NewRetirement Retirement News Digest

Health Care 101: A consumer primer on Obama's bill

jberman — Thu, 18 Mar 2010 04:21:00 GMT

Yahoo News, March 15th, 2010

It took lawmakers a year to shape President Barack Obama's health care bill. If it finally passes Congress, it'll take the better part of a decade to write the user manual for consumers and doctors, employers and insurance companies.

Some health insurance consumer protections would go into place immediately, significant but limited in scope. The big expansion in coverage comes in four years. About 25 million people would sign up, with most getting tax credits to help pay premiums. Ripple effects continue well after Obama has to leave office in 2017, if he's re-elected.

But even if the 2,700-plus-page bill passes, it's only the end of the beginning. The Obama blueprint will be carried out under less-than-ideal circumstances. Rising medical costs and an aging population will keep squeezing the federal budget. Lawmakers will have to revisit hard choices they sidestepped.

"This is going to play out over a generation," said Andrew Hyman, who oversees health insurance research for the nonpartisan Robert Wood Johnson Foundation. "It will address how people get coverage, how health care is delivered, and how health care is paid for."

The House is expected to vote on the final legislation this week, with the Senate to follow later. Here's a primer on some of the major effects for consumers and other key players:

IMMEDIATE CHANGES

Uninsured people with medical problems will have a workable alternative. The bill pumps $5 billion into high-risk insurance pools run by the states to provide coverage to those in frail health. Taxpayer-backed insurance won't be free, but premiums should be much lower than what's charged by private insurers willing to take those in poor health.

For people with private health insurance — about two-thirds of Americans — there would be some new safeguards. For example, insurers would be barred from placing lifetime dollar limits on coverage and from canceling policies except in cases of fraud. Children could stay on their parents' coverage until age 26.

Read more of this article.

A Purposeful Life May Stave Off Alzheimer's

jberman — Thu, 18 Mar 2010 02:39:00 GMT

Health Day News, March 2nd, 2010

People who say their lives have a purpose are less likely to develop Alzheimer's disease or its precursor, mild cognitive impairment, a new study suggests.

As the population ages and dementia becomes a more frequent diagnosis, there's increasing impetus to determine the causes of the disease, associated risk factors and how to prevent it, explained study co-author Dr. Aron S. Buchman, an associate professor in the department of neurological sciences at Rush University Medical Center in Chicago.

"There has been a lot of interest in psychosocial factors and their association with cognitive decline and dementia in later life," he said.

The study looked at the positive aspects of life and their possible effect on keeping dementia at bay, "looking at happiness, purposefulness in life, well-being and whether those kind of concepts are associated with a decreased risk of dementia," Buchman explained.

For the study, published in the March issue of the Archives of General Psychiatry, Buchman and his colleagues collected data on 951 older people without dementia who participated in the Rush Memory and Aging Project. The participants were asked to respond to statements such as: "I feel good when I think of what I have done in the past and what I hope to do in the future," and "I have a sense of direction and purpose in life."

After an average four years of follow-up, 16.3 percent of the people in the study developed Alzheimer's disease. Taking into account other factors that could account for Alzheimer's, the researchers found that people who responded most positively to statements about their lives were the least likely to develop the condition. Also, people who said they had more purposeful lives were less likely to develop mild cognitive impairment and had a slower rate of cognitive decline.

Read more of this article.

Long Term Care Insurance: The chance of developing Alzheimer's, and similar diseases, can be reduced through simple lifestyle choices, but the risk remains present. Consider Long Term Care Insurance as a means of mitigating this risk.

Even in Old Age, Men Want Sex More Than Women

jberman — Thu, 18 Mar 2010 02:29:00 GMT

Yahoo News, March 3rd, 2010

Spring is coming, and a young man's thoughts turn to...you know. Apparently, old men's thoughts turn to the same subject. According to an article to be published Wednesday in the journal BMJ (British Medical Journal), 67% of men ages 65 to 74 said they had been sexually active in the past year, compared with just 40% of women in that age group. Everyone knows young men think constantly about sex, but many guys remain interested in sex until they are almost dead: more than one-third of men ages 75 to 85 said they had sex in the past 12 months, compared with just 17% of women in that age group.

