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Retirement Wisdom

Retire Smarter

Family and Relationships

Paying for College: Free College Programs for High School Students

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By Bev Bachel

If you’re like most of my friends and colleagues, you’d like to help your children and/or grandchildren pay for college. Many do this by opening a 529 College Savings Plan account and naming a child or grandchild as beneficiary. But did you know there’s another way to reduce the cost of college?

“School districts and state legislators throughout the country have given high school students in every state the ability to earn free college credit,” says Joe Nathan, director, Center for School Change. “This can help families save thousands, even tens of thousands of dollars on college tuition, books and fees.”

These programs are available for both academic and career/technical college courses.

Yet, according to the U.S. Department of Education, only 34% of high school students take advantage of these programs, despite the fact that 88% of high schools offer them.

Free college credit

Students earn free college credit in two basic ways:

  1. By taking courses online, in their high school or on a college or university campus
  2. By passing an exam

But students—with parental and grandparent guidance—need to act fast as many high school students will register this month or next for 2023-24 courses.

Five options from which to choose

  • College in the Schools, Concurrent Enrollment. Federal statistics show that 82% of all U.S. public schools offer this option. Colleges train high school faculty to teach these courses. Free college credit depends on how well the student performs over the entire semester or class year, not just how well the student does on the final exam, which is typical for Advanced Placement (AB) and International Baccalaureate (IB) courses.
  • Advanced Placement. More than 1.1 million high school students took AP exams in 2021, according to the College Board, which runs this program. The courses are free, but to receive free college credit, students must score well on a final exam
  • International Baccalaureate. These free courses are offered in about 950 U.S. high schools. As with AP, free college credit is awarded to students who do well on a final exam. Financial arrangements for this exam are the same as those for AP. Students also can earn an IB Diploma.
  • Project Lead the Way. Some high schools offer free college-level courses focused on engineering, computer science and biomedical science.
  • Other options. Free courses on college/university campuses or online are available through programs such as Post-Secondary Enrollment Options (PSEO) (in Minnesota, Michigan, Ohio and Dual Enrollment in Florida, Running Start (in Washington) and in other states. Many of these programs include both academic and technical/vocational courses.

No high school offers all these options, so check with counselors and with high school and state Department of Education websites.

How one student saved roughly $26,000

Jonah participated full-time in PSEO his junior and senior years of high school at the University of Minnesota. He earned 61 college credits, saving roughly $26,000 in college costs. With these savings, Jonah continued at the University of Minnesota, pursuing degrees in Economics and Finance, planning to graduate in Spring 2023.

PSEO significantly reduced financial stress on Jonah and his family. After working in consulting and the nonprofit space, Jonah will pursue a law degree and work in public service. Taking full-time courses on campus exposed him to perspectives and experiences not available in high school. By the time he enrolled as a full-time student, Jonah had a strong support network that helped throughout his remaining university experience. 

College credit can also be obtained via the College Level Exam Program (CLEP) which gives 90- to 120-minute exams that can lead to free college credit. CLEP payment arrangements vary by district.

“Dual-credit enrollment is a winning strategy with huge, multiple benefits for students and their families,” says Nathan. “Not only does such enrollment help students better prepare for full-time college studies, it can also dramatically lower costs and reduce debt.”

Nathan believes the best single source of information, state by state, has been published by the non-partisan Education Commission of the States. It’s a good place to start researching what’s available in your state. More free information is available in Minnesota from People for PSEO, or nationally, by contacting Nathan at joe@centerforschoolchange.org.

Bev Bachel is a Twin Cities freelance writer who was able to afford college thanks in large part to the financial aid she received. She is also the author of What Do You Really Want? How to Set a Goal and Go and For It! A Guide for Teens.

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Lessons from Tom Brady’s Retirement

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by Joe Casey

I know what you’re thinking. How can Tom Brady’s decision to retire be helpful to me? He’s uber-wealthy, he’s the best ever at his profession, and he’s married to a supermodel. Maybe you don’t share his love of avocado ice cream. All of those things may be true. But there are some underlying principles in his retirement decision and they’re worth exploring. I find it’s useful to study what highly successful people do and consider ways you can tailor them to your particular situation. So what can we mere mortals take away from Tom Brady’s decision to retire from the NFL

1. Know When It’s Time

He’d been open about his goal to play as an NFL quarterback until he’s 45 (and perhaps beyond). But for some combination of reasons, he decided to walk away one year shy of his goal. You may have a date you’re targeting. But reflect from time to time about how you’re feeling about work and retirement. You’ll know when it’s time to move on, if you have the ability to do so. And remember, in real life, almost half of retirees are forced to retire well before their planned retirement date. So be attuned to when you can move on – and when you feel it’s right for you. Even if it’s short of your target.

