Bounce Back Financially

The Back Nine Staff: We know many of us on The Back 9 that have suffered financial loss after retirement and quickly slipped into depression, illness, loss of the relationship and worse. We thought this article is a good introduction to the subject and the quiz at the bottom from Rutgers University just might be worth your time. Let us know your thoughts after taking the quiz. After all, you are the real experts!

Financial Recovery in Later Life: Increase Your Resilience
By: Barbara O’Neill, Ph.D., CFP®, Rutgers Cooperative Extension, [email protected]

It is more difficult to recover from financial setbacks as one gets older. There is less time available to invest for retirement, recover money lost in the stock market, or receive “payback” from investments in human capital (e.g., job training or a college degree). Therefore, it is wise to consider ways to cope with traumatic life events, in case something goes awry and to increase one’s financial resilience.

What is “financial resilience”? It is the ability to withstand life events, both negative (e.g., loss of a job) and positive (e.g., birth of a grandchild), that impact one’s income and/or assets. Some financially stressful events, such as increased family size, unemployment, widowhood, disability, and health problems, affect people individually. Others, such as layoffs, plant closings, corporate scandals, recessions, stock market downturns, and acts of terrorism, affect large groups of people or society as a whole.

Financial resilience is essential because “stuff happens” in life, often unexpectedly. Below is a description of four common financial challenges that are especially difficult immediately before or during retirement:

Unemployment– Older workers faced with “involuntary retirement” (read: unemployment) in later life must take stock of their financial resources, marketable job skills, and emotional readiness for retirement. Often, job retraining is necessary if one’s prior job was in a declining industry sector. In addition to losing income, many workers also lose their health insurance at a time in life when health “issues” often surface. The federal COBRA law provides an opportunity to continue health insurance for up to 18 months, at group rates plus a 2% administrative fee, until an individual policy (or new group coverage) is obtained or a worker is eligible for Medicare. Those who leave a job at age 63 ½ can use COBRA benefits to tide them over until they are eligible for Medicare at age 65. However, only workers covered by employers with 20 or more employees are eligible for COBRA benefits and the cost is expensive, especially for those out of work.

Poor or Uncertain Health Prognosis- A life-threatening disease or chronic, debilitating illness prior to or during retirement is a financial wake-up call. Some people choose to accelerate their retirement date to enjoy unstructured time while they can. Others may reduce their work hours because they have to (e.g., fatigue or disability). A revised retirement savings analysis that incorporates the health prognosis is in order. Life expectancy estimates and retirement savings plan contributions may need to be adjusted. A poor or uncertain health prognosis may also prompt the drafting of estate-planning documents that, ideally, should be in place regardless of health status. These include a will, living will, and durable power of attorney.

Death of a Spouse- Few events can turn a person’s financial life upside down as the death of a spouse. In addition to shock and/or grief and loss of a spouse’s companionship, there is often less household income than before. There are also many decisions to be made (e.g., investing life insurance and retirement savings plan proceeds), forms to be completed, and suggestions from “helpful” family members and/or financial salespeople. Most experts advise surviving spouses to take their time and not make any major financial decisions immediately. Survivors who receive an insurance settlement or other payment can place the funds in a certificate of deposit (CD) or money market mutual fund until they have time to explore longer-term investment alternatives. Another important step is to identify and secure available resources such as life insurance policy proceeds, employee benefits, and veteran’s benefits.

Investment Losses- Prolonged market slumps can significantly erode gains made during previous bull markets. Not surprisingly, many investors, at all ages, discover that their investment risk tolerance isn’t as aggressive as they thought it was. Financial experts generally preach patience and a long-term perspective. After all, even people who are 55 or 60 might have an investment time horizon of 30 more years. Investors who try to “time the market” (i.e., try to catch the highs and lows) often miss the best trading days that inevitably follow days with large losses. For investors who are already retired, limiting withdrawals from investment accounts is often required during market downturns to reduce the risk of outliving one’s assets.