Some of this surely has to do with Viagra, which makes it easier for older men to be interested in sex. But the disparity in sexual activity between older men and older women isn't entirely explained by the 1998 release of the little blue pill. One set of data presented in the new paper - taken from the National Survey of Midlife Development, involving about 3,000 adults aged 25 to 74 - was collected in 1995 and 1996. That data set shows that 62% of men ages 65 to 74 reported sexual activity in the previous six months; only 36% of women in the same age group did so. (See how to prevent illness at any age.)

These differences matter because having a healthy sex life is strongly associated with having a healthy life, period - and also a longer life. Scientists aren't sure about the causal relationship here. Sexually active people tend to be healthier, and healthier people tend to be sexually active. It could be that the fulfillment of sex gives you a health boost, or that being more fit makes sex better - or, more likely, it's a little of both.

What we do know, from this new paper, is that if you are a 30-year-old male, you can be expected to have sex for 35 more years. The authors - Dr. Stacy Tessler Lindau and researcher Natalia Gavrilova of the University of Chicago - call this measure your "sexually active life expectancy," or SALE. A 30-year-old woman has a SALE of just 31 more years. (The study also finds that men and women who stay healthy and in good shape gain extra years of sexually active life in older age, compared with their peers in poorer health.) But women live about five years longer than men, so when you do the math, all this means that women go approximately twice as long without sex as men before they die. (Read about elder porn in Japan.)

Older women also enjoy the sex they do have far less than older men. Married women ages 57 to 64 who haven't been divorced or widowed report having about as much sex as married men in the same age group. But while 77% of partnered men in that age group say they are interested in sex, only 36% of partnered women report the same interest. These figures suggest that a lot of older women may be having sex when they don't really want to.

Lindau, the lead author on the paper, is cautious about drawing strong conclusions from this variance. "It may be that women are more likely to have sex for reasons other than fulfilling pleasure - or that they are more interested in giving a partner satisfaction," she says. "Maybe they lack the agency, or maybe they feel marital duty, but our paper doesn't provide an explanation."

Read more of this article.

Momentum for Annuities in 401(k)s Builds

jberman — Wed, 17 Mar 2010 08:55:00 GMT

Financial-Planning.com, March 16th, 2010

More retirement think tanks are getting on board with the idea of including annuities in 401(k) plans, but so far, only a handful of large employers have this as an option.

“They are complicated,” Alicia H. Munnell, director of the Center for Retirement Research at Boston College explains. “And [if] you hand over a bunch of your hard-earned cash and go out on the street and get hit by a bus, it’s gone.”

Further, investors are afraid an insurance carrier could go out of business, and plan sponsors don’t like the administrative headache of switching annuity investments when workers change jobs, added Robyn Credico, a consultant with Towers Watson.

In addition, the Retirement Security Project at Brookings Institution recently spelled out a number of perceived problems with annuities among investors: “Annuities may not inspire confidence because they are not sufficiently transparent or simple to understand. Consumers find themselves mystified by annuities' complex provisions and worry that insurance companies are pricing their products unfairly. Comparison shopping between annuities, let alone between annuities and lump-sum options, can be a lot more complicated than contrasting a Toyota to a Ford in an automobile showroom.”

Nonetheless, the Obama administration recently came out in favor of annuities, and the Department of Labor and Treasury Department are gathering information on the feasibility of including annuities in 401(k)s.

Meanwhile, The Retirement Security Project recommends either automatic annuitization once workers reach age 45, with the right to opt out, or moving 50% of a worker’s savings into an annuity upon retirement.

And the 401(k)helpcenter.com, which serves plan sponsors, advocates the creation of a federal insurance fund similar to the FDIC to guarantee annuities.

Read more of this article.

Annuity Advice for Retirement: As annuities become more popular, more seniors are investigating whether or not they make sense for them in retirement. You can do this yourself by researching the subject on NewRetirement.com

Pension reform: another election issue that will influence political races this year

jberman — Wed, 17 Mar 2010 08:42:00 GMT

San Francisco Examiner, March 15th, 2010

While healthcare reform is going to be a major issue in elections this year, there is another issue that may be just as powerful if not more so-particularly at the local level. The healthcare debate will impact U.S. Congressional races across the country, and there may be some trickle down the ballot to state and local elections.

Much more potentially damaging to incumbents is the issue of pension reform. I attended a town hall meeting last night in Towson sponsored by Americans for Prosperity. The subject was pension reform. This is an issue that could prove disastrous to incumbents, if they choose to ignore it.

