When Elections Get Hot, Markets Often Follow

With the campaign trail hot and the debates even hotter, it's anybody's guess who will become U.S. president. But one result that investors can almost count on? Market volatility. The market can be especially dynamic during presidential elections. In fact, history suggests that there is a correlation between the two.

The United States is one of the world's largest economies, so conditions here have an effect globally. In November, the country will elect a new president and usher in a new term for America. So how do the elections affect the market and investors like you? Let's take a look:

Uncertainty over the Election

The new president is still very much undetermined. And the lack of certainty likely won't help the markets, which have already suffered a bout of volatility this year. Jeff Hirsch, editor in chief of the Stock Traders' Almanac newsletter, said that election-related uncertainty does not help market volatility. Investors just do not like the upheaval of an open-ended race.

It's not just the overall market that can anticipate volatility. Individual sectors—for example, energy or pharmaceutical drugs—may suffer from election uncertainty as well. However, the volatility can smooth out after a candidate has been selected and platforms are presented. This is because investors will be able to determine which industries might benefit or suffer because of the election.

Uncertainty over the Incumbent President

Market volatility can also be affected by a lame-duck presidency. Historically, the market prefers incumbents who are seeking re-election because of the continuity they bring. But presidents are often less predictable in their final year compared with their previous years in office. Since they aren't running for re-election, lame-duck presidents often try to push through their favorite policy initiatives, making investors nervous.

If this election does create volatility, don't expect it to end with the inauguration, Even after a president has been elected, volatility can remain. That's because a new president's first year in office—the “honeymoon” period—can be just as unpredictable as the last year in office. During that first year, a new president and lawmakers, riding on a wave of optimism, may feel like they can push through legislation that would otherwise be unpopular with voters, such as increased taxes.

What to Do?

There is no magic formula for predicting how exactly an election will affect the market. Plus elections aren't the only factors that contribute to market developments. The best way for investors to prepare for election-related volatility is the same way they should prepare for volatility in general: to consider it from a long-term perspective. Stay focused on the long-term financial plan you've created with your financial advisor. Don't let election ballyhoo prompt you to react in fear, and if you need reassurance, talk with your advisor.

Sources

Bryan Borzykowski, “Why Markets Tend to Fall During a Presidential Election Year,” CNBC, January 13, 2016, www.cnbc.com/2016/01/13/why-markets-tend-to-fall-during-a-presidential-election-year.html.

Matthew Jerrell, “How Will the Presidential Election Impact Markets?” Investopedia, www.investopedia.com/articles/financial-advisors/022916/how-will-presidential-election-impact-markets.asp.

William Watts, “2016 Predictions: What Presidential Election Years Mean for Stocks,” MarketWatch, December 29, 2015, www.marketwatch.com/story/2016-predictions-what-presidential-election-years-mean-for-stocks-2015-12-29.

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Coming Soon to Eldercare … Robots?

Eldercare has taken an innovative turn with the rise of robot caregivers, or carebots. Japan has spearheaded the technology to address the nation's growing senior population and increasing shortage of caregivers. The trend is not limited to Japan, however.

The United Nations estimates that the global population of seniors 65 and older will rise by 181% by 2050. In the United States, the number of Americans over 65 is expected to nearly double, from 43.1 million today to 83.7 million. Though the issue will likely not be as pressing in the U.S. as it will be in Japan, the fact remains: With not enough caregivers to meet the needs of a growing senior population, we will likely rely on robots for some areas of eldercare. Japan has taken an innovative approach to address the challenge.

The Emergence of Robot Caregivers

Over recent years, the government of Japan has funneled millions of dollars into the research and development of carebots. In fact, the government has invested one-third of its budget to developing carebots. This support has helped lead to the production of carebots with greater functionality and broader consumer appeal for seniors, such as mobile servant robots, physical assistant robots and person-carrier robots. Merrill Lynch forecasts that the global market for personal robots, including carebots, could reach $17.4 billion in 2020.

