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San Francisco Chronicle
2 days ago
- Business
- San Francisco Chronicle
How to financially prepare to spend the rest of your life in the Bay Area
You'd be forgiven if the phrase 'retirement planning' caused your eyes to glaze over. But ask yourself two simple questions: What could be more exciting than getting to live in the Bay Area while doing whatever you want, every day? And would you be as happy if you had to leave? With a solid plan in place, you can set yourself up to spend your golden years in the Golden State. James 'Jim' Cunningham is an estate planning, trust and probate law attorney who helps people make those plans. He's making one for himself, too: He plans to retire here. The founder of CunninghamLegal said he compares living in the Bay Area to living in a house with a great view. When you're in that situation, it's easy to stop 'seeing' the view at all. It fades into the background. Cunningham said that's what happened to his parents and many clients he's worked with over the years who planned to move states when they retired. They got used to living in the Bay and assumed everywhere was just about the same, but with a lower cost of living and fewer taxes. 'They miss the culture and they miss the weather,' he said. When you live here, 'you don't see the good and you might focus on the bad.' And there's plenty of talk about the bad. You don't have to look far on the internet to find people blasting California for its high taxes, housing costs and homelessness. California has the top marginal state individual income tax rate at 13.3%, according to the Tax Foundation. But that's not the whole story. Cunningham broke down the hidden benefits in a post on his firm's website titled 'Why Retiring in California May Actually Be A Smart Idea.' For instance, though marginal rates are high, you'll pay a lot less on your presumably diminished retirement income compared to some states with flat tax rates. California is one of the states that doesn't tax Social Security benefits, and doesn't tax capital gains when a spouse dies. And you'll dearly miss that Prop. 13 property tax cap if you move somewhere like Texas. San Francisco, in fact, was recently ranked as one of the top places for Americans to retire, according to the AARP. Yes, the cost of living is high, but there are plenty of upsides: Good health care, walkability, great weather, lots of places to go and things to do and see. 'I encourage people not to undervalue the importance of your social network, your friends,' said Terrance Odean, a professor of finance at the Haas School of Business at UC Berkeley. 'But you've got to look at the numbers too.' Already, Northern California is one of the nation's oldest regions. In 2023, San Francisco had the third highest median age (41) of any large metro in 2023, and the highest outside Florida. Almost one-fifth of people here are over 65. And the total number of people over that threshold is expected to explode from about 750,000 in 2020 to over 1.5 million in 2050, according to projections from the California Department Finance. The Chronicle has been looking at these numbers with a series of stories exploring the challenges already manifesting in the Bay Area because of its increasing older population. For instance, a once-vibrant Berkeley neighborhood is now essentially a single-family home retirement community. It's a potential harbinger of what's to come in other cities. One Sonoma County city has lost 35% of its children in a decade, even with qualities that make it feel like a 'family-friendly' destination. Despite the ways an aging population could complicate life in San Francisco, and the region, it remains a wonderful place to live and grow old in. And while economists and community organizers address what we must do to keep the Bay Area a vibrant place to live, you are likely to have much more personal and practical concerns. Starting with: how to financially and logistically plan to live here forever. Here's what experts say. See what you spend and then save, save, save In high cost-of-living places like the Bay Area, retirement isn't an age. It's a number — specifically, the balances in your investment and savings accounts. To estimate what you'll need for spending when you're retired, you need to know what you spend now. If you aren't already, start tracking your expenses and figure out precisely where your money goes every month. Then, envision what your retired life will look like. Are you going to travel? Buy a vacation home? Golf every weekend? Write out those costs and figure out how much of a nest egg you'll need to sustain your new lifestyle. Hal Hershfield, a professor of marketing, behavioral decision-making and psychology at UCLA Anderson School of Management and author of the book 'Your Future Self,' said a lot of people think their costs will come down in retirement without the need for a commute or work clothes. 'That may be true but there are other things you will be spending money on,' he said. Those travel plans will add up fast — as will health care costs. Things like gas and homeowners' insurance cost more here. Plan for the fun stuff, of course, but plan for the less-fun aspects as well. Then save, save, save. Another element is tax planning. Our state's tax code actually has some benefits for seniors. Though California's marginal tax rate is high, that only applies to income, Cunningham points out. 'People get wrapped around the axle on income tax, but the reality is many people in retirement, before they have required minimum distributions on IRAs, many times don't have a lot of taxable income,' he said. Again, California doesn't tax Social Security income, and while you pay taxes on interest on your savings account, you don't pay any to withdraw the principal. And your property taxes will remain stable thanks to Prop. 13. He said he has seen people move out of state for a few years to take advantage of lower income tax rates so they can do things like sell a business or convert a Roth account. But if you sell your house to facilitate that move and don't plan for the Prop. 19 tax base carryover, you'll miss out on your low property tax rate when you move back. The lesson: Work with a tax attorney to plan any complex financial moves like that. It's also worth thinking through the ethics of avoiding paying taxes to the state that provided the infrastructure and social safety net that facilitated your wealth-building. Take steps to protect yourself and your money There are going to be a lot of people you need to protect your money from. Scammers, certainly. Those offering predatory loans or perilous investment opportunities as well. But also: yourself. 