Posts Tagged ‘retirment’

Tough Times

Wednesday, February 25th, 2009

This past week over 550,000 people filed a new claim for unemployment in the United States.  The reality is that in the coming months millions of additional Americans will lose their jobs.   Is this a recession or a depression?  To the millions of people who are losing these jobs with little hope of finding a new one soon, it is a depression!

There is a disturbing trend during these economic hard times.  Most companies and governmental entities are attempting to solve their economic problems through layoffs.  This week three venerable American companies all announced layoffs:  Microsoft, Starbucks and Harley Davidson.   All are profitable companies who see these hard times as an opportunity to do what human resource professionals call “right sizing“, the politically correct term for eliminating higher paid positions, often filled by senior employees, to improve the bottom line profits.  Oftentimes  these executives who are leaders in this “rightsizing” movement in America are awarded for their efforts with fat bonuses.

A  new term for staff members in our American companies is human capital.  This human capital is even accounted for like other capital and a price is placed on it and compared to other capital expenditures like buildings and equipment.  This concept is not limited to the private sector, as I noted this week when one high ranking public school official in our area said he thought it would be less desirable to close some school buildings than layoff some school employees. Unless, of course, he became that laid off staff member.

I fear that this recession will be tougher than past ones because of our lack of respect for the people who work in our companies and organizations.   Not only is it now fashionable to layoff staff to improve the bottom line, we see another revolution to lower the wages of people  that are already paid the least in our companies.  I do not believe that we can be a great country without good wages and full employment.  We are going to exacerbate the current hard times if we do not realize that the life blood of our country is the American worker who certainly deserves a better future.  People are not human capital but our relatives, neighbors and friends, a group that deserves a lot more respect and consideration than they are receiving today.

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Retirement Economy

Thursday, September 25th, 2008

If you are like most Americans, you may suddenly be questioning what is going on with the economy. And if you are recently retired you might be questioning whether you did the right thing. While I am certainly not an economic advisor, I do realize there are things one can do to minimize the stress associated with rising prices, loss of investment value and a fixed income.

First it is important to take a realistic assessment of your current situation. It is time to sit down with family members and talk about the current status of investments. If you have money in the stock market it is imperative to know how much you have lost, or in rare cases, gained. The mortgage crisis necessitates that one look realistically at the market value of your home and what are your total costs of home ownership, including any mortgage, taxes, insurance, maintenance and utility costs. I always think it is good to put the information on a computer spreadsheet, or paper, so you have a visual reference.

It is also important to look at where you have your money. Investments we thought were safe a few years ago may not be that safe anymore. Money should be in a bank of good standing. By that, I mean one that is identified as one of the top five banks in the country. The government will insure savings up to $100,000 for each depositor. Therefore, if your retirement nest egg exceeds that amount, it may be a time to move savings to make sure all your money is secure.Also, look at what your investments have earned you in the last year, the last five years and the last ten years. Diversification is the key in this investment environment. Losses are minimized by diversifying your portfolio in most cases.

If you do not have a financial advisor, it may be time to go to one that is recommended by someone you trust. With the instability of the housing market and stock market, it may be time to put money where there is minimal financial risk, such as CD’s. When you find a financial advisor, make sure he is not paid by commissions on transactions he or she may make for you. You never want a person who would churn your money but one that looks for stable, long term investments.

On the bright side, I feel very fortunate that now that I am retired I do not have to commute to work each day and pay the high gas prices. I recently read there is a shortage of bicycles in major cities because people are reevaluating how they get to work. There are always errands to do and this is the perfect time to start riding a bike, or walking to places that before would have seemed too far away.

Another factor that may bring peace of mind to retirees is you can always go back to work. You may not want to go back to the high pressure job you had before, but you might sleep better at night if you bring in a few extra dollars to hedge against rising prices. Retirees are often highly sought out by employers who know they can employ well trained staff members who have a history of reliable work habits.

Finally, we are not alone. We are all in this together. While it might be scary to face the truth, it is the first step to assessing what really needs to be done.

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Why Vacationing is Important- Even When You are Retired

Friday, July 25th, 2008

vacation lighthouse tour“The world is a book, and those who do not travel read only a page.” St. Augustine

It’s summer.  The time many people looked forward to all year when they were working.  A time to break the routine and relax.  So, why is it when we retire that we think vacations are no longer necessary?  Maybe its because we think we do not deserve a vacation since we haven’t earned it by working.

This is garbage.  Retirees have earned the right to vacation too through many years of hard work and sacrifice. Variety truly is the spice of life.  Traveling, even a day trip, stimulates the mind and gets us out of our routine.  Even though the price of gasoline can make some long distance trips prohibitive, with a little planning, a day trip or a week-end getaway can make everything seem fresh again.

Our brains need to be challenged. Just like our bodies become unresponsive when we do the same workout routine every day, our mental skills aren’t as sharp when we do the same thing day in, day out.  Meeting new people, seeing different scenery, eating different food, all help to improve our minds. Retirees are prone to establishing routines and these routines can sap the energy and mystery of new life experiences.

It is true that when you are working, vacations take a higher priority in our lives and are highly anticipated and planned for.  A report published in the Journal of Travel Medicine in 2005 said workers who felt most recuperated after their vacations had:

Visited warmer, sunnier places.
Enjoyed more free time.
Exercised more.
Slept more.
Made new acquaintances.

Granted we can do these things every day when we are retired, but do we?  If you have found yourself in a rut since you retired, perhaps the time is right to change the scenery and take a vacation.    The internet provides information on special summer events and activities.  With our current economy, many places are offering discount packages to offset the price of fuel.  Libraries also offer sources of information for summer activities.

So, even if you are retired, don’t feel like you can’t take a vacation.  You need one.  And you will return with a renewed appreciation for where you are in life.

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Fitness First in 2008

Tuesday, January 22nd, 2008

As we approach retirement age, most of us look at life in a different way than when we were younger. With age comes increased awareness about so many different things, but one that becomes very apparent is that life is what you make of it. For many people that were very involved in their work and have not developed hobbies or social networks outside of the workplace, retirement can be a difficult transition indeed. However, increasing research points to one thing that makes life easier and more enjoyable at any age and that is exercise.

With the start of the new year, many people say January is the best time to make changes in your life. If exercise is not part of your daily lifestyle, this is the month to make it happen. It can begin with just thirty minutes a day.

Exercise is simply sustained movement of the body, and at least 30 minutes of this sustained movement everyday is the key to an active lifestyle. Walking, bicycling, swimming, light weight training and jogging are just a few of the ways we can exercise for our sustained 30 minutes. Or better yet, combine several of these activities on different days or perhaps several in one day to make up your 30 minutes and you have an exercise program that can dramatically change your quality of life.

Two doctors have made a commitment to get Americans moving. Bob Sallis, M.D. a family medicine doctor and Ron Davis, M.D. a preventive medicine doctor, have launched an initiative that they hope will make a difference in the nation’s health called “Exercise is Medicine“. Understanding that health is determined to a large degree by lifestyle choices, including physical activity, they hope to drive home the medical importance of exercise to physicians and other health care professionals. “Why physicians are so quick to accept research data on expensive medications while essentially ignoring even stronger data on the benefit of physical activity is at the core of this program,” Sallis says.

Exercise has been shown to lower blood pressure, blood sugar and weight; improve cholesterol, sleep and bone and heart health while decreasing the risk of cancer. All of these benefits can be had for just thirty minutes a day by something as simple as exercise.

As more and more baby boomers are nearing retirement and looking for ways to stay young and fit, it is essential to incorporate exercise into the daily routine. And what better way to start the new year?

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