WHAT? No retirement?

Read the article below and this is exactly why folks are looking for better alternatives overseas in places like Panama.  Who the heck wants to work their whole life and have NO CHANCE of enjoying the fruits of their labor, give me a break!!!

By Robert Powell, MarketWatch

BOSTON (MarketWatch) -- We all think it’s a panacea. If you don’t have enough money saved for retirement, you’ve got a few ways to close the gap between what you have and what you need in your nest egg: Save more, invest more aggressively, and/or work longer.

Well, it turns out that working longer is indeed an option, according to the Employee Benefit Research Institute latest study. The only problem is that the latest research shows that you’ll have to work much longer than you anticipated. In fact, many Americans will have to keep on working well into their 70s and 80s to afford retirement, according to the study, titled “The Impact of Deferring Retirement Age on Retirement Income Adequacy."

What’s more, it’s even worse for low-income workers, according Jack VanDerhei, one of the co-authors of the study. Those who earned (on average over the course of their careers) less than $11,700 per year, the lowest income quartile, would need to defer retirement till age 84 before 90% of those households would have just a 50% chance of affording retirement.

Those who earned between $11,700 and $31,200 will need to work till age 76 to have a 50% chance of covering basic expenses in retirement. Those who earned between $31,200 and $72,500 will need to work to age 72 to have a 50% chance and those who earned more than $72,500, those in the highest income quartile, catch a break; they get stop working at age 65 to have a 50/50 chance of funding their retirement.

So what can be done to make sure you have enough income in retirement? Well, the sad truth is that not working is no longer an option and working past age 65 is fast becoming a fact of life, at least for those in the lowest three income quartiles.

One bright spot, according to John Nelson, co-author of ‘What Color is Your Parachute? For Retirement’ is that working works: “For those in the lower half of the income spectrum, delaying retirement from 65 to 69 has a profound effect,” he said. “It increases retirement income adequacy by 25% to 50%! That’s a powerful incentive.”

The new normal

Now the reality about EBRI’s findings is that many Americans — who are able to continue working and whose skills are still in demand — are already working past age 65. In 2009, 17.2% of Americans age 65 and older were in the labor force, according to recent AARP Public Policy Institute report, “Family Income Sources for Older People, 2009.”

And about 14.2 million older persons (36.7% of the older population) had family incomes from earnings in 2009. The median family income from this source was $32,330, while the mean was nearly 1.6 times as large — $50,971. Read the AARP report here.

And the new normal isn’t that people are working past age 65, rather it’s this: They are also hunting for second jobs as all, according to Art Koff, founder of RetiredBrains.com. “Even those older Americans who are still working are looking for ways to make additional monies,” he said.

And many, judging from the page views at RetiredBrains.com’s website, are often exploring ways to work from home. “Those older Americans who are looking for a job, those who have already retired and those who are working but need additional income or want to start something that they can continue into their retirement years are all reading (the work-from-home) pages,” Koff said.

Making it work

To be sure, many Americans haven’t figured out how to make working later a real option, instead of just a fantasy. And for them, Nelson has this advice: “You need to pay attention to your career and your health.”

“First, for your career, do some in-depth research and planning. Second, for your body, take a health risk assessment. You may need to keep both of them in shape longer than you thought,” he said.

Work and save

Working past age 65 is certainly one way to make sure you have enough income to fund retirement expenses. But EBRI also noted that Americans who work past age 65 who continue to save for retirement in a 401(k) or some such account earmarked for retirement increase the odds of having enough income in their golden years. “One of the factors that makes a major difference in the percentage of households satisfying the retirement income adequacy thresholds at any retirement age is whether the worker is still participating in a defined contribution plan after age 65,” the co-authors of the report. “This factor results in at least a 10 percentage point difference in the majority of the retirement age/income combinations investigated.” The EBRI report can be found at this website.

A new compact

Others, meanwhile, have a different take on EBRI’s study and findings. “This report just reinforces the need for a new social compact that provides increased financial security in return for increased contribution,” said Marc Freedman, author of “The Big Shift: Navigating the New Stage Beyond Midlife and CEO of Civic Ventures.”