Most of the town hall focused on Baltimore County, but the speakers noted that this is not a situation isolated to the County. The issue of elected officials' pension hit widespread consciousness with two recent incidents.

First, convicted and disgraced former Mayor Sheila Dixon, as part of her plea deal was allowed to keep her $83,000 a year pension, despite being found guilty by a jury of her peers of stealing while in office. Second, Baltimore County Councilman Vincent Gardina announced that he would not seek re-election in 2010. At that time, it was published that he would begin receiving a pension at age 55, $54,000 a year for the rest of his life.

Some points about the Baltimore County Council and Executive pensions:

1. County Council is a part-time position, requiring an average of 1,000 hours per year, some members will work more and some will work less. By contrast, someone who works forty (40) hours per week with two weeks vacation will have worked 2,000 hours per year.

2. County Council salary was $38,500 in 1998, and now it is $54,000, a forty percent (40%) increase twelve (12) years later. Then, if you are elected by the rest of the Council to serve as Council President for a year, you receive an extra $6,000 for that year ($60,000 total for the year). Gardina has been quoted as saying that $54,000 is not enough for this part-time job.

Read more of this article.

NewRetirement Retirement Calculator: Assess the state of your pension in regards to your retirement plans at NewRetirement.com

Moody’s Says U.S. Debt Could Test Triple-A Rating

jberman — Wed, 17 Mar 2010 08:20:00 GMT

The New York Times, March 15th, 2010

The gold-plated credit rating of the United States — an article of faith across America and, indeed, around the world — may be at risk in coming years as the nation copes with its growing debts.

That sobering assessment, issued Monday by Moody’s Investors Service, provided a reminder that even Aaa-rated United States Treasury bonds, supposedly the safest of safe investments, could be downgraded one day if Washington failed to manage the federal debt.

Moody’s said the United States and other major Western nations, particularly Britain, have moved “substantially” closer to losing their gilt-edged ratings. The ratings are “stable,” but “their ‘distance-to-downgrade’ has in all cases substantially diminished,” the credit ratings agency said.

A downgrade would affect more than American pride. The bigger risk would be to the country’s ability to keep borrowing money on extremely favorable terms, and therefore to keep spending more money than it takes in from tax revenue.

A credit rating lets lenders and investors know how likely it is that a borrower can pay back a loan. A sterling rating means there is little for lenders to worry about. A lower one typically results in bond investors demanding higher interest rates on debt.

Those higher rates, in turn, add to the country’s overall debt burden and can force the government to reduce spending, increase taxes or both. That difficulty has been well-illustrated recently in Greece and Portugal, with strikes and protests as citizens march in the streets to oppose tough austerity measures that directly reduce entitlements and state benefits.

“Growth alone will not resolve an increasingly complicated debt equation,” Moody’s said. “Preserving debt affordability” — the ratio of interest payments to government revenue — “at levels consistent with Aaa ratings will invariably require fiscal adjustments of a magnitude that, in some cases, will test social cohesion.” The United States, Britain, France and Germany have always been rated triple-A by Moody’s, with the United States first rated in 1949.

Pierre Cailleteau, managing director of sovereign risk at Moody’s, stressed that none of their ratings were “threatened so far.”

But he did differentiate among the top countries, saying that Britain and the United States are in the toughest position.

Read more of this article.

How to Salvage Your Retirement

jberman — Sat, 13 Mar 2010 12:36:00 GMT

The Wall Street Journal, March 12th, 2010

Is it too late to save your retirement?

For many, the answer is surely yes. News out this week shows that 29% of those who have already retired have saved nothing at all to support themselves, while only a third have saved at least $50,000.

To put this in context: A retirement account of $50,000 will provide a 65-year-old man with an annuity of just $4,000 a year.

Yet according to the latest annual retirement survey from the Employee Benefit Research Institute, a nonprofit think tank in Washington, two-thirds of those in retirement don't even have that much set aside.

It's true that many will still be okay. That's because they will have a good benefit pension, or a lot of equity in their home, or both. Neither is counted in the survey, and both can be very important.

But neither pensions nor home values are what they once were. And many won't even have them.

Overall, this is a pitiful state of affairs at the tail end of the biggest financial boom in history. Today's retirees lived through the incredible bull market that began in 1982. Bonds as well as shares skyrocketed. Most of them should be rolling in money.