Paro, a touch-sensitive electronic harp seal, was one of the first carebots, developed to keep patients with dementia occupied. Among the benefits that the maker cites are stress reduction and improved socialization. Further innovations like Palro were meant to keep seniors physically and mentally active by playing games, dancing and testing them with trivia. ChihiraAico, a robot caregiver designed to look like a woman in her 30s, aimed to make seniors feel comfortable enough to discuss their problems.

Perhaps one of the most successful robots for eldercare was SoftBank's Pepper. This personal robot was designed to read and react to human emotions. It was considered a breakthrough in helping a person's ability to connect with robots. In fact, it was so popular that when it went on sale in Japan, the whole supply of 1,000 robots sold out in about a minute.

Other robots have been developed to help with mobility and alleviate physical strains. The Encore Smart, for example, is a specially assisted walker, and the Robear is capable of lifting and carrying a patient. Meanwhile, the Hybrid Assisted Limbs (abbreviated as HALs) is designed to help increase mobility for patients who have suffered strokes or other physically debilitating conditions. It works as an exoskeleton and reacts to electrical pulses from the brain, prompting it to aid the limbs in moving.

Embracing Change

While carebots cannot fully replace the value of personal connection and the power of human touch, they are a potentially effective and practical solution in eldercare. As robotic design and development progresses, so likely will the acceptance of these droids as caregivers for the elderly.

Sources

Mark Hay, "Why Robots Are the Future of Elder Care," Good, June 24, 2016, www.good.is/articles/robots-elder-care-pepper-exoskeletons-japan.

Danielle Muoio, "Japan Is Running Out of People to Take Care of the Elderly, So It's Making Robots Instead," Tech Insider, November 20, 2015, www.techinsider.io/japan-developing-carebots-for-elderly-care-2015-11.

Incapacity and Estate Planning: Make Sure Your Wishes Are Known

Medical incapacity is a subject most of us shy away from. We don't want to discuss it, much less plan for the possibility. Unfortunately, becoming incapacitated—unable to make reasonable decisions or meet our basic needs—is a possibility for all of us, whether it's by accident, injury or illness. That's why it's critical that we do not limit our estate plan to what happens after we pass but detail our wishes now, lest we become unable to carry out those wishes later on.

Without a plan in place, a court may appoint a guardian to make financial and medical decisions on your behalf. A comprehensive plan can protect both you and your assets. Here are some of the documents that you should consider:

• Power of attorney: A power of attorney (POA) allows you to assign someone you trust to act on your behalf, and it is a document that you must complete while you are still competent.

• There are different powers of attorney that you may consider. Generally, power of attorney is granted immediately to the person you name as your agent (although it's important to understand that you retain your ability to make decisions and to act on your own behalf), and the POA becomes invalid should you become incapacitated. A durable power of attorney allows your agent to continue to act on your behalf after you become incapacitated. Another POA, a springing power of attorney, will go into effect only after a certain condition is met, such as incapacity. Talk to your financial advisor or attorney about which one is right for you.

• You should consider two types of POAs—namely, financial power of authority and health care power of authority.

• Financial power of attorney: A financial power of attorney grants your appointed person the ability to manage your finances. You will specify what your grantor can do, such as manage your bank accounts or pay your bills. If you wish, the individual can also handle real estate transactions on your behalf and manage your investments. Thus it is vital to assign someone you trust to handle your assets.

• Health care power of attorney: This is also known as a durable power of attorney for health care, advance medical directive, or health care proxy. It allows the person you appoint to make health care decisions on your behalf. It takes effect only if you are incompetent or otherwise unable to communicate with your doctors. As with other POAs, you should appoint someone you trust. The decisions your grantor may make could extend to giving permission for medical tests and surgery to choosing the doctors who provide your care. End-of-life decisions could include whether to accept or decline feeding tubes, ventilation and other medical means to extend your life.

• Living will: A living will states your wishes to your health care provider about whether you would want to remain on life support if you were in a vegetative state and terminally ill. It is possible to have both a living will and a health care power of attorney since the two cover different scenarios.

