Book review “Nomadland by Jessia Bruder

This Friday the Lakeside Women's Club book review is "Nomandland; surviving America in the 21st century" by Jessica Bruder. (2017) I'm about 1/3 finished, but I get the drift. Convince the readers there's something terribly wrong with the USA instead of the poor decisions, divorces, childhoods and investments of selected people interviewed for the book. So far, although the "great" recession of 2008 is noted as a cause for the white collar workers, the underlying factors in many of these cases are divorce, and/or an unhappy, abusive childhood that also included divorce, disruption, and frequent moves. I've been skimming or reading books like this for 4 decades. And since the so-called War on Poverty and the disintegration of households of married couples and families, the discussion doesn't get more positive, but the journalists/fabulists don't seem to catch on.

We first met nomad retirees in 2003 in Glacier Park. They were quite happy with their lives, moving with the tourism industry, northwest in the summer and south in the winter. According to Bruder, this movement has drastically increased as boomers hit retirement age, the internet glamorized it, and Amazon and other suppliers began to encourage a new migrant class of elder workers in RVs, vans and campers.

However, since the 1950s, our culture has glamorized the freedom of the open road, living off the grid, and personal liberty without family responsibilities in our films, theater, TV, literature or even neighborhood gossip. We shouldn't be surprised if a tiny percentage tried to grab this fading brass ring on a merry go round and found it a struggle of clunker RVs and difficult physical labor in warehouses.

So readers have a rich stew of anecdotes sprinkled with statistics about the history of retirement (it's a relatively recent concept). The reader can blame evil capitalists, bad government programs, Amazon, shrinking pensions, and overall malaise.

I'm shocked, shocked that aliens are flooding our borders. They need to read sad best sellers and then they would stay home.

10 tips for year-end estate and financial planning

We may not be in a position to do #6 (gift up to $30,000 to an individual if married), but we all need to do #10, organize our records for 2019, and shred documents no longer needed for retention.

Also, in 2018, you can contribute up to $18,500 in your employer-sponsored retirement plan (i.e., 401(k), 403(b), most 457 plans, and the Federal government’s Thrift Savings Plan). Employees aged 50 or older who participate in such plans can contribute an additional $6,000 in "catch-up" contributions. #3

https://www.natlawreview.com/article/year-end-estate-and-financial-planning-checklist-make-your-list-and-check-it-twice

Six ways to prepare to age well

Well, when I saw that heading, I said, “Too late.”  But these are good reminders published in Health Beat, Harvard Medical School.

1. Adapt your home. Stairs, baths, and kitchens can present hazards for older people. Even if you don't need to make changes now, do an annual safety review so you can make necessary updates if your needs change. [When we remodeled out bathrooms we put in taller base cabinets and “comfort height toilets. Some recent changes in the kitchen, although not sure those will make any difference.]

2. Prevent falls. Falls are a big deal for older people - they often result in fractures that can lead to disability, further health problems, or even death. Safety precautions are important, but so are exercises that can improve balance and strength. [I’m nagging my husband a lot about the ladder and yard work.  We have hired a service for our lake house. We’re both in exercise classes and balance and strength are part of the routine.]

3. Consider your housing options. You might consider investigating naturally occurring retirement communities (NORCs). These neighborhoods and housing complexes aren't developed specifically to serve seniors - and, in fact, tend to host a mix of ages - but because they have plenty of coordinated care and support available, they are senior-friendly. [We’ve been living in a NORC since 2002 and love it. We wanted a one floor plan, but have 3, and so far it hasn’t been a problem.  The grounds are gorgeous, and the neighbors the best.]

4. Think ahead about how to get the help you may need. Meal preparation, transportation, home repair, housecleaning, and help with financial tasks such as paying bills might be hired out if you can afford it, or shared among friends and family. Elder services offered in your community might be another option. [I have some friends in their 90s, and am watching carefully. Elder services seem to be quite good in our area. The kitchen repainting was done by professionals this winter.]

5. Plan for emergencies. Who would you call in an emergency? Is there someone who can check in on you regularly? What would you do if you fell and couldn't reach the phone? Keep emergency numbers near each phone or on speed dial. Carry a cellphone (preferably with large buttons and a bright screen), or consider investing in some type of personal alarm system. [We recently got new phones; bigger numbers, but I still like phones with a little heft.  These feel like they’d break if dropped, and the sound quality isn’t that great. We aren’t in the habit of carry cell phones.]

6. Write advance care directives. Advance care directives, such as a living will, durable power of attorney for health care, or health care proxy, allow you to explain the type of medical care you want if you're too sick, confused, or injured to voice your wishes. Every adult should have these documents. [We’ve got the funeral/burial stuff purchased, and wills, and power of attorney, but best of all, our children live close buy.  A family is the best safety net.]