There is no way to be fully prepared for any of these traumatic life events that are especially difficult in later life. There are however, some time-tested strategies to increase financial resilience. Financial resiliency is enhanced with monetary resources, such as emergency savings, health insurance, and a good-paying job or retirement benefits. Another resource for financial resiliency is one’s human capital. Economists define human capital as all of the knowledge, skills, experiences, and other personal qualities, including one’s health status, that people have available to “sell” to potential employers. Social capital also increases financial resiliency. This includes a support system of family, friends, co-workers, neighbors, and others that can provide financial assistance, not to mention emotional support, during hard times.

Many frequently cited expert recommendations increase financial resiliency by enhancing resources and/or reducing expenses during a time of crisis. Consider the following examples:

Maintain a Low Debt-to-Income Ratio- Monthly consumer debt payments should be 15% or less of monthly take-home pay. Ratios of 20% or above are dangerous. Example: $275 of debt payments divided by $2,500 of net pay equals a consumer debt-to-income ratio of 11% (275 divided by 2,500), which is considered acceptable. Raise the month debt payments to $450, however, and the ratio increases to 18% (450 divided by 2,500), which is just bordering the danger zone.

• Maintain an Emergency Fund- Set aside at least three month’s expenses. In severe economic downturns, consider saving even more (e.g., six to eight month’s expenses). Keep this money in liquid cash equivalent assets such as a bank or credit union savings account, money market mutual fund, or short-term certificate of deposit (CD).

• Keep Your Skill Set Sharp– If you are currently working, or plan to keep working in later life, never consider your education or job training finished. Continue to develop new marketable skills to increase human capital and remain employable in today’s competitive labor market.

• Purchase Adequate Insurance- Protect dependents against the loss of a breadwinner’s income with life insurance and purchase disability insurance to provide continued income following an accident or illness. In addition, try never to go without health insurance through an employer, COBRA, public benefits, or an individual policy.

• Practice Good Health Habits (e.g., diet, weight, exercise, sleep, etc.)- Healthy people are less likely than unhealthy people to have “issues” that limit workplace productivity at work and/or result in high-cost illnesses and chronic conditions.

• Increase Your Knowledge of Financial Topics- This will help you make smart financial decisions. To learn more about basic investment principles and characteristics of specific securities, visit the eXtension Investing For Your Future home study course at http://www.extension.org/pages/Investing_for_Your_Future.

Resiliency varies from person to person according to the situation at hand, personality characteristics, and personal resiliency resources. Two people can experience exactly the same situation but handle it very differently. How easily could you handle some type of major life crisis, both financially and emotionally? Take the Personal Resiliency Assessment Quiz at http://njaes.rutgers.edu/money/resiliency/ to assess your capacity to handle financially stressful life events.

When you’re finished, check your score and the summary that tells how you’re doing. Then take action on areas of weakness. For example, if you are living “paycheck to paycheck,” increase your emergency reserves and decrease outstanding debt. Financial recovery in later life will be much easier when are financially resilient.

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Prescription Drugs and How to Save Your Sex Life

aking certain prescription drugs can either enhance your experience or make it a dud. If you are experiencing back issue and taking pain medication and muscle relaxers you may just be causing your own erectile problem. If you are taking antidepressants you may be having ED. So you counter it with an enhancement drugs and for a while that makes it all worth the effort. If your meds are taking are not really necessary and you are using them recreational then STOP. Let your libido recover and use the ED drugs and have a great interaction and pleasure your girl.

Article is an excerpt and reprint from www.mercola.com
The following is a list of commonly used prescription drugs that can have a negative effect on your Libido.
By Dr. Mercola

It’s estimated that 30-40 percent of people around the globe experience a lack of interest in sex for at least several months in any given year. The reasons for low libido are complex and run the gamut from stress and other emotional difficulties to physical problems, including erectile dysfunction.

Most people do not seek help for chronic low libido, which is unfortunate because regular sex with a committed partner cannot be underestimated as a factor for reducing stress, bolstering self-esteem, and fostering feelings of intimacy and bonding between partners.

A healthy sex life can provide for a longer, healthier and, most would agree, more enjoyable life, but many are missing out on this very primal pleasure.

Oftentimes low libido is related to your lifestyle, and that includes any medications you are taking. Many medications can interfere with your sex drive, including the 10 that follow. Considering the widespread use of many of these, it’s likely that medication use is a leading cause of low libido among both men and women.

