Moving to a New Clearwater Headquarters
For decades, our Druid Road office has been where we’ve grown alongside the clients we serve. Now, as we celebrate 40 years as your fiduciary partner, we’re ready for our next chapter in a new space.
After August 17th, our office address is:
300 Park Place Blvd., Suite 210
Clearwater, FL 33759
The address is new, but you’ll find the same people, values, and commitment to service that have defined ProVise for the last 40 years. We look forward to welcoming you to our new home. Let’s plan for the next 40 years together.
Boomers and the Kids
A client without a child once lamented to a friend that they were concerned about who might take care of them in old age. The friend, who has three children, turned to them in a not so joking way and said, “What makes you think they would take care of you anyway?” It seems that question is now being answered by many of their Millennial kids in a binary way. This year the first of the Baby Boomer generation is turning 80, entering their ninth decade of life.
Some already need care, and many more will need it with each passing year. There is a large group that do not expect to serve as caregivers for their parents, often because of work obligations, financial pressures, responsibilities to their own children, or complex family dynamics.
Living away from retired parents is an extra burden for some. Mom and Dad’s failure to save enough for retirement put an additional financial strain on the kids. Mom and Dad are living longer and the inheritance that the kids thought they would get is smaller than what was anticipated and isn’t arriving in time for their own retirement. Much of this could be a little easier if Mom, Dad and the kids had a plan in place, but that requires an open dialogue that many parents do not want to have. It is best to plan before events unfold rather than as they do.
Home Sharing — The New Thing
For many retirees, the cost of staying in their home is causing many to consider selling and downsizing. Property taxes, insurance costs, utilities bills, and general maintenance increasing drastically over the past six years caused many to be house poor. So, some enterprising homeowners are looking to have another senior move in with them renting a spare room or two and helping with some of the chores. Besides defraying the costs, it also brings the potential for socialization and friendship. Several companies actually act as matchmakers. (Home, Nesterly, and roomates.com are some examples). Given the concerns about non-family members living in a home (think VRBO), some local or state regulations may limit or even prohibit this practice.
Student Loans Don’t Disappear in Retirement
Although student loans may not be top of mind for many people nearing retirement, about 9.6 million Americans age 50 and older carry student loan debt totaling roughly $456 billion, according to the Education Data Initiative. This includes loans people took out for themselves as well as for their children. As a result, many upcoming retirees face the challenge of paying off student loans while living on a fixed income.
What are the options for your student loans?
- The Public Service Loan Forgiveness Program may be available to full-time government workers and non-profit employees who have made 120 qualifying monthly payments
- Change the repayment plan. Many borrowers opt for a standard repayment plan to pay off their loans in 10 years. However, switching to a repayment plan based on income may provide the opportunity for lower payments, although this can lead to making more interest payments over time
- Adjust your budget in retirement and/or working longer
- Stay current on student loan rules, as repayment options and forgiveness programs may change over time
It is important to remember that student loans do not disappear in retirement. Considering your options before you retire can help you come up with a plan to satisfy student loan obligations while achieving your long-term retirement goals.
Are We Moving to a C-Shaped Economy?
The term “K-shaped economy” gained traction during the Covid recovery to describe the divergence in outcomes between high- and low-income households. Asset owners recovered quickly while wage earners lagged. For much of the past five years, that framework fit the data. Consumer spending was driven disproportionately by the highest-income cohorts, while middle- and lower-income households struggled, particularly during periods of elevated inflation.
The economy at large has held up better than that framework would imply. Job openings have stabilized near pre-Covid levels rather than continuing to soften, and payroll growth has been mostly positive. The harder question is whether that strength broadens. There are early signs it may: Hilton CEO Christopher Nassetta recently pointed to improving demand in the company’s lower- and mid-tier brands, a trend management expects to continue through year-end. Additionally, after-tax wage growth for lower-income households surpassed that of higher-income households for the first time since December 2024. Taken together, improving lower-income consumption and stronger wage growth suggest the gap may be beginning to narrow.
Up Your Assets™
Episode 37: An Overview of Tax Lien/Deed Investing
Tax liens & Tax Deed investing are one of the most misunderstood corners of real estate. In this episode of Up Your Assets, Brian Seidensticker and your host Ray Ferrara, CFP® break down how tax sale investing actually works, why it’s not as simple as it sounds, and what investors need to know. If you’ve ever wondered how people invest in distressed property, this one’s worth a watch!
Acknowledgements and Important Disclosures
From the Up Your Assets website
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