'It's depressing, because we don't like to think about cognitive decline,' said Terrance Odean, a professor of finance at the Haas School of Business at UC Berkeley. One of the major financial risks of aging is longevity — outliving your funds. The other is diminished self-control as you lose decision-making capabilities. And that's something you might not even realize is happening. On his YouTube channel, Odean relays a story about his dad. The former high school teacher had been a careful saver his whole life, and purchased a long-term care policy when he retired. Twenty years later, he announced he'd canceled it. 'Dad was no longer thinking clearly,' Odean said. He cited a statistic: Scores on financial literacy tests decline about 1% per year as we age. But confidence in financial literacy doesn't drop. We lose our ability to make financial decisions but don't know we're losing it. If you've been fortunate enough to find success and build a life in the Bay Area, you're probably pretty smart — which can make it even harder to accept that your ability to keep making good decisions has declined. Here's what experts recommend you do: Delay drawing Social Security. One way to protect yourself from the longevity risk is by waiting as long as possible to take Social Security. That's your bottom line, Odean said: If the market collapses or a scammer gets their hands on your bank accounts, you can still count on Social Security coming in (assuming the problems reported by recipients following DOGE changes are temporary). He said the only time he'd make an exception is in the case of a terminal health diagnosis. Buy an annuity. Another recommendation Odean gives is to invest your nest egg in an annuity with no cash value. That last part is important: It means a scammer won't be able to wrest it from your clutches. Some annuities have riders where coverage increases if you need long-term care. Invest in long-term care insurance. Nearly 70% of adults who reach the age of 65 will require long-term care for an average of three years, according to A report from the Joint Center for Housing Studies said the annual median cost of assisted living and related living expenses in the San Francisco metro area is $96,800. 'Everybody's goal should be to private pay for their long-term care needs,' said Chris Orestis, the author and founder of retirement planning platform 'Retirement Genius.' Pick a financial confidant. Before you need any help making financial decisions, choose someone — maybe a child, a fiduciary or an attorney — and get into the habit of discussing major money moves with them. You may want to appoint them co-trustee of your trust or give them power of attorney if you can't make decisions any more. Diversify assets. As you approach retirement age, work with a financial adviser to diversify your holdings to a blend of stocks, bonds, and cash in a high-yield savings account. Consider options for your living situation. If you've owned your property for a long time and paid down your mortgage, you have a lot of options for your living situation as you age. You could tap your equity with a second mortgage or by getting a reverse mortgage, though you should research them thoroughly and discuss lenders with an attorney or financial adviser before getting one. You could also utilize Prop. 19 to sell your home and buy a new one that better fits your needs while carrying over your reduced tax base.
CBS News
4 days ago
- General
- CBS News
Many seniors in the Bronx are facing poverty, study finds
Many older adults in the Bronx are living in poverty and left without the option to retire, according to a study by The Center for an Urban Future. Jonathan Bowles, executive director of The Center for an Urban Future, said the study looked at data from 2013-2023, and the findings in the Bronx were alarming. "Twenty-five percent of all older adults in the Bronx today are living in poverty. It's the highest rate in the entire state of New York, and we've seen an increase by over 50% over the last decade," said Bowles. Bowles said as the number of Bronx residents 65 and older continues to increase, so does their vulnerability. "So many people work their lives making fairly low wages, they didn't have enough money. And in a city with such a high cost of living to put money aside for retirement and, for many of them, particularly those who are immigrants, they're not benefiting fully from Social Security. In fact, we find that a pretty significant share of older adults in the Bronx are not receiving any Social Security income," Bowles said. In fact, the study, which received support from the AARP, reports 63.6% of Bronx residents over 70 do not have retirement income, and nearly one in four reported no Social Security income. Bowles said there are a number of things that are needed from the state to combat the issue. "More than ever, these low income older adults are relying on food banks for their meals. Many of them are really falling into poverty at old age. We've got to make sure that there are the kind of Meals on Wheels programs that deliver to folks that can't get out to those food banks. We as a city need to be investing in housing, affordable housing for seniors," said Bowles. While living in their Bronx apartment for nearly 30 years, Patrick and Audrey Hoover have witnessed changes in their neighborhood and have adapted to stretching their dollars. "We're shopping a lot more, but we're buying a lot less, or our funds are just not going as far as it used to," said Audrey Hoover. Although the Hoovers are able to cut costs, they hope more will be done to help seniors. "Whether it's health care, whether it's other benefits for seniors, a lot of times they're not taking into consideration the tech savviness of seniors and the language and things like that. So if any of these things could be addressed, in whatever ways," Hoover said. To see the report from The Center for an Urban Future, click here. You can email Erica with Bronx story ideas by CLICKING HERE.
