SENIOR SPIRIT
Living Longer & Loving It
TAKE IT TO THE LIMIT
California senior is high on the athletic lifestyle
By Marie Dykes
At 65, Terry Ives is a success. He's the best he can be, whether it's selling insurance or competing in marathons and triathlons. Since his racing debut in 1976, he's finished 777 races. In 1988, he won eight triathlons, competing in the over-50 class. And he wants still more.
Consider Ives' first marathon in 1977. He didn't finish because no one told him to put Vaseline on his feet to prevent blisters. Even though he crossed the finish line in an ambulance, he was hooked. In paid but buoyed by the experience, he said, "If I were rich, I would quit the insurance business and become a marathon runner."
But why? What is it about pushing your body to the limit that's addicting? According to Ives, it's the endorphin "high" he gets from intense exercise. "It's a lifestyle choice," he says. "I know I'll live in my body for a long time, and I want to be physically and mentally fit."
Perhaps his self-indulgent past plays a part as well. In 1966, Ives was an overweight smoker who was drinking enough to pass out. He gained control through a disciplined exercise program, and in 1976 he ran a half marathon in one hour and 31 minutes. Since then, 141 triathlons, four Iron Man triathlons and five Ultramans.
For perspective, you need to understand the terms of endurance. A marathon is a 26.2-mile run. A triathlon features a swim, a bike and a run segment; the length varies with the race. The Ultraman is three grueling days, beginning with a 6-mile swim and 91 miles on a bike. Day two is a 171-mile bike ride. The third day, you run 52.4 miles - if you're still in the race.
There's no doubt that Ives is still in the race. An ankle injury in 2000 sidelined him - in bed - for 120 days, but he worked out on the floor every day to stay in race shape. Although he no longer runs, he's still a triathlete; he simply walks the run segment.
Does he advise others to get high on exercise? "Even if you're older, you can join a gym and work out," Ives asserts. He believes it's all about attitude and fortitude. "The biggest obstacle is our own egos," he contends. "So what if you don't look as good as you'd like! No one's watching you anyway."
Ives' 2002 schedule includes the Boulder (Colo) Triathlon, the Alcatraz (Calif.) Triathlon and the Senior Games in Wyoming. Meanwhile, he refuses to retire. "I totally enjoy my business," he confesses. Ives is a CSA who specializes in insurance and financial planning. "It's not about the money," he continues. "I want to work as long as I'm able and my clients still want to do business with me."
SENIOR MEDICAL BREAKTHROUGHS
Exercise, Endorphins and Enhanced Well-Being
While Terry Ives' approach to fitness ("Take It to the Limit") isn't for everyone, it's a fact that regular exercise promotes health. In 1986, the New York Times reported that moderate exercise could regard the effects of aging or actually reverse them. Today, doctors prescribe exercise; they know that working out regularly improves heart and respiratory function, increases muscle strength, maintains bone density and imp[roves reaction times.
What's interesting is the psychological boost you get while you're building strength and endurance. Research shows that blood levels of endorphins increase during and several hours after vigorous exercise. Endorphins are the neurotransmitters in the brain that offer natural pain relief and a heightened sense of well-being. Popular fitness literature refers to this phenomenon as the "runner's high."
Even if you're not into racing, you can cash in on the high by continually exercising for 30 to 45 minutes. Walking, jogging, bicycling and swimming are all good endorphin-producing activities. When you schedule these activities at least three to four times a week, you can expect the following:
Through interest and involvement, grandparents communicate belief in the child as well as confidence in the child's ability to grow and learn. The healing power of being there with an abundant supply of love and acceptance helps special children learn who they are, what they can do and what unique gifts they offer.
TAX STRATEGIES FOR SENIORS
New Rules Change Estate Planning for Many
By Carla Gordon, CFP, CSA, MSFS
Everyone has heard the saying, "Nothing is certain but death and taxes." However, in light of new estate tax rules, many taxpayers may eliminate the second part of that well-worn phrase.
Estate tax, of course, is not a tax on the right to die. (If it was, who would pay it?) Rather, estate tax applies to the right to transfer property. "Property" means anything from stocks and bonds to your house or favorite artwork. So that every U.S. citizen doesn't avoid estate tax by giving away all of his or her property before death, our friends at the Internal Revenue Service (IRS) look at property transfers before and after death as a "unified" package.
When the transfer tax does not apply
Fortunately, circumstances exist where property may be transferred without transfer tax. For example, anyone can transfer unlimited amounts of property to one's spouse or favorite charities with no transfer tax consequences (except that the spouse's estate may eventually face transfer taxes).
Transfer tax through gift or estate tax is typical with large amounts of lifetime gifts or post-death bequests to children and grandchildren. On a positive note, every citizen gets a transfer tax free ride on a certain amount of property. That amount is significantly increased under President Bush's newly enacted tax plan.
Estate and Gift Tax Rates and Unified Exemptions
Calendar Year Estate Tax death time transfer exemption Highest Estate and Gift Tax Rates
2002 $1.0 million 50%
2003 $1.0 million 49%
2004 $1.5 million 48%
2005 $1.5 million 47%
2006 $2.0 million 46%
2007 $2.0 million 45%
2008 $2.0 million 45%
2009 $3.5 million 45%
2010 N/A (taxes repealed Top individual rate (gift tax only)
Each citizen's exemption rises from $675,000 to $1 million in 2001, then gradually increases to $3.5 million and may disappear altogether in year 2010. A million dollars seems like a lot, but the value of the assets of a middle class person with a house, retirement accounts and life insurance can easily exceed $1 million.