If you’re taking one of these and have experienced a drop in your libido, talk with a natural health care practitioner about drug-free alternatives. Many of the drugs below are used for conditions that are better treated using non-drug methods.

1. Selective Serotonin Reuptake Inhibitors (SSRIs) Antidepressants

Sexual dysfunction is a frequent side effect of antidepressants, including the SSRIs (Prozac, Zoloft, etc.) that are often used as a first-line treatment option for depression. According to a report in the Journal of Psychiatry & Neuroscience:

“Sexual dysfunction occurs through several brain pathways involving increases in serotonin (5-HT), decreases in dopamine (DA) and inhibition of nitric oxide synthase. Increases in cortico-limbic 5-HT result in decreased sexual desire, ejaculation and orgasm.

Consequently, it is not surprising that selective serotonin reuptake inhibitor (SSRI)-induced sexual dysfunction occurs in 30%–80% of patients and is a main cause of treatment discontinuation.”

2. Tricyclic Antidepressants

Tricyclic antidepressants are much less widely used than the newer SSRIs, but they are still prescribed for both depression and nerve pain. Like SSRIs, tricyclic antidepressants are also associated with decreased libido.

3. Proscar

Proscar belongs to a class of drugs called 5-alpha-reductase inhibitors, which are used to treat enlarged prostate. Your prostate gland contains an enzyme called 5-alpha reductase, which converts the male hormone testosterone to another androgen called dihydrotestosterone (DHT). This class of drugs inhibits 5-alpha-reductase, thereby blocking the conversion of testosterone DHT.

As a result, they may help to actually shrink your prostate, but they come with significant risks, one of which is a lower libido from the lower testosterone. You can find natural tips for prostate health here.

4. Baldness Drug Propecia

Propecia is a similar drug to Proscar, but typically used at a lower dose to prevent hair loss in men. The drug works by reducing DHT, the most potent male hormone that is linked to shrinking hair, by blocking the enzyme 5-alpha reductase. It has been linked to not only a decreased interest in sex but also to full blown impotence.

BBC News followed one story of a 26-year-old who took Propecia for male pattern baldness. He stopped taking the drug when he noticed a decreased interest in sex, then a few weeks later became impotent. Even after six months of testosterone therapy his sexual health had not been restored, and his physician suggested a penile implant as a solution. Many men have found that the sexual side effects do not go away once the drug is stopped.

5. Antihistamines

Antihistamines, particularly Benadryl and Chlor-Trimeton, are also linked to a temporary loss of libido. Once the medication is cleared from your body your sex drive should go back to normal, but if you take these medications often, such as for allergy treatment, it could pose a longer-term problem for your sex life.

6. Medical Marijuana

Medical marijuana is legal in 20 states, where it is commonly used to treat pain, nausea, and other conditions. It may dampen your libido and ability to perform in men.

7. Anti-Seizure Drugs

Carbamazepine (Tegretol) is commonly used to prevent seizures, which it does by preventing impulses from traveling along nerve cells. Because it dampens nerve impulses, it may also reduce pleasurable sensations derived from sexual contact. Reduced sexual desire is common among Tegretol users. One study found, for instance, that epileptic men taking carbamazepine had change in hormonal levels, altered semen quality, increased erectile dysfunction, and reduced frequency of sexual intercourse.

8. Opioids

Widely prescribed opioid painkillers (Vicodin, Oxycontin, Percocet, etc.) have been making headlines for their addictive potential, but they also lower testosterone levels, which may in turn lower your libido.

9. Beta Blockers

Tens of millions of Americans take beta blockers to lower their blood pressure, and these medications, too, may decrease libido. Even eye drops containing the beta blocker Timolol (for the treatment of glaucoma) may impact your sex drive. In the vast majority of cases, drugs are not needed to reverse hypertension.

10. Benzodiazepines

There is evidence to suggest that anti-anxiety drugs like Xanax negatively affect sexual functioning, including lowering your sex drive.

