Mama’s Says The Recession is Over!

While economists who couldn’t predict the economic collapse, spend their time studying dubious government data to figure out if the recession is over, I use a much more accurate indicator of economic conditions to make my determination.  The line outside Mama’s Restaurant.

Mama’s is a very popular brunch spot located in North Beach San Francisco, the neighborhood where I live and work.  Before the recession started, the line of people standing outside Mama’s, waiting to get in to eat eggs and toast, would stretch 20 to 40 deep.  When the recession began, the line outside Mama’s restaurant slowly dwindled until on many days, there would be no line at all.

Starting about two months ago, I noticed  the line outside Mama’s began to grow again,  and in the past couple of weeks, the line of hungry patrons went back to it’s pre-recession level.  Mama’s says the recession is over.  Do you have a similar recession indicator?

Is the recession really over? Or, is the line outside Mama’s a temporary phenomenon, and soon you will be able to once again walk right into Mama’s and grab any table?

I’m still sticking to my prediction, made last August, that a double dip recession will occur starting the second quarter of 2010.   President Obama, Tim Gheitner, and Ben Bernanke will do everything they can to try and hold off re-entry into recession until after the 2010 Congressional mid-term elections.  And with their ability to cook books, and manipulate markets, they may succeed.

However, nothing has fundamentally changed in the economy, that alters the inevitability of a double dip recession.  Why?  The housing market, the growth engine for the U.S. economy, is slowly being taken off life support.  The Federal Reserve has announced that they will no longer be buying mortgage backed securities.

The rest of the world learned the painful lesson, gained during the economic collapse, that U.S. housing is a lousy investment and no longer buys U.S. mortgage backed securities.  The Federal Reserve is the only investor left buying U.S. mortgages.  Once the Federal Reserve stops buying U.S. mortgages, housing will collapse again, and U.S. economic growth will end, and the double dip recession will begin.

So, if you want to eat brunch at Mama’s, but hate waiting in line for an hour for a plate of eggs and toast, wait a few months and you will be able to walk right in and grab any table.

Visit the Green Retirement website and learn how to retire early by saving the planet.   Coming soon from Green Retirement - Retire when you want to!  Soon, you will be able to tell Green Retirement when you want to retire, and receive a retirement plan that makes it happen.

Also, our Green Retirement Software is being updated and upgraded, to make it even easier to retire early.  Subscribe to the Green Retirement Blog to get the announcements.

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 Floor of the U.S. Senate

Question:  What’s the difference between a Republican and a Democrat?  Answer:  The difference between a whore and a prostitute.

The U.S. Senate on March 4th 2010, voted down a bill, that would have given Seniors who will not see any increase in their Social Security benefits this year, a paltry $250 check.  The same U.S. Senate that had no problem voting for Wall Street bailouts, can’t find it in their coal industry owned hearts, to help seniors who are struggling in the recession.

As I have written before, seniors are bailing out Wall Street, from artificially low interest rates that rob seniors of critical retirement income earned from U.S. Govt. bonds and C.D.’s.   By keeping interest rates artificially low, seniors are giving up their retirement income, so that Wall Street bankers can earn huge bonuses.

It should come as no surprise to anyone, that Republicans would gladly kick Grandma to the street.  But, the fact that 12 Democrats, from the party that historically protects seniors, voted with the Republicans to kick Grandma to the street?  Why do you hate your grandmother Senator Russ Feingold?

With the defeat of the bill that would have given Seniors collecting Social Security, a one time $250 check, the U.S. Senate is openly advertising itself as a whore house.  Senators represent the interests of corporations, and the wealthy, over the interests of the people.  It’s time to Retire the Senate!

Here are the 12 Democrat Senators who voted against Seniors:

1. Bayh (D-IN)
2. Bennet (D-CO)
3. Carper (D-DE)
4. Feingold (D-WI)
5. Feinstein (D-CA)
6. Landrieu (D-LA)
7. Levin (D-MI)
8. McCaskill (D-MO)
9. Nelson (D-NE)
10. Shaheen (D-NH)
11. Udall (D-CO)
12. Warner (D-VA)

Save your Grandmother! If any of these dirty democrats are from your state, you may want to send them a message, and give them an early retirement next time you go to vote.

