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AARP Article

Steer Clear of Risky Bond Funds

You can get burned by reaching too high for more yield on investments

Today’s super-low interest rates present enormous temptations to people who invest for income. To raise your game, you’re likely to fall, hard, for high-yield “junk” bond mutual funds. These funds look pretty sexy today, with current yields as high as 7-plus percent, when the average intermediate-term government bond fund is yielding 1.9 percent. But they’re also naughty and not worth the risk.

When business goes bad, some of the bonds held by high-yield funds will default or have their credit ratings slashed, causing their prices to fall. That has been happening recently to bonds issued by energy and mining companies. The money you lose from downgrades and defaults could easily cost you more than you’re earning from the fund’s higher interest rates. In fact, a 2012 study by the Vanguard mutual fund company found that investors in these funds, on average, do not—I repeat, do not—collect the high yields that they expect.

The bonds in high-yield funds are called “junk” for a reason. They’re issued by companies with poor ratings for credit quality, BB or below—often way below. That fact will be clearly spelled out in a fund’s prospectus under the heading “principal investment strategies.” Also, most of the funds have the words “high yield” in their name.

Double losses are possible. When times are good, junk bond funds “lull you into a sense of security,” says Larry Swedroe, director of research for the BAM Alliance of financial advisers and author of The Only Guide to a Winning Bond Strategy You’ll Ever Need. When times turn bad, junk funds add to your loss.

That’s because in bad times, these funds tend to behave like stocks. When the broad market plunges, the prices of high-yield funds capsize, too. If you own both stock funds and junk bond funds in your retirement account, you’ll take a double loss.

As an example, look at what happened over the 12 months ending early in March of this year. The Standard & Poor’s index of 500 leading stocks fell 6.18 percent. Morningstar’s index of high-yield bond funds followed stocks down, losing an average of 6.73 percent. Some funds are down 12 percent or more.

Junk bond funds don’t even help with diversification. Vanguard’s study concluded that “high-yield bonds on average would not have improved the risk and return characteristics of a traditional balanced portfolio.” In short, you don’t need them.

Go for un-sexy As investments. The role of bonds is chiefly to reduce your risk. That’s best done by owning the mousy, un-sexy funds you may have overlooked: those that invest in Treasuries and other U.S. government securities. They’re yielding nearly zilch. But when stock prices take a tumble, they generally rise in price. Over the 12 months ending in early March, after general alarm spread through the markets, Morningstar’s intermediate-term government bond fund average rose 1.54 percent. If you owned both government funds and stocks, the government funds would have reduced your loss. If you want to hold Treasuries to maturity, skip the funds and buy them, free, through TreasuryDirect.gov. If you like the convenience of easy withdrawals, buy the funds.

One other option, for safety first, is FDIC-insured certificates of deposit. You might find a five-year bank CD at around 2 percent, which is more than Treasuries pay. (Look for high-rate CDs at Bankrate.com.)

Just don’t kid yourself about bonds that apparently beat the market. There is no free lunch. 

(Originally published in The AARP Monthly Bulletin.)

AARP Article

10 Ways to Save on Financial Transactions

Make sure you’re not spending too much money on your money by Farnoosh Torabi and Jane Bryant Quinn

Our financial experts show how to curb costs on auto insurance, life insurance, credit cards and more.

1. Reduce your auto insurance.

As your car ages, the maximum payout for an accident (calculated by subtracting your deductible from the car’s value) steadily decreases. Crunch the numbers to see if the price of collision and comprehensive coverage is still worth it.

2. Buy more to spend less on life insurance.

Life insurers have price breaks at certain amounts, called price bands. When you move up a band, the cost per thousand dollars of coverage goes down. For example, if you’re looking at a $450,000 policy, also get a price quote for $500,000. You might find you can pay less for more coverage.  

3. Ask for discounts from monthly billers.

Want lower cable TV, phone, utility or even gym rates? Call up the customer-retention department and tell them you are considering switching to a new provider to save money. Often, they’ll offer a deal rather than lose a customer.

4. Take advantage of credit card perks.

You might have a right to free credit scores, free checked airline luggage or “price protection,” meaning that if you charge an item and soon find it offered for less, the card will pay you the difference. Call them.

