Green Retirement Blog

Speaking via satellite to an AARP gathering this past Saturday, both presidential contenders Barack Obama and John McCain, addressed the issue of retirement. The nominees agreed that Social Security needs to be strengthened and protected.  Obama presented to the group, his proposals on Social Security and Medicare reform, while McCain promised to set-up a bi-partisan commission to study the issue and present their findings.

Senator Obama warned that a McCain administration would endanger Social Security.  This past March, a Wall Street Journal article reported that “McCain’s top aides were considering cost-of-living adjustment cuts and raising the retirement age as part of their Social Security plan.” McCain has not endorsed or rejected those ideas.

Obama accused McCain of pushing the un-popular Bush plan of privatizing Social Security. “Privatizing Social Security was a bad idea when George Bush proposed it, and it’s a bad idea today,” Obama said.

Obama’s solution to fixing Social Security, involves expanding the Social Security payroll tax to incomes of $250,000 (in about a decade), from the current ceiling of $102,000.  And, Obama proposes eliminating federal income taxes, for seniors earning less than $50,000 per year.  The Obama campaign claims that this proposed tax cut, would result in an average savings of $1,400 per year, for nearly 7 million seniors and retirees.

McCain, on the other hand, vowed to protect Social Security, and create a commission.

If it appears that Obama has clear proposals, while McCain has none, it is because that is precisely the situation.  A visit to the respective candidates websites, to discover their positions on retirement, is quite revealing.  Sen. Obama’s website, lists several plans to help seniors and retirees, with everything from prescription drugs, to heating oil, and expanding workplace pension accounts.

A visit to John McCain’s website reveals nothing.  Not only is Retirement not a core issue for the McCain campaign, the only mention of any sort of plan for retirement, is tucked away deep in the website and is contained in one paragraph:

Retirement Tax Cut:

John McCain Will Act To Lower Medicare Premiums. Seniors face a growing threat from higher Medicare premiums that tax away their Social Security and retirement savings. John McCain has proposed comprehensive, pro-market health care and Medicare reforms to reduce health care costs and control increases in premiums – while delivering high-quality health care.

That’s it, that is all John McCain has to offer retired Americans, and Americans planning for retirement. A promise to Lower Medicare Premiums. Compared to Obama’s extensive list of proposals, John McCain’s stance on retirement, can only be described as “pathetic”.

If you take the one issue of retirement, and cast your vote on which candidate has the most to offer, the choice is clear and obvious - Barack Obama is the better candidate when it comes to retirement.

Which is quite frankly, very odd, when you think about it.  One would expect that the 72 year old candidate, would have a better grasp on the issue of retirement and the concerns of retirees, over a 46 year old candidate who is 16 years away from Social Security eligibility.

Full Disclosure: The author is neither a Democrat, nor a Republican, but is a member of the Green Party.

Visit the Green Retirement Website, retire early with less savings, and help save the planet.

What caused the failure of Fannie Mae and Freddie Mac, the government backed agencies who secure half the U.S. house lending market, and the sudden government takeover?  The answer is contained in a reuters news report, and bodes ill for the U.S. economy overall, but may provide a silver lining for retirees.

“The companies never lost their access to capital markets where they raise money to support the U.S. housing market, but the biggest buyers of the debt have grown more cautious.

Foreign central banks reduced their holdings of “federal agency” debt in custody at the Federal Reserve in the past week for the seventh week in a row.”

The collapse of Fannie Mae and Freddie Mac was not caused, by internal U.S. economic forces, but rather by foreign investor reluctance to buy U.S. Government Backed Debt.  Why are foreign investors no longer willing to purchase U.S Government debt?

At the last Federal Reserve meeting to decide key interest rates, in the face of extremely high oil prices and commodity inflation, the Federal Reserve left interest rates un-changed.  With that decision, foreign creditors began selling their U.S. Government debt, their patience had run-out.  Very low interest rates, combined with a devaluing currency, do not make for a good investment.

Over a year ago in August 2007, the U.S. economy was on the verge of an economic collapse, and foreigners stepped in to prevent a repeat of a 1930’s style world-wide depression.  As I wrote in a June 23, 2008  article titled “Oil and Retirement“,

The patience and money of all three of these players, to keep our mis-managed and corrupt economy going, may be coming to an end. Our creditors, China, the Arabs, and the European Union, who combined hold trillions of dollars of our debt, are growing steadily unhappy with our in-ability to get our economic house in order.

