Finances after 50: Have we learned anything from the Great Recession?

Too soon poor, too late smart? A story by WSJ staff reporter Glenn Ruffenach in the November 14/15 Wall Street Journal “Encore” section  asks if we’ve learned any lessons from the financial crisis. And just in case you’re feeling smug about having done so, a quiz inside may shine a sober light of reality. It also contains a lot of data you will find useful, interesting and possibly surprising.

Amid the tumult of the past year, financial advisers are telling us that the Great Recession has produced one invaluable benefit: an education.

We now know, for instance, that our nest eggs can lose almost half their value in a matter of months; that “diversifying” our holdings doesn’t necessarily safeguard those holdings; and that our homes—our one investment for later life that was supposed to be foolproof—can make us look like, well, fools.

How much have you taken away from the events of the past year? Try our quiz and find out.

OK, so it isn’t much of a silver lining. But even worse is that we’ve supposedly learned these lessons before—after each recession, sell-off and market bubble since the 1960s. And yet, we continue to make the same mistakes.

How much have you learned about retirement finances in the past year? And has it sunk in this time? Our quiz will offer you a chance to see if you know where you stand—and provide some guidance for the future.

You’ll have to pick up the Weekend Journal for the quiz, but here’s one freebie in advance:

Q – In retirement, Social Security will likely replace what percentage of your pre-retirement income: (a) 23%; (b) 33%; (c) 43%; (d) 53%.

A – Well, don’t guess high.

Or:

Q – The single best cure for a battered nest egg is: (a) invest more aggressively; (b) save more money; (c) Work longer; (d) Plan to withdraw less money from retirement savings

A – And just when that pile of books to read is so inviting… sorry. (c)

The quiz is full of useful data and interesting insight (fully 40% of men and 41% of women ages 40-50 are considered obese by the Centers for Disease Control & Prevention, for instance; you knew?) One overall message seems to be, in fact: If you have one, don’t quit your day job.

Doctors oppose abortion cuts in health bill

The San Francisco Medical Society has come out in opposition to removal of abortion coverage in the health reform bill, pointing out the potential danger to women’s lives if they are denied access to such care. Charles Wibbelsman, MD, President of SFMS, writes in today’s San Francisco Chronicle that the board of directors will urge congressional representatives to find a compromise.

It is a shame that such a complex issue as health care reform has been hijacked in the form of the Stupak amendment, which would ban all public funding for abortion (“Amendment to House bill reignites abortion debate,” Nov. 10).

Experience has shown that denying coverage of abortion does not stop or even curtail it, but rather shifts the costs elsewhere, and threatens to delay a woman in seeking and obtaining this medical procedure, thus potentially endangering her.

The San Francisco Medical Society’s board of directors has voted to urge our elected officials, particularly Sens. Dianne Feinstein and Barbara Boxer, to find a compromise that will not ban such funding and keep women with unwanted pregnancies safe.

Women’s lives should not be held hostage to politics.

At last, a ray of sanity from the medical community. I, for one, am proud of SFMS for standing up for the uncounted thousands of women, most of them poor and disadvantaged, who will suffer harm from denial of access to care should the conservatives and the U.S. Conference of Catholic Bishops win the day on this matter.

via Stupak amendment hijacks health care reform.

Housing, homelessness & other inequities

Today’s Sonoma County (CA) Press Democrat features a front page story about Joe Montana’s digs near Calistoga, available for $49 er–million. It is right above a photo of homeless vet Jack Saltzman reading in his hatchback, the juxtaposition of photos hard not to notice.

Others vets don’t have hatchbacks. Press Democrat feature writer Jeremy Hay reports that according to the Department of Veterans Affairs, approximately 400, or 12%, of Sonoma’s 35,000 vets are homeless, which fellow homeless vet Don Bridges says is “just the tip of it.” Some 131,000 of the nation’s 24 million veterans are homeless on any given day.

Hay details some of the measures being undertaken to alleviate the problem, including $3.2 billion recently pledged by the V.A. to be spent over the next five years toward getting veterans off the street and keeping them from falling into homelessness. But returning vets have been part of another world most of us only see in the extreme abstract and can’t possibly comprehend; fitting right back into mainstream America can be harder than anywhere they have served, where at least, another vet explains, “you’ve been part of your tribe.” More vets will return, and more will wind up on the streets.

None of this is the Montanas fault.

Another Press Democrat front page story, a New York Times article by Andrew Martin and Lowell Bergman, mentions a 91-year-old Florida woman who got a letter from Citibank last month advising her that her new credit card interest rate was 29.99 percent, up 10 points from the previous rate. Haven’t we been reading about Citibank lately?

These bits of information are being digested by those of us who elected Mr. Obama and now feel sad and frustrated because our expectations were, perhaps, too high. Some of us are wondering why he ever wanted the job in the first place.