5. Say yes when a store you patronize asks to send email promotions.

You’ll get discounts that other shoppers don’t see. Create an email account just for purchases made online so sales offers don’t clutter your personal email.

6. Don’t put college tuition on a credit card.

Many colleges charge a fee averaging 2.62 percent—or $262 for every $10,000 in tuition, according to a survey by CreditCards.com. Check whether your college charges a fee before saying “Charge it.”

7. Buy like a man.

A study by New York City’s Department of Consumer Affairs found that women pay more than men for similar products 42 percent of the time. For instance, women are charged 11 percent more for razors and 48 percent more for shampoo and conditioner, even though the products are essentially the same except for the packaging.

8. Shop every year for a new Medicare Part D drug insurance plan.

Prices change often. You can almost certainly buy Part D for less than you are paying now. Go to Medicare.gov, click on Drug Coverage (Part D), then Find Health and Drug Plans. Enter your zip code and follow the prompts.

9. Check the unclaimed-property sites for every state where you have lived.

They might be holding a dividend check in your name, money in a savings account that you forgot or an uncashed refund check. To check, go to naupa.org, find your state and enter your name.

10. Don’t buy your bank’s overdraft-protection plan—or get rid of it if you have it.

You’ll never need it, if you don’t habitually bounce checks.

Farnoosh Torabi is the host of the podcast So Money.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

7 Ways To Make Continued Education Cheaper

Before cracking the books again, figure out how you’re going to pay

Are you thinking of returning to school to pick up new money-making skills? Before you do, investigate the likely pay (and availability) of the jobs you’re aiming for. Your education will be worth its cost only if you’ll earn more, after tax, than you paid for the course—including the interest due on any student loans.

When you borrow, there are two rules of thumb, says Mark Kantrowitz, publisher of Cappex.com, a college scholarship search site. The total amount of your loan, for all school years, should not exceed the first-year salary you expect from your new job. And you should be able to repay that loan, in full, within 10 years. “Don’t go into retirement carrying a student loan,” Kantrowitz says. “If you think you’ll probably work for fewer than 10 years, borrow less.”

Here are seven cost-cutting tips:

1. Think about how much more education you actually need. Four-year degree programs are expensive and might not pay off for people starting in late middle age. Perhaps you can fulfill your ambitions in two years with an associate degree.

2. Your best choice might be a public community college. These schools offer a wide variety of vocational programs at modest cost.

3. Beware the expensive for-profit schools that advertise aggressively, promise you jobs and encourage you to borrow. Often they’re just diploma mills, providing inferior or inappropriate training. Search online for complaints about any school you’re considering.

4. When making a budget, consider all the costs—not just tuition but also commuting, books, laptops and expensive supplies that might be needed in class. One AARP member told me that he had to drop out of a graphic design course (at a for-profit school); his “adviser” failed to mention that he needed to own some digital equipment that he couldn’t afford to buy.

5. Look for free money. There might be education grants available for people pursuing certain fields. Put the words “grants for [your special field]” into a search engine and see what turns up. If you’re currently working, your employer might offer tuition money to help improve your skills. Fill in a FAFSA form (Free Application for Federal Student Aid, available at fafsa.ed.gov) to see if you’re eligible for aid based on financial need. People who never got a bachelor’s degree might get a federal Pell Grant, which is only for undergraduates. Some states provide tuition waivers for older students or people who are unemployed.

6. Borrow for higher education through the federal government’s Direct Loan program. If the FAFSA shows you have financial need, the government will pay the interest while you are in school. If not, you can get an unsubsidized loan at a fixed interest rate (currently 4.29 percent for undergraduates). You can also turn to private lenders, but remember to borrow no more than you expect to earn in your first year.

7. Consider earning a degree online. Many reputable state schools offer distance education by internet or cable TV. By staying in state, you get more favorable tuition rates.

Whatever you choose, be sure you have the time and motivation to do the classwork. You’ll need to complete the program to compete for your dream job and pay off your loans.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

The Relocation Decision

A change of scene can be good for your well-being

To move or not to move, when you retire — that’s a big question. If moving seems sensible, then where? And what will it cost?

The vast majority of new retirees plan to stay in their own homes. But circumstances change. You might be widowed, your spouse might get sick or you simply might get tired of having to find someone to clean the gutters and make repairs. Over 12 years (1992-2004), 30 percent of the home-owning cohort born between 1931 and 1941 pulled up stakes at least once, according to a 2009 study for the Center for Retirement Research at Boston College.