Foreign investors made the decision to sell U.S. Government backed debt, when the Fed’s decision to not raise interest rates, signaled that the Fed and Treasury were more interested in protecting Wall Street than the U.S. economy.  Remember, purchasing U.S. Government debt, is an investment in the overall U.S. economy. More importantly, it also sent the message to foreign countries, that the Federal Reserve (as gatekeepers of the U.S. currency to which many of their currencies are pegged), was disinterested in helping bring down world-wide food and commodity inflation, high oil prices, hunger, food riots, work stoppages, taking place in their respective economies.

How does the failure of Fannie Mae and Freddie Mac impact your retirement? If you are a retiree, whose income is based on holding U.S. Government debt, such as T-Bills, Treasury Bonds, etc., you maybe getting a raise soon and inflation may be on it’s way out.

At some point, it should have been back in June, the Federal Reserve will begin raising interest rates.  The Federal Reserve would like to wait until the elections are over, if they have their way, but after that they will begin raising interest rates.  They don’t have a choice.  The United States is a debtor nation, we are dependent on foreigners lending us money, to continue to run our government.

And that means, roads, schools, hospitals, police, firemen, librarians, soldiers in Iraq and Afghanistan, airports, and the list goes on.  The only means available to the Treasury and Federal Reserve, to attract foreign investors back into U.S. Government Debt, is to raise interest rates.

For taxpayers, the failure of Freddie Mac and Fannie Mae, will mean higher taxes and reduced services.  For retirees, the silver lining is that the twin miseries of inflation and low bond yields, may be soon coming to an end.

Visit the Green Retirement Planning website and get a Free Retirement Analysis.

 Save Bus 39 North Beach Telegraph Hill

If you are a retired senior living in North Beach or Telegraph Hill, or you know someone who lives in the neighborhood, it is imperative that you act now to save bus route 39 service.  Your ability to continue living in the North Beach Telegraph Hill area is threatened.

The SFMTA will  hold a public hearing on Tuesday September 16th at 3:30 p.m and 5:30 p.m. . Please try to attend. If you cannot make the hearing, you can also email the board, to register your concerns.

info@sftep.com or phone 415.701.2323

Link to map showing route elimination: http://www.sfmta.com/cms/mtep/documents/rte_039.pdf

The following letter has been emailed to the SFMTA Board of Director.

Dear Directors:

I was alarmed to learn that the Transit Effectiveness Project (TEP), is recommending that part of Bus Route 39 be eliminated, to conserve resources.  While noble in purpose, the impact of this recommendation, may have the reverse effect.  Seniors and retired people may be forced to purchase automobiles, causing even more pollution and congestion in our neighborhood and city.

Worse, and the primary reason for my  letter, is my concern for the livability and diversity of our community.  This recommendation, if followed, may result in the exodus of seniors, retired people,  the handicapped, and low income citizens from our community.  Permanently changing the diversity of our community.  No longer will we have the pleasure of listening to elderly neighbors order biscotti in Italian. A community is a community when it includes all generations.

My name is Ramsay Mameesh,  I own Green Retirement Planning, which has it’s virtual office in North Beach. I currently live in North Beach, but I have also had the pleasure to live on Telegraph Hill, the neighborhood most effected by the recommendation.  Green Retirement Planning enables almost anyone, to retire with hundreds of thousands less dollars and years earlier, than is possible with traditional retirement planning.  Going Green can save a person a tremendous amount of money before retirement, and allow them to retire with less savings.  Living a car free life, is a huge savings for a retired person, and allows them to live a more comfortable retirement.

Earlier this year, I conducted a study on the feasibility of retirement in North Beach, and Telegraph Hill.  I discovered that Seniors could retire in North Beach Telegraph Hill with less than $400,000.

March 1st. 2008

“The experiment to discover how much savings is required to retire in one of the Top Ten Neighborhoods in the nation, in the second most expensive city in the U.S., is over and the results are illuminating. Retiring in North Beach / Telegraph Hill San Francisco, depending on your situation which I will discuss later, can be accomplished with less than $400,000 in savings.”

And that someone aged 44, such as myself, could retire in North Beach Telegraph Hill, with less than $800,000.

However, in the same study on retirement in North Beach Telegraph, I mention that this is made possible in part by the availability of public transportation.  That the costly expense of a car is not required to live in our neighborhood. And more importantly, the study also mentions the difficulty seniors may have, living on Telegraph Hill.