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How Do I Start an IRA When My Work Doesn’t Offer Any Retirement 401K?

ummary – This article provides good direction from which to get started on the path to securing finances for the future and mitigating a stressful retirement, elected or otherwise. We recommend seeking financial guidance from multiple sources before you select one investment strategy. Remember everyone has an opinion and few people will tell you their strategy was poor but the more questions you ask the quicker you will become informed!

You are working for someone who does not provide you with a retirement account, so you are thinking of starting your own. You are fortunate because this is really easy to do. The type of account you will need to open is an Individual Retirement Account that is also known as an “IRA.” These accounts are advantageous for saving for retirement because they provide investors with tax benefits that help their money grow.

Where to Open an Account

You can open either a Roth IRA or a Traditional IRA in a financial institution that received permission from the IRS to offer these accounts to the public. Your bank is a good choice, but you can also visit a federally-insured credit union, a mutual fund company, a savings and loan corporation or a brokerage firm.

Investment institutions charge fees for their services. Therefore, before you decide on a firm, make sure that you compare fees from several institutions first. An example of a discount firm is E*Trade Financial Corporation. Vanguard, Fidelity and T. Rowe Price sell “no-load” funds and do not charge fees.

How to Open an Account

After choosing the right financial institution, all you need to do is tell them you would like to open an IRA. Some firms will ask you to deposit a minimum of $3,000 into the account. In other instances, rather than offer a large deposit, you can make arrangements to automatically withdraw a set amount of money each month. The sum could be as low as $100. If the firm you are interested in has a website, you may be able to open an account online.

Documents Associated with the IRA

After your account is open, your financial institution must present you with an IRA disclosure statement that informs you of the account’s rules and regulations. This document will be written in easy-to-understand language. You will also receive the IRA adoption agreement and plan document. This paper explains things such as how contributions will be deducted and your rights as the accountholder. Your IRA will be valid only after you have signed this contract.

Which IRA is right for you?

The Roth IRA

The Roth IRA is the best option for long-term investing. If you are in your 40s and planning to retire in your 70s, you will have time to make this opportunity work, and you will receive tax benefits. Money invested in a Roth IRA is after-tax dollars, so in 30 years when you withdraw the money, you will not have to pay income taxes again.

To make your Roth IRA work for you, you will need to make monthly contributions. If you were to deposit just one $1,000 contribution into your account, it would not contain very much money after 30 years. In contrast, you would only need to commit to depositing $600 a year to turn your initial investment into more than $50,000 at an average annual yield of 6 percent.

Who Can Open a Roth IRA?

The Roth IRA has income limitations, so you will only be able to open this type of account under these circumstances:

  • You are married and filing jointly with a modified adjusted gross income less than $167,000
  • You are single, married and filing separately or head of household with a modified adjusted gross income less than $105,000
  • You are living with your spouse part-time, filing separately and earn less than $10,000

The Traditional IRA

To open a traditional IRA, you must be under 70½ years of age, and you must be employed. You will deposit pre-tax dollars into your traditional IRA, but you will be required to pay income taxes when you begin to withdraw the money. The good news is that you may be in a lower tax bracket by the time you retire. You can make tax-free contributions into the account until this day arrives, and they may even be tax-deductible. This helps your money to grow at a much faster rate.

The traditional IRA is particularly beneficial to you if you are at least 50 years of age because you are allowed to make “catch-up” contributions. Ordinarily, investors are limited to making contributions of $5,500 per year. Those who meet the age requirement can invest an extra $1,000 this year.

Where Do You Invest Your Funds?

Now that you have chosen your account, you are ready to decide where you want to invest your money. You have several options, including money market funds, mutual funds, CDs, exchange-traded funds and stocks and bonds. You can also allow your broker to make the choice for you.

What If You Don’t Have Any Retirement Savings?

If you have neglected your retirement until today, you are not alone. The best thing you can do is accept the fact that you didn’t make retirement savings a priority earlier and pledge to do things differently from this day on. This means that it isn’t too late to open an IRA.

You may be concerned about where you can find the extra money to make monthly contributions, but this only requires that you look at your budget to find things you can eliminate. For example, if you are spending a lot of money on cigarettes, you can consider quitting. You only need to put in a little effort, and you will be on your way to a comfortable retirement.