Instead they were relying on ... what? Santa Claus?

Read more of this article.

NewRetirement Retirement Calculator: For those who would rather not rely on Santa Claus, it is vital to have a plan in mind for retirement. The NewRetirement Retirement calculator can help you ensure that you have just that.

Without $250 Million HECM Subsidy, Big Principal Limit Reduction Needed says FHA

jberman — Sat, 13 Mar 2010 12:33:00 GMT

Reverse Mortgage Daily, March 11th, 2010

During his testimony in front of the House Financial Services Subcommittee on Housing and Community Opportunity, David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration voiced his strong support of the administration’s reverse mortgage program on Thursday.

“The need for this type of program is greater now than it’s ever been, due to increasing medical costs, declining employment/incomes, and less “savings” in various types of pension funds/retirement accounts,” said Stevens.

This comes as the OMB requested an appropriation of $250 million to support the Home Equity Conversion Mortgage (HECM) in its FY 2011 budget.

Referencing a survey conducted by AARP in 2006, Stevens told the committee the product has provided seniors with much-needed financial relief and was primarily used to pay for long term health care, enable home repairs, and provide piece of mind that housing expenses could be met.

In addition, Stevens said the program plays an important role in allowing seniors to age in place. “Keeping seniors in their homes and communities, close to familiar support networks, puts less pressure on our nation’s overextended nursing home infrastructure and the public resources that support it.”

According to his testimony, FHA’s analysis showed that to maintain the viability of the program for FY 2011, an increase in the annual mortgage insurance premium from 0.50% to 1.25% and a further reduction in the principal limit factors (PLFs) of approximately one to five percent depending on the age of the borrower is necessary, on top of the 10% reduction in PLFs that was implemented at the beginning of FY2010.

If the $250 million appropriation is not provided, the PLFs will be cut even more. ”Without the budget request, we would be forced to reduce the PLFs by an additional 21% in FY2011. This would significantly reduce the amount of funds that would be available to seniors (more than 30%), which is on average a $23,000 to $27,000 impact,” said Stevens.

Read more about this article.

About Reverse Mortgages: If the above change does go into effect, it will drastically reduce the amounts available to seniors through reverse mortgages. Given this, it may be beneficial to consider getting a reverse mortgage now rather than later, or at least considering one's options in that regard at NewRetirement.com

The 2010 Retirement Confidence Survey: Confidence Stabilizing, But Preparations Continue to Erode

jberman — Sat, 13 Mar 2010 12:30:00 GMT

Employee Benefit Research Institute, March 10th, 2010

20TH ANNUAL RCS: The 2010 Retirement Confidence Survey—the 20th annual wave of this survey—finds that the record-low confidence levels measured during the past two years of economic decline appear to have bottomed out. The percentage of workers very confident about having enough money for a comfortable retirement has stabilized at 16 percent, which is statistically equivalent to the 20-year low of 13 percent measured in 2009 (Fig. 1, pg. 7). Retiree confidence about having a financially secure retirement has also stabilized, with 19 percent saying now they are very confident (statistically equivalent to the 20 percent measured in 2009) (Fig. 2, pg. 8).

Worker confidence about paying for basic expenses in retirement has rebounded slightly, with 29 percent now saying they are very confident about having enough money to pay for basic expenses during retirement (up from 25 percent in 2009, but still down from 34 percent in 2008) (Fig. 3, pg. 9).

PREPARATIONS STILL ERODING: Fewer workers report that they and/or their spouse have saved for retirement (69 percent, down from 75 percent in 2009 but statistically equivalent to 72 percent in 2008) (Fig. 11, page 14). Moreover, fewer workers say that they and/or their spouse are currently saving for retirement (60 percent, down from 65 percent in 2009 but statistically equivalent to percentages measured in other years) (Fig. 13, pg. 15).

MORE PEOPLE HAVE NO SAVINGS AT ALL: An increased percentage of workers report they have virtually no savings and investments. Among RCS workers providing this type of information, 27 percent say they have less than $1,000 in savings (up from 20 percent in 2009). In total, more than half of workers (54 percent) report that the total value of their household’s savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000 (Fig. 14, pg. 16).