“There are no shops or businesses on Telegraph Hill, it’s purely residential, but everything you need is either a short walk or bus ride away. Admittedly, Telegraph Hill, is a steep hill. If you are physically un-fit, walking up the hill, could present a challenge. But Muni #39 will let you off at the top of the hill, and if you do want to get into shape, Telegraph Hill provides a free Stair-Master for your enjoyment.”

The North Beach Telegraph Hill retirement study concludes by recommending people choose North Beach and Telegraph Hill for retirement.

“For people choosing a city retirement, Telegraph Hill is an ideal location, combining both the amenities of a big city and a feeling of peaceful natural seclusion. San Francisco, is one of the top tourist destinations in the world, let alone one the most beautiful cities in the United States. Everyday people from all over the globe can be seen walking through the Telegraph Hill neighborhood, to see the parrots and the lovely gardens, and to enjoy the breathtaking views of San Francisco. You could retire here with less than a million dollar in savings. What are you waiting for… “

If the SFMTA Board of Directors, approves the elimination of bus route 39’s current access to Telegraph Hill and North Beach, I will no longer be able to recommend Telegraph Hill and a large part of North Beach for retirement.  I recommend that the Board of Directors, in the interest of diversity and livability, and so as not to adversely affect the lives of Seniors, retired people, the handicapped, and people living on fixed incomes, reject the (TEP) recommendation for bus route 39, and maintain the current service and route.

Sincerely,

Ramsay Mameesh
Green Retirement Planning
11 San Antonio Pl.
San Francisco, CA 94133
370#9828
http://www.iplanretirement.com
emailramsaym@iplanretirement

Is work affecting your health? Hurting your relationships? Do you find yourself constantly thinking about work? Do you take your laptop and cellphone on vacation? If you answered yes, to any of these questions, then you may be addicted to work. You may be a “Workaholic”! You should seek immediate help, otherwise, if you are un-lucky enough, you may experience a “Karoshi“, the Japanese word for “Death from too much work.”

Here in the United States, an organization exists to help people overcome their addiction to work, “Workaholics Anonymous.” They have over 50 self-help groups around the country, which follow the traditional 12 Step Program, for dealing with other addictions such as Alcohol and Drugs. Workaholics may also want to consider working with a life coach, or psychotherapist, to try and overcome their addiction.

While such programs may help  workaholics, find balance between work and life, they do nothing to reduce the number of working years.  And though, retirement is not the cure for workaholism, Green Retirement Planning may enable people to re-focus their obsessive compulsive behavior in a more productive and positive direction.

Green Retirement puts work into perspective.  Instead, of work being a person’s source of identity, it becomes simply a source of retirement savings. This of course, causes the person to make better career decisions, and to take advantage of opportunities.  Relationships at work, and at home improve, as co-workers and family are not viewed as competitors.

Green Retirement Planning may be attractive to workaholics, who would otherwise shun retirement planning, due to  the incredible control Green Retirement gives a person over their retirement and future.  With Green Retirement a person can control, at what age they wish to retire, and with how much savings.  Green Retirement goes far beyond picking the right 401k plan.

If you believe you, or a loved one may be suffering from an addiction to work,  it may be time to seek professional help and to discover Green Retirement Planning.  Try our Free Retirement Analysis and find out if you can stop working today.

“Americans are changing the game plan for retirement, with millions laboring right past the traditional retirement age and working into their late 60s and beyond.While the average retirement age remains 63, that standard may soon be going the way of the gold watch — a trend expected to accelerate as baby boomers close in on retirement without sufficient savings.”

How’s that for a Labor Day Gift? According to an article, by AP Business Writer Dave Carpenter, “Laboring longer is a growing trend for Americans”. Twenty-nine percent of people in their late 60s were working in 2006, up from 18 percent in 1985, according to the Bureau of Labor Statistics. Nearly 6 million workers last year were 65 or over.

The article also contains this nugget of wisdom from AARP’s Director of Legislative Policy, who apparently has forgotten, what the “R” in AARP stands for, “We have people who are healthier, who are living longer and have more economic reasons to stay in the work force,” said David Certner, AARP’s legislative policy director. “On the employer side, you have greater demand for experienced (older) workers. That all adds up to longer work lives.”

Uh David, the reward for living longer, is not working longer. And the employers interest in (older) workers, is not an act of benevolence, it’s a demand for cheap labor. An attempt to drive down the wages for all Americans. Apparently, you have also forgotten, what the “A” in AARP stands for as well.

And if the retirement industry had it their way, we would all be working until we’re 70 years old, “To me the ideal would be 70, because you get the biggest Social Security benefit possible and all those additional years of employment. And it keeps you going mentally and physically too.” Says Christine Fahlund, a senior financial planner with T. Rowe Price.

