chances are most retirees will have to live through at least one bear market. In fact, the average retiree will likely face three to five such bear markets in retirement. The average bear market lasts 14 months with an average loss of 33 percent. Assuming no withdrawals are taken from their retirement savings, on average, it will take an investor 25 months to recoup those losses. If you are retired and taking withdrawals from your retirement accounts, however, it could take you longer to recoup those losses — or those losses could become permanent.

2. Sequence of Returns

During the accumulation phase of retirement planning, the sequence of returns doesn’t much matter — it’s the average rate of return that is important. When withdrawing during retirement, however, the sequence of returns matters greatly. Beginning your retirement in a time of positive market performance increases the chances that retirement savings will last a lifetime. However, negative market returns in the early years of retirement will likely require you to liquidate more investments to provide the income you need — raising the likelihood of depleting retirement savings sooner. In the latter case, holding off on liquidating assets, if possible, can help extend your retirement resources.

3. Interest Rates

While interest rates have gradually risen over the past 12 months, they remain low enough to create additional pressure for the average retiree to generate the income they need to live comfortably in retirement. In the past, many could rely on an interest rate of 5 percent or more on investments in secure assets like U.S. Treasury notes. In today’s lower interest rate environment, however, retirees might need to withdraw more from their retirement savings to make up the shortfall caused by low interest rates or look to invest more aggressively in search of greater yields.

4. Inflation

Inflation risk is purchasing power risk — that is, the chance that investment income today will not be worth as much in the future. Inflation is typically measured by the Consumer Price Index (CPI) produced by the United States Department of Labor (DOL). Since 1983, the CPI has increased annually by 2.6 percent. For retirees, however, the DOL has another consumer price index, the CPI-E, which has increased by 2.8 percent on average each year since 1983. Why the difference? Rising healthcare costs, which run 70 percent higher for the elderly, have driven increased demand on retirees’ income and are most damaging in later years of retirement.

5. Withdrawal Rate

You’ll need to be mindful of how much you withdraw from your accounts each year, seeking a safe and sustainable withdrawal rate that runs little probability of depleting retirement savings over your lifetime. The right withdrawal rate is dependent on several factors including age, length of retirement, asset allocation, market conditions and interest rates. A 4 percent withdrawal rate was long viewed as safe and sustainable. In light of people living longer in retirement and a prolonged low interest rate environment, new research suggests a sustainable rate may be closer to 3 to 3.5 percent for most retirees.

6. Investor Behavior

Investor behavior has a profound impact on portfolio performance. Investors are often influenced by their emotions — from excitement and euphoria to fear or panic — which can disrupt a long-term investment strategy. We have an aversion to loss that can affect our willingness to stay in the market. Investors will often get in and out of the market at the wrong time — investing when stock prices are up and pulling out when they fall. Case in point, according to DALBAR, over the past 10 years, the S&P 500 gained an average of 8.5 percent while the average equity mutual fund investor earned only 4.9 percent. To benefit from any potential long-term market appreciation, you should consider remaining invested through difficult times.

7. Longevity

Longevity risk is the risk that you will outlive your money. When creating a strategy for transitioning savings to retirement income, the issue of longevity must be addressed. A 65-year-old married couple has nearly a 50 percent chance that one member will live to age 94 and a 25 percent chance to age 98. Of course, the challenge is how to generate income that will last 30 years or more.

Creating income security and ensuring a successful and happy retirement is no easy task. But there are plenty of resources available to help, from financial professionals who can help you develop your unique income strategy to checklist resources like those available from the Alliance for Lifetime Income.

You’ve been saving and preparing for retirement, perhaps for your entire working life. As you begin to transition into the longest vacation of your life, you should make sure that your retirement income plan is structured to withstand these seven common risks.


