Will You Have Enough Money for Retirement?

Do you have enough money for retirement?  That is a question that most of us ask ourselves all the time. With the median age of retirement still at 62,  the average lifespan increasing, and health care costs increasing, there is a very real possibility that many people will run out of money well before the 30 years or so that you may live after retirement. Do you know if you have enough?

While the answer to that question will differ for each of us, there is a handy tool that may be useful to determine just how much you need and how much you can comfortably spend each month in retirement.  This is the T. Rowe Price Retirement Income Calculator.  Available at the T. Rowe Price website at www.troweprice.com, it is easy to use and gives a comprehensive look at your particular financial situation.

You can use the calculator even if you are not a T. Rowe Price shareholder. You simply register as a guest and then provide the required information. This includes the amounts in your and your partner's IRA, 401K as well as the amounts you anticipate (or are receiving, if already retired) receiving from Social Security, pensions, annuities and any other sources of income.  You also are required to provide your monthly budget, i.e., how much you spend each month.

Once you have provided the requested information, the calculator goes to work, performing what are said to be thousands of calculations to determine if you will run out of money before you are 95 years old.  You are then provided with a readout showing the percentage likelihood as to whether you have enough.  Anything over 90% is considered excellent. Below that, you might want to consider saving more. In addition to the percentage likelihood of reaching 95 with enough money, it also shows you how much you can safely expect to spend each month.

This calculator is the best and easiest to use that I have seen. One note of disclaimer, I do own shares in various T. Rowe Price funds but I have no other financial interest in the firm, nor have I been compensated in any way for these views, which are strictly my own. - 5619EB62C1D3715573A5D14C19EFB9AA

Farmers' Markets

I don't know about you, but I love farmers' markets.  You know, the old-fashioned kind, where the farmers come into town and set up tents in a parking lot and lay out fresh vegetables, fruits and homemade pies, jams and jellies. Well, while staying recently in South Florida, we visited a farmers' market set up in a small parking lot of a suburban strip mall. It was a little different from those we are used to up North.

The farmers' markets we are familiar with are usually filled with tables full of apples and the smell of funnel cakes. The Florida market offered a selection of fresh seafood, including lobster tails and grouper! And instead of funnel cakes (which I love to eat) there were beignets! If you are not familiar with beignets, they are a sort of French donut, really just pieces of fried dough covered with powdered sugar. I had heard of them and knew they were popular in New Orleans, but I had never actually eaten one before. I decided now was the time.

So, for one dollar, I watched as the man behind the wooden table, took a small rectangle of dough, placed it in what looked like a wok with oil boiling in it and then took it out after about two minutes, rolled it in powdered sugar and handed it to me in a small paper container. I eagerly took it and bit into it. It was delicious. It was still warm and sort of crunchy. Now, I know why it has such a great reputation as a delicacy not to be missed.

Although it was the middle of winter, fresh corn, tomatoes and avocados were also available. So we loaded up on those and headed home where we ate them for dinner that night.  My only regret was not buying a glass of fresh-squeezed lemonade at the stand at the farmer's market.  Oh well, that just gives me a good reason to go back again next time.

Fallingwater: The Most Famous House in America

Fallingwater is often called the most famous private house in America.  Designed by the famed architect, Frank Lloyd Wright, it exemplifies a style which makes maximum use of its setting. Built over a waterfall in Fayette County, Pennsylvania, it is simply spectacular.

Fallingwater was built between 1936 and 1939 as a mountain home for the Kaufmann family, the owners of a Pittsburgh department store. From the very beginning it was recognized as an architectural gem. It appeared on a Time Magazine cover in1938. In addition to designing the house itself, Wright also designed much of the furniture as well. 

The Kaufmann family used Fallingwater until 1963, when it was donated to the Western Pennsylvania Conservancy, which conducts tours of the home and surrounding grounds. We recently toured the house and even in winter, with snow everywhere, it was truly a marvel not to be missed.  Reservations are required. A small gift shop is also on the grounds.

For more information about hours, ticket prices and directions, visit the Fallingwater website at www.fallingwater.org.

Ohiopyle: White Water Rafting at its Best

Have you ever wanted to go white water rafting?  When most people think of white water rafting, they probably envision rafting down the Colorado River somewhere out West.  There are, of course, places back East that offer the same opportunity and thrills.  One of these is Ohiopyle State Park, located in Fayette County, Pennsylvania.

The Park is approximately 20,000 acres and offers a number of other activities in addition to white water rafting. These include 79 miles of hiking trails.  In addition, Ohiopyle offers 27 miles of biking trails, connecting Pittsburgh, Pennsylvania and the state of Maryland along the former rail bed of the Western Maryland Railroad.