Thanks for your concern Christine, but if I want to stay mentally and physically fit in retirement, I’ll join a gym and do Soduko puzzles. Or perhaps, you think I would enjoy the experience the guys in their 70’s and 80’s, are having over at Lowes Hardware. “After losing their jobs as engineers and scientists, they now stock shelves just to survive. But they hide when fellow retirees come in, she said, because they don’t want people they knew from their country clubs and higher-income jobs to see them.”

This Labor Day, millions of Americans are unnecessarily working into their 60’s, 70’s, and 80’s, when they could be retired. Green Retirement Planning enables almost anyone, to retire with hundreds of thousands of less dollars, and years earlier than Christine, David, or Dave (the writer of the article) realize.

In fact, one of the people mentioned in the article, 64 year old John Lee who, “battled frequent work stress before taking early retirement from Coca-Cola Co. at 55. He lay wide awake for many restless nights thinking about the job, and believes all the strain caused health problems in the form of fibromyalgia and chronic back pain.”

John Lee, who is now back to work full time, because he doesn’t believe he can afford to retire, has $1.3 million in assets and a $3,000 a month pension. If John quit work today, he would have to struggle on an $8,000 a month budget, let’s all cry for John. Seriously, poor John is working, when he doesn’t want to or have to.

America, this Labor Day, in between the beer and the barbeque, let’s take a moment to remember our fellow citizens, who are stressed, scared, and Laboring into old age. Whose fear and anxiety, is preventing them from enjoying, what should be their golden years.

Visit the Green Retirement Planning Website to discover how you, can retire with less savings, and years earlier.

The August 8th edition of Business Week, has an article titled “25 Ways To Save More Each Month” link, by Ben Steverman. Number 1 on the list of 25 ways to save more each month is to - Track Every Expense. Not only is tracking your expenses important, in helping you to save more money every month, it is also a critical part of Green Retirement Planning. And it is why we include, expense tracking and retirement budgeting software, as part our our customized retirement planning service.

Why is tracking your expenses so important? Because, everything being equal, the only way you can save more money is to reduce your expenses. Quick, want to save 15% more each month? Spend 15% less each month. And the easiest method to accomplish that task is to know where, and how much, you are spending your retirement savings.

When it comes to Green Retirement Planning, tracking your expenses, is essential for creating an accurate retirement budget. And it is your retirement budget that determines the amount of savings you will need for retirement. With Green Retirement Planning Software, your expenses are collected, measured, and used to calculate your retirement plan. As you adjust your expenses, your retirement plan automatically calculates, your retirement savings needs, and how many years you need to continue to work.

If you are already retired, having an accurate retirement budget (and keeping to your budget), is essential to insure that you maintain a safe and secure retirement. Green Retirement Planning Software automatically and easily tracks your expenses, compares your expenses to your retirement budget, and warns you if you go over budget for any particular expense.

A retirement plan is a snapshot of your current situation with recommendations for achieving your retirement goals. Green Retirement Planning Software is the perfect tool for managing your retirement, both before and during retirement, and helps you achieve your retirement goals.

Visit the Green Retirement Website, to learn more about Green Retirement Planning, and our customized retirement software.

Should I retire in a recession?

Recent losses in the stock and housing markets, predictions of a prolonged recession, and a dramatic rise in food, health and fuel costs, have caused many Americans to push back their retirements. Dashing hopes of an early retirement, and resigning themselves to waiting until they are eligible to receive Social Security, before they can retire.

If we are entering a long downturn in the economy, a recession that could last a few years, as economists are warning. Then retiring now, could actually leave you better off financially, than if you continue working and increase your savings.

Bob and Ed’s Semi-Excellent Retirement Adventure!

Let’s take Bob and Ed, and compare what happens to their retirement portfolios, if Bob decides to retire and Ed delays retirement and continues working. Both Bob and Ed, have taken recent losses because of the recession, and their net worth’s are $300,000 each.

Bob says “I’m done! I’m taking my losses. Investing what’s left of my money in crappy government bonds. When the recession ends, I’ll move some of my money back into stocks and housing, but I’m not delaying my retirement because of a stupid recession!

Bob takes out a safe 4% of his savings every year in retirement. The recession ends in three years. What happened to Bob? At the end of the recession, Bob’s net worth has declined to $281,403, a loss of 6 percent.

