Forbes magazine just released the periodic study of the best places to retire overseas.  There are several surprises, for example Costa Rica is not on the list but France is.

The story is in two parts. First click here to see the picture version of the 10 best places to retire. When you get to that page just click on the arrows right above the name of the country and it will play throuogh all ten locations. 

Then click here to read the story and get some advice about retiring overseas.

Both features make fascinating reading even if you are not thinking of retiring overseas.

This is a guest article by Nilus Mattive from Wiess Research. Nilus is the publisher of Dividend Superstars

Yet Another Government Insult to Retirement Incomes
by Nilus Mattive

As if it isn’t bad enough that most retirement portfolios are still down significantly from their levels a year or two ago … that housing wealth has been evaporated in towns across the country … and that near-zero interest rates are punishing responsible savers … Washington recently issued another piece of official bad news — Social Security recipients won’t be getting one single penny in cost-of-living increases next year.

The news wasn’t entirely a surprise. And, sure, President Obama has asked Congress to send out another one-time payment of $250 to more than 50 million seniors as a little relief (emphasis on “little”).

But whatever way you slice it, this Social Security snafu highlights two simple facts that we all need to recognize, no matter what stage of life we’re in …

First, the Social Security system is flawed on MANY levels.

Second, we should only depend on our private investments to truly sustain us in our golden years.

I’ll talk more about two steps you can take for higher income in a moment. First, let’s start with my initial assertion …

Four Reasons Social Security Is Completely Flawed

Reason #1: A pay-as-you-go structure.

I’ve talked about it before, but it’s worth repeating … Social Security’s pay-as-you-go structure is essentially a giant ponzi scheme.

Ostensibly, we’re all paying into our “own” retirement futures every time money gets siphoned out of our paychecks and into the government kitty.

But realistically, our future payments depend on future workers. And that means something has to expand indefinitely — either the workforce or the tax rate. Otherwise, future benefits are going to have to shrink in some way, shape, or form.

Reason #2: Rising life expectancies.

Don’t get me wrong … I’m glad we all stand a good chance of living longer, healthier, more productive lives than the generations of yore. But the side effect for Social Security is additional strain.

Remember, Social Security was designed in the 1930s, when people lived to an average age of 60. Today, the average American is hitting 76!

The end result is another strike against the system’s ability to pay out promised benefits to millions of Americans based on current inflows.

Reason #3: A markedly expanded coverage universe.

When Social Security started, it covered about half of the U.S. population. Entire swaths of workers were not promised benefits.

But today, nearly all workers are covered by the program. In the event of injury, they usually qualify for disability. In the event of their death, their spouses — and possibly their children — receive benefits.

Plus, as one reader pointed out on my blog a few months ago:
“Please go to the federal budget for 2008, look at the social security section, and see for yourself that SS going broke has less to do with seniors collecting benefits, and more to do with people UNDER retirement benefit age collecting money each month.

“Examples of programs include; payments to unwed mothers, WIC program, disability benefits to anyone at any age for most any injury, funding for drug treatment centers, tuition dollars for re-training workers, the list goes on and on. Don’t misunderstand, these are great programs, but they don’t belong under SS.”

His point is well taken. There’s no question that many of Social Security’s expanded responsibilities help Americans who are down on their luck. But this broader coverage also comes with a huge price tag and adds to an already struggling system.
Reason #4: Skewed cost-of-living adjustments. Since 1950, Social Security has adjusted recipients’ checks for inflation. The current method, adopted in 1972, uses the change in Consumer Price Index (CPI) from July through September vs. the same period a year earlier.

Let’s ignore the fact that it doesn’t compare a complete year, which is a flaw in and of itself as far as I’m concerned.

Instead, let’s focus on the fact that the CPI itself is an imperfect indicator of the inflation that you and I feel in our daily lives.

I covered this topic in depth back in June of 2008, so I think a few simple questions will make my point today …

Has your food gotten any cheaper in the last year? How about your healthcare costs? And sure, gas dipped temporarily, but what are you paying now? Is it significantly less than you were paying over the last couple years?

Heck, consider this: Social Security’s biggest COLA since 1982 came last year, with a 5.8 percent boost. The few preceding years saw adjustments of 2.3 percent (2008), 3.3 percent (2007), and 4.1 percent (2006).

Meanwhile, the Kaiser Foundation says health insurance premiums for families have risen 131 percent since 1999 more than FOUR TIMES the general rate of inflation over the same period (28 percent).

So the fact that retirees aren’t getting any raise this year is just a more extreme example of the less-than-accurate adjustments they’ve been getting every year.

I could go on and on about Social Security’s shortcomings. But let’s just get to the main point, one that is stated quite plainly on the official Social Security website …

“Social Security Was Never Meant to Be The Sole Source of Income in Retirement.” In Other Words: You Must Rely on Your Own Investments!

We’re on our own when it comes to building and maintaining a solid retirement nest egg … one that can hand us steady income through thick and thin … and continue to grow your cash flow faster than the true rate of your own costs.

So how can you do that?

