By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

The lure of retiring where it’s warm is strong for baby boomers.

I know. I’d like to do it myself.

In my post, “The Dream of Retiring Where It’s Warm Overseas,” I offer tips and resources on how to go about this complicated project.

Baby boomer consumers can get themselves in a lot of trouble by not thoroughly checking out overseas housing deals.

Hundreds of people nationwide invested their retirement savings for a home in Costa Rica with Paragon Properties of Costa Rica, based in Hollywood, Fla.

A lawsuit filed in federal court alleges Paragon Properties was “a Ponzi-type scheme,” targeting people near or at retirement age. More than 900 Paragon Properties customers put down deposits for about 2,500 parcels of land in Costa Rica within the last six years, yet much of the land remains untouched and not a single customer has had a home built, according to court records.

Paragon Properties’ chairman has said the company’s 16 planned communities, primarily on the Central American country’s Pacific coast, stalled because of a poor economy and difficulties in obtaining local building permits, reports The Miami Herald’s article “Paradise Lost.” As of last fall, the company had been waiting for months for financing to come through, chairman and owner Bill Gale said in an October deposition in an earlier lawsuit against Paragon Properties.

Consumers who wanted to get their money back were apparently reimbursed using the deposits of later investors, according to the article.

Read The Herald’s article for details on this overseas housing project gone awry.

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By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

On July 1, new rules went into effect for overdrafts on your debit or ATM cards. You now get to choose in advance what happens when you make a charge on your debit or ATM card and don’t have enough money in your account to pay for it.

According to the Federal Reserve Board Web site,  there are usually two ways that banks deal with an overdraft:

• Standard overdraft practices. Your bank will cover your transaction for a flat fee of about $20 to $35 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee.

• Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but these overdraft protection plans may be less expensive than their standard overdraft practices.

The different under the new rules

Basically, your bank has to give you the option to choose how it will deal with an overdraft from you. In the past, some banks automatically enrolled you in a standard overdraft program when you opened an account with them. Now, the bank has to ask your permission and you have to opt in. If you don’t opt in, beginning August 15, your bank’s standard overdraft practices won’t kick in when you charge too much. Instead, the transaction will typically be declined when you don’t have enough in your account to cover it. You won’t be charged an overdraft fee, but you also won’t be able to complete the purchase or withdrawal.

If you have an existing account that was opened any time before July 1, you’re supposed to get a notice from your bank about their standard overdraft practices, asking if you want them to continue or not. If you open an account after July 1, you will be asked if you want to opt in or out when you fill out the initial paperwork. Whichever way you decide, you can change your mind at any time.

A warning from the Better Business Bureau

If you write checks or set up automatic bill payment from your checking account, the new rules don’t cover checks or automatic bill payments. Your bank can still automatically enroll you in their standard overdraft practices for those types of transactions. If you don’t want that to happen, contact your bank, but you may find that you don’t have the option to cancel.

It pays to shop around when you open a checking account. Banks could lose significant revenue if a majority of customers now opt out of overdraft protection, so some banks may decide to charge their customers new fees to make up for that loss of revenue.

Always be aware of the terms of service of your account, and that includes reading those updates that come in the mail. If you don’t like your bank’s terms, shop for a bank whose fee structure you like better.

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By Rita R. Robison, Consumer Specialist, Blogging at The Survive and Thrive Boomer Guide

College graduates who need temporary work while looking for full-time jobs may be interested in mystery shopping, but the Federal Trade Commission cautions that many mystery shopping offers are scams.

It seems like an attractive proposition: getting paid to shop or dine out and then provide reports about the experience. However, scammers often ask mystery shoppers to pay an up-front fee before they start or to deposit a check that turns out to be phony.

 The FTC offers these tips on mystery shopping:

• Don’t pay upfront fees to be a mystery shopper. Legitimate companies don’t charge people to work for them.
•  Never agree to deposit a check from someone you don’t know and then wire money back. The check will bounce, and you’ll owe your bank the money you withdrew.

To learn more, go to Mystery Shopping Scams May Target New College Grads.

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By Rita R. Robison, Blogging at The Survive and Thrive Boomer Guide

Times are tough for many baby boomer consumers. Layoffs are high among older workers, and it takes them longer to find a job. In addition, due to revenue problems, many state governments are cutting programs that provide assistance to those in need.

On President’s Day, I had the opportunity to attend a rally at the State Capitol in Olympia, Wash., at which a coalition called Rebuilding Our Economic Future asked state lawmakers to increase state revenues. They want lawmakers to raise taxes and close loopholes, so that some of the $2.6 billion in cuts to essential services such as public education and health care can be restored. About 6,000 people attended.

Made up of education, health care, labor, environmental, and good government groups, coalition members carried signs that said “Kids not cuts,” “Protect our future,” “Fund core services,” “Love the earth,” “Health care for all,” “Save Our Safety Net,” “Yes on revenue,” “Stop health care cuts,” and “Fund financial aid.”

A dozen or so members of the Tea Party movement watched the rally from the steps of the Temple of Justice across from the Capitol Building. Their group, smaller in numbers, called for cuts in taxes at another rally earlier in the day.

What happening at the Legislature in your state?

The 10 states with the worst budget problems are Oregon, Vermont, Washington, Connecticut, Arizona, Nevada, Illinois, New York, Alaska, and New Jersey, according to ABC News/Money’s “Budget Nightmare: 10 Most Broke States.”

See “State Budget Shortfalls May Reach $180 Billion This Year” for details on what’s happening in states across the nation in these tough economic times.

Let your lawmakers know your needs during these challenging economic times.

To find out how to contact the Legislature in your state, use this list from the National Conference of State Legislatures.

To contact your governor, see this list of governors from the National Governors Association.

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By Rita R. Robison, Blogging at The Survive and Thrive Boomer Guide

Piles of snow. Torrents of rain. Freezing cold winter. Wind. Mudslides. Freezing rain. Sleet. Power outages.

When I wrote on Dec. 10 about preparing for winter , I thought it was a bit late in the season. But with severe winter storms unleashing their fury throughout the nation in January and February, my article was timely.

How are you doing in the winter weather? If you were caught in a snowstorm, did you have an emergency kit in your car? If the power went out, did you have enough supplies to keep you going for several days?

If you’re not prepared for an emergency, see the Federal Emergency Management Agency’s “Are You Ready? Assemble a Disaster Supplies Kit” for information on organizing supplies for your home and car and at work.

Kiplinger’s “Your Essential Emergency Kit” offers these nine steps to protect you and your loved ones against natural and personal disaster:

1. Build your emergency fund.

2. Cover your assets.

3. Protect your livelihood.

4. Make your wishes known.

5. Safeguard important documents.

6. Have a grab-and-go survival kit.

7. Keep your car tuned – and gassed – up.

8. Stock up.

9. Get your family organized.

See the article for details.

Let me know how you’re doing in the winter storms. Leave a comment in the Comment section below.

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