They didn’t go far. The vast majority found a new home within 20 miles of where they lived before. These kinds of moves are a form of aging in place because you don’t leave your community and friends.

One surprising finding — to me, at least — is that moving tends to improve your psychological well-being. That seems right for people who planned a move to new housing or a new part of the country. But even those who are shocked into moving — say, by widowhood or divorce — do better than people in similar situations who stay put, the study found. There’s something about a change of scene that helps pick up your spirits.

Older people who move do it primarily for family reasons rather than reasons of health or finances, according to U.S. Census data. Downsizing occurs less often than you might think. About the same number of retirees want a larger house as want a smaller one, the Census reports. There’s a slight preference for moving from the Frost Belt to the Sun Belt, but not much.

For services and opportunities, the Frost Belt actually looks like a better choice. I learned this from the Milken Institute, an economic think tank in Santa Monica, Calif. Every other year, it puts out a study called “Best Cities for Successful Aging.” Its researchers rank the 100 largest metro areas and 252 smaller ones based on a wide variety of criteria, such as types of housing available, access to transportation, employment opportunities for older people, opportunities for active lifestyles, and educational and cultural activities. It also considers the abundance of health services, as well as the basics, such as taxes and cost of living. The top big cities in its 2014 report? Madison, Wis., and the Omaha, Neb.-Council Bluffs, Iowa area — not exactly towns for year-round golf. The top smaller metros: Iowa City, Iowa, and Sioux Falls, S.D. You can look up the report and check the relative livability of your own city, at milkeninstitute.org.

If you are weighing a move, make careful comparisons. If you stay put, your current house might need major repairs. You might have to add a first-floor bedroom or widen the halls to allow for a wheelchair. By contrast, if you move there will be fix-up costs on your old house and moving expenses. If the move takes you from a house to an apartment, your rent payments will gradually go up. But remember: Had you kept your old house or bought a new one, taxes, insurance and upkeep costs would have risen, too. Downsizing or renting should leave you more money in the bank. In any town, make housing decisions that you think you can afford for life.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

Plan Ahead for Long-Term Care

Policies have become prohibitively expensive for many in recent years

As our age group … well … ages, the chance of needing help with our day-to-day lives goes up. More of us will be seeking home health aides and, yes, even places to live where we can get the care we need. But how will we pay for long-term care?

Median costs run $6,844 a month in nursing homes, $3,628 in assisted living facilities and $3,861 for full-time professional services at home, Genworth Financial reports.

The majority of Americans don’t have anything close to that kind of money. When their savings run out, they rely on their children, Medicaid (the government program for people with limited income) or both.

People with higher incomes appear to be doing the same. Sales of traditional long-term care (LTC) policies fell 60 percent over the past 10 years, the American Association for Long-Term Care Insurance reports, as average premiums rose 44.5 percent. A typical married couple who are now 60 might pay anywhere from $2,600 to $5,600 a year, depending on the insurance company and benefit they choose. The affluent are putting large lump sums into combination LTC insurance and life insurance or annuity products. Those with fewer assets are going without. Here’s a guide to your own decision on traditional LTC insurance.

Who should consider buying LTC insurance?

Primarily, married couples with substantial retirement incomes and significant assets. If one of you enters a nursing home or needs costly home care, the payouts from the insurance will help maintain the healthy spouse’s standard of living. For single people, LTC coverage matters less. All your savings can go toward your personal care. (And by the way, single women are charged about 50 percent more than men for LTC insurance!)

How do you hold down costs?

A policy might be available through a company group plan, if you’re still working. If not, buy leaner benefits—say, by waiting six months before payments kick in instead of three months. If you’re in your 50s or early 60s, however, don’t skip the automatic inflation adjustment, even though it’s pricey.

What if you already have LTC insurance and your premiums are shooting up?

Do everything possible to keep the policy. Reducing benefits is better than giving them up. Of those who used care between 2006 and 2012, 23 percent had let a long-term policy lapse in the previous four years, according to the Center for Retirement Research at Boston College.

What about the new short-term care insurance?

