If you have heard that Arizona was a popular state to retire in, you are most certainly correct. Arizona ranks high when it comes to retirement. In fact, Arizona was actually the first state where retirement community living first got its start.

Did you know that it was Del Webb (now considered Pulte Homes) who started the idea of a retirement community?

According to Del Web, they opened their very first retirement community on New Years Day, 1960, in a suburb of Phoenix, known as Sun City, Arizona. The positive response was more than overwhelming. The first retirement community in Arizona paved the way for retired living in the United States. Ever since that day, retirement communities continue to pop up everywhere.

Del Webb is actually now a part of Pulte Homes and are not just known to Arizona, but also in 15 additional states. In Arizona, Del Webb/Pulte has certainly made a name for themselves and are very well known here and are one of the very well known and reputable home builders of Arizona retirement communities.

Whether you prefer the big cities or quieter communities, it really doesn’t matter, because you can certainly find both types of Arizona Retirement Communities here.

Baby-boomers, or snowbirds, as they are sometimes referred to, have flocked to the Phoenix metropolitan area for many years. It should not come as a surprise why this area has been considered a prime retirement choice. There are so many reasons why this area is popular among many. First of all, you have the natural beauty of the Sonoran Desert sun along with well over 300 days a year of sunshine.

Known for its gorgeous sunsets and the many recreational activities, golf is probably one of the most popular reasons that retirees make Arizona their home. There are literally hundreds of courses for the golf fan along with so many other popular activities such as tennis, various sightseeing tours, Native American culture and, of course the Grand Canyon to explore.

Retirees certainly appreciate the fact that they are conveniently close to so many things in Arizona. If the outdoors is what you are looking for, Arizona can certainly provide you an endless list of lakes and rivers which attracts so many anglers to the desert southwest. In addition, you will find just as many mountains that make up Arizona and make it the beautiful state that it is. Even Las Vegas is not that far away from Arizona!

Retirement community living can be found throughout the state and not just in Phoenix. Many parts of the “valley of the sun,” as the Phoenix area is ofte called, offers retired living at its best. It just depends on where you would like to live.

Some people prefer Scottsdale over Phoenix, or maybe Tucson. Some people prefer Gold Canyon, a city located about 35 minutes east of Phoenix, which offers many amenities in a quiet atmosphere including enough wildlife to last a lifetime. Some others prefer Flagstaff or the White Mountains, both of which are considerably cooler in the summer months.

Most of these retirement communities that you will find in the desert southwest of Arizona provide such amenities that most active older adults are seeking, such as tennis courts, golf, clubhouses, recreation and fitness centers, as well as organized and regular activities within their specific retired community.

While there may be other reasons not listed here, most people will agree that one of the key reasons why people find their way to retired housing communities in Arizona, is because of the active adult choices they have to choose from. The choices along with the enticing climate, make Arizona retirement communities their first selection of 55 plus areas.

Despite Arizona being a very popular state to retire in, Miami, Florida actually has a higher percentage rate of people living there than Arizona. In fact, according to the Arizona Republic, Phoenix is home to only 12% of the population that is over age 65, compared to 17% in Miami, Florida.

Would you like to know what city is considered to be the most recomended city to retire in? Have you heard of Prescott, Arizona?

Prescott, Arizona has a small town feel to it, which many people prefer. It is located in the cool ponderosa pines in Northern Arizona and is known to many here in Arizona, as the “Mile High” city. Conveniently located 90 miles Northwest of Phoenix, Prescott offers four very mild seasons to both the visitors and residents all-year round.

Prescott has more than 6 golf courses, which is pleasing to many. Prescott is also home to the Prescott National Forest. If you like hiking, you will have well over 450 miles worth of trails to enjoy these gorgeous (and good smelling) ponderosa pines.

Looking for more reasons to choose Arizona for your retirement community? How about healthcare? The healthcare is excellent in Arizona. There are many well known heart hospitals as well as other hospitals, the famous Mayo-Clinic, and a limitless list of clinics, for your healthcare needs.

Many of you are in the red zone right before retirement, or you’ve already retired. No doubt your number one fear is running out of money in retirement. You’re part of a very large and growing demographic force: 35 million over age 65, 50 million drawing Social Security and 78 million baby boomers now turning 62. This means the future demand for everything used by the “retirement set” will increase, and “retirement prices” will rise dramatically. Many of you may have accumulated a retirement nest egg in a pension account, will draw a company pension and/or have other savings and investments earmarked for retirement. Where should you keep your retirement money?

If you’re keeping up with economic and financial developments, here’s what you’re seeing: sub-prime credit meltdown that has destroyed housing and is now spilling over into automobile debt and credit cards; highly volatile stock and bond markets; a weak dollar fueling higher prices for oil and other goods; more unemployment and rising inflation; retail sales, consumer confidence and new jobs creation in sharp decline; drastic interest rate cuts by the Federal Reserve to avoid a recession; a money giveaway stimulus package from Washington to prop up the lagging economy; widespread talk of recession and stagflation. These all add up to troubled economic times which should prompt you to review where you have your retirement money.