We don’t have an answer to homelessness. We may not make an offer on the Montana estate — even though, with a Tuscan-style mansion, equestrian center, full-sized basketball court, gym, pool, etc, etc it is probably worth that matching 49er price — because with 20% down and a 30-year 6% fixed rate mortgage the monthly payments of $235,023 would be a stretch. And we are not planning any credit revolt, despite the fact that it is the responsible credit users who are being penalized by the likes of Citibank. What we are doing is just trying to comprehend the surreal nature of today’s news as covered on one front page.

And keep the faith.

Abortion, health reform and me: who is making our choices?

Am I the only person around who is squirming — make that fuming a little — over the concessions made to the anti-choice guys before the House passed its health reform bill? Does no one else find it offensive to turn from reading on page one of today’s New York Times about this sad state of events to page 14 for a large photo of President Obama shaking hands with Cardinal Sean O’Malley? They were meeting at the funeral for Senator Ted Kennedy in August, where reportedly the good clergyman told the president that the Congress of Catholic Bishops really wanted to support health reform ——– oh, but only if everybody caved to their wishes that abortion remain unavailable.

It is not as if we weren’t forewarned. I posted a brief note in this space a few days ago (see Abortion Foes Winning Health Concessions, 11/4, below) and tried to resume a position of calm.

It is hard to remain calm. Somewhere the lines about separation of church and state have to fuzz themselves back into reality. I believe in the right of the U.S. Congress of Catholic Bishops to tell Catholics how to behave (despite the fact that of my many Catholic friends I know almost none who pay any attention in matters of personal choice.) I even believe in the right of the Pope to tell the Bishops to tell their parishioners how to behave. I even believe in the responsibility of all individuals, including my Presbyterian self, to behave according to their conscience and their faith. I just hate being governed by someone else’s faith.

This is not a small distinction. My own church, admittedly starting with a small group here in woo-woo San Francisco, passed a fairly strong national resolution denouncing our country’s torturing folks and seeking justice. As far as I know, no one threatened the president about withholding support for these occasionally immoral wars we keep fighting unless the instigators of torture-in-our-name were sent to jail. However strongly I would like to see the latter happen, I believe there are limits to what faith communities should do.

I had personal experience with back-alley abortion, in the dark days pre-Roe v Wade. It was not pleasant. Is there any way a celibate Catholic bishop could even remotely understand the horrors to which he is condemning poor, desperate pregnant women with the relentless push to make abortion totally unavailable? No. I wish there were.

We still have got to have health reform. But what prices we are paying.

A novel suicide prevention plan

Every now and then an innovative idea comes along, and should be applauded. This one, for those who worry about suicide rates, might merit a standing ovation — if it works. Time and Japanese commuters will tell.

As of November, East Japan Railway Co. has put blue light-emitting diode, or LED, lights in all 29 stations on Tokyo’s central train loop, the Yamanote Line, used by 8 million passengers each day.There’s no scientific proof that the lights actually reduce suicides, and some experts are skeptical they will have any effect. But others say blue does have a calming effect on people.

“We associate the color with the sky and the sea,” Mizuki Takahashi, a therapist at the Japan Institute of Color Psychology, a private research center. “It has a calming effect on agitated people, or people obsessed with one particular thing, which in this case is committing suicide.”

What a lovely thought: a moment of calm could save a life. Since long before Anna Karenina flung her life away in Tolstoy’s memorable tale, trains have served as lethal weapons for the desperate and the depressed. Obviously, the blue-light theory wouldn’t work where tracks are in the open  — as with a recent spate of young people in Northern California who tragically ended their lives this way. But passengers on the New York Metro and other subway systems could surely use a moment of calm, whether feeling suicidal or not. In Japan, economic woes added to the usual stress factors have brought rising suicide rates, and the need for response has taken on a special urgency.  Nearly 2,000 Japanese committed suicide by jumping in front of trains last year alone. Conductors, reports Shino Yuasa of the Associated Press, “describe them over the public address system as ‘human accidents’.”

East Japan Railway has spent about $165,000 for the special lights at all the Yamanote stations. The lights, which are brighter than standard fluorescent bulbs, bathe the platform below in an eerie blue light. They hang at the end of each platform, a spot where people are most likely to throw themselves in front of a speeding train. Shinji Hira, a psychology professor specializing in criminal psychology at Fukuyama University in Hiroshima, speculated that blue lights could make people pause and reflect.But he said that if railways want to go further to ensure safety, they should set up fences on platforms, as several Tokyo subway stations have. The barriers have sliding doors that allow passengers access to the trains.

For those of us who grew up in American small towns with Railroad Avenue as the traditional main street, trains hold a special place in the heart. May the blue light plan help get them out of the lethal weapon category soon.

Japan tries to limit suicides on train tracks.