You pay less and get less. Our 60-year-old couple might be charged $1,235 annually for 360 days of coverage at a fixed $150 a day. Policies vary in how they pay—by the day, by the service or by the location (at home or in a nursing facility). So know what you’re buying, and know that you’re not covered for a true medical catastrophe.

Bottom line?

For almost all of us, family and Medicaid remain the safety net.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

Navigate the Medicare and Social Security Maze

Here’s how to unravel the complicated programs

When you think about retiring, where will you get health insurance? “Simple,” you might reply, “I’ll go on Medicare.”

Ha! Welcome to an intricate decision, especially if you (or your spouse) keep working past the usual retirement age.

Medicare is for people 65 and up and comes in four parts. Part A, for hospital bills, is “free” and supported by the payroll tax, but also has copays and deductibles. Part B, which covers doctor bills, and Part D, which covers prescription drugs, charge monthly premiums. You might also buy private medigap insurance to pick up some costs that Medicare doesn’t cover. Medicare Advantage plans (known as Part C) cover all these health services in their benefit packages. Which should you choose?

To save money, browse your local Part C plans on medicare.gov. They often cost less because you’re generally required to use only the doctors and hospitals in the plan’s network. For more choice of providers, select Parts A, B and D.

If you (or your spouse) are still working at 65 or beyond and are covered by an employer health plan, consider signing up for free Medicare Part A. It can cover the portions of the hospital bills that your employer plan doesn’t pay once you’ve met the Medicare deductibles.

If you reach your full Social Security retirement age, say 66, and are still working, you have another option. You can augment your salary by filing for your full Social Security retirement benefit (at that age, payments are not reduced for people with earnings). When you file, you’ll be signed up, automatically, for Medicare Parts A and B. Keep the free Part A. But if you’re still covered by an employer plan, call Social Security and decline Part B. There’s no point paying extra premiums.

You have two choices if you’re under 65, you’re on your spouse’s health plan, and your spouse retires and goes on Medicare. Those close to 65 might go for the company’s COBRA plan that can extend employee coverage for up to 36 months. Alternatively, buy coverage on the health-plan exchanges or from an insurance agent.

There’s a catch-22 if your employer health plan comes with a health savings account. HSAs let you save money, tax free, to use to pay out-of-pocket medical expenses. You (and your employer) can make contributions. But you can’t have Medicare and make HSA contributions, too. If you claim Social Security, which comes with Medicare Part A, you can still pay bills with the HSA savings that you already have, but tax-free contributions stop.

Here’s advice on how to play your HSA, from Stephen Neeleman, M.D., founder of HealthEquity, which manages these plans for employers:

  • Consider deferring Social Security until age 70 if your employer makes the maximum HSA contribution ($3,350 for singles, $6,750 for a family).
  • If you have a family plan and your spouse goes on Medicare, you or your employer can still make the maximum family contribution.
  • You can’t contribute to an HSA if your working spouse covers you under a traditional employee plan. So decide which plan is best.
  • Stop making HSA contributions in the few months before you retire. Medicare Part A can be backdated for up to six months. Any HSA contributions you made during those months will count as taxable income.

Health insurance — not so easy after all.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

Stop Saving, Start Spending?

In retirement, some die-hard savers stay thrifty for too long

Everyone praises the habit of thrift. Habitual savers spend less than they earn, providing themselves with emergency funds and a comfortable cushion for the future.

But a funny thing happens when they retire and it’s time to start spending the money they’ve saved, says Michael Finke, a professor of personal financial planning at Texas Tech University in Lubbock. They can’t do it. They’re so used to thinking of savings as sacred that they don’t touch the money, even if it crimps their retirement style of life.

Why do they hesitate? Among other reasons, they see their savings as their defense against future inflation and scary medical expenses toward the end of life. These fears might be overblown.

Studies by David Blanchett, head of retirement research for Morningstar Investment Management, found that, on average, retirees reduce their real, inflation-adjusted spending as they age through their retirement. That includes people with comfortable savings as well as people without.

For example, most IRA money isn’t touched until withdrawals become mandatory at 70 1/2, by which time the total dollar amount is generally up because of investment returns. When normal medical costs begin to rise, these retirees have effectively prepared for it by cutting their spending — and growing their savings — in advance.