Life tips

• Life tips for my friends and readers who are 45-ish.
• Put away about 15% in your retirement account, above what your employer or government is contributing.
• Take good care of your relationships--they are like gold.
• Ignore all the food fads and scares; eat all the colors, eat less and move more. Just like mom said.
• Everything in moderation; especially alcohol and coffee and just pitch the cigarettes. They've never been found to benefit anything in your body.
• Don't be a pot head even if it is legal--you need every brain cell you have working at full capacity.
• Take care of your ears--turn down the music--and your teeth. Don't become a deaf senior citizen with ugly teeth--it's not pleasant. Take out the ear buds and see a dentist twice a year.
• Go to church. There are thousands of denominations as a result of squabbles that happened years ago. One should meet your needs. The world is actually more religious now than ever before--don't lose out on the benefits.
• Enjoy the many pleasures of owning a pet, but they are not family--don't kid yourself.
• Think about the benefits and responsibilities of being a citizen of the United States. It's not perfect, but it's the only one ever created with idea that the state/monarch/king/president doesn't own the people.

State of the Union feel good throw aways

The president’s SOTU list—pre-K education; “equal pay”, raising the minimum wage or extending unemployment benefits--is not going to address the real drivers of upwardly mobility--marriage before parenthood and a high school education. Head Start after 50 years shows no discernible advantage in learning, behavior, parenting practices, or health outcomes (at $8,000 per child it does supply a lot of jobs) so why add compulsory pre-k education?  Marriage of her parents is a child's best hope to stay out of poverty, but welfare programs discourage mothers from marrying. Raising the minimum wage won't help people who haven't finished high school--it just decreases their employment opportunities. 92% of black teenagers in Chicago can’t find employment; how will raising the minimum wage help them? And the $10.10 minimum for government workers was a throw away since it is a tiny minority with few at that level.

http://townhall.com/columnists/walterewilliams/2013/04/10/black-unemployment-n1561096/page/full

And that new retirement vehicle? That’s puzzled everyone.  Don't look at MYRA if you have a 401-K or IRA. It's government backed securities. The rate of return this past year would have been about 1.4%. If you need more to open an IRA, just save it in your piggy bank and then invest. On your worst day, you'll get more than 1.4%.  The stock market has been going like gang busters since 2010. If there had been a MYRA, the return would have been dismal. http://www.forbes.com/sites/johnwasik/2014/01/30/myra-not-needed-you-can-set-up-your-own-retirement-plans/

Follow the money—or the votes

Seniors are not hurting.

"Sen. Tom Harkin (D., Iowa) has introduced legislation to increase Social Security benefits and build a government-run supplemental saving plan. Sen. Elizabeth Warren (D., Mass.) has so captivated progressives with her demands to raise Social Security payments that she is touted as a potential presidential candidate in 2016."

What this country needs is jobs for young people, not pandering to senior citizens. Today's retirees have been warned since their 30s that Social Security won't be there for them, and most of the couples I know have 5 or 6 streams of income, from a 403-b, or 401-k, or private investments, or annuities, or IRAs, or veterans' pension, or Social Security. There are divorced women living in “committed relationships” still getting financial support from the husband that ran off with his secretary 30 years ago. If they married, they’d lose that. 

Politicians know seniors vote. Especially Democrats.

Let’s save Social Security and Medicare by raising the age of eligibility

Social Security was designed for a nation with a life expectancy in the 60s. The plan was that not many would ever get what they were taxed for. Now it has increased by about 60% or about 30 years. But the years after 85 have also increased. If we want to save the safety net that many poor and low income rely on, the retirement age needs to be raised, as well as the Medicare age.

http://www.elderweb.com/book/appendix/1900-2000-changes-life-expectancy-united-states

Promises, promises—your Social Security

At the outset of the Social Security program (law was passed in 1935), the federal government published an informational pamphlet that stated the following about Social Security taxes: "And finally, beginning in 1949, 12 years from now, you and your employer will each pay 3 cents on each dollar you earn, up to $3,000 a year. That is the most you will ever pay." 

Social Security is a better program for the poor than the middle class. 

"A person who earns $15,000/year will pay $86,000 in payroll taxes (employer and employee combined) over 44 years of work. When he retires, his annual benefit will be $10,128 or 11.8% of his lifetime payroll taxes. But a person who earns $110,000/year will pay $627,000 in payroll taxes over 44 years of work. When he retires, his annual benefit will be $31,260/year or 5.0% of his lifetime payroll taxes."

Most of us today would be thrilled to get almost 12% on our retirement accounts. The down side is you can't pass it along to your survivors like a private account.

This is a very informative site. 