2. Go Out on Top

Brady led the NFL last season in passing yards and was at the top on many key metrics and he’s among the top candidates for MVP. For years he said he would play until he wasn’t good any longer. He didn’t want to hang on, like so many do – in pro sports and business. How about you? Will walk away on your own terms?

3. Lay the Foundation for Your Next Act in Advance

Brady began building his next act years ago during his playing days, starting a health and fitness company, a clothing line and a production company. While those ventures may not be on your list, it’s wise to begin thinking about what you want to do after you leave the world of full-time work, while you’re still in it. Whether your aspirations include working part-time, volunteering, consulting, writing that book you’ve always dreamed about, or traveling, it’s helpful to envision it in advance. It will allow you time to research your options, learn what it’s really like, and what it will take to make it happen. While you’re still working, make time once a month to have lunch or coffee to talk with people who’ve retired and are doing something like what you’re imagining. You’ll be glad you did.

4. Family Matters

It’s speculated that family considerations played a major role in Brady’s decision to retire. If you’re married, in a serious relationship and/or have a family, this is something many of us can relate to. It’s not just about you. And many couples put off talking about retirement in any depth. A survey by Fidelity of 1,600 people asked couples when their significant other was going to retire. 57 percent got it wrong. Talk about it. Be prepared to listen. Make time for a series of conversations. Don’t assume you know what what your partner is thinking.

5. Be the Bigger Person on the Way Out

Brady was criticized for not mentioning the New England Patriots, the team he played for 20 years, in his retirement announcement. It’s wiser to stay above the fray. Leave with grace. Don’t burn any bridges. Look beyond the temptation to be petty, spiteful or vindictive as you exit. It’s not worth it. I once read a resignation letter that a former employee (who I had fired) sent to his subsequent company when he decided to leave them. It was a legendary “scorched earth style” letter trashing his latest manager, his direct reports, internal stakeholders, upper management and several of his peers. Twenty people sent to me and it later went viral on the internet. It did not serve him well.

6. Don’t Lock the Door

Never say never. Before the pandemic, studies showed that in the US and UK over 20% of retirees unretired within five years, and most did not return for financial reasons. Often it was because they missed the sense of purpose work provided them or they missed the camaraderie of the workplace. Others returned because they wanted to stay sharp cognitively. In Brady’s case, there’s already speculation that he may be planning a Brett Favre like power play next season forcing his former team to release or trade him after they secure his successor, paving the way for a potential return to his hometown team, the San Francisco 49ers.

Which of these lessons can you apply to your retirement planning?

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Joe Casey is an executive coach, who also helps people design new lives after they move on from their primary careers. He’s the host of The Retirement Wisdom Podcast, which according to Listen Notes, is ranked in the top 1.5% of podcasts in popularity globally. And he’s the author of the new book Win the Retirement Game: Outsmart the 9 Forces Trying to Steal Your Joy coming this summer.

One Family’s Return to Intergenerational Living

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By Bev Bachel

As you head into retirement, one of the biggest decisions you’ll have to make is where you are going to live. Many opt for retirement communities but increasingly people are choosing to live with younger members of their own families.

According to Marc Freedman, founder of Encore.org and author of How to Live Forever: The Enduring Power of Connecting the Generations, that choice could be the secret to fulfillment and happiness as we live longer lives.

But intergenerational living doesn’t just benefit those in retirement; it benefits family members of all ages. That’s why Robert and Kay Joslin are so delighted to be reunited under one roof with their daughter Jamie and her young family.

Together for the good of all

For the Joslins, intergenerational living is nothing new. They’d done it years ago with the generation before them.

“Kay’s dad had polio in the 1950s and was in a wheelchair most of his adult life,” explains Robert. “When Kay’s mom had a stroke, we all agreed it was time for the two of them to come to Texas and live with us and our daughter Jamie, who was 10 at the time.”

So, Robert and Kay designed and built a home where all three generations could live together. Kay, who had already left her career as a petroleum engineer, was the primary caregiver for her parents and Jamie, while Robert continued to work full-time.

“That experience was invaluable,” says Robert. “It taught us all the value of different perspectives and about the importance of respect and understanding.”

But eventually Kay’s parents died, Jamie moved to Minneapolis to attend college, and Robert and Kay became empty nesters.

Full circle

Fast forward 10 years. By then, Jamie was married to Randy Millard and living in Minneapolis. When the couple announced their pregnancy in 2014, Robert and Kay decided it was time to join them. In less than 10 weeks, they sold their Texas home and bought a new one just a mile away from Jamie and Randy.

Shortly after, Kay once again became the primary caregiver, this time for her granddaughter Robin, while Robert, Jamie and Randy worked full-time. And while they hadn’t had any serious conversations about when they would merge households, all four were certain it would happen … someday.