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Eating healthy, eating safe

2018-11-27T06:01:34

(BPT) – You try to eat healthy, but the one thing you can’t control is who has been handling your food and whether they are practicing adequate food safety. Each year, foodborne illnesses sicken close to 50 million Americans and lead to more than 130,000 hospitalizations and 3,000 deaths. A lot of these illnesses are caused by simple things like restaurant employees’ failure to properly wash hands, cooking surfaces and fruits and vegetables.

Foodborne illnesses present a greater challenge to certain groups of people with reduced immunity, such as children younger than age 4 and people older than age 50. Food can also become compromised much earlier in the production process, and for this reason food producers are using a variety of means to keep our food safe. 

One approach uses the concept of hurdle technology in which a variety of mild steps (hurdles) are used to limit microbial growth at each stage of production. These include combinations of weak acid treatments with gentle heating and reduced humidity, or alternating low heat and chilling treatment. The fresh-bagged salads you see at the grocery store are a good example of this. Vacuum-packed products, prepared under rigorous hygienic conditions and heated at lower temperatures, are another. 

Other technologies include the addition of antimicrobial agents such as enzymes and other natural compounds that inhibit the growth of bacteria or prevent oxidation. Salt too is a very effective anti-bacterial in food. In fact, it is the oldest known food preserver. Salt is widely used in the production of all cheeses, cured meats and many fish dishes. 

Salt preservation works by influencing the amount of water that all microorganisms require to survive and grow. The use of salt in controlling water means that the levels of other preservatives or processes can be reduced. This means that microbiological safety can be achieved with reduced heat, acidity and other preservatives. This results in a product of vastly improved taste and nutritional quality because of the improved retention of other nutrients. 

However, as the federal government pushes companies toward lower salt content there are some concerns that it could affect food safety and increase the amount of preservatives that must be used. Many prefer salt as the more natural choice. 

Food safety is an ongoing challenge for an enormous and complex food system, and although challenges continually arise, exercising caution and attention in food purchasing, storage and preparation will minimize the risks. Remember to not only eat healthy but to also eat safely.


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Laughing or crying uncontrollably? 6 signs you or your loved one may need to see a doctor

2018-11-26T14:01:00

(BPT) – Laughing and crying are normal human responses to emotion, but when it becomes sudden, frequent, uncontrollable and doesn’t match how you feel, it might be a sign of a medical condition called PseudoBulbar Affect (PBA).1

What is PBA?

PBA causes uncontrollable laughing and/or crying that occurs suddenly and frequently. Symptoms of PBA happen as a result of another neurologic condition — like Parkinson’s disease; stroke; Alzheimer’s disease (AD) and dementia; multiple sclerosis (MS); and amyotrophic lateral sclerosis (ALS), or Lou Gehrig’s disease — or traumatic brain injury.1

A person having a PBA crying episode may cry when they don’t feel sad or when they only feel a little bit sad. Someone having a PBA laughing episode may laugh when they don’t feel amused or when they only feel a little bit amused.1

What is it like to care for someone with PBA?

As a long-time caregiver of her husband, Jim, who has been living with Parkinson’s disease for more than 15 years, Lori is well-equipped to help him manage the ups and downs of the disease. But when she noticed Jim repeatedly laughing or crying at unusual times, even when they weren’t discussing or watching anything funny or sad, she knew she had to discuss it with his doctor.

“When he would laugh, I thought he was laughing at me, and when he would cry, I didn’t know what he was crying about or why,” Lori said.

Jim’s doctors initially thought the laughing and crying could be related to his Parkinson’s disease or to an anxiety disorder or depression. For several months, Lori watched helplessly as Jim continued to uncontrollably laugh and cry at unusual times without knowing why or how to help. Then she heard about PBA and discussed it with Jim’s doctors, and he was officially diagnosed the same year.

Jim and Lori feel that Jim’s frequent PBA episodes had a significant influence on their relationship with one another.

“We watch the news and he will start crying,” Lori said. “If I get mad at him, he will laugh at me. He doesn’t like to go out and socialize, especially with people he doesn’t know.”

Who is affected by PBA?