After the recession has ended, and the stock market finally begins rising again, Bob re-allocates his assets into a standard retirement asset allocation model. He earns 9% a year on his investments. The expansion cycle lasts 5 years. Eight years after retiring, Bob has a net worth of $364,000 a 21% increase, even after taking out $1,000 every month.

Meanwhile, on the other side of the cubicle wall….

Ed is freaking out! “I can’t retire now, not after my losses in the stock and housing markets, I have to keep working and increase my savings.” Ed had been saving $1,000 a month, towards his retirement, and increases it to $1,250. He reads personal finance magazines, watches financial t.v. shows, listens to financial radio shows, subscribes to newsletters, chases high return stocks, mutual funds, global hedge funds, considers trading in options. And none of it works.

It’s a recession, a world-wide slow down in growth, foreign stock markets get hit even harder than the U.S. markets. And Ed, no matter how hard he tries, still loses 15% a year during the recession. Starting with $300,000 and adding $1,250 per month, at the end of 3 years, Ed has a net worth of $226,709. Ed has lost 25% of his net worth.

Ed is more than stung, he is despondent, finally weary and bleary eyed from reading stock symbols in the Wall Street Journal. Ed pulls his retirement savings out of stocks, and puts his money and $1250 a months savings into a CD paying 3%, and enters the commute lane for yet another day. Five years later…

Eight years after Bob retired, Ed finally gets back his original $300,000, and decides to retire. Bob has been laying in a hammock for eight years, happily retired, and now has $364,000.

Retire Now!

Green Retirement can save your retirement and the planet. Visit the Green Retirement Website to learn more.

Green Retirement Planning Website is Ready!

You may have noticed a lack of posts over the past two months, and thought that maybe I had retired, unfortunately not yet! I’ve been busy re-designing the Green Retirement Planning Website, learning CSS, javascript, and other stuff to make the Green Retirement Website a better experience.

Beyond the new look, concise information, and smaller website, the Green Retirement Planning website has some new features. Now, you can get a free retirement analysis online, and soon you will be able to plan your retirement online as well.

Take a look at the new Green Retirement Website.

So, now it’s back to posting hopefully helpful retirement blog posts.

Green Your Retirement Climate

Picking the right climate for your retirement, could save you a lot of green, and help reduce global warming. Retiring to a temperate climate, eliminates much of your household heating and cooling needs, and it’s costly expense. Moving from one extreme to another, from Maine to Arizona for example, will probably not result in any great savings.

How much less savings do you need by choosing the right climate for your retirement? $81,000. That’s the amount extra you are going to need to save for retirement, to continue paying higher heating and cooling expenses, during your retirement. How long will it take you to save $81,000?

If you retire to Phoenix Arizona, the fifth largest city in the U.S. with 90 days a year of temperatures exceeding 100 degrees, you will be forced to live in an artificially cooled environment most of the year. Unnecessarily paying high electricity bills, contributing to global warming, all the while breathing in un-healthy recycled air. If you choose to retire in San Francisco instead, temperatures range between 55-75 degrees year round, you don’t need an air conditioner and only minimal heating in the winter. Our cost for electricity and gas, here in San Francisco, is only $30 per month.

What about comfort? Who really wants to spend their retirement shoveling snow or sitting under an air conditioner? Picking the right climate for retirement also has a big effect on health and comfort.

Retirement gives you the opportunity to choose where you want to live. Your choice could have a dramatic impact on the environment and your pocketbook.

Going Green to help your retirement is what Green Retirement Planning is all about. Here are 2 green ideas that can save you $1500 per month in retirement savings, which after ten years, will bring you $300,000 closer to retirement.

1) Get rid of your house

If you have a big mortgage, moving from your house to an apartment (even if it’s in the same neighborhood), could save you up to a $1000 or more per month towards retirement. And living in an apartment is much more eco-friendly than living in a house. You use less electricity, gas and water, your eco-footprint dramatically declines. You don’t have the expense of maintaining a yard or pool.

2) Get rid of your car

If you don’t have access to public transportation, consider moving to an apartment that is close to public transportation, or to save even more money move within walking or bicycle distance to work. You will save up to $500 or more per month towards retirement. And you will be removing tons of carbon dioxide from the atmosphere reducing your global warming impact.

The retirement savings you can accumulate over ten years with compounded interest, by following these 2 green ideas, is slightly more than $300,000. If you eliminate your mortgage and your car when you retire, you have reduced by $450,000, the amount you need to save for retirement.

This is an example of Green Retirement Planning. Visit our Retirement Planning Website to learn more.

Next Time: 5 Green Ideas To Save A Million For Retirement In Only 10 years.