• HIPAA authorization: The Health Insurance Portability and Accountability Act (HIPAA) requires health care providers to protect your private medical records. An authorization allows your physicians to share your medical information with your health care agent. However, if your health care power of attorney does not specifically authorize your agent to know your full medical condition, your physician could refuse to disclose certain information.

When putting together a plan in the event you become incapacitated, make sure to select someone you can trust as your agent. A relative is the most common proxy, but factors you should consider include location and availability. Take the time to talk with your agent and confirm that they are willing to make such potentially difficult decisions for you.

In addition, talk to your financial advisor or lawyer to map out a thorough plan. Having the right documents in order while you are competent is critical. Not only are you protecting yourself, but you are also taking care of your family. Including potential incapacity in your estate planning could help you and your loved ones meet uncontrollable situations with peace of mind, knowing that you have already decided on these matters.

Small Home, Happy Retirement? Points to Consider If You're Thinking of Downsizing

Housing is one of the areas that new retirees often look into as they make the transition to this new phase of their lives. From evaluating your current home to moving to a new one, where you stay for the rest of your life can have a big impact on your retirement. While some retirees choose to purchase the dream house they couldn't buy during their younger years, others pride themselves on downsizing their homes. According to a study by Merrill Lynch and Age Wave, half of retirees swap their homes for a smaller one.

The idea of downsizing can cause some trepidation, as a move may mean leaving your decades-long comfort zone. But there are also advantages that may help you get over that resistance. Here are some of them:

A Smaller Home Means Less Maintenance

When you live in a larger home, you have more housework and other chores that need to be done, such as mowing lawns, trimming hedges and shoveling snow. While you're still physically independent, these tasks may not seem so daunting. However, what you can easily do in your 60s may not be so feasible when you reach your 80s. You may even need to hire some help just for your home's upkeep. By moving into a smaller home, like a condo, you can be spared from many of these maintenance chores and costs. That could lead to more free time for you so you can do the activities you really want to do.

Stop Paying for Extra Space

By this time, all your kids have probably moved out of your house and your large family home doesn't have the same purpose it once had. Even after you've paid off the mortgage, there are still expenses you have to take care of regularly, such as property taxes, home insurance, utilities and repairs. These are generally proportionate to the size of your property. On the other hand, when you choose to downsize, you can lower your monthly utility costs and expenditures. Although there is sentimental value that comes with living in your family home, maintaining those same expenses can dwindle your retirement savings faster than need be.

Boost Your Retirement Savings

Once you stop paying for unused space and cut down on unnecessary costs, you open the door for improved cash flow. Selling your old family house and the equity you've built can add significantly to your retirement savings. You can sell your family home and buy a smaller home or a condo with lower maintenance costs, then allot the remainder of your proceeds to your retirement nest.

See the World

One of the most common retirement leisure goals is traveling. If this is your plan, it could prove more expedient and cost efficient to keep a small house or condo. Whether you're spending a couple of weeks in another state with your grandkids or a month in Europe, paying for the upkeep of a large home while you're away can be costly. A smaller home can give you more flexibility.

Downsizing can be an exciting time for you and your spouse. The thrill of looking for a new home and making new friends can be the second wind you've been waiting for. It's like building your life again but this time with less pressure.

Taking Charge: Tips for Seniors to Avoid Falling Prey to Scammers

Seniors are often targeted by scammers for reasons ranging from availability to prosperity to isolation. Retirees are more likely to have the time to entertain calls, resources to spend and propensity to entertain conversations with strangers, especially if they are lonely or isolated from their families. Sickness can also be a factor, since the difficulty in handling property may arise, leading seniors to trust and pay people excessively for managing their assets on their behalf.