According to one study2, approximately two million people in the United States with certain neurologic conditions or traumatic brain injury have PBA and the number of people who have symptoms suggestive of PBA may be as high as seven million.

What PBA signs and symptoms can you look for in your loved one?

How do you know if you or someone you care for should see a doctor to be evaluated for PBA? In people with brain injury or other neurologic conditions, six signs of PBA are:

  1. Crying when they’re not sad, or only a little sad, despite how they feel.
  2. Laughing at inappropriate times, when nothing’s funny or only a little bit funny.
  3. Crying and/or laughing suddenly, frequently and uncontrollably.
  4. Crying and/or laughing causes embarrassment or makes them feel like they stand out.
  5. Crying and/or laughing causes them to feel frustrated.
  6. Crying and/or laughing has other major impact on their life, such as on relationships and social activities.

With the PBA diagnosis, Lori and Jim have a better perspective on the laughing and crying episodes, and they have been able to make adjustments in their daily life.

“At the beginning, I would take it personally when he would laugh at me,” Lori said. “Now, I have to really be in tune or I can’t tell when his laughing or crying is in line with his emotions.”

If you or someone you care for has an underlying neurologic condition and has sudden, frequent, uncontrollable episodes of crying and/or laughing that don’t match how they feel, it’s important to talk to a doctor. A short quiz is available online at www.pbainfo.org/ to help start a conversation.

References

1 Miller A, Pratt H, Schiffer RB. Pseudobulbar affect: the spectrum of clinical presentations, etiologies and treatments. Expert Rev. Neurother. 2011;11(7);1077–1088.

2 Work S, Colamonico JA, Bradley, WG, et al. Pseudobulbar affect: an under-recognized and undertreated neurological disorder. Adv Ther. 2011;28:586-601

MLR-PBA-US-0117-1118


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Holiday baking and wine pairings

2018-11-26T09:01:00

(BPT) – There are few holiday traditions as sweet as baking a selection of treats to share with family and friends. This is especially true for the California winemaking family the Mondavis as it is for families across America. As the season begins, Janice Mondavi, wife of third-generation CK Mondavi and Family co-proprietor Marc Mondavi and their four daughters, Angelina, Alycia, Riana and Giovanna, always set aside time to gather for an afternoon of holiday baking.

Their Grandma Rosa was an incredible cook, and the tradition continues through the generations. It should surprise no one that in this household, instead of the classic combination of cookies and milk, the Mondavis pair their cookies with wine.

“Enjoying a wine with dessert is common, so why not include holiday treats?” says Janice Mondavi. “The key is to match the sweetness of the cookie, bar or brownie with the right wine, so the sugars and flavors don’t overwhelm each other.”

Here are some suggestions for classic holiday baking treats with wine pairings from the Mondavi family.

Snickerdoodles and Sauvignon Blanc

A classic holiday cookie, Snickerdoodles get their unmistakable soft, chewy texture and tangy flavor from cream of tartar. The cinnamon sugar topping adds sweetness and a little heat. Refreshing Sauvignon Blanc, with its subtle aromas of lemon and kiwi and notes of savory herbs, perfectly complements these sweet-tart cookies.

Jam thumbprint cookies and Merlot

Fruit flavors make jam thumbprints and Merlot a delicious pair. Merlot is plush, with hints of cherries, plums and oak. The soft fruity finish enhances the flavor of strawberry, raspberry and lingonberry jam, while the buttery dough is a match for the silky smooth wine.

Lemon bars and Chardonnay

A bright Chardonnay enhances the zesty, tangy sweetness of a lemon bar. Medium-bodied, with hint of sweet spice, citrusy Chardonnay meets the cookie in a mouthwatering match made in vineyard heaven.

Chocolate Chip Biscotti with Red Blend

Wine and cheese are delicious together, but wine and a touch of chocolate? Extraordinary. However, not all red wines pair with chocolate. A full-bodied, fruity red wine boosts the flavor of sweet biscotti with chocolate chips. The CK Mondavi and Family Red Blend, combining the finesse of Merlot, the structure of Cabernet Sauvignon and the boldness of Malbec, with flavors of black cherries and plums, is the perfect choice.