That day came sooner than expected when Jamie, at 31, was diagnosed with Rheumatoid Arthritis the same month she learned she was pregnant with her second child.

“We always knew our two families would live together, but after Dani’s birth there were days when I couldn’t even change a diaper or button the girls’ clothes, so our ‘someday’ plan became a two-year plan.”

The four adults discussed what they wanted and needed in their new shared home. Jamie and Randy both needed offices, while Kay insisted on a walk-out basement, ideally with a kitchenette so that she and Robert, both early risers, could enjoy a cup of coffee without disturbing other family members.

Robert even created a spreadsheet to help each person prioritize what was most important to him or her.

A smart financial decision

One of their first, and most important, steps was meeting with a financial planner. “We knew our goal of living together would never work if we couldn’t talk candidly about money, including how much we make and how we hope to spend it,” says Robert, who still works full-time.

“We are also very clear that it’s not the Joslin’s money or the Millard’s money, but our money.”

That’s one reason why, when they purchased their new home, all four adults put their names on the home’s title. It’s also why they continue to talk openly about what aging well means to them, as well as their goals, including financial independence.

“Buying a house together was definitely a smart financial decision,” says Jamie. “Daycare for two kids costs $24,000 to $30,000 a year. And if my mom and dad had to move into an assisted living facility, that would cost another $5,000 a month—for each of them.”

Family time is priceless

While the financial benefits of living together are huge, it’s the ordinary, everyday moments that everyone appreciates the most.  

“I got off a conference call the other day and walked out of my office to find my dad playing Monopoly with my daughter Robin, while Dani sat in her highchair watching,” says Jamie. “I could have cried! They were playing with the exact same set my grandparents and I used to play with when I was a kid. Seeing that brought back a flood of memories and made me realize just how blessed my family truly is.”

Of course, there are challenges. “Yeah, we fight,” says Jamie. “Yeah, there’s tension. But the positives definitely outweigh the negatives. For instance, the girls are learning that there’s not just one way of doing things but multiple ways.”

Robert agrees: “Things were great before we moved in together, and they’re even better now that we’re once again a three-generation household raising a family, cooking and gardening together, sharing childcare, pooling our resources and making memories that will last a lifetime.”

Bev Bachel is a freelance writer and the author of What Do You Really Want? How to Set a Goal and Go for It! A Guide for Teens. As a child, she enjoyed having her grandmother live with her family most winters.

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Related Podcast Episodes You May Like

Why People Make a Career Change with Purpose Top of Mind – Chris Farrell

The Exciting Potential of Intergenerational Mentoring – Charlotte Japp

Are You Staying Ahead of the Fraudsters?

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By Joe Casey

Are you or your loved ones vulnerable to fraud? It’s worth thinking about. A study by Annamaria Lusardi at George Washington University and her colleagues found that “nearly one-third of respondents reported that someone had used or attempted to use their financial accounts in the past five years.” (1)

It takes a lot of work, sacrifice, and discipline to save for retirement today. Once you’ve achieved some level of financial security, a defensive mindset becomes important. Not only do you need to manage your assets intelligently so you do not outlive your money, but you also need to be on guard to protect it from fraudsters who are eager to separate it from you. And the upcoming holiday and tax seasons are prime hunting periods for Fraudsters who prey on seniors.

A Growing Threat

An article on Bloomberg estimates that 5 million older Americans are the victims of financial fraud each year and pegs the cost to seniors at $37 billion annually. (2) And it’s a growing problem globally with an average of 4.7% reporting an incident within a one-year timeframe. (3)

Who’s Minding Your Money?

Preventing fraud is difficult to do by yourself. Financial institutions also share responsibility. (2) Inquire about their practices.  There’s evidence that money management programs run by solid firms can be an important element in the prevention of financial fraud for seniors, but always check the credentials of people that you or your family do business with. (3) Invest in financial literacy education for those who are not financially savvy today. (4)

Be Aware of the Different Forms of Fraud

A first step you can take is to become aware of the most common current types of fraud and scams and ensure that family members and your older relatives are also up to speed on them. AARP is a good source of information to keep current, especially their podcast The Perfect Scam. Staying aware is critical as the fraudsters are becoming increasingly sophisticated. The Fraudsters relentlessly target seniors and are continually developing new and ever more clever scams.

Beware of Guardianship Fraud

You’ll quickly become keenly aware of the different types of scams that are out there. One of the most pernicious ones is Guardianship Fraud, because not only your financial assets can be taken, but your freedom as well. and according to Julie Belshe has lived through the experience of her parents being taken by a private guardian and fighting to restore their freedom and their rights. She joined our podcast The Retirement Conversation to share the story of her family’s harrowing experience and what she’s doing today as an advocate for reform so that others do not suffer a similar fate. Their story is detailed in a documentary film The Guardians. But theirs is not an isolated case. Rick Black of the Center for Estate Administration Reform informed us that it happens approximately 10,000 times each year.