Certainly not with CDs or money market funds, given the pitifully low interest rates right now.
Instead, I have a couple suggestions:

First, stick with solid dividend stocks that have a long history of rising payments. It’s no secret that I favor these kinds of investments in my Dividend Superstars newsletter.

These companies tend to hold up very well during market downdrafts, post solid capital gains over time, and can continue to provide you with greater income year in and year out.

Second, also consider balancing your income-producing stocks with a solid mix of bonds. Not only will you get much needed diversification, but by selecting carefully, you can also get very solid yields with relatively moderate risk.

And don’t just stick to bonds here in the U.S., either! Remember that there are plenty of foreign companies and governments that are also competing for investment dollars by offering very attractive interest rates right now.

That’s one of the big points made in a free webinar called “Earning Higher Income in a Low Yield Market,” which was recently put together by Weiss Capital Management, a separately-managed affiliate of Weiss Research.

If you’re an income investor, consider taking a few moments to watch this very insightful video now. After all, Washington clearly isn’t worrying much about our income needs.

This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.

There is a new phone phishing scam aimed at online business owners and eBay sellers. I received one of these calls this morning. Here is how it works:

You receive a phone call and an operator on the line explains that she is on the line with a hearing impaired person who is typing her message and the operator will translate. So you say “OK” and the operator gives the person’s name and asks for yours. Then the operator says the person is overseas and wants to buy one of your products.  She then started asking questions wanting my location and address and eBay ”name.”  

I wasn’t sure what was going on and being very careful, when suddenly I heard a click and an another operator came on the line. She said she was from AT&T and that she was disconnecting the call because it was a fradulent call. I asked her what was going on and she explained that this was a phone phishing scam designed to get personal information and the calls were originating from overseas.

So, if you get a call like this, my best advice is to just say “No thank you,” and hang up.

People who continue to work after retirement have fewer diseases, fewer functional limitations, and better mental health than people who quit completely, according to a new study. Yujie Zhan and colleagues at the University of Maryland and California State University at San Bernardino published their findings working after retirement and elderly health in the October issue of the Journal of Occupational Health Psychology. Read the rest of the story…

Baby Boomers Flocking to Tyler Texas

Forecasts of a lurking recession convinced Jim Alberts two years ago to grab his pension and run from the Florida company he oversaw as chief executive officer.  Alberts and his wife, Sue, shopped for a place to retire and whittled their choices to two states: Texas and Tennessee.   Read the full Story…

Spot gold hit $1,063 per ounce this week before backing off slightly. Its no surprise gold has gone this high and may head higher. As the Federal Government continues to pile up debt and print money the dollar will surely head lower. Since gold is priced in dollars, as the dollar heads South, gold will head North.

The recent high price of gold has spurred companies that buy gold jewelry from consumers back to higher advertising. just this week I have noticed more ads on Google and on television telling consumers to send in their gold. Technically these companies are not running a scam because they do pay you for your gold. But the amount they pay you is usually far less than what your gold is worth.

Here is an example: A lady neighbor of mine sent in a pair of 18K gold earrings that weighed 0.6 ounces. OK – I am a little math challenged and if I get this wrong I am sure I will hear from some of you –but here goes:

Eighteen karat gold is approximately 75% pure gold. So 75% of 0.6 oz = 0.45 ounces. Multiply this this by $1000 oz and the earrings would be worth $450 gold value. However, scrap god is usually valued at 50% to 60% of its gold content value. So using 50%, the earrings should be worth $225. The Cash for Gold company she mailed the earrings to offered her $108 –less than half what they are worth. So yes –technically that is not a scam, but its pretty close.

On my advice she called the company and asked them to return the earrings.
When she did this, they upped the offer to $125 –still half what they were worth.
She declined and asked them to return the earrings and they said they would. After 2 weeks the earrings still hadn’t arrived so she called again. They spun some story and said they were on the way. To make a long story short she had to call once a week for 6 more weeks before the earrings came back.

The good news is that in the 6 weeks it took to get her earrings back the price of gold had increased. She took them to a local coin shop who is also a gold dealer. He gave her $270 for the earrings and paid her in cash.

So yes now is a good time to sell your gold –or if you want a while you could even get more in a few months as the price of gold will probably work its way higher as the dollar continues to weaken. But before you send your gold off to some mail-order dealer, check with pawn shops and coin and gold dealers in your local community. And shop around –don’t take the first offer.

The latest online scam is a phony email supposedly from the IRS. The subject line reads: Notice of Unreported Income.

The rest of the message looks like this:

Taxpayer ID: alisa-00000448089147US
Tax Type: INCOME TAX
Issue: Unreported/Underreported Income (Fraud Application)

Please review your tax statement on Internal Revenue Service (IRS) website (click on the link below):

review tax statement for taxpayer id: alisa-00000448089147US

Internal Revenue Service

The line in blue in the email is a hyperlink to a phony website that is basically a vehicle to steal your identity.  This email has been received by –and frightened a lot of seniors. If you receive an email like this it is totally phony. do not under any circumstances click on the link in the email –just delete the entire message.

This morning I cam across a free eBook that really explains what the best assets to own are today and how best to invest in them. Its not an advertisement for anything and is completely free –you don’t even have to give up your email address.