Sugar cookies and Pinot Grigio

This versatile holiday cookie can take many forms, from a simple sugar cookie to a frosted, decorated masterpiece. The intense sweetness of a sugar cookie needs a light to medium-bodied partner, like Pinot Grigio, with its aromas of wildflowers, peaches and pears, plus a touch of spice and bright acidity.

Almond Biscotti with Cabernet Sauvignon

Buttery almond biscotti can stand up to a full-bodied, powerful pairing. Deep, rich Cabernet Sauvignon filled with cherry and blackberry flavors, a hint of oak and a long velvety finish is the perfect accompaniment.

The holiday baking tradition is a time for family, friends and festivity in the Mondavi household and families nationwide, and the perfect wine pairings enhance the whole experience. So, when you’re entertaining friends and family for the holidays this year, bring out a plate of cookies and a selection of wines to enjoy a new kind of holiday treat.


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Why you must insure the ‘little’ things in life

2018-11-26T09:01:00

(BPT) – The gift-giving season is upon us once again! Whether you’re buying your loved ones a new pet, some fancy jewelry or the latest mobile phone for the holidays, one thing is for sure — these gifts come with costs and complications that can add headaches in the long run. For instance, new pets will inevitably need visits to the vet, electronic devices are often accidentally damaged, and valuables such as jewelry, art or cameras can get stolen or misplaced frequently.

Therefore, this holiday season, investing in pet insurance, device insurance and valuable personal property insurance is the thing to do, so that the “little” things in life do not turn into big problems when things don’t go quite as planned. Here are a few reasons why you should consider purchasing insurance this holiday season:

1. Pet insurance: Coverage is flexible and nondiscriminatory.

A major bonus of pet insurance is the flexibility associated with it. For example, unlike health insurance policies for humans that often require you to use a specific group of providers, pet insurance policies allow you to choose the veterinarian you prefer. Likewise, pet insurance does not favor certain ages of pets. You can choose to begin insuring your pet at any time, whether that is at the time of adoption/purchase or many years later when your pet reaches maturity. Perhaps most compelling is the fact that many pet insurance policies reimburse owners at least 3/4 of costs after deductibles. This is a significant chunk of change, especially when a seemingly small procedure, such as having a foreign object removed from a pet’s stomach, can cost nearly $800.

2. Device insurance: Accidental electronic device damage is all too common.

Approximately one-third of all users damage their cell phone within the first year of owning it, and as we all know, repairing or replacing these devices can be quite pricey. While a phone warranty typically does not cover loss or theft, many insurance providers offer protection plans that do and save you money to boot. USAA has partnered with ProtectCELL to offer a smartphone protection plan.

3. Valuable personal property insurance: Homeowner’s and renter’s insurance do not always cover valuables.

Many homeowner’s coverage policies have a certain limit for valuable items categories. For example, a typical homeowner’s policy may have a limit of $1,500 in coverage for jewelry. A valuable personal property policy provides coverage for higher-ticket items such as jewelry, silverware, fine art, stamps and coins, instruments, etc. that may not be adequately accounted for in other property policies. This type of policy also provides coverage for damage or loss, which is a major distinction from a homeowner’s or renter’s policy.

It is the smart and financially savvy decision to protect your purchases for loved ones this holiday season, especially when it comes to meaningful and valuable gifts such as pets, electronic devices and personal property, such as jewelry or art. To learn more about these varieties of insurance, visit: USAA.com.


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5 bathroom DIY projects for weekend warriors

2018-11-26T08:01:00

(BPT) – Dreaming of a bathroom update? Don’t wait until you can hire a professional to get the upgraded bathroom you desire. With some simple DIY projects, you’ll enhance your home’s value and functionality in just a weekend (or less).