CLUELESS ABOUT SAVINGS GOALS: Many workers continue to be unaware of how much they need to save for retirement. Less than half of workers (46 percent) report they and/or their spouse have tried to calculate how much money they will need to have saved for a comfortable retirement by the time they retire (Fig. 23, pg. 22).

Read more of this article.

NewRetirement Retirement Calculator: It is never too late to start preparing for your retirement, even if you are already in it. If you're one of those whose preparations are eroding, consider the NewRetirement Retirement Calculator as a means of helping you achieve your goals.

Public Reverse Mortgages and Long-Term Care: Can They Work Together?

jberman — Fri, 12 Mar 2010 05:36:00 GMT

Kaiser Health News, March 7th, 2010

Here’s the problem: By the time we need long-term care services we often don’t have readily available resources to pay for them. Only about seven million Americans have private long-term care insurance. And, on average, retirees have financial assets of less than $100,000—usually in the form of a 401(k) or other retirement plan. If a 65-year old turned that into steady monthly income, he’d get less than $600. That would pay for a home health aide for barely seven hours a week.

But Americans do have a way to fund this care: their home. Last year, we had more than $7 trillion in real estate equity, even after the crash. In 2007, nearly two-thirds of American families headed by people 62 or older owned a home free and clear But 20 percent were “cash-poor,” according to the MetLife Mature Market Institute, and could have used that equity to improve the quality of their lives.

Trouble is, two-thirds of retirees have no intention of using their homes to fund their old age. Some want to leave houses to their kids. Others don’t understand how they can tap their home equity, and others misunderstand the rules about home ownership and Medicaid.

So here’s a possible solution. What if your state, in effect, helped you turn unused home equity into cash to pay for the care you need when you become old and frail? To sweeten the deal, what if the state let you have easier access to Medicaid to supplement your own long-term care contributions?

You could use the money to make your home wheelchair accessible, or pay for a special van, or even for adult day care or that home health aide. You’d have far more flexibility than with regular Medicaid. In return for this upfront cash, your heirs would repay the state with modest interest after you die, usually by selling your house. The state wins by saving the cost of caring for you in a nursing home. You win by easily accessing the equity that could allow you to stay at home.

This program would look a lot like a reverse mortgage. With those, if you are at least 62, you can take out a loan against the equity in your home. You get either a lump sum in cash, access to a line of credit, or a regular check each month. When you move or die, you or your heirs sell the house and repay the loan plus interest.

But reverse mortgages have been a bust. In 2007, fewer than 1 percent of eligible homeowners had one. People have trouble understanding them. And they are weighed down by high fees (there is a servicing fee, an origination fee, mortgage insurance premiums, closing costs, and, of course, the interest). At the same time, a troubling number of users are relatively young borrowers who are tapping reverse mortgages to pay off credit cards or fund vacations. The perverse result: They will have even less home equity available when they really need it to pay for long-term care.

Read more of this article.

About Reverse Mortgages: We at NewRetirement do not necessarily endorse the notion of getting a Reverse Mortgage specifically to purchase some other kind of financial program. The above article is correct though in describing the valuable role they can play in pursuing whatever goals you may have in retirement.

Long Term Care Insurance: A massive risk looming over most seniors heads is the threat of long term care costs. Long term care insurance can be an excellent means of mitigating this risk. Learn more about it at NewRetirement.com.

Even More Reasons to Get a Move On

jberman — Fri, 12 Mar 2010 05:26:00 GMT

The New York Times, March 1st, 2010

“I’m 86 and have walked every day of my life. The public needs to wake up and move.”

“I’m 83 going on 84 years! I find that daily aerobics and walking are fine. But these regimens neglect the rest of the body, and I find the older you get the more attention they need.”

These are two of many comments from readers of my Jan. 12 column on the secrets of successful aging. At the risk of sounding like a broken record, a new series of studies prompts me to again review the myriad benefits to body, mind and longevity of regular physical activity for people of all ages.

Regular exercise is the only well-established fountain of youth, and it’s free. What, I’d like to know, will persuade the majority of Americans who remain sedentary to get off their duffs and give their bodies the workout they deserve? My hope is that every new testimonial to the value of exercise will win a few more converts until everyone is doing it.

In a commentary on the new studies, published Jan. 25 in The Archives of Internal Medicine, two geriatricians, Dr. Marco Pahor of the University of Florida and Dr. Jeff Williamson of Winston-Salem, N.C., pointed to “the power of higher levels of physical activity to aid in the prevention of late-life disability owing to either cognitive impairment or physical impairment, separately or together.”