CBS News
4 days ago
- CBS News
Police in Metro Detroit warn of scammers demanding ransom, claiming victim's family member held at gunpoint
Police in Birmingham, Michigan, are warning residents of scammers after two people claimed they received a call about a family member being held at gunpoint and the caller demanding money. Authorities said the two residents reported getting a "spoof call," or a call when the number on display is the same number associated with the family member. They said an unknown person would request ransom through Zelle or Venmo. "Please do not send any money to anyone and attempt to get in contact with the individual the suspect claims to have. Stay vigilant and call the Birmingham Police Department immediately if you are concerned about a resident's welfare and report any suspicious activity/fraud to Birmingham Dispatch at 248-530-1870," police said in a social media post. Earlier this month, the Waterford Police Department said some residents reported receiving a call from someone claiming to be an officer and telling the victim that they missed jury duty. In that incident, police advised residents to hang up and not engage with the scammer. Residents should also delete any text messages and emails that they are not familiar with and spread the word to family members, specifically elderly people. According to the Federal Trade Commission, Americans reported losing $12.5 billion in 2024 due to fraud. An AARP study released in April 2025 found that more than 100 million people in the U.S. lost money due to fraud or personal information being used.
Newsweek
5 days ago
- Entertainment
- Newsweek
'Spinal Tap II' Teases Huge Rock Star Cameos
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Entertainment gossip and news from Newsweek's network of contributors "Spinal Tap II: The End Continues" hits theaters in September, and writer-director Rob Reiner recently talked about the relevance of two of the biggest rock stars in the world making cameos in the sequel: Paul McCartney and Elton John. Speaking to AARP Movies for Grownups, Reiner was asked if the inclusion of McCartney and John was meant to be a statement about reinvention. "It basically says: No matter how old you are, if you can still do it and still enjoy doing it, then do it," Reiner answered. Read More: 'The Naked Gun' Reboot Popcorn Bucket References Original Classic Gag Reiner continued, "I asked Paul McCartney about this. I said, 'There's you, Mick Jagger, Elton John, and you still like to perform. What is it about you guys? Is it that you just love the music? And you love performing?' And he says, 'Yeah. And the drugs.'" That last part was a joke from the new movie. "The point is, these guys just love doing it," Reiner said. "If they're given an opportunity, they'll get in front of an audience and play." Embassy Pictures The cameos from McCartney and John were confirmed as far back as 2023, and they're not the only big names in music appearing in "Spinal Tap II." Metallica drummer Lars Ulrich and Red Hot Chili Peppers drummer Chad Smith will make appearances in the mockumentary. Also set to appear are Questlove, Garth Brooks, and Trisha Yearwood. Of course the most important musicians are the members of Spinal Tap itself. Christopher Guest, Michael McKean, and Harry Shearer will all return to reprise their roles as members of the heavy metal band reuniting for one final show. "This Is Spinal Tap" released in 1984 at a time before your average moviegoer knew what a mockumentary was. In fact, speaking with AARP, Reiner recalled having to explain to people seeing the movie that Spinal Tap wasn't a real band and that the film itself was satire. The film has remained a cult classic for decades, in both film and music circles. While the dialogue in "This Is Spinal Tap" and the upcoming sequel was improvised, the music isn't. Guest, McKean, and Shearer write and perform all the music of the band themselves. "Spinal Tap II: The End Continues" releases in theaters on September 12. More Movies: 'Road House 2' Loses Fan-Favorite Director 'Night at the Museum' Reboot On The Way
Forbes
5 days ago
- Business
- Forbes
Over 50 With No Retirement Savings? Here's What To Do Now
Planning for retirement in your 50s starts with clear goals, honest budgeting and a renewed focus on ... More the future. Landing that first job after graduation is exciting. Suddenly, you have real money in the bank to buy what your childhood allowance could only dream of. But then life happens. You get promoted, maybe married with children, and before you know it, retirement is closer than those carefree 'work hard, play hard' days ever were. One day, you wake up in your 50s and realize retirement is right around the corner. Questions start piling up: Have you saved enough? Should you adjust your investment risk? Is there still time to catch up? The good news is it's never too late to take control and set a stronger course for your future. 