The Fiscal Cliff

Let Obama take us over the Fiscal Cliff (he's out campaigning for tax increases right now) so people know what he's about. Of course, he will blame the Republicans who want cuts in spending to reduce the debt, but his proposed tax increase which he thinks you voted for will only pay for the government about a week. That’s useless and he knows it.  The purpose was to create class resentment, not revenue.  Then he'll have to come after YOUR paycheck.

http://www.cfr.org/economics/fiscal-cliff/p28757?cid=ppc-google-grant-fiscal_cliff&gclid=CNLQn8na8bMCFYpFMgodhmIAmQ

One of the easiest and most sensible cuts is to raise the age of receiving Social Security and Medicare. It can be gradual so people have plenty of time to prepare.  And which party has shot down that idea consistently—the Democrats.  They want nothing to do with a program that will take power away from the government and put it in the hands of the citizen.

In 1930 the life expectancy for whites was 61.4 and blacks 49.2. Sixty-five for retirement (in an era when many worked their entire life) seemed extremely optimistic. But in 2010 for whites it is 79 and for blacks 75.1. A male retiree, born in 1940, will spend anywhere from 19 percent to 25 percent of his life collecting Social Security benefits (depending on whether he retired at the normal retirement age of 65 or chose early retirement), and a female born in the same year will spend 21 percent to 27 percent of her life collecting benefits.

The biggest old age problem we have is not Social Security, but a less than replacement birth rate, and many people will have no cousins and no nieces or nephews as well as no grandchildren to help them. Families are the original safety net, but the Democrats by pushing contraception and abortion are also weakening this safety net. Maybe YOU have grandchildren, but will they have grandchildren?

http://www.infoplease.com/ipa/A0005148.html

Obama has no intention of saving the United States from its plunge into being Greece or a failed European state.  So don’t look for solutions—just look for higher taxes.

Start saving now, college grads

When I graduated from college I was 21 and 5 months pregnant. I had other things on my mind than saving for retirement.  .  . like rent, food, graduate school, paying off the hospital and doctor bills (it was a pay as you go baby).  I put it off until I was about 48 and the children were launched.  Then I opened a tax deferred account through TIAA-CREF and started setting aside the maximum allowed.  Since I didn’t go back to work full time until about that same time, I was really behind.  If you’re starting out, don’t do what I did.

Here's how interest compounds over time: If you save $10 a day at age 25, you'll have more than $1 million by age 65, assuming an 8% annual rate of return. If you start at age 35, you'll have $445,000. At age 45, you'll only have $180,000.

http://online.wsj.com/article/SB10001424052702304432704577348052844503384.html

Retiree confidence levels change since the Bush years

Some people forget that G W Bush also inherited a recession. The percent of retirees in 2001 who felt very confident or somewhat confident that they had saved and invested sufficiently for retirement ranged from 74% in 2001 to 79% in 2007. In 2008, that dropped to 64% and then to 60% in 2011 as the recession ground on despite a massive influx of federal funding. Link to Research. The gloom and doom in the business community is palpable as they are hit by more and more taxes and uncertainty about health care. Expansion is mostly out of the question, unless you're a petroleum driller in North Dakota. This affects those of us who live on retirement incomes whether Social Security, or defined benefit plans or our own savings/investments. Obviously, two things jump out about those years--the current recession that started in 2007 changed the investing mix and caused retirees to reevaluate their retirement plans and spending, and the baby boomers began entering the retirement demographic.

Those of us who were born before or during WWII whose fathers fought in that war and whose parents were teen-agers or young adults during the Great Depression have a different attitude than baby boomers about saving and sufficiency. We also have benefited from stronger family safety nets and we know the difference between “wants vs. needs." The value gap will expand for Gen-Xers who were accustomed to even more “stuff” replacing spiritual and familial values. In the 1940s and 1950s even children whose parents never took them to church heard Biblical admonitions on values and thrift in school before the Supreme Court ended it in the 1960s. "Don't store up treasures here on earth, where moths eat them and rust destroys them, and where thieves break in and steal. Store your treasures in heaven, where moths and rust cannot destroy, and thieves do not break in and steal.” Matt 6:19-20

Not if Obama keeps this up

Maybe we'll just move in with the kids. Got this in my e-mail today.

DO YOU HAVE ENOUGH TO LIVE THE RETIREMENT LIFE YOU WANT? Merrill Lynch invites Ohio State faculty and staff to attend a free retirement seminar; “Planning for Your Retirement Lifestyle,” on Wednesday (2/17) or Thursday (2/18) at the Fawcett Center.

Love or hate Glenn Beck, recently he's been lecturing on the debt our states are in due to some of their pension plans. As California goes, so goes the nation.

After being smacked around by the SOTU speech, the stock market went up a little when the government was so snowed in by this last global warming blizzard they couldn't do anything. In November 2008 everything started to nose dive because business sector knew more taxes and regulations were coming even before he took office. It accelerated the drop that began when Democrats took over Congress at the beginning of 2007.