Cold Weather Won't Make You Sick

If trying to follow the progress of healthcare reform is giving you a migraine, and perhaps results of recent balloting have upset your stomach, here’s a little good news from Lindsey Hollenbaugh, writing in the November/December AARP Magazine. Not all of those sometimes-scary bits of advice you grew up with turn out to be true. New studies, Hollenbaugh reports, are busting a few  of those myths.

Myth
Most of your body heat is lost through your head.

Fact
Untrue. This myth likely originated from a 50-year-old military study; subjects enduring extreme cold lost the most heat from their heads. But the head was the only exposed body part, says Rachel Vreeman, M.D., coauthor of Don’t Swallow Your Gum!: Myths, Half-Truths, and Outright Lies About Your Body and Health. The real deal? “You lose heat from whatever is uncovered,” Vreeman says. “There is nothing special about the head.”


Myth
Taking vitamin C and zinc will help prevent or shorten a cold.

Fact
Taking vitamin C daily won’t prevent illness, and if you consume it after feeling sick, it won’t ease symptoms, studies show. As for zinc, three of four well-designed studies found it ineffective, while a fourth found that zinc nasal gel helped relieve symptoms. But in June the FDA recalled some zinc nasal products, since they’re linked to a loss of sense of smell. Bottom line: There’s no need for extra C, and zinc may actually harm you.


Drug-Free Pain Relief
Here’s one more reason to enjoy your cup of morning joe. In a University of Illinois study, 25 cyclists who consumed the equivalent of about three 8-ounce cups of coffee before working out had significantly less pain while training.

Myth
You should drink at least eight cups of water per day.

Fact
There’s no medical reason to follow this advice. In 1945 the Food and Nutrition Board of the National Research Council recommended that adults take in 2.5 liters of water per day (about 84.5 ounces), noting that most water comes from food. Many adherents, however, ignored the last part of that statement. Drink up if you’d like, but studies suggest that most people already get enough H2O from what they eat and drink: the average person takes in about 75 ounces of water daily, according to Department of Agriculture surveys.


Myth
Illnesses come from cold or wet weather.

Fact
Colds and flus come from viruses, not the climate, explains Aaron Carroll, M.D., Vreeman’s co-author. But because some viruses are more common in winter, more people may get sick then. Plus, chilly or rainy weather often results in more people staying inside—and then sharing their icky infections.

From San Francisco, in the balmy sunshine (November? That’s mid-summer) Boomers & Beyond wishes you well.

Cold Weather Won’t Make You Sick.

Kerouac & friends on the road again

Friends and fans of Jack Kerouac, Lawrence Ferlinghetti, Tom Waits, Michael McClure — plus all the rest of you Beat Generation buffs — will be glad to know they are alive and well again (still) thanks to a new documentary now out on DVD, after a round of screenings across the country. One Fast Move or I’m Gone is a fascinating road trip back into Kerouac’s Big Sur.

Co-producers Curt Worden, Gloria Bailen and Jim Sampas (Kerouac’s nephew) have put together an intriguing mix of old and new footage tracing the gifted 60s icon along his journey through San Francisco and retreat to Ferlinghetti’s Big Sur cabin. Everybody’s talking about the choice of new music by Jay Farrar and Ben Gibbard, rather than the jazz with which Kerouac is automatically identified, for the film.

I caught the show in New York a couple of weeks ago at the Clearview-Chelsea Theaters on W. 23rd, one of those 10 PM events at which, if you’re old enough to remember the 60s you are forgiven for falling asleep. Didn’t happen. The oldies — Carolyn Cassady still quite beautiful, Ferlinghetti still his charming and articulate self — are vibrant enough to explain their fascination to earlier generations, and the newbies who are still drawn to the scene acquitted themselves OK for this oldie.

It didn’t help that the E line wasn’t running and no one had told HopStop, which led to my getting back to the Upper East Side around 3 AM. One Fast Move will convince you that Kerouac isn’t gone at all, and explain why it was even worth staying up late to check him out a half-century later.

Calling all ghouls & goblins

A Halloween exclusive for readers of this page!

You don’t really like to dress up funny? You have to go to a costume party? Or a significant event that calls for acknowledgment? This solution, requiring a minimum of supplies and bother, is offered:

Get three friends to accompany you. One needs a clergy collar. The second needs a black hat, preferably a giant black hat such as cowboys or German carpenters wear. Number three needs a name badge designating support for the fine end-of-life nonprofit Compassion and Choices. And number four needs identification with an insurance agency. You thereupon represent the Obama theme song “Signed, Sealed, Delivered; I’m Yours.” The originating group (my friend Deborah, #1; my husband, #2; myself, #3 and friend Diane, #4) is happy to offer this suggestion as a seasonal public servce.

We are going as a Death Panel.