Ten Most Affordable Cities to Retire

Based on factors such as cost of living and tax rates on pensions and social security, combined with access to recreation, climate and culture, AARP Magazine named the following cities their Top 10 Most Affordable Places to Retire.

1. Winchester, Virginia
2. Portland, Maine
3. Gainesville, Georgia
4. Wenatchee, Washington
5. Tulsa, Oklahoma
6. Cheyenne, Wyoming
7. Columbus, Indiana
8. Harrisburg, Pennsylvania
9. Ithaca, New York
10. Midland, Texas

Ten Worst States for Retirement

Taking into consideration cost of living, crime rates, climate and life expectancy, MoneyRates.com has determined the following Ten Worst States for Retirement.

1. Nevada
2. Michigan
3. Alaska
4. South Carolina
5. Maryland
6. Tennessee
7. Ohio
8. North Carolina
9. Missouri
10. Arkansas

“Retirement: It's nice to get out of the rat race, but you have to learn to get along with less cheese.” Gene Perret

Alternatives in Real Estate Financing

By: Carol Wright, CPA
Five-year commercial mortgages often require refinancing at the end of that period.  So what can you do if the current value of your property has fallen below the loan level and the lender won’t simply renew it?  Here are some alternatives:

• Provide more equity to the current lender to get the ratio of the loan to the value of the property to a level acceptable to the bank
• Find another traditional lender.  This option may also require investment of additional cash to increase the owner equity in the property
• Turn to the Small Business Administration — the SBA is currently accepting applications for certain commercial properties with balloon payments due before the end of 2012.  This program is available until September 27^th, 2012 
• Private Investors
• Fee based loan facilitators
• Economic Development Funds
• Friends and Family

These can be emotionally charged issues so working with your trusted business advisor is recommended.

KEEP ROLLING FILM!!!

Gov. Rick Snyder has signed legislation into law in July allowing more flexibility for Michigan's movie and film incentive program. It gives the Michigan Film Office the ability to negotiate the size of the credits it offers to movie, television and video game producers. The incentives offered can be lower than the 42 percent subsidy now provided automatically when a project is approved for credits.
The state's movie and film credit program will be capped at $25 million in the fiscal year that starts in October. The state's current incentive program is not capped and offers some of the most generous credits in the nation.

ON the Road (and in the Air) Again

Despite the cost, Americans are expected to travel more this year. In fact, more travelers are expected to hit the road than at any time since the Great Depression.  According to the American Automobile Association (AAA):
34.9 million Americans will travel more than 50 miles from home
1.1 million people will travel in Michigan
Memorial Weekend air travel was up 11.5 percent from last year (2.93 million people)
91 percent of travelers over July 4^th weekend will travel by car, 6 percent by air and 3 percent by bus or train 

RETIREMENT By the Numbers

2 – Projected number of workers paying into one retiree’s Social Security benefits in 2025
16 – Number of workers paying into one retiree’s Social Security benefits in 1950
35 – Percentage of Americans over the age of 65 relying solely on Social Security
51 – Percentage that the average, retired American will have to reduce their standard of living by to avoid outliving their financial assets. (2009 E&Y study)
57 – Percentage of households who report having at least one retirement account in the home.
67 – Men’s average age for retirement
75.7 years– Life expectancy of American men
80.8 years – Life expectancy of American women
80 – percentage of people between the ages of 30 and 54 who believe they won’t have enough money put away for retirement 
$2,000 – Amount of money that approximately 1/2 of all American workers report having in their retirement fund
$6,306 – Average retirement account of Americans under the age of 35
10,000 – Baby Boomers will reach the age of 65 each day for the next 19 years
$43,747 – Average retirement account of Americans between the ages of 45 and 54

BWD ONLINE

In May of this year, the Michigan Business Tax (MBT) was repealed. The new law includes many changes that affect both businesses and individuals, including a new tax levied on businesses organized as traditional corporations (a C-corporation) under Federal tax rules. The law makes substantial revisions to the income tax levied on individuals by amending the Income Tax Act, eliminating numerous credits, deductions and exemptions, as well as changing future tax rates.

So what does it all mean to you? Visit our website at rehmann.com/MI-CIT to find out.

What Fees?  Do you know what you’re paying?

Retirement plan participants should have full disclosure of all fees they are paying on their plans so they have the information needed to make the most appropriate decisions for their objectives.  At least that’s the proposed intent of the new fee disclosure regulation 404(a)(5).  In theory, this transition full fee and expense transparency should be welcome with open arms by plan participants and beneficiaries. Unfortunately, the upcoming disclosures may come to a shock to many participants.
 
Earlier this year, AARP[1] conducted a survey of retirement plan participants and found the following:

• 71 percent of respondents thought they did not pay any fees in their retirement plan
• 6 percent didn’t know if they paid fees or not
• 81 percent felt fees were important in making investment decisions
• 48 percent responded that they would speak to their employer if they found their plan fees to be higher than average

¹401(k) Participants’ Awareness and Understanding of Fees (February 2011), AARP Research and Strategic Analysis; www.aarp.org/rearch

Associate Spotlight – Dan Roberts

When Rehmann Corporate Investigative Services (CIS) was looking to develop governmental investigations, they knew only the very best candidate would do.  After all, when your staff already includes former FBI, U.S. Secret Service, intelligence service and state and local law enforcement professionals, how do you add to your line-up? You have to reach for the top.

In August, Dan Roberts joined Rehmann Corporate Investigative Services (CIS) as Director of Governmental Investigations and Compliance.  Dan returned home to Michigan after 24 years of distinguished service with the Federal Bureau of Investigation, most recently as the Assistant Director of the Criminal Justice Information Services Division. 

“I am very excited to have Dan as part of our team.  The area of governmental investigations is an opportunity for our firm,” remarked Greg Suhajda, President Rehmann CIS.  “And to be a leader in the industry, we need the top talent.”

Dan’s notable career includes high profile positions as Assistant Special Agent in Charge (ASAC) of the Salt Lake City Division’s Violent Crime, Organized Crime/Drug, Civil Rights and White Collar Crime/Public Corruption Programs, and as FBI commander of the 2002 Winter Olympic Games. He was promoted in May 2003 to Special Assistant in the Office of the Deputy Director, where he provided oversight for a myriad of research projects and special assignments. In June 2004, Roberts was appointed as Special Agent in Charge of the FBI’s Detroit Field Office, directing all FBI investigations in the state of Michigan.

Prior to his FBI service, Dan served as a patrolman with the Franklin, Michigan Police Department and was a member of the Oak Park, Michigan Police Department.  Look for Dan in Rehmann’s Troy office.