You’re told the stock market is the best long term, but “long term” has a different meaning in retirement. Didn’t the dot.com stock market meltdown in 2000-2002 send many retirees back to work and prevent others from retiring? Aren’t the current inflation-adjusted stock market indexes below their previous peaks? Regardless, the loud voices of Wall Street and investment companies are advising you to buy now at bargain prices. Are the markets headed higher or is their advice self-serving? Who can forecast the economy or the stock market?

If the stock market craters as it did in 2000-02 and 1973-74, and you lose some of your retirement money, how will you replace it? Since there will be no second chance, I encourage you to think carefully before you commit your money. If you’ve been told that you’ll do just fine over the longer run (generally meaning ten years), make sure you can wait this long for a market rebound. Also remember that a rebound is not certain!

What about fixed rate places like government bonds, bank CDs and money market accounts? These are rock-solid safe unless your greatest fear is outliving your money. Since current fixed rates are lower than inflation, you’ll be losing purchasing power with these choices. The potential loss of purchasing power will only add to the risk of outliving your money. What about real estate, collectibles and non-market investments? These are not only risky but generally illiquid. Before committing your retirement money, ask yourself this question: “How will I handle the worse case outcome?”

There is one savings place that offers an “opportunity” to make an above-market rate of return without the risk of loss if held to term. It is guaranteed by some of the world’s oldest, strongest and largest financial companies. The rate of return is determined by stock/bond market indexes with owners sharing in the upside potential but avoiding downside losses. The worse case outcome is a guaranteed positive rate of return. The earned interest is income tax deferred until actually withdrawn and there is no mandatory age when the money must be used. Additionally, it can be turned into a guaranteed lifetime income that can be started, stopped and stored. What’s more, it offers penalty-free partial liquidity for emergencies and bypasses probate if the owner names a beneficiary. It can be opened for a small or a large amount, and sometimes more money can be added later. There is no law which limits the amount of money that can be placed in it. It is truly a safe place to keep retirement money.

It is maligned by Wall Street and bankers because it competes with their products. The financial press doesn’t like it either – primarily because they are uninformed, misinformed or just plain biased. I’m talking about fixed index-linked annuities that are offered by insurance companies: the same companies that insure your home, live, health, business and other valuable assets. The worse case outcome is a positive, albeit small, rate of return if held to maturity, but there is an opportunity to do much better. Fixed index-linked annuities are not for everyone, but you need to consider them as one of your safe options for retirement money. Where are you keeping your retirement money in today’s uncertain and troubled economic climate? If in risky places, now is a great time to review your options.Shelby J. Smith, Ph.D.

March 2008

Learn about safe money places – check out the Retirement Pros website http://www.theretirementpros.com/ I’m also doing free monthly video seminars online sign up at: http://www.theretirementpros.com/Tele-Seminar-MRM.php

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But short of the worst case scenario of an early demise, everyone is going to get old and its far better to do so with a plan then to let it sneak up on you.
This is something you do not want to screw up. Is it possible to screw up retirement planning? Of course it is. If you speak to senior citizens who did not start planning in advance and got to their senior years with nothing to fall back on and no funds to use so they can step out of the working world and enjoy a more leisurely retirement lifestyle, that is an example of people who screwed up their retirement planning. So it is good to know the common mistakes people make so you can avoid them.
Probably the biggest mistake that you can make in your retirement planning is to wait to start it until you are pretty close to retirement. If you want to retire at 60 and you do not start getting ready until you are 55, you will not have nearly as well prepared a retirement package as if you had started when you was 25 or 35. By starting early, you can set back a small amount each month and put it into an IRA, your employer 401k or some other retirement vehicle. Then just let that money continue to accumulate and grow and before you know it you are sitting on top of a pretty substantial nest egg.
Speaking of sitting on top of a nest egg, the second big mistake people make is not leaving that nest egg alone. When that retirement investment fund starts to get big, it is really easy to look at it as a way to get you out of credit card debt trouble or to borrow against for some new plan or possession you want. Above all, resist this temptation. If you lose that retirement fund due to foolish use of the funds in your middle age years, you are back to square one with nothing to show for your years of hard work developing that retirement nest egg.
The plan of setting up withholding from your checkbook or a direct deposit to your retirement account of retirement savings allows you to go about your busy life knowing that your retirement planning is underway. This is step one but its not a good idea to never go back and review your retirement plan and see if how you are going about getting ready for retirement well in advance. Make it a regular ritual to sit down and review what is going on with your investment funds. Look at the way your investments have been performing and if you are not getting a good return on those money, make some changes. Remember, just because your retirement funds are being managed by the company you work for does not mean the money belongs to them. It is yours so be responsible and manage it.
Starting early and staying proactive about your retirement is your best approach to retirement planning and one that will result in a much bigger retirement fund for you to start your golden years with. And by taking good care of your retirement before you need it, you are guaranteeing that it will take good care of you when its time to depend on that fund for a happy and prosperous retirement lifestyle.