'In my commentary on the planning aspect, talking to somebody and mapping this out and understanding all the parts and pieces, honestly, don't be embarrassed that you're not there yet,' Genevieve George, CPA, CFP, CFE, CDFA, senior wealth advisor and principal at Pelican Financial Planning and Wealth, states during a phone interview. Many people feel embarrassed about their lack of knowledge about financial planning or about comparing themselves to their peers who have saved more. An AARP survey revealed that 20% of adults over 50 have no retirement savings at all. Meanwhile, 61% in this age group are worried they won't have enough to support themselves during retirement. Even among those actively saving, only 40% of men believe they're putting away enough. CNBC reports that 67% of 55-year-olds fear outliving their savings. On top of that, many Americans at 55 have less than $50,000 in median retirement savings. The numbers may feel daunting, but they don't have to define your future. Whether you're playing catch-up or fine-tuning an existing plan, there are practical steps you can take today to build confidence and security in your retirement strategy. Genevieve George, CPA, CFP, CFE, CDFA senior wealth advisor and principal at Pelican Financial ... More Planning and Wealth, creating a retirement strategy for her clients. Be Brave And Ask Questions It's easy to feel ashamed or overwhelmed when looking at your financial reality in your 50s. But as George points out, embarrassment is one of the biggest barriers to getting on track. 'Don't be embarrassed to say out loud, 'I don't think I've saved enough,'' she says. Many people avoid sharing their full financial picture out of fear of judgment, even though this honesty is crucial to making a real plan. One of George's clients, for example, was retiring with thousands of dollars in credit card debt. This amount could have been covered with assets, but the shame to admit it made it worse. George emphasizes that these are your life savings. You have every right to ask questions and fully understand what you have and how it's working. In your 50s—often your peak earning years—you have an opportunity to make smart moves and set yourself up for the next stage. It starts with being brave enough to face the numbers and take control. Reevaluate Your Risk—One Size Doesn't Fit All In your 50s, the investment playbook you used in your 40s might no longer serve you. Jason Bayuk, CFP, financial advisor, financial services representative at Barnum Premier Client Group, stresses the importance of revisiting your asset allocation and risk tolerance as you approach retirement. Unlike your younger years, when there was time to recover from market dips, your focus now should be on protecting what you've built while still allowing for growth. 'Your risk tolerance should be unique to you and what your needs are, and more specifically, the risk tolerance that you have should revolve around the job description of what you want those dollars to do for you,' he explains. 'Each bucket of money that you have in your life should have a specific job description, and that job description will ultimately impact how those dollars should be invested.' He suggests thinking of your savings in different 'buckets,' each with its own purpose and timeline. Money needed in the first years of retirement should be more conservatively allocated, while funds for later decades can take on more risk to keep growing. Prepare For The Unexpected Even the most carefully crafted retirement strategy can be upended by unexpected events. Bayuk emphasizes the critical importance of estate planning as part of any retirement preparation. 'Although you can have the perfect retirement plan that's set up financially, unexpected events may happen that could potentially derail you,' he warns. Estate planning goes beyond crafting a will. It also includes essential documents like healthcare proxies, durable powers of attorney and HIPAA authorizations. These protections ensure that if something happens to you, your wishes are carried out and your loved ones are shielded from unnecessary financial and legal complications. People in their 50s need to think beyond just growing their savings and start planning how they'll use that money. A big part of that is tax diversification. He shares, 'It's important to have diversification amongst the different taxation of investment strategies, making sure that you have the correct balance between taxable accounts, tax-deferred accounts andtax-advantage accounts such as Roth.' Jason Bayuk, CFP, financial advisor, financial services representative at Barnum Premier Client ... More Group, speaking at Hamptons Tech Week 2025. Get Real About Your Spending Habits Many people assume they'll spend far less in retirement, but George warns against this common misconception. 'They're about to have 40 plus extra hours in a week, so their spending might not actually be [what they think]' she explains. The reality? Lifestyle habits are deeply ingrained, and cutting expenses overnight is much harder than it sounds. 'Some people think, okay, I'm going to retire, but I can live on less,' she says. 'And if you haven't lived on less for the last 15 years, it's going to be drastic.' Instead of assuming you'll naturally downsize your lifestyle, analyze where your money really goes and then create a realistic budget; an honest budget can prevent you from being blindsided and help ensure your retirement savings match the life you want to live. What To Do If You're Starting Late If you're in your 50s and feel behind, don't panic. Here's how to get moving: 'Ideally, in a perfect world, all of the saving strategies that you'd have would be systematic, automatic,' Bayuk concludes. 'Saving strategies are the best way that we save.'
