SENIOR SPIRIT
Living Longer & Loving It

BEYOND GOLF AND SHUFFLEBOARD
Harnessing seniors' gift of time for public good
By Marie Dykes

The number of Americans 65 and older will double in 30 years. For this growing population, businesses and institutions need to help redefine this life state. Retirement is boring for many, with a lifetime of skills going to waste.

Today's seniors are the healthiest, most vigorous, best educated and lease used population in our country's history. Retirement is boring for many, with a lifetime of skills going to waste.

Today's seniors are the healthiest, most vigorous, best educated and least used population in our country's history. Disability in the over-65 group is down 15 percent since 1988, and only 5 percent live in nursing homes. For the vast healthy majority, surveys reveal distaste for typical retirement pursuits. And fewer seniors each year flee to the Sun Belt, preferring instead to remain connected to their communities of origin.

Marc Freeman, author of Prime Time: How Baby Boomers Will Revolutionize Retirement and Transform America, is an outspoken advocate for programs to transform this new, healthy stage of life into a powerful national resource. He says, "We are in the midst of a human resources crisis in education, human services, the environment and civil society." Instead of viewing the situation as a disaster, Freedman sees "a solution waiting to happen." That solution may be the same longevity trend many use to predict our downfall.

Freedman's organization, Experience Corps, recruits volunteers 55 and older to work as mentors, tutors and fund-raisers in schools and low income areas. Experience Corps volunteers perform high-impact community service. Training and a ream approach give participants the knowledge and confidence to succeed.

Volunteer Diane Rothery of Portlant, Ore., found Experience Corps through the newspaper. She signed on because it was the first time she'd seen an organization asking people over 55 to help children. Says Rothery, "I was beginning to think that in America we were going to put seniors out on ice floes because they are no longer needed."

Jessie Davidson works with Experience Corps in the South Bronx, N.Y. "As we age, we have something that the younger generation needs - love, understanding and responsibility. But we need to get more seniors involved. We need their help because these kids will be running the country soon. If we don't educate them and teach them love and responsibility, they we are hurting ourselves and the country."

In a New York Times article, Marianne Szegedy-Maszak wrote: "If the world of the retiree is undergoing a sea change, then Experience Corps and volunteer organizations like it are playing a central role in that change. The volunteer life of retired adults has vastly expanded from the traditional image of the gentle lady pushing a gift cart down a hospital hall."

Your experience and knowledge are valuable to your community. Visit www.experiencecorps.org to find out of Experience Corps operated in your area. If not, look into opportunities with organizations like National Senior Service Corp, Habitat for Humanity, Foster Grandparents and others. Log on to www.civicventures.org for a complete list of the possibilities ad click on "ideas." Then, look under "Links and Library".

SENIOR MEDICAL BREAKTHROUGHS
Turn down the TV and turn on to better hearing

More than 25 million Americans experience some degree of hearing loss. Yet only 6 percent of that number wear hearing aids. That's because it's easier to deny the problem or blame others for poor speaking volume than it is to admit you need help. Hearing aids are bothersome and expensive*, and even the best solution falls short of delivering "normal" sound quality.

However, there are advancements in hearing aid technology. New digital devices, made possible through computer miniaturization, offer more precise adjustment and enhanced sound quality. Digital hearing aids use a computer chip to convert incoming sound into digital information, which is then converted back to amplified sound. Although digital technology is not yet a perfect solution, wearers report significant improvements:

The sounds of life are important. If you're missing out, see a medical professional and have a hearing test. More than 1,000 models of hearing aids - analog and digital - are dispensed in North America. Let your doctor help you find the best solution for your type of hearing loss. For more information, visit www.betterhearing.org

GRANDPARENT CENTRAL
Gardening and grandkids - a natural fit

Working side by side outdoors creates a unique opportunity to bond, to learn from one another - and to delight in your handiwork together. It's no wonder that, according to the AARP; 30 percent of seniors enjoy gardening with their grandchildren.

If you haven't yet invited your grandkids into your garden, you're in for a treat. With a little care and feeding, your young sprouts will blossom into dedicated enthusiasts.

Constance Hardesty, an instructor at Denver Botanic Gardens and author of Grow Your Own Pizza! Gardening Plans and Recipes for Kids, offers these tips:

Be a garden buddy. The No. 1 thing that makes gardening fun for kids is having you by their side.
Grow what kids like. Start with a recipe for a favorite food like pizza or ice cream and grow what you need.
Design a playful plot. The designs in Grow Your Own Pizza include a rainbow, teacup, cat face, birthday cake, and, of course, a slice of pizza.
Think small. First-time gardeners might have better luck with containers or just a few plants tucked into flower beds.

TAX STRATEGIES FOR SENIORS
Extend the life of your IRA
An option to the IRS default plan
By Hugh J. McDonald, CSA and IRA preservation specialist

Traditionally, the IRA life cycle ends with required distributions beginning at age 70 ½ to death or through transfer to a beneficiary at the owner's death. If you choose - or allow - this default plan, the proceeds of your IRA must be taken within one to five years of your death, with your beneficiary paying income tax at your tax rate. Not only does the IRA stop compounding tax-deferred earnings; the IRA's assets must be used to pay applicable income and estate taxes.

You can, however, stretch the life of your IRA by choosing an optional IRA owner's plan. Through the appropriate designation of one or more beneficiaries and the services of a trustee/custodian capable of and willing to carry our your wishes, you can dramatically improve the value of your IRA. This plan uses the life expectancy of your beneficiary, rather than yours, to determine minimum distributions. Here's an example.

