We happened upon a couple of lists recently that were both titled, more or less, "Worst states for retirees." The two lists –- from MoneyRates.com and TopRetirements.com -– used entirely different methodologies but were awfully consistent in their results. Half of the states in each top 10 list were the same –- Illinois, New York, Massachusetts, Ohio and Rhode Island. But more to the point, virtually all the states that made the list were northern states; just California and Nevada, which appear only on the Top Retirements list, are not classic cold winter weather northern states.

OwlsNestwithhomesmtnsOwls Nest, a fine golf and ski resort in New Hampshire, could be one of many reasons state residents say they would never move to another state.

     It is getting more and more popular for people to bash states north of the Mason-Dixon line as expensive, crowded and increasingly inhospitable in a number of ways. Indeed, my hometown newspaper, the Hartford Courant, has been fielding animated letters to the editor ever since they posted the results of a Gallup survey indicating almost half (49%) of Connecticut residents would rather live elsewhere, topped only by Illinois residents, exactly half of whom would cut and run from their state if given the chance. (Illinois is in the 4th position on the Money Rates list and the top dog -– i.e. "the worst" –- on the Top Retirements list; Connecticut ranks 9th on the Top Retirements list.)

     But lest we consider that the migration from north to south by baby boomers is either a reflection of antipathy toward the north and/or a strong preference for southern living, the Gallup poll found that the states with the highest percentage of residents who would not leave for another state were virtually all in....WAIT FOR IT... the North (except for Hawaii). Fewer than a quarter of those who live in Montana, Maine, Oregon and New Hampshire said they would leave their states if they had the chance.
     What does this all mean? For one thing, it seems to indicate that cost of living is not an indicator of happiness with a state. After all, Hawaii is about the most expensive state to live in the nation. And as Hartford Courant columnist Dan Haar wrote recently, "when we look at the actual numbers of people uprooting from Connecticut to other states, New York [on both worst-state lists] is by far the biggest destination. And get this news bulletin: They're not moving to low-cost Utica or Syracuse." New York City, certainly among the most expensive places to buy or rent a home, is the magnet.
     The lack of any southern state on either worst state list could reflect the fact that the southern states have so many recent transplants living there that people are straddling the fence until they have a few years of residence behind them before having an opinion. Or it could indicate native southerners don't have strong opinions about their states, one way or the other, or have no perception that other states are any better...or worse.
     Here at GolfCommunityReviews, we focus most of our attention on golf communities in the south. But if, for family reasons or regional loyalty or because you like playing golf wearing two gloves and a ski jacket, you prefer a golf community in, say New Hampshire, we have an app for that. Contact us and we can provide you with a few examples of fine golf communities north of the Mason-Dixon Line. But if you prefer to spend next winter wearing a golf shirt and, at worst, a light sweater on the golf course, we have dozens of suggestions for you.  Contact us.

by John Ruocco
        This is the first in a series of articles by John Ruocco, a Connecticut-based financial advisor.
     Retirement havens like Florida are a paradise for financial advisors. The investment industry has designed many programs to assure people, especially retired people, that they won't lose their money. Investment professionals know that fear is a great motivator, and retirees fear running out of money. And because financial advisors are looking for an audience and most people are looking for a free lunch, advisors touting guarantees that you won't lose your money are everywhere retirees are. But are "guarantees" really a financial paradise for older investors?


Safest: U.S. Government Guarantees
        The U.S. government borrows money by issuing treasury notes, bills and bonds. These are just names of loans with different maturities. We now have some 17 trillion dollars in these treasury debt securities outstanding. The repayment of the principal and interest to lenders of this debt (individuals, institutions and foreign governments) is backed by the full faith and credit of the U.S. government (aka you and me, U.S. taxpayers). Since the U.S. government has never defaulted on its debt, U.S. Treasury debt is the most trusted and secure form

U.S. Treasuries are the safest investments, but they won't make you rich.

of debt in the world. Whenever there is a financial or even a political problem almost anywhere in the world, like today's Ukraine situation, investors protect themselves by purchasing U.S. Treasury securities. For all practical purposes, unless the U.S. cannot pay interest on its debt, these securities are the safest investment anyone can make. But they won't make you rich: Recent 3 year yields were well under 1% (about .85%) and 10-year rates were short of 3%.

Mostly Safe: Bank Guarantees
        A certificate of deposit (CD) issued by an FDIC insured bank is the second safest investment for the average investor, but the reality is that there are some limits. One is simply the amount of money in the insurance fund backing these bank deposits. This fund was never fully drained but we came extremely close in 2008. At that time there was some discussion as to whether or not the Federal Government would back the banks after the FDIC ran out of money. Fortunately, we didn't get that far. Another consideration is that investors must
To make multi-million dollar safe CD investments, you'd have to identify multiple banks, given FDIC insurance limits.

be sure that the deposits they make with particular banks are within the legal limits of FDIC protection ($250,000 per depositor). This differs from a U.S. Treasury investment, which is unlimited. You could buy a billion dollars of treasuries — and some institutions do -- and be 100% guaranteed by the U.S. Government. To buy a billion in CDs with only a $250,000 limit on each, you would have to spread this money through hundreds of banks. But the bottom line is that a $200,000 CD at an FDIC bank is safe, if not particularly remunerative.
        CD rates compare favorable with U.S. Treasury yields, but not by much. The recent 1-year yields were around 1% and the 10-year rate was just over 3%.

Taking on Risk
        Anything other than a U.S. Treasury debt or an FDIC certificate of deposit carries some element of risk. A corporate bond from IBM or General Motors is only as good as the corporation issuing it. An insurance product such as an annuity is only as good as the insurance company backing it. Anyone who tells you his investment is guaranteed is forgetting something.