“Physical inactivity,” they wrote, “is one of the strongest predictors of unsuccessful aging for older adults and is perhaps the root cause of many unnecessary and premature admissions to long-term care.”

They noted that it had long been “well established that higher quantities of physical activity have beneficial effects on numerous age-related conditions such as osteoarthritis, falls and hip fracture, cardiovascular disease, respiratory diseases, cancer, diabetes mellitus, osteoporosis, low fitness and obesity, and decreased functional capacity.”

One of the new studies adds mental deterioration, with exercise producing “a significantly reduced risk of cognitive impairment after two years for participants with moderate or high physical activity” who were older than 55 when the study began.

Most early studies demonstrating the benefits of exercise were done with men. Now a raft of recent studies has shown that active women reap comparable rewards.

Read more of this article.

Fact Sheet: "The NRRI and the House"

jberman — Fri, 12 Mar 2010 04:55:00 GMT

Center for Retirement Research at Boston College, March, 2010

The National Retirement Risk Index (NRRI) measures the share of American households ‘at risk’ of being unable to maintain their pre-retirement standard of living in retirement. The Index is calculated by comparing households’ projected replacement rates – retirement income as a percent of pre-retirement income – with target rates that would allow them to maintain their living standard. To make the estimates as conservative as possible, the calculation assumes that households derive the maximum possible income from the assets they hold at retirement. A crucial component of that exercise is the highly unrealistic assumption that they access their home equity through a reverse mortgage and invest the proceeds in an inflation-indexed annuity – very few households actually take reverse mortgages or buy annuities. This fact sheet looks at how not taking full advantage of housing equity affects the share of U.S. households ‘at risk.’...

Read this article.

About Reverse Mortgages: One of the options discussed at length in this article is that of tapping the equity in one's home using a reverse mortgage. Consider the possibilities of this at NewRetirement.com

Annuity Advice for Retirement: Inflation-indexed annuities are a popular choice for seniors who are looking how best to invest their retirement savings so as to maximize the security of their retirement. You can learn more about these programs at NewRetirement.com

NewRetirement Retirement Calculator: Many other factors go into determining what is and is not a valid plan for your retirement. You can consider where you might need to look by running the NewRetirement Retirement Calculator.

I'm a Medicare doctor. Here's what I make

jberman — Wed, 10 Mar 2010 05:09:00 GMT

CNN Money, March 6th, 2010

When you think of low-paying jobs, doctor doesn't usually come to mind.

But with a 21% cut in Medicare payments slated to take effect later this month, physicians who say they are making an OK living may be reduced to income levels that no longer make their profession viable. That's especially true for those still paying medical school costs and other training.

"The cuts will hit me," said Dr. William Schreiber, a primary care physician based in North Syracuse, N.Y.

Schreiber sees 120 patients a week. About 30% of them are enrolled directly in Medicare, while another 65% have private insurance plans that peg their payments on Medicare's rates. Only 5% pay on their own.

As a result, Schreiber expects the cuts to take away $3 out of every $5 he currently earns. And, as a primary care physician, he already wasn't earning anything near the salary of a specialist.

"After the costs of my own benefits are deducted, that will leave me with the equivalent of a minimum wage job," he said.

Unless Congress acts to adjust Medicare payments without considering the impact of rising health care costs, Schreiber said he could be forced into bankruptcy or shut his practice.

Cost of care

Schreiber, who employs two nurse practitioners, agreed to break down the costs associated with running his practice.

He spends about $60,000 a month on "fixed costs" to run his practice. "That's more or less my breakeven point," he said. "If I spend more, I'm in the red for the month."

Read more of this article.

Supplemental Medicare Insurance: With or without the cuts being discussed, it's unlikely that Medicare will be able to cover all of your medical needs as you move through retirement. Consider whether purchasing supplemental insurance is the right move at NewRetirement.com

Starting Over at 55

jberman — Wed, 10 Mar 2010 03:40:00 GMT

The New York Times, March 5th, 2010

AFTER 24 years as a marketing manager for Coors, Cinde Dolphin knew what was coming — Miller and Coors had just merged their United States beer operations, and hundreds of jobs were sure to be eliminated.