Scammer Tactics

Con artists have different ways of getting in touch with seniors. Some ways they contact their victims are through:

• Phone calls: The Federal Trade Commission reports that fraudulent telemarketers direct 56–80% of their calls to seniors. Scammers often ask for personal information such as full name, birthdate and important numbers like credit cards, bank accounts and Social Security.
• Mail: Unlike younger adults, most seniors are retired and may stay at home, thus giving them the time to go through all their mail. Sweepstakes letters and fake charities often use the Postal Service to ask for seniors' personal information or send checks to "claim a prize" that end up costing the victims.
• Online: Although only a small fraction of seniors are on the Internet, scammers are still able to gather important information from their personal computers when seniors fail to use security protection. Scammers also may send fake emails disguised with seemingly official letterhead from banks and other financial institutions, and even blatantly ask for bank or credit card numbers.
• Door-to-door sales: Con artists pretending to be sales agents or service providers often sell products and services to seniors for exorbitant prices without the victims ever knowing it. Senior citizens have been overcharged by thousands of dollars for home repairs, which in reality, should have cost significantly less.

Scam Prevention

There are multiple actions that seniors and caretakers can take to avoid being victimized by scammers and con artists. Here are some tips to prevent this from happening.

Phone calls

• Do not give out personal information over the phone. Scammers may claim they are from banks, charities and other organizations, so be extra cautious, especially if they call unexpectedly.
• Do not pay for a "free prize" from any sweepstakes, the postage and handling, or any payments that are supposed to be made to receive the prize.
• If the caller is trying to sell a product or solicit donations, simply decline by saying, "I don't respond to phone solicitations," and hang up. Don't be afraid to interrupt and disconnect a caller.
• Obtain the caller's details such as their complete name, business identity, phone number, mailing address and business license number. Verify the legitimacy of their details before making a transaction. Con artists often give fake names and other details to prevent victims from tracing them.
• Register your phone number with the National Do Not Call Registry managed by the Federal Trade Commission. To register online, go to donotcall.gov and register your phone number at no cost.

Mail

• Do not send personal information such as your Social Security number, bank and credit card account numbers, contact details, or address through the mail to someone you don't know regardless of the offer they are presenting.
• Never respond to mail that asks for a check or payment to claim a "free prize" or other similar offers.
• If a product arrives that you did not order, do not open the package and immediately send it back.
• Register with the Mail Preference Service managed by the Direct Marketing Association to reduce the volume of unwanted junk mail. To register online, go to dmachoice.org and register your address.

Online

• Make sure your computer has all the security it needs (e.g., virus protection and firewalls) and that it updates the security system regularly.
• Do not send personal information online. Scammers may send emails with bank letterheads and claim there is a problem, thus their need for your personal details. If this happens, call your bank immediately, report the email to them and verify whether there is indeed a problem.
• Do not open or respond to emails from people you don't know.
• When making online purchases, do not give out your credit card number unless the website is secure and reputable.
• Do not make online donations unless it is to a trusted organization with a secure website.
• Check out a seller at the Better Business Bureau website before making a transaction. Checking other websites for seller legitimacy can help secure the validity of your purchase.

Door-to-door sales

• Do not make purchases for products and services that you do not need.
• Never give out personal information such as your complete name, bank or credit card numbers, Social Security number, and contact details.
• Do not make payments in advance to get started on a service.
• Do not allow strangers to enter your home. Scammers may pose as utility workers, saying they need to check something inside or asking if they can use your bathroom while an accomplice sneaks in and steals your valuables.

Education and awareness are the first step to preventing senior fraud. If you have fallen victim to a con artist's ploys, do not hesitate to contact the police. Seniors often choose not to report the fraud because they feel embarrassed about being a victim. Take the necessary actions like filing a fraud report, closing financial accounts and contacting your family to assist you in reporting the incident. Most importantly, be proactive. Put security systems in place, register your phone number and address in do-not-contact lists, and entertain calls and visits only from the people you know.

Do You Need a Professional Care Manager?

Health care is one of the key areas that seniors and their family members need to prioritize, and for some that has meant hiring a professional care manager.

A professional care manager, or geriatric care manager (GCM), is a health care professional specializing in helping elderly individuals and their families make decisions related to medical care. GCMs generally have broad backgrounds drawing on nursing, gerontology, social work and psychology.