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I am 50 and Divorced. Now What?

ivorce is an extremely trying time for men. If you are experiencing emotional upset, you have to know that this is to be expected. Many men begin to feel depressed after they lose their life partners and daily access to their children. A divorce just happens to be high on the list of reasons that men in your age group decide to commit suicide.

The above-described scenario does not have to be your story. You have many resources to draw upon that can keep you from falling into a mountain of depression, and they are your friends and family, support groups and counselors.

Take Advantage of Friends and Family

Your friends and family are excellent support systems when you are travelling through difficult waters. They can ensure that you are not wallowing in self-pity. You may begin to exercise questionable judgment at this time, but your friends and family are the ones to bring these issues to your attention and lead you in the right direction.

Join a Support Group

Divorcing men have many options when they are seeking a support group. One example is an organization in the Washington D.C. area that helps people move through their divorces in every stage. You can join whether you are just thinking about divorcing, in the process of divorcing or learning how to live after a divorce. This group’s members help each other with legal challenges, co-parenting and the emotional side of divorce to ensure that you do not have to experience anything on your own.

If you would like to meet with your support group in person, you can find this type of operation in your local area. In this new technological age, you can join an online group that can be just as supportive as a local group can be. Some groups even offer you the option of meeting via teleconference.

Enter Counseling

A support group may not be to your liking. In that case, divorce therapy may be a better choice for you. Divorce therapy is conducted on an individual basis and is directly related to the specific problems of divorce. In this type of counseling, you will be able to discuss how the divorce is making you feel, and your therapist will be someone who will guide you through in the way that is right for you.

Divorce therapy is also instrumental in helping you start your new life. You will learn what contributed to your divorce, so this therapy will help you correct mistakes you made in the past and aid in personal growth. Therefore, you will be a healthier person because of divorce therapy. So, when you are ready to date again, you will be prepared for it.

Begin to Date Again

Dating can be a real challenge if the divorce wasn’t your idea. You may have thought that you would be married forever, so you are completely unprepared for the prospect of dating at the age of 50. In addition, the thought of spending your evenings in a bar like you did when you were in your 20s may be extremely distasteful to you. Don’t worry. This is no longer a requirement.

Women in their 50s are thinking the same thing you are. They prefer not to spend their evenings in bars, but they do want to meet men. Consequently, you can meet women your age in many other places, including the following:

• Book clubs
• Dance classes
• Art classes
• Cooking classes
• Hiking groups
• The golf course

If you are a little scared to enter the dating scene again, you can relax because you will find that dating is much easier now. You have a lot to brag about these days that you didn’t have when you were younger. You are established in a great career, and this has given you confidence you didn’t have in the past. You can read women much better than you used to, so you will know when someone is truly interested in you. You will be surprised how easy it is to approach these women and strike up a conversation.

Date Online

You may still be a little wary of dating, so you might wish to take things at a slower pace before you meet someone in person. The Internet makes this possible with several online dating websites. Research shows that 40 percent of online daters are over age 50, so you have plenty of company.

How to Date

You know how devastating divorce can be, so you do not want to experience a second one. The reality is that the divorce rate for people in their 50s is twice that of younger age groups. For this reason, you will need to proceed with caution.

Dating in your 50s is different from dating in your 20s. You and your prospective partners have significant histories to sort through, and you can expect this to take longer than it does for younger people. Be prepared to spend this extra time so that neither one of you is unpleasantly surprised by anything in the future.

Remember that you have plenty of time and that there are a lot of women who will be interested in you. Don’t be afraid to be friends with them. As was described above, it benefits you to get to know these women very well before you enter into a romantic relationship. If it turns out that you are incompatible in a romantic sense, you can keep these women as friends.

How Do You Demonstrate You Have Great Value to Your Employer When You’re Over Fifty

magine the following scenario: You are relaxing in your gym’s hot tub after a long, exhausting day of job-hunting. As you let the jets of hot water gradually relax the kinks in your neck and back, you look around at the other two guys who just happen to be sharing the space with you. Shocked, amazed and not just a little star-struck, you recognize them as two of the most renowned athletes of our time: Peyton Manning and Michael Jordan. How could these sports luminaries be hanging out in your humble little health club, you wonder. Then you notice that both men are looking right at you.