But it is whitewater rafting that Ohiopyle is most noted for.  And with good reason.  The Youghiogheny River (the "Yough") is said to be one of the most popular white water rafting locations on the East Coast. The lower Yough rapids are rated as Class 3 and 4 rapids. The middle Yough has class 1 and 2 rapids. For those not familiar with the rapids classification system, the Class 3 and Class 4 rapids are particularly difficult and challenging.  They should only be attempted by the most skilled rafters or under the supervision of a skilled rafter.

Nemacolin Woodlands Spa

Located just about an hour and a half from Pittsburgh, Pennsylvania is the Nemacolin Woodlands Spa.  Just off the National Road, Route 40 (other interesting sites along route 40 include Fort Necessity, where an important battle was fought during the French and Indian War), it is a bit of European luxury in the Laurel Highlands.  Famous for its Five Star restaurant, Lautrec, Nemacolin offers the guest a full menu of entertainment and resort options.  It is the home of the outstanding Pete Dye designed 18 hole golf course, Mystic Rock.  Along the 18th green is a hotel called Falling Rock. Originally built to be used by touring professionals during tournaments on the course, now, anyone can reserve a room. Not only is it a golf resort, Nemacolin is also a small ski resort, Mystic Mountain, perfect for beginners.  Coming this summer is a new casino.

The brainchild of 84 Lumber founder, Joe Hardy (whose family owned the Hardy & Hayes Jewelry Store), it features something for just about everyone. In the new 26,000 square foot ski lodge, there is a bowling alley, an arcade for the kids and a restaurant, Apex.  Also on the property is a shooting range and an off-road driving experience using Jeep Rubicon vehicles.

There are two main buildings, the Chateau and the Lodge. Separated by an extensive series of walkways, reportedly filled with some $46 million of artwork and collectibles, the Lodge is the more informal of the two hotels. Our room in the Lodge was quite nice, with two queen beds and a small balcony. The bathroom was huge by any standard and seemed to be quite new. We did not see the rooms in the Chateau, but I am sure they are even more lavish.

Not to be missed is the Woodlands Spa.  In a separate building from the Chateau and the Lodge, it can be reached on foot through a series of buildings and a skyway or via the Nemacolin shuttle. For a $20 fee, you are given access to the large, indoor, heated pool, the hot tub, sauna and steam room. Laying on the lounge chairs and listening to the soothing spa music is a great way to just relax.

The piece de resistance is the spa itself.  The spa offers a variety of massages, facials, etc at additional cost.  The massage therapists are well-trained and they make sure you are released of all tension by the time they are done with the 50 minute treatments (which cost $125). 

In addition to Lautrec, which offers a tasting menu at between $110 and $200 per person, Nemacolin affords additional dining experiences, including Autumn and the Tavern.  Autumn is more informal than Lautrec and offers an eco-friendly menu featuring locally-grown and raised foods, in addition to seafood flown in daily. At our dinner recently, all 5 of us had seafood entrees, including crabmeat stuffed trout and sesame tuna. The wine list is extensive and a sommelier is available to help with your selection.  The wines are slightly pricey. The sesame tuna was perfectly prepared and rare as ordered. Autumn also serves breakfast. Among other selections is a freshly-prepared sausage patty, which is actually more like a pork meatball and quite good.

The Tavern and the adjacent ice cream shop are even less formal, but do offer a nice selection of sandwiches, burgers, chili and a fairly expensive fish and chips offering.

For more information on rates and availability, please go to the Nemacolin website, www.nemacolin.com.

Merry Christmas!

Just a short note wishing everyone a Merry Christmas and I hope you have enjoyed these posts.  I want to thank everyone for your support and hope you will continue reading them.

Peace to all and to all a "good day and night!"

How to Save For Retirement the Easy Way

How would you like to save for retirement the easy way?  We all would, of course.  The statistics consistently show that Americans are simply not saving enough for their retirement.  Here is a possible easy solution that you can use to make sure you are on track for that retirement.

In this month's AARP The Magazine, there is an article by author, Jeffrey Yeager, adapted from his new book, "How to Retire the Cheapskate Way:  The Ultimate Cheapskate's Guide to a Better, Earlier, Happier Retirement."  The plan is very simple:  Yeager suggests that each year, you plan on saving at least an amount equal to your age---and two zeros. In other words, at age 40, you would save $4000 and at age 50, $5000.  If you are going to follow this plan, you might want to consider having a set amount deducted automatically from your checking account each month and transferred to your IRA or other retirement account.

According to Yeager, if you follow this plan beginning at age 20 and assuming a 5% annual return compounded, you would have at least $500,000 at age 60.  Not an insignificant amount .Of course, no one can predict the future as to rates of return or the effect of inflation, but this seems like a relatively painless plan to save for the future.