Services can include care-planning assessments, arranging for in-home help or a move to an assisted living facility, referrals to specialists, crisis intervention, counseling and family education. The best time to get a care manager is before a health crisis, as this allows for preventive rather than reactive solutions.

If you're wondering if your family needs a care manager, here's a quick rundown of the potential pros and cons.

Pros

They can help save you money. It may not look like it at first glance, but the savings come in the form of better planning and anticipation of health care needs. GCMs help prevent hasty decisions that could end up being costly or unnecessary. They can provide information on optimal solutions for present and future health needs.

They can relay your health needs to your financial advisor. A care manager can give an accurate assessment of a senior's needs for short- and long-term care, thus enabling the proper allocation of resources. This allows you to financially prepare for optimal long-term care as well as emergencies.

They can aid you in making better decisions. From the modifications needed in a home to the possible health care facility you might need in the future, a care manager will take into consideration the needs and wishes of the senior and family. Over time, they may notice physical and psychological changes in the senior's capabilities, such as with driving. A GCM can help seniors and loved ones be proactive and make adjustments gradually.

They can help you understand medical jargon. The medical world can be confusing. A professional care manager will help clarify the issues and find what is most suitable for a person's needs. The care manager can locate specialists and also accompany the senior to doctor appointments to make sure that a physician's orders are clearly understood.

They can alleviate family conflicts concerning care. A care manager can help manage challenging interpersonal issues, mediate during a health crisis, deal with the core problem, provide solutions and monitor the situation. When an elderly family member begins to lose independence, hurt, confusion and anger can result. A GCM can help the senior and loved ones deal with these emotions and unite the family so that they can better understand and support one another during this time.

Cons

Cost. Hiring a professional care manager is generally not covered by private insurance, Medicaid or Medicare. Services cost roughly from $50 to $200 per hour depending on where you live. The cost also can vary depending on how frequently you'll need the GCM's services.

A professional care manager can be an invaluable service. Medical care need not be a burden for a senior or loved ones. With the right support, the stress of this season in your family's life could be much reduced, allowing you to feel secure that health care needs are being tended to by a professional.

Financial Planning Doesn’t End with Your Career: A Checklist for Retirees

Financial planning doesn't end when you retire. In fact, it is crucial to continue keeping track of your finances post retirement. After all, you don't want your nest egg to run out prematurely. While you've already done the heavy lifting, it's important to continue reviewing your finances. Never opt for putting financial planning on autopilot—there are many changing variables that can influence your spending, and it could hurt you if those changes came as a surprise.

The following checklist can help you keep track of the health of your retirement fund:

• Do a year-end evaluation of your finances. A lot can happen in a year: new tax laws, health care changes and life events such as divorces or deaths. All of these can affect your retirement savings. By doing a year-end review, you can make financial modifications to adapt to these changes. In addition, take note of your expenses so you can make any necessary adjustments to your lifestyle. Make sure that you don't spend more than you can afford.

• Consult with your financial planner to ensure that your investments are on track. Generally, in the retirement years, a portfolio will be allocated conservatively to provide income while protecting against inflation. An annual meeting with your financial planner can help you stay on track with your financial goals.

• Take special note of Medicare. The federal government's health-insurance plan for ages 65 and above can change year after year, which can come in the form of increased premiums and deductibles. In 2016, for example, Medicare has a number of changes, including increased Part B premiums for several categories of people. It's important to keep up with changes to Medicare so you can make the necessary adjustments to your budget.

• Review your paperwork. Review your insurance plans and legal documents such as living wills and powers of attorney yearly. Some may need updating depending on changes in your family, such as divorce. Make sure your estate plan is in proper order, and consult your financial advisor if you have any questions.

• Know your income streams. Take into account your earnings from your 401(k) and other retirement plans, as well as the sale of properties or other assets, as all of them can increase your annual net income and subject you to more taxes. Options to counteract increased earnings may include recharacterizing your income or gifting appreciated assets.