“We need to enable the many people who want and need to work longer, without hurting those who are not able to,” Freedman said.

Panama's Azuero Peninsula

THE AZUERO IS ONE OF MY FAVORITE PLACES IN PANAMA and one that I list as a “must see, must do” for visitors and investors. It is accessible from Panama City by car in about four and a half hours and twice weekly plane service in about 45 minutes. It has some of the prettiest beaches and towns in Panama.

Panama lies at the crossroads of the Western Hemisphere, where North and South America meet and the Caribbean almost reaches to the Pacific Ocean, connected by the Panama Canal. In the middle of the country is a peninsula that faces south, jutting into the Pacific like a green wedge, and caressed by the Trade Winds. This is a mountainous region given over to cattle raising, with small towns dotting the coast and villages in the interior. This is Azuero.

One of the best places in this area is Pedasi. Here old times have not been spoiled by the influx of tourists as the people pretty much live the same as they have for years.  Everything noticeably slows down in Pedasi, what's the rush?  Where are you going?  Within a day or 2 you will also slow down and understand why this part of the world is unspoiled and an excellent place to unwind, invest, and have a dollar beer.

Can we get a bit political?

Hola Amigos, this is a very disturbing day, with what is going on in Greece with the protests and back in the US no more good consumer or housing news, yet the Stock Market goes crazy up.  I guess people like to bet on BAD times.  Anyways, Greece is the exact example of what will happen in any country when you rely on government for your free lunch, the Greek people are up in arms over the government making needed cuts in services and the folks are going crazy.  When the nanny state takes over people become used to it and then when nanny has to take your toys away you light shit on fire and get angry.  WELL, take a look at this America, as your government invades more of your life you TOO will get angry when they start to take it away due to over spending, it can and it will happen in the USA as it will in many other places.

Sorry I had to get into this today, as I like to keep this about Panama exclusively, but the world is crumbling, O that reminds me come to Panama and turn your frown upside down as Panama is NOT going crazy, the people are working hard and they encourage all of us to invest in the country so it can stay strong and not run into the socialist programs taking hold in the rest of the world, plus the weather is fantastic

over
Panama Man

What's new this week in Panama?

Happy Monday, as always I love to brag about Panama, its location, its people, it has adventure, or heck just relax on a beautiful beach and have a beer for a buck.  It is wet season now in Panama, which means it will rain everyday, BUT not all day, this is how the country stays so green and beautiful.  Always remember though, Panama is a great climate and easy to get to so come on down and turn your frown upside down.

Over for now

Panama Man

Cost of Living Index, Where does Panama City Panama Rank?

Panama, Panama City..

Overview

Country Full Name: Republic of Panama.

Location: Panama is in Central America, bordering both the Caribbean Sea and the North Pacific Ocean, between Colombia and Costa Rica.

Country Climate: Tropical maritime; hot, humid, cloudy; prolonged rainy season (May to January), short dry season (January to May).

Country Terrain: Interior mostly steep, rugged mountains and dissected, upland plains; coastal areas largely plains and rolling hills.

Major Languages: Spanish, English.

Major Religions: Christianity.

Country Population: 3.4 million (2008 est.) 3.5 million (2009 est.).

Country Economy: The Economy of Panama is free market economy with a history of low inflation. It is based mainly on the services industry, heavily weighted toward banking, commerce, and tourism.

Currency: Panamanian Balboa (PAB).

Country Inflation: 8.8% (2008 est.) 2.4% (2009 est.).

City: Panama City is the capital and largest city of the Republic of Panama.

City Economy: Panama City has more than 80 banks, more than 15 of them being national. The city also boasts several tourist attractions, and is a stopover for other nearby destinations in the country as well as a tourist destination in its own right.

Cost Of Living

Panama City has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Panama City is currently ranked 223rd of the most expensive places in the world for expatriates to live, out of 300 international locations. The cost of living rank for each of the 13 Basket Groups is as follows: The higher the number the cheaper it is.

Alcohol & Tobacco costs for alcoholic beverages such as alcohol at bar, beer, locally produced spirit, whiskey, and wine as well as tobacco products such as cigarettes is relatively less expensive compared to other cities with a rank of 266 out of 300.