Listen to our conversation with Julie Belshe here.

(1)DeLiema, M., Deevy, M., Lusardi, A., & Mitchell, O. S. (2018). Financial Fraud among Older Americans: Evidence and Implications (No. w24803). National Bureau of Economic Research.

(2)Leiber, N. ( 2018, May 3) How Criminals Steal $37 Billion a Year from America’s Elderly.    bloomberg.com

(3) Pillemer, K., Burnes, D., Riffin, C., & Lachs, M. S. (2016). Elder abuse: global situation, risk factors, and prevention strategies. The Gerontologist, 56(Suppl_2), S194-S205.

(4) Lusardi, A. (November 2, 2018). Financial Literacy and Financial Decision-Making in Older Adults. American Society on Aging.https://www.asaging.org/blog/

What’s On Your Retirement Mind?

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by Denis Wuestman

This year we started a series of seminars on the non-financial aspects of retirement with groups of people preparing for this transition as well as those in their early years of retirement.

Since everyone’s experience is different, it was insightful to see how people felt about this new part of their lives, sharing their principles, fears and successes.  We asked them what their most important concerns are when thinking about the non-financial aspects of a retirement transition.

Retirement Concerns

Here are the Top 5 with some tips on how to deal with them:

  • Fear of Loneliness. This was a concern especially among those who may have lost a spouse or in cases where one’s immediate family may live far away.  Very often it occurs once one leaves their job as their social connections have changed.  To counter this, the importance of community and having strong friendships was important.  Continuing to actively pursue relationships with people of all ages, moving to a retirement community, continuing to work or volunteer are all possible counteractions to loneliness.

 

  • Uncertainty about Health. This was not surprising as people age.  However, when discussing how to take better care of one’s self, they highlighted the importance of intellectual stimulation, having strong relationships both with family and friends and the importance of becoming more spiritual and/or closer to nature.  While there are things about health that are beyond one’s control in some respects – one could opt for a healthy lifestyle and maintain a positive attitude towards life and change.

 

  • What to Do with Time. While many enjoyed the freedom of retirement, they recognized that the concept of time changes.  It is no longer defined by a workday.  Some will enjoy the freedom of leisure or treating every day as a Saturday, while others felt it was important to find new passions and a reason to get up in the morning.  Few expressed being satisfied with having nothing to do with their time.  To counter this, having a plan for your newfound free time, discussing with your spouse (if applicable) and saying yes to some things were all important to help explore and discover the right answer for you.  HINT:  Don’t be reluctant to make changes if the plan is not working out for you.

 

  • An Expectation of Oneself. Conduct an inward reflection of what is most important as that can help form principles on how this next part of life will unfold.  While clearly a deeper introspection, the linkage between personal vision, values and mindset surfaced as important elements in the retirement equation.   How does one do this?  Attending a seminar such as the one this group attended, reading books, talking with others and working with a retirement coach were all areas mentioned where one could gain a deeper awareness of their personal needs to help with this journey.

 

  • Missing Elements About Work. While looking forward to the freedom of not working it was clear that work provided non-financial benefits.   First, was the benefit of providing structure and organization in one’s daily life (my personal favorite).  Becoming accustomed to a loss of structure took time and a few found it a very difficult adjustment.   In addition, having one’s identity wrapped into their work required another adjustment and going cold turkey when it comes to understanding the impact of this identity shift was not recommended.   Finally, work was identified as important to socialization, providing purpose, and providing an avenue for continued growth and learning. Options to consider included clearly understanding the areas where there are voids and then exploring how to replace them.  For example, if how to structure your day in retirement is important, then experiment with creating different approaches and routines.  Try it for a few months and see how it feels, then adjust as needed.

Connections between Concerns

What became evident was how these concerns could be interconnected and addressing one could have an impact on the others.    In short:

  • Stay connected with friends, family and make efforts to meet new people of all ages.
  • Recognize the importance of taking care of one’s body, mind and spirit.
  • Plan for how you will spend your TIME and how to structure your day in retirement before you retire.
  • Understanding what work provided you.  There is a connection to social relationships, overall health in the form of intellectual stimulation, and providing purpose in one’s life.  How does one adjust to life without work if they simply haven’t thought about it?

Perhaps most important was understanding what you really expect from yourself in retirement.  How do you do this?  It starts with getting a good grasp on what’s important to you and what you value most in this part of your life.    Understanding your core values can greatly help focus on where to put your life energies in retirement.

 

Denis can be reached at denisw@retirementwisdom.com