Project 1: Shower overhaul

Many people are surprised it doesn’t take weeks for a shower update. Convenient all-in-one kits provide a custom look without the extra work. The American Standard Passage Custom Shower System is ideal for the DIYer, with stylish, textured, patterned walls, a sleek glass shower door, modern shower bases and storage options. The Shower Wall kit includes adhesive, color-matched sealant and pre-measured walls that easily adhere over existing wall materials, making it a time-saving project. Its designs mimic granite, stone or timber, delivering an upscale look at an appealing price. Door, bases and storage options are part of the Passage Collection but sold separately. Available at select The Home Depot locations nationwide and online.

Project 2: Smart toilets

Replacing a toilet can easily be completed in a day or two, making it a DIY project worth considering. Not only will the bathroom feature an updated focal element, but the right toilet design can reduce the future need to clean. Install the VorMax Plus self-cleaning toilet and watch as it freshens the toilet bowl with Lysol cleaner with every flush. The award-winning flushing platform has been independently verified to clean the bowl two times better than conventional toilets. So put away the rubber gloves and cleaning brush as they won’t be needed for a while.

Project 3: Modern flooring

Don’t forget to look down when considering smart bathroom updates. Replacing the floor is a simple weekend project that stands out. If you have dated vinyl flooring, consider installing modern vinyl options that are far superior to the designs of yesteryear. With planks that closely mimic wood or tile, the new look will impress. Ceramic or marble tiles are popular choices for bathroom flooring as well. For a luxury touch, consider taking a weekend to add in heated flooring elements. You can find kits at your local home improvement store that install under stone floors, so with the turn of a knob you transform chilly floors into toasty tiles.

Project 4: Stylish sinks

A new sink is a smart way to update a bathroom in minimal time. Designs with simplified installation, like Studio S bathroom sink faucets, make it an easy DIY task. With a modern look available in various finishes, the design is specifically created to be a time-saver to install. The Speed Connect Drain is a pre-assembled system that won’t need adjusting now or years down the road, plus the unique Speed Connect widespread installation system can be dropped in from the top for easy hose connections. No need to hire a plumber for a functional and fashionable new sink.

Project 5: Visual elements

To update a bathroom, consider visual real estate and all the extras that create a cohesive aesthetic. The walls typically take up the largest space in a bathroom, which means fresh paint can be a simple weekend project with big impact. Consider choosing a semi-gloss mildew-resistant paint for moist bathroom spaces. Continue the refresh by painting the ceiling a crisp white, which provides a clean look that also reflects light. Finally, analyze hardware and replace dingy or outdated knobs, handles and hooks. This provides a finishing touch that ties the entire space together.

With just one weekend you can transform a dated bathroom. These smart DIY projects increase value and enjoyment for all members of the household.


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Celebrating the Holidays with Recipes for Coffee Pleasure

2018-11-25T06:01:00

(BPT) – Whether it’s for a holiday brunch, a festive dessert course or an afternoon accompaniment for fresh-baked cookies, espresso-based beverages have become an integral part of seasonal entertaining. JURA offers an online recipe library of coffee specialties that are easy to make in JURA bean-to-cup automatic coffee machines such as the S8.

Cappuzino is a riff on cappuccino, enhanced with a touch of cinnamon. As an optional decorative flourish, use a culinary stencil to sprinkle cinnamon snowflakes or other designs on the milk foam that crowns the beverage. The S8 offers touchscreen technology to brew this drink more quickly and easily. Graphics and animation guide the user through the simple brewing process.

Café con Coco is served in a clear, conical glass, combining espresso and milk foam with chocolate sauce, evaporated milk and coconut syrup. The S8 features a new generation fine foam frother that takes the guesswork out of creating the best fine-textured foam, every time.

Café Mandolito offers cool refreshment that begins with ice cubes, espresso and amaretto in a shaker. The finishing touch is whipped cream folded into the coffee to create a frothy consistency. With the S8, individual preferences can be programmed quickly and easily, and the home screen can be tailored with the user’s favorite beverages.