Bottom line, periodic reviews of your finances can be crucial to maintaining an enjoyable and stress-free retirement. Financial checkups and proactive adjustments can help you stay in control and prevent you from being caught unaware by life's changes.

Getting Divorced? Follow These Steps to Protect Yourself Financially

Divorce is a difficult process in all aspects. It's emotionally trying and can be financially draining. You need to protect yourself and your children, if any, from the financial blow that the divorce can bring. Without preparation or early guardrails in place, divorce can be a messy battle financially. While there are really no winners in divorce, the process can be done amicably, with the couple dividing properties and other assets in the most beneficial way for both parties.

Here are steps you can take to help protect yourself financially during a divorce:

Know all your financial details. It's relatively common that just one spouse knows all the financial assets, documents and account details of the family. One spouse is usually in charge of keeping these money-related items in order. Be proactive and keep your own record of financial documents, policies, account numbers and online passwords for safekeeping. If you own property, make sure you have a copy of the deed.

Cancel joint credit cards. Inform your partner first that you're canceling joint credit cards for security reasons. Some angry spouses may spend heavily or max out the cards to get back at their partner. If you're going through a divorce amicably, you can cancel the cards together. If you're not on good enough terms to meet, inform your spouse over the phone, then call the bank immediately. It's best to document the cancellation by sending a fax or email to the bank saying that your divorce is ongoing and you want to either cancel the card or remove your name from the account. You need to state clearly that you are not responsible for future charges effective immediately.

Sell joint properties. Liquidating assets can help secure your financial future. Your house may have sentimental value, and it might be very tempting to keep it. If you do decide to keep it, double-check your budget as a single person and make sure you will have enough income to afford it. You may opt to sell for the flexibility that money provides. You might even end up getting a better house at a lower price with the money you get from the sale of the joint property.

Keep track of all your debts. This is important especially with couples living in community property states, which dictate that you not only have the right to half of your assets but also have ownership of half of the debts incurred during your marriage. Make sure that there are no debts that you're unaware of. This often comes as a nasty surprise for divorcing couples.

Have your own bank account. Make sure that you're not solely dependent on joint bank accounts. While married, you may consider opening an independent account for emergency purposes. Regularly deposit to that account as a safety net in case divorce happens. Some spouses drain joint bank accounts as soon as the other party mentions separation. This can put the other party in a difficult financial situation. Don't let this happen to you.

Do not hide assets. During a divorce there is a legal process called "discovery." It is the way divorcing spouses get information about each other's bank accounts and other financial details. During this process, you turn over—under oath—all relevant financial information. Lying can get you in trouble for perjury. Don't do it.

Get legal and financial advice. Get a lawyer or mediator to help you with your divorce proceedings. A good lawyer might come at a high price tag. You might want to consider getting a mediator instead, especially if you and your partner are on speaking terms. It's also important to consult with a financial advisor to guide you in your financial decisions during and after the divorce. Third-party advice can be of great help especially during this emotional time. A professional can help you see your situation objectively and pragmatically.

There's no easy way to go through a divorce. Open communication with your partner can help you navigate the financial aspects of the divorce more smoothly. Don't hesitate to ask for professional advice on these matters. Remember that there's life after divorce and that you need to have as secure a financial footing as possible to move forward.

Seven Ways Seniors Can Meet Others

There is no age limit for meeting new friends. It's for both the young and old, and can be vital to your overall well-being.

A study by University College London showed that social isolation can be detrimental to a senior's health: Socially isolated people in the group (ages 52 and above) were 26% more likely to die earlier than those with socially active lives.

With retirement giving you more time to reconnect with your longtime circle of friends, it is also an opportune time to start building new ones. Here are seven easy ways you can meet people as a senior:

• Travel. See the world and explore different places. Immerse yourself in another culture. Traveling will allow you to meet people of different cultures and backgrounds.