Clothing costs for clothing and footwear products such as business suits, casual clothing, childrens clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear is relatively less expensive compared to other cities with a rank of 186 out of 300.

Communication costs for various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls is relatively less expensive compared to other cities with a rank of 279 out of 300.

Education costs such as creche / pre-school fees, high school / college fees, primary school fees, and tertiary study fees is relatively less expensive compared to other cities with a rank of 297 out of 300.

Furniture & Appliance costs for furniture, household equipment and household appliances such as dvd player, fridge freezer, iron, kettle, toaster, microwave, light bulbs, television, vacuum cleaner, and washing machine is relatively less expensive compared to other cities with a rank of 285 out of 300.

Grocery costs for food, non-alcoholic beverages and cleaning material items such as baby consumables, baked goods, baking, canned foods, cheese, cleaning products, dairy, fresh fruits, fresh vegetables, fruit juices, meat, oil & vinegars, pet food, pre-prepared meals, sauces, seafood, snacks, soft drinks, spices & herbs is relatively less expensive compared to other cities with a rank of 245 out of 300.

Healthcare costs for general healthcare, medical and medical insurance such as general practitioner consultation rates, hospital private ward daily rate, non-prescription medicine, and private medical insurance / medical aid contributions is relatively less expensive compared to other cities with a rank of 243 out of 300.

Household costs for housing, water, electricity, household gas, household fuels, local rates and residential taxes such as house / flat mortgage, house / flat rental, household electricity consumption, household gas / fuel consumption, household water consumption, and local property rates / taxes / levies is relatively more expensive compared to other cities with a rank of 88 out of 300.

Miscellaneous costs related to stationery, linen and general goods and services such as domestic help, dry cleaning, linen, office supplies, newspapers and magazines, and postage stamps is relatively less expensive compared to other cities with a rank of 272 out of 300.

Personal Care costs for personal care products and services such as cosmetics, hair care, moisturizer / sun block, nappies, pain relief tablets, toilet paper, toothpaste, and soap / shampoo / conditioner is relatively less expensive compared to other cities with a rank of 290 out of 300.

Recreation and Culture costs such as books, camera film, cinema ticket, DVD and CDs, sports goods, and theatre tickets is equally expensive on average compared to other cities with a rank of 165 out of 300.

Restaurants, Meals Out and Hotel costs such as business dinner, dinner at a restaurant (non fast food), hotel rates, take away drinks and snacks (fast food) is equally expensive on average compared to other cities with a rank of 180 out of 300.

Transport costs for public transport, vehicle costs, vehicle fuel, vehicle insurance and vehicle maintenance such as hire purchase / lease of vehicle, petrol / diesel, public transport service maintenance, tires, vehicle Insurance, and vehicle purchase is relatively less expensive compared to other cities with a rank of 204 out of 300.

New opportunities in Panama for real estate industry

Sustained growth in Panama in recent years, now projected at 7.5% for 2011, and the possible ratification of the Free Trade Agreement between Panama and the United States, like the already signed Free Trade Agreement between Panama and Peru, will increase considerable demand for various types of commercial real estate, including office and storage centers.  As more businesses around the globe move to Panama this will mean some all of these folks will need a place to live.  We believe this is why now is the time to get that real estate investment in Panama that you have been thinking about.  Panama is growing, unlike the US economy, and with growth comes plenty of opportunity to make investment gains.  Catch the real estate investment wave here in Panama and see our friends at Re/Max Beaches and City - Janet and Richard Novak for their expert advice.  Visit the website at www.beachesandcity.com

World Rankings for Life Expectancy

So, here we are on a glorious Monday morning and according to the World Health Organization Panama now ranks 4th out of ALL countries in the world for longevity of life, so now we have this going for us in Panama.

Many publications have listed Panama in the top 1 or 2 for years as a great place to retire and now the WHO places Panama 4th on their list to increase your life expectancy.  What else do we need to convince us that Panama is the place to be?  If you are an American, Panama is a short flight from family and friends yet you will be able to (as spock would say) Live Long and Prosper!!!

Come to Panama and turn your frown upside down, O YES and live a bit longer at the same time.

over
Panama Man