The good news is that fewer Americans will face federal estate tax. Nevertheless, it's smart to consult with a professional estate planner before setting up your own estate plan.
These articles are for information purposes only. For specific details, consult with your tax advisor.
Grandparents: College Savings Plans Just Got Better
By Carla Gordon, CFP, CSA, MSFS
The stock market may be falling, but the price of a college education is now. Luckily, state-sponsored "529" college-savings plans make saving for college easier than ever. With a 529 plan, a grandparent or parent deposits money into an account through a state-sponsored program. In most states, a mutual fund company really runs the plan.
The advantage of a 529 plan versus traditional mutual fund investing is tax breaks. In some states, contributions are tax deferred. These plans became sweeter under President Bush's tax plan. Beginning in 2002, qualifying withdrawals for college tuition, books, fees, and even reasonable room and board will be free of federal income taxes. It is expected that many states will eliminate state income tax on withdrawals, too.
Investment choices have also been expanded. Where states formerly offered no investment alternatives, they increasingly are providing investment tracks ranging from conservative to aggressive. In "investmentese," conservative means mostly bonds, while aggressive means mostly stocks. The IRS now allows investors to move into more conservative tracks as the student approaches college enrollment.
Presuming the child for whom the plan was established uses the money for college, amounts in the plan may be removed from the donating parent's or grandparent's estate. Consult a tax professional for the details.
Another advantage to 529 plans is that they enable grandparents who fund the plan to retain control over the student's money. This way, if the student decides to forego college in favor of life with a rock band, you can take the money back!
Tax-Saving Tips
When it comes to keeping money in your pockets and out of Uncle Sam's, knowledge means power! The following tips may help you reduce your federal income taxes.
Did you know? Taxpayers who are over age 65 or blind and not itemizing deductions are entitled to an increased standard deduction. Two additional standard deductions are available for a taxpayer both 65 and blind. A look at 2001 deductions shows how the additional amount applies:
Filing Status Standard Deduction Additional Deduction for +65+Blind
Married/Joint $7,600 $ 900
Single $4,550 $1,200
Did you know? Items such as wheelchairs, medically necessitated ramp installations, guard rails and similar items may be tax-deductible. Consult your tax professional or the IRS to find out whether you can deduct a particular expense. Of course, medical expense deductions in general are only available to tax payers who itemize rather than claim the standard deduction.
Did you know? The amount of the annual gift-tax exclusion is rising. The gift-tax exclusion represents an amount of money or property that can be transferred to another person each year without gift tax. (See "New rules change estate planning") The amount rises from $10,000 in 2001 to $11,000 in 2002, In 2002, married couples will be able to make tax-free gifts of $22,000 to as many different individuals as they like, make recipients happy and remove the gifted funds from their estates.
Income and estate tax rules change continuously. The senior in the know may be the senior in the dough!!
PRACTICAL TALK ON RETIREMENT ISSUES
New Limits Compromise Medicare+Choice
By Crispin Sargent, CSA
In the past, Medicare beneficiaries enjoyed freedom of movement between traditional Medicare coverage and Medicare+Choice (HMO coverage). But, beginning this year, new laws limit when and how often you can switch Medicare managed care plans. Here are the changes.
January 1, 2002
This year, you can change Medicare managed care plans one time between January 1 and June 30. You will have one more opportunity to switch in November 2002 for coverage effective January 1, 2003. However, withdrawal from one plan counts as one change; enrollment in another is a second change. Avoid this by enrolling first in the new plan and asking the carrier to terminate your old coverage.
January 1, 2003
You will have only one change opportunity between Jan 1 and March 31. Then you are locked in until open enrollment for 2004 in November.
So what happens if your Medicare HMO shuts down, as so many have over the past few years? Here are your options.
1. You can join another HMO as long as it is taking new members. Many are not
2. You can rejoin original Medicare and enroll in a Medicare supplement plan. You are guaranteed eligibility to enroll in standard plans A, B, C and E. However, none of these plans offer prescription coverage.
Truthfully, there is very little choice remaining in Medicare+Choice. Of the HMO's still participating, most have announced premium increases and prescription benefit decreases. Consult with your CSA or other Medicare specialist to determine your best course of action.
CENTENARIAN SALUTE
Vince Maddex By Lynn Peters Adler, JD
Today, only a handful of America's WWI veterans survive the legions who served in "the Great War." Young men and boys drawn from rural America marched off to war because it was expected. Duty and patriotism called, and they obeyed. When they got "over there," they experienced incredible carnage as new weapons and technology collided with an outdated strategy of "stand and fight."
Among those who fought in France and Germany was Vince Maddex, a cowboy from Montana. "our president was Woodrow Wilson, and Gen. John J. Pershing was the commander of the American Expeditionary Force in Europe," he reminds us. Maddex remembers the horror: "Pershing hurled about one million of us "doughboys"into the Argonne Forest campaign. Of the 250 men in my company who went over to france, only 50 returned. We were under shell fire much of the time we were there." Vince recalls. Like most survivors of that battle, Vince can still hear the bursting of shells overhead. "We really believed we had ended was for all time," he says. "We now know it wasn't to be."
At war's end, Vince returned home and began building a life. He married and raised a family, and he worked for Standard Oil Co. for 38 years, first in Texas and then in Oklahoma. Since turning 100, Vince enjoys recognition for having done his part to keep America free. Along with a few fellow veterans, he received the Legion of Honor medal in appreciation of his service in France. At 106, Vince is proud of his service in the "war to end all wars."