Worried that these youth-oriented companies might lay off an old-timer like her, Ms. Dolphin decided to take a buyout and relax. She sunned on the beaches of New Zealand, went whitewater rafting on the Yampa River in Colorado and saw friends and Broadway shows in New York.

But after a few months, she realized that she missed working. So at age 55, she began applying for marketing jobs, confident she would be quickly hired because of her Coors pedigree. “About four months into my job search, I realized I wasn’t getting many callbacks,” she said.

A Sacramento resident who has survived three bouts with cancer, Ms. Dolphin is not one to give up easily. She decided on an alternate tack — she would start her own business and thus join the nation’s fastest-growing group of entrepreneurs, those age 55 and above.

Mining her decades of experience, she created a marketing and public relations firm that helps California winemakers get their message out through Facebook, Twitter and other social media.

“I’m having a ball,” she said. “I can set up my own hours and work schedule, and do other things I enjoy.”

More than five million Americans age 55 or older run their own businesses or are otherwise self-employed, according to the Small Business Administration. And the number of self-employed people ages 55 to 64 is soaring, the agency says, climbing 52 percent from 2000 to 2007.

Like Ms. Dolphin, some use money from a buyout to finance a new company. Some of these entrepreneurs were already retired, but after seeing their 401(k) retirement plans plunge in value, created a business in a quest for extra income. Some had lost their jobs and, after months of searching for work, started a business to make ends meet, perhaps catering, cabinet making or doing photography.

Read more of this article.

Working in Retirement: As the above article indicates, many programs exist to help seniors who are looking to make career changes or even resume working after their retirement. You can investigate the possibilities at NewRetirement.com

Iceland Voters Set to Reject Debt Deal

jberman — Wed, 10 Mar 2010 02:07:00 GMT

The New York Times, March 5th, 2010

After the dust began to settle last year — after the banks failed, the currency collapsed, the stock market crashed and the government fell — the dazed inhabitants of Iceland woke up to another unpleasant problem: They owed, it seemed, some $5.3 billion to more than 300,000 angry people in the Netherlands and Britain.

These were the customers of Icesave, a now notorious online retail branch of the Icelandic bank Landsbanki, which went bankrupt in October 2008 along with 85 percent of Iceland’s banking system. The British and Dutch governments reimbursed their citizens, but then demanded that Iceland repay the money, the equivalent of $65,000 per household here, plus interest.

To put it in perspective, it is as if American taxpayers were being forced to pay $5 trillion (plus interest) to reimburse customers of the Japanese branch of a failed private American bank, said Magnus Arni Skulason, the head of InDefence, a group agitating for a better deal.

The question of how to pay has convulsed this tiny country of about 319,000 people, severely damaging its international reputation and paralyzing its economic recovery. It has so incensed its residents that on Saturday they are expected to reject overwhelmingly the latest Icesave repayment plan, in the first national referendum ever held here on any subject.

The vote raises larger questions about Iceland’s place in the world, said Silja B. Omarsdottir, a political scientist at the University of Iceland. “Are we going to be a country that takes our obligations seriously? Or are we going to say, ‘No, we’re going to do things our way’ and be an international pariah?”

In the scheme of world debt, $5.3 billion is small potatoes. But it represents more than 40 percent of Iceland’s gross domestic product. The interest alone would eat up one-fourth of the country’s revenues, said Prime Minister Johanna Sigurdardottir, who called finding a resolution to the Icesave dispute “a matter of life and death for the Icelandic economy.”

The referendum was prompted on Jan. 5 by the refusal of Iceland’s president, Olafur Ragnar Grimsson, to sign into law the latest Icesave agreement, arrived at after months of bad-tempered negotiations with Britain and the Netherlands and narrowly passed by a divided and fractious Icelandic Parliament.

Mr. Grimsson’s move was unexpected but widely popular in a place that feels bullied and ill treated.

The crisis spurred a series of demonstrations from usually phlegmatic Icelanders, who recited poetry and tossed yogurt pots and rocks at government buildings to protest what they deemed the greed, ineptitude and spinelessness of the governing elite. Nearly a quarter of the electorate signed an Internet petition against the Icesave deal.

The referendum is being closely watched abroad, where the worry is that people in other financially flailing countries might be emboldened to rise up and refuse to honor financial obligations stemming from the failures of their banks.

Read more of this article.