Café Moretto features layers of taste created with espresso, milk, cognac, Kahlua, vanilla syrup and ice cubes. JURA’s Pulse Extraction Process (P.E.P.®) ensures optimum extraction time for the most flavorful espresso and ristretto. The Aroma G3 grinder is precise and twice as fast, preserving the aroma of freshly ground coffee beans. The bean container has a heavy-duty insulated lid for quiet operation and fresher beans.

With its integrated rinsing and cleaning programs, the S8 makes maintenance simple. A water filter provides optimum water quality, while protecting against limescale. JURA’s Intelligent Water System (I.W.S.®) automatically detects the filter.

The JURA S8 is the winner of two international design awards: the reddot Design Award 2018 and the iF Design Award 2018.

For a personalized online shopping experience with live, interactive product demonstrations and advice, book a session at JURA LIVE.

JURA offers the largest assortment of automatic coffee machines, with actual retail prices ranging from $799 to $5,499. For more information and recipes, visit www.jura.com.


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4 ways to recreate your entertaining space

2018-11-21T14:11:00

(BPT) – The holidays, the big game, New Year’s and everything in between: At this time of year there are plenty of reasons to invite family and friends to your home to entertain. In addition, there are also plenty of times — particularly on cold winter nights — when you just want to have a place you can go to get cozy, play a video game or watch a movie in peace.

Either can be an appealing option, but do you have an entertaining space that fits the bill? One where you want to spend your free time?

If the thought of your entertaining space has you sadly shaking your head no, the good news is there’s no reason you have to settle for a less-than-ideal solution. Like the events you use it for, your space can change as needed. To help you make the most of your space for all of the group and individual events you have planned, follow these tips.

* Control light. A common design tip for most spaces is to allow for lots of light. You may want that when everyone comes together to watch a game, but for those times when you want to watch a film or play a video game, a darker environment may be more immersive. To keep total control of the light in your entertaining area, invest in room-darkening blinds or dark curtains that can block out the sun when you crave darkness and let in the light when you don’t.

* Redefine your viewing experience. When people come to your home, they will often be there to watch something on the screen. That makes the right technology essential. The 4K UHD Laser Smart Home Theater CineBeam Projector is perfect for binge-watching the hottest shows, enjoying an immersive gaming experience or cheering on your favorite team. The projector itself can be ceiling mounted or set up to reflect onto any screen you want, and because it is empowered with Smart TV, you’ll have access to wireless streaming, Netflix and YouTube. What’s more, HDMI and HDCP input make your projector ready for Blu-ray and gaming consoles right out of the box. Whatever you want to do or watch, this project enhances your experience.

* Install a seating strategy. Every entertaining area has viewing seats that are less than ideal, and while a new projector can expand your viewing options, there’s still no reason to settle for second-class seating. If you’re planning to have a large group over on game day, a simple platform can provide your room with stadium seating and give everyone that at-the-game feel. If stadium seating isn’t for you, strive for an open arrangement and place display tables and other storage solutions behind seating when guests come over. Those items don’t need a good viewing angle anyway.

* Add a few extra comforts. It’s time to take customizing your entertaining space up a notch by adding a few elements that are uniquely you. From full bars to mini fridges, humidors and portable air conditioners or dehumidifiers, there are several tiny additions you can make to any entertaining area to make the space more enjoyable. If you’ve ever wished you had something nearby, now’s your time to add it. Think it over and you’ll see that the right additions can have a big impact on how you use the space and how much you enjoy it. Reshape your entertaining space today. With so many big events coming up, every moment you waste in reshaping your entertaining space is another opportunity missed, so don’t delay. Start visualizing your space for what it could be instead of what it is and you’ll be on your way to creating the entertaining space you’ve always wanted.

To learn more about the LG’s latest 4K UHD projector and to see it in action, watch the team from Inverse play this year’s hottest game on this one-of-a-kind technology at https://www.inverse.com/squad-up.