There are natural ways that retirement spending declines. You’re no longer paying Social Security or Medicare taxes, or contributing to a retirement plan. Workaday expenses go away — commuting, clothing, meals out because you didn’t have time to cook. Younger retirees might pick up the slack by spending more on entertainment and travel. But on average, even those who increase their spending do so at a rate that’s lower than inflation, Blanchett says. Put another way, their real spending falls.

Finke thinks that good savers shouldn’t be afraid to live a little higher on the hog. Depending on their current expenses, relative to savings, people with moderate nest eggs might safely spend something around 8 percent more per year than they’re doing now, he says. For those with high savings, it could be as much as 50 percent more. At the very least, consider spending all of your income instead of adding part of it to savings, as thrifty retirees often do. After all, retirement is what you created that income for.

The averages, of course, gloss over the very personal situation of every household. Some retirees have to cut spending because they retired with a mini nest egg or none at all. Some lost their jobs or had to cut spending when their spouses died. Some but not others will have their savings drained by medical expenses. You might have no choice but to live on less.

If you have a choice, however, and won’t touch your capital, you’re part of what researchers call the “retirement consumption puzzle.” Maybe you limit spending out of deep-seated fear — that you’ll live too long, run out of money, or make an irremediable financial mistake. When you lack confidence in your spending rate, your attitude shifts to preservation, just in case. A few hours with a fee-only financial adviser might give you great comfort, by showing you what you can actually afford.

Maybe, of course, you’re perfectly happy living on less and leaving more for your kids. Still, you might shake yourself up a bit. Spending a little more money can add variety to a retirement life.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

The Second-Marriage Dilemma

Estate planning can be tricky for couples who have former spouses

Inheritance questions tend to be easy when you’ve been married only once. If you die first, your assets—whatever they are—usually go to your spouse. If you have children, you divide the money among them equally. Unequal inheritance sometimes makes sense. For example, you’d leave more to a child who’s disabled. But for the sake of future family harmony, equal amounts work best.

If you enter into a second marriage, however, the choices get harder—especially if you remarry later in life. How much, if anything, do you want to leave to your new spouse? If you own the house, does he or she stay in residence if you die first? In long second marriages, do you leave anything to stepchildren?

If you avoid making these kinds of decisions, state and federal laws decide where your money goes. Your second spouse typically will be able to claim one-third to one-half of the assets covered by your will, even if it says something else. Joint bank or brokerage accounts held with a child will go to that child. Your IRA will go to whomever you’ve named on the IRA’s beneficiary form, leaving your new spouse out.

If you want some other arrangement, you and your spouse must have a written prenuptial (or postnuptial) agreement that meets your state’s inheritance laws. You’ll also need to change those beneficiary forms.

Overwhelmingly, the spouse with more assets wants to make sure that the second spouse is provided for, says attorney Shirley Whitenack of Schenck, Price, Smith & King in Florham Park, N.J. That might mean leaving him or her with money that otherwise would have gone to your kids.

Where assets are roughly equal, however, or in a late-life marriage, spouses might choose to put their own kids first and leave little or nothing to their new mate.

Complications arise when you own a house. You might leave it to your kids but give your spouse the right to occupy it for life. In some states, the spouse’s right is guaranteed, even if he or she remarries, says attorney Molly Abshire of Wright Abshire in Houston. Before the house can be sold, your new spouse and kids will have to come to some kind of agreement (usually financial).

A risk that might not occur to you is the potential cost of long-term care. In many states, married people have a legal duty to support each other. If your second spouse eventually needs long-term care, his or her assets and yours might be tapped to pay the bills. In Texas, that even includes your own income and IRA, Abshire says. You’ll be spending your kids’ inheritance on your second spouse’s medical expenses.

In other states, however, your personal income and IRA might not be forfeited for a spouse’s nursing home expenses. So get good legal advice. You might decide to skip the “I do’s” and publicly become partners instead.

These decisions can be tough to make, especially if you and your new beloved find that you don’t agree. It’s even harder to tell the kids that their inheritance might change. “Often, people freeze and do nothing,” Whitenack says. Or they make their plans secretly, figuring “I’ll be dead and won’t have to worry about it.” That’s the worst outcome. Be brave. Fess up. 

(Originally published in The AARP Monthly Bulletin.)