Here is the link to download your free book:

http://www.etfworldalert.com/sites/default/files/allfiles/Top_Asset_to_Own.pdf

Cheers

Skip McGrath
Head Geezer

Once you retire, living on a fixed income has its challenges. One of the best ways to manage your money and make sure you meet your needs and avoid unnecessary debt is to budget. Too many seniors plan only with long-term budgets, but one of the tricks for successful budgeting is to have interim short-term budgets. (See step #1)

Unless you budget your money, you’re begging to go deeper into debt, and making it impossible to save. Take these steps to figure out how much money is supposed to go where so you can control your spending accordingly.

Steps

• Create a budget every time you get money. For most people, this is once every two weeks. Sometimes it’s weekly, sometimes it’s monthly. Either way, it’s a regular interval, and it’s the best time to decide how you’re going to spend your money. Make a personal rule that you won’t spend any of your paycheck money until you’ve worked out your budget.
• Make a list of all the things you’ll need to pay for until the next paycheck, such as:
  • Rent/mortgage
  • Utilities
  • Medicare/Medigap Premiums, medications
  •  Food/groceries
  • Vehicle payments, insurance, maintenance (e.g. oil changes, tire rotations), Gas
  • Any debt payments
• Anticipate how much you’ll need to pay for each and write that amount next to the corresponding item on the list. You can also opt to pay for a fraction of something that isn’t going to be due until after the next paycheck. For example, if your rent is $800 due on June 1, you just got paid $700 on May 12, and your next paycheck will be $700 on May 26, it may be wise to set aside $400 from this paycheck for rent so that you only need to take $400 out of your next paycheck to pay for rent.
• Add up all of the amounts (we will call this your regular expenses) and subtract it from your paycheck amount. Do you get a negative number? Then you are living way beyond your means. Something has to go, or you will have to find a way to supplement your income. If you have money leftover, split that money up into a few groups:
• Savings. Ideally, this should be about 30% of your paycheck, although even 10% (if you do it consistently) is pretty good. Build up enough savings for an emergency fund (6 times your regular monthly expenses), then start saving money to invest.
• Emergency money. I like to keep about 25% of regular monthly expenses in an emergency fund. This would cover things like sudden unexpected car repairs, or extra medications if you get sick or that Grandson’s birthday you forgot.
• Spending money. This is whatever is leftover after you subtract emergency money and savings money. It’s what you’d spend on things like clothes, eating out, movies, gifts, and anything fun, basically. If you start to cry when you realize how little fun money you have, then you need learn How to make some extra money.

Keep everything but your spending money out of reach. Leave everything (except your spending money) in the bank. Withdraw all of your fun money in cash, and leave your debit card (and credit card[s]) at home. Use the cash for anything you want, just make sure you make it last until your next paycheck. You might not want to carry it on you all at once, but having physical cash will help you keep better track of your fun money than using a card.

The American Seniors Association (ASA) was started in 2005 as an alternative to AARP. Although AARP bills itself as a non-partisan organization, they have become more and more political over the years causing many members to shy away from the organization. Another complaint was that AARP was essentially becoming a big insurance company and the profits from those activities changed their perspective from helping members to helping themselves.  This gave rise to an organization with a different mission.

Here is the ASA Mission Statement

The American Seniors Association’s mission is to provide seniors with the choices, information, and services they need to live healthier, wealthier lives.

Our members’ dignity and security matter most to us, and that’s why thousands of Americans every year turn to the American Seniors Association for the help they need.

We offer our members better choices to help with:

• Medicare
• Insurance
• Prescription Discounts
• Travel Services
• Auto Club
• Information on Where to Find the Facts

We are driven by a uniquely American philosophy that starts with the understanding that government doesn’t tax and regulate “things.” It taxes and regulates “people.” Individuals like you and me. That’s why we treat every member as an individual, with a different story and different priorities, freely united as individuals to provide each other with better values in the services we want and need.

ASA has been running a program this year where AARP members can send in their AARP card when they join and receive their second year of membership free. So far this offer has resulted in hundreds of thousands of torn AARP cards arriving at their offices. ASA membership costs $15 per year.  Click here to learn more about ASA.

I often get email from readers wondering if it is still possible to start an internet business from home. People worry that the opportunities have all been taken or that the economy is too tough to start an internet business now.  Nothing could be further from the truth. As fast as the internet is growing –and it still is, the internet today accounts for less than 17% of all retail goods and products sold. New internet businesses are starting every day –and many of them are being started by seniors looking to make extra money to supplement their retirement.

Internet Business Resources

Here are some resources to get you started:

• My book, The Official Geezer Guide to Making Money With an Online Business is a great resource. I review 6 different internet business models and show how you can get started and how you make money doing it.
• My latest book at SkipMcGrath.com is How to Make Money Blogging From Home has been a hot seller and is getting great reviews.
• Chris Malta, founder of World Wide Brands has just released a package of three FREE eBooks about starting an online business and about eBay product sourcing and dropshipping. Click here to download your free eBooks – no email or other information required.

These are all great resources and can help you get started. There is no time like the present.