• Pursue your passion. This could mean enrolling in a class or getting an instructor. But since your aim is to meet people, it's more ideal to be in a class. You can take up photography lessons if that's your passion. You can enroll in art workshops, creative writing seminars, culinary courses or whatever fires your interest.

• Volunteer in your community. You can devote time in your local schools, animal shelter, museum, church, library or hospital. Sites like createthegood.org allow you to search for volunteer opportunities. A lot of nonprofit organizations can use an extra pair of hands, giving you the opportunity to meet like-minded volunteers.

• Go social. Are you on Facebook? If not, then consider creating an account. Social media allows you to connect with old friends and meet new ones. There are also Facebook groups you can join that suit your interests. Did you know that 56% of online seniors (above 65) are Facebook users? Don't be left behind!

• Hit the gym. Being in optimal health should be one of your main goals. Go to the gym for your regular exercise. Consider joining a class where you get to be with the same group of people on a weekly basis. Getting fit while gaining new friends can be a win-win for you.

• Take a part-time job. Some of us are just wired to do something regularly. If you're one of them and relaxing at home isn't your cup of tea, then consider a part-time job. You can accept consultancy jobs that rely on your expertise and don't require you to report to work every day. You can also start a coaching or mentoring career. A job could open doors to new friendships.

• Go online. If you're interested in dating but are not keen on your friends' referrals, then you might want to consider online dating sites. You can browse through the sites to get a feel for them. If they don't fit your personality, then you don't have to sign up or meet with anyone. But if you're willing to take a risk on love, this could be an ideal way to do so.

It may take time to build a new network of friends now that you no longer have business appointments or work commitments. The above tips can help, but it doesn't have to get complicated. Sometimes all you really need to do is go out and strike up a conversation with someone at the park or at a restaurant, and before long, you'll have a community of friends to enjoy in your golden years.

Puppy Love: Pets Can Offer Health Benefits for Seniors

Pets are great companions. They bring life to any home and make their owners feel loved. Seniors can benefit greatly from owning pets. From a positive mental disposition to physical improvements, having a furry friend around offers health advantages.

A study by the American Psychological Association showed that pet owners' well-being fared better than their non-pet-owning counterparts. Pet ownership also helped fulfill their social needs. Research has shown that elderly people who own pets need fewer doctor's visits, too.

Here's a rundown of some of the health benefits that seniors with animal companions may enjoy:

• Lower blood pressure. The Baker Medical Research Institute in Melbourne, Australia, conducted a three-year study that showed pet owners had lower blood pressure and triglyceride and cholesterol levels compared with non-pet-owners. Interacting with pets releases the hormone oxytocin, which can help reduce stress and anxiety.

• Increased physical activity. Pets need exercise, which in turn, could increase a senior pet owner's daily activity. Walking your dog can improve your blood circulation and help you get in shape. It also calls for a regular routine. With a four-legged companion in tow, doing exercise can be more enjoyable.

• Reduced depression. With kids and grandkids moving away, empty nesting can be a long and lonely period. Having pets can improve your mood, help you cope with loneliness and keep your spirits up. According to a survey, 82% of the elderly respondents said that pets help when they feel sad, while 71% said that their pets help when they feel physically bad.

• Improved mental health. Pet ownership, and the need to care for the animal, can improve the alertness of seniors. Animal companions may even help spur memory recall. They also allow seniors to focus on something other than the physical challenges that may come with loss or aging. Studies have shown that Alzheimer's patients have fewer outbursts when they have pets at home.

• Increased social interaction. Going to the park to walk your dog allows you to socially interact with people. It gives you the opportunity to meet other pet owners and strike up a conversation with them. It can open doors for you to be part of a new community.

Anthropologist Margaret Mead once said, "Having someone wonder where you are when you don't come home at night is a very old human need." Pets can meet this particular need and more. They bring vigor and vibrancy to life. They are faithful companions that love unconditionally. They make life not only better but also brighter. If you're considering a pet, don't hesitate to consult veterinarians and animal shelters for help in choosing the right pet for you.