“We’re here to share some important things with you,” Michael Jordan explains. “Don’t ask us how, but we heard you were having a tough time and figured you could use some encouragement.”

Peyton Manning chimes in, “You might find this a little hard to believe, but the three of us have a lot in common. We’re all older guys, not past our prime yet but definitely not in our youth either. In both our cases, people have thought that we were over the hill and should just hang up our spikes, so to speak. We’re both living proof that youth isn’t always better and that maturity can sometimes actually be an advantage.” What could these multi-millionaires have in common with you, you ask.

Michael is the first to volunteer a pearl of wisdom. “Remember when I retired from basketball? I just couldn’t see myself playing shuffleboard or spending my life watching highlight videos. So what did I do? I tried other things, like professional golf, minor league baseball and even owning my own team.” Michael goes on to tell you that just as he cast his net wide, you can, too. You can take many of the skills and experiences you gleaned from past jobs and transfer them to new career opportunities. Think of it as redirecting, not reinventing your abilities.

“One thing that was indispensable for me was forcing myself to network,” Peyton volunteers. You realize that he’s not talking about those often trite and cheesy mixer parties; no, he means using the contacts and connections you have gathered through a lifetime of experience to help you at a time when you’re feeling adrift. After an injury that most thought had totally ended his career, Peyton didn’t lie down and die. Instead, he pushed himself almost beyond endurance, didn’t allow himself to lose faith that he would succeed and garnered support from his family, friends and fellow football players who truly believed in him. We all know the result: one of the most amazing come-backs in NFL history. In your case, networking means renewing old alliances, getting cozy with technology such as LinkedIn and not being afraid to ask for help. Whether it’s through an old college buddy or an unemployment support group, help—and eventual employment success—can come from unexpected sources.

“Think of this as a time when you can do a total reboot,” Michael says, smiling a bit guiltily at the tech pun. What he means is that when you have finished the routine tasks of your daily job search, take an hour or two to hone a skill or learn a new one. Not sure how to use a Mac? Never quite understood the ins and outs of Twitter? Always wondered how to do basic html? Well, there’s no time like the present to add a few new items to your tool kit.

“It’s all about your attitude and how you present yourself,” Peyton adds. While getting depressed or down is nothing to be ashamed of, don’t let it consume you. Instead, re-brand your age by turning maturity into an asset instead of a liability. Strut your stuff by articulating over and over until you believe it that your years of experience have molded you into being a creative, flexible thinker. When problems arise, you use your impressive archive of life lessons to arrive at a solution that a younger worker wouldn’t even know existed. Once you are convinced of the truth of age’s benefits, be sure that your resume reflects it. A resume is much more than a list of skills; the best ones chronicle a person’s tangible achievements. And that’s where an older worker can truly shine.

“I know what you’re thinking,” Michael cuts in. ‘Nobody wants to hire me because I have too much experience. I’m just plain over-qualified. Well, I can tell you something about that. Going from five-time MVP to minor league ballplayer was quite a leap. Who was going to take me seriously?” To avoid failing because of this trap, Michael advises that you focus on the moment. Emphasize the strong points that you see in your prospective employer; let your interviewer know that you want to join an organization whose philosophy and goals gel so perfectly with yours. Tell the person that you would be delighted to put your experience and skills toward realizing the company’s vision. If they don’t bite after that amazing sell, it’s their loss.

“Do you have any other tips for me?” you ask after noticing that Michael and Peyton are reaching for their towels and preparing to leave the hot tub.”

“If we had to sum it up in one sentence,” Peyton answers, “it would probably be this: Get support from positive people, list your talents, rebrand your age, find out what you don’t know, fill in the gaps and toot your own horn.“

“I couldn’t have said it better myself,” Michael agrees as he claps you on the shoulder with one of his huge hands. “Good luck, buddy. We have faith in you.”

Of course, this conversation never took place. In fact, chances are quite good that you will never share a hot tub with these world-famous celebrities. Yet, there is nothing false about their advice. Think about it, take it and use it. Before long, you too may see how you can overcome what you thought was an insurmountable barrier. Remember this: you may be over fifty, but you’re still in the game. All you need to do is take a run at the ball.