AARP Article

Beware the ‘Tax Torpedo,’ Spousal Benefits and Mortgage Deductions

Q: My wife and I were shocked to discover that when we start taking the required distribution from our individual retirement accounts at age 701/2, our Social Security taxes will jump and we will be in a higher tax bracket. We’re 69. What can we do?

A: It feels natural not to tap an IRA early because those investments accumulate tax deferred. But as you’ve learned, a “tax torpedo” awaits. If your IRA is large, it’s often smarter to live on it for a few years after you retire while putting off filing for Social Security. You’ll shrink the IRA and hence the size of your required withdrawal at 701/2. Meanwhile, your Social Security account will grow by a guaranteed 8 percent for every year after 66 that you wait to collect, up to age 70. Social Security income is taxed less than IRA income, so this strategy often brings you out ahead. At this point, unfortunately, there’s nothing you can do. But I hope that your question will help others!

Q: You wrote that a divorced wife can collect spousal benefits on her ex’s account when she’s 62. Social Security says I can’t get half of his benefit until I’m 66.

A: We’re both right. If you were married at least 10 years, you get half of his benefit if you claim at 66, but less if you file at a younger age. If he dies, you can get survivor’s benefits as early as 60 (50 if you qualify as disabled). But again, claiming early means that your check will be reduced.

Q: I have a small mortgage on an investment condo. I can pay it off but I’d lose the tax deduction. What do you think?

A: The “value” of the interest deduction is a scam foisted on us by the mortgage industry. A deduction is not a gift! OK, in the 25 percent bracket, you write off $25 for every $100 paid in interest, but it costs you $75 out of pocket. How is that good? You’re always ahead when you have no debt.

(Originally published in The AARP Monthly Bulletin.)

AARP Article

The Smart Way to Help Grandkids With College

4 tips for helping offset tuition bills

Are you planning financially to help a grandchild  — or niece or nephew — go to college? A common question is whether your gift will hurt the student’s chance at financial aid. The answer: sometimes yes, sometimes no. It all depends on the type of aid the child is apt to get.

If the family earns a substantial income, aid based on financial need is off the table. Instead, the school might offer a merit scholarship. This form of aid goes to students a school particularly wants, typically supersmart kids or those with a special gift. Grandparent money has no effect on merit scholarships, says Dean Skarlis, founder of the College Advisor of New York, which counsels families on educational choice. So feel free to give any amount of aid in any form you want.

It’s another story, however, if the family qualifies for aid based on financial need. In that case, your gift will indeed reduce the amount the student receives. But so what? The money you give will almost certainly exceed any potential loss in need-based aid. What’s more, that “aid” might have come in the form of student loans. Your contribution will help your grandchild graduate with a smaller burden of debt.

Here’s how to help the student while still getting the most out of need-based aid.

1. Give the money to the parent rather than the student and let the parent pay the bills. Students are expected to contribute 20 percent of their assets toward college; the contribution expected from parental assets is limited to 5.6 percent. By routing your gift through the parent instead of through the child, the child will qualify for more aid.

2. If the parents have a 529 plan for college savings, see if you can contribute to that one rather than setting up a 529 of your own. Money paid to the school from a grandparent’s plan won’t affect need-based aid in the student’s first year but counts as student income in future years. As a result, aid could drop sharply. Payments from parents aren’t considered student income. (Quick note: 529 investment plans grow tax-free when the money is used for higher education. They’re offered through brokers and — at lower cost — directly from the states.)

3. Grandparent gifts become a nonissue in January of the student’s junior year. By then, the student will already have filed an aid application for his or her senior year. Any future grandparent contributions won’t show up in the record, so they’ll take nothing from a financial-need award, says Joe Hurley, founder of savingforcollege.com, an expert site for information on 529s. You might let the student and family pay for the first 21/2 years of school and then start making your own contributions after that.

4. A student with financial need might also receive a merit scholarship, says Karen McCarthy, senior policy analyst for the National Association of Student Financial Aid Administrators. A grandparent gift may affect the size of the need-based award but, in most cases, should have no bearing on the merit award.

Before you start writing checks for college (or promise to), be sure that your own retirement is assured. Helping grandchildren to an education is a splendid act — as long as you won’t have to ask for the money back in your older age!

(Originally published in The AARP Monthly Bulletin.)