John Brown dies at age 80 with $100,000 remaining in his IRA. If he had chosen one of his heirs - instead of his wife - as his designated beneficiary, one of the following scenarios might apply:

Careful planning, using the right tools and the expertise of a qualified advisor, is the key. For clear and concise information about your IRA's real value and how to manage it, visit the IRA Institute online at www.ira123.com . Click on "E-Book", and enter hjmcdonald as the password. Then enter your name, e-mail address and zip code. Complete the "referred by" field with hjmcdonald.

Pay Now or Pay Later
Roth conversions can save you money
By Jeanine Fax, CPA, CFP, CSA

Why pay taxes now if you don't have to? Hasn't the best financial advice always been defer, defer, defer? For some, however, this advice may no longer apply. If your adjusted gross income is less than $100,000, you and your heirs can benefit by converting some or all of your traditional IRA assets to a Roth IRA. Consider these advantages.

Rules for converting to a Roth are complex, and an ongoing Roth conversion program - rather than converting all at once - will usually provide the best results. With such a program, you would convert only an amount each year that will keep you in the 31 percent tax bracket ( or less).

For information specific to your situation, consult with an experienced tax advisor. Or visit www.rothira.com .

TAX CREDIT PROGRAMS
By Kathleen Lenover, CFP, Med. CEPP, CSA

Retirees may face taking required minimum distributions from IRAs or company pension plans without knowing how to reduce the amount of income tax paid on these distributions. Tax credits can offer a dollar-for-dollar reduction in taxes due. For the individual in the 28 percent tax bracket, a tax deduction is worth 28 cents, while a tax credit is worth a full dollar. Every dollar of tax credit represents an additional dollar of spendable income.

One option for reaping tax credits is the Federal Housing Tax Credit Program. This program was specifically designed with seniors in mind.

Federal Housing Tax Credit Program
There is a well-known shortage of affordable housing for seniors. This program is a pre-funded stream of tax credits awarded to private developers of affordable housing. Not to be confused with low-income housing projects, affordable housing units are primarily occupied by seniors and Americans of moderate means. Contributing to the development of senior housing may fulfill the senior's need for socially conscious investing while creating additional spendable income.

A one-time lump sum investment generates predetermined tax credits over a 10 to 12 year period. These tax credits cannot be used to reduce the Alternative Minimum Tax. Although the tax credit itself may be the sole return on the investment, proceeds from the sale of the properties at the end of the tax credit period may create an additional return. This is considered a long-term investment with limited flexibility in accessing the principal invested.

To explore the details of tax credit programs, contact your CSA or financial services professional.

PRACTICAL TALK ON RETIREMENT ISSUES
2001 benefits update
by Crispin Sargent, CSA

In 2000, retirement age began the shift from 65 to 67. Confusion lingers about who will be affected and when. Let me clarify.

If you turned 65 in 2000, or will do so in 2001 or 2002, you still receive full retirement benefits on the first day of the month in which you turn 65. The increase in retirement age only affects early retirees (age 62 and over) in 2000 through 2002. The age of full retirement starts its upward climb in 2003. Here's how it works.

You opted for early retirement in 2000 at age 62. Since you reach full retirement age in 2003 when the first age increase occurs, early retirement will cost an extra two months' reduction in benefits. For example, if your 62nd birthday was in March 2000 and you started drawing benefits in that month, your monthly check decreased by 0.56 percent for every month remaining until May 2003 (your full retirement date). If you reach 62 in 2001, your full retirement age will be four months after your 65th birthday - and so on. Early retirement now means lower monthly benefits because your 62nd birthday is further from your full retirement age. Annual changes to note

Medicare supplements automatically adjust to accommodate these changes.

Medicare Part B

For more detailed information about your Social Security or Medicare benefits, please contact your CSA.

Centenarian Salute

Lenore Schaeffer
By Lynn Peters Adler, JD

Soon to be seen in a Discovery Health Channel program on longevity, Lenore's love for life is contagious. She regularly exercises at a local health club. The TV program features one of her workouts.

Despite a fall in her home, hip replacement surgery and "six miserable months of rehabilitation," Lenore is again living independently. "I've got a lot of moxie," she says. She's bravely resumed her accustomed active lifestyle, although she occasionally uses a walker for security. Even so, she routinely takes the bus to a neighborhood senior center. If "moxie" means courage, she has it.

Widowed at 82, the spirited Lenore resumed a passion of her youth - dancing. "I discovered I was good at it and I went on to enter dance competitions," she remembers. "I've danced my way from Santa Monica to Palm Beach, from New York City to Mexico City."

As do many centenarians, Lenore knows about hardship and tragedy as well as service to others. Married at 16 to her first dancing partner, she was on her own again at 21 with two sons to raise without financial help. Fourteen years later, she married again - "a very nice man, but he didn't dance." At 41 Lenore had another baby. Then, in a short span of time, she lost her second son in World War II. Lenore devoted the next 30 years to her family and community service, becoming a leader in charitable causes. She was a founder of the City of Hope.

However, her crowning moment was an appearance on The Tonight Show with Jay Leno on her 101st birthday. Through the encouragement and support of the National Centenarian Awareness Project, Lenore participates in numerous media events. She even appeared on the cover of Newsweek magazine in Japan!

No wonder Lenore delights in her longevity. "I love it! I'm a star," she exclaims.