Visit the Green Retirement website and learn how you can save your retirement and the planet! Try our Free Retirement Calculators and our Free Retirement Planning.

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The man responsible for creating the calculation for when you can collect Social Security died today at age 97.  Robert Myers worked for FDR and came up with the calculation for the launch of Social Security.

He was tasked to figure out, at what age workers could retire and begin collecting Social Security checks, and not drain the system out of money.  An average age for the U.S. population so that a retiring person wouldn’t take out more money than he had put in.  His initial calculation said 67 was the right age, but when Social Security was passed, the retirement age was lowered to 65.

That means that Robert Myers collected Social Security checks for more than 30 years, and so in all probability, took out more money from Social Security than he had put into Social Security.

I wonder if Robert Myers would support the Kucinich Early Retirement Plan?

Visit the Green Retirement website and learn how you can retire early, earlier than Robert Myers could calculate was possible, learn how you can retire early by going green.

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Boomers Getting High in Retirement

The number of people aged 50 and older reporting marijuana use in the prior year went up from 1.9 per cent to 2.9 per cent from 2002 to 2008, according to surveys from the Substance Abuse and Mental Health Services Administration. Full article here.

The rise was most dramatic among 55-to 59-year-olds, whose reported marijuana use more than tripled from 1.6 per cent in 2002 to 5.1 per cent.

It makes sense.  Boomers who grew up in the 60’s and 70’s, and used marijuana when they were in their teens and twenties, only to stop using marijuana when they began pursuing careers and having children, are re-discovering marijuana now that they have retired and the kids have left home.

Marijuana has lost the negative stigma it once had, with legalization winning referendums in many states, and pot clubs sprouting in the suburbs.  Seniors are also turning to marijuana to help alleviate the aches and pains associated with aging.

My guess is that it won’t be long before many retired boomers, with lot’s of time on their hands, turn to marijuana cultivation for personal use and to supplement their retirement income.  Giving “Green Retirement” a whole new meaning :)  Are you getting high in retirement?

Visit the Green Retirement website where you can learn how to retire early by going green, try our free retirement calculators, and our free retirement planning. But please be advised that you should not operate our calculators while high

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Under the Kucinich plan, the first million workers who choose to participate, would be able to begin receiving Social Security starting at age 60, instead of the current minimum eligible age of 62, and they would also be able to obtain extended COBRA health insurance.  The plan would cost $15 billion and would be payed for with re-paid bank bailout money.

The Kucinich early retirement plan is an excellent low cost idea, which would help Americans age 60 to 62 who have been laid off, help reduce unemployment, and help increase corporate profitability.  Green Retirement strongly supports the Kucinich early retirement plan, and encourages everyone in the affected age group, to contact their congress person and ask them to co-sponsor the legislation.

Visit the Green Retirement Website to learn how you can retire early by saving the planet, try our free retirement calculators, and our free retirement planning.  Also, if you are a teacher, or you know a teacher who is facing a layoff, try our free Teachers Early Retirement Calculator, to find out if the school board’s early retirement offer will allow you to retire.

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 Stop San Francisco School Teacher Layoffs

Update:  The San Francisco Unified School District has announced that it will be laying off more than 900 San Francisco school teachers and administrators.  While it may be too late to prevent the layoffs, If you receive a pink slip from the school district, do yourself a favor and try the free SF Teachers Early Retirement Calculator to find out if you can retire anyway.  Some of you may discover that the layoff was a blessing in disguise.

Green Retirement can prevent San Francisco School Teacher layoffs.  The San Francisco Unified School District, in an attempt to close a $113 million budget gap, announced they will be laying off 400 San Francisco school teachers and district employees.  It doesn’t have to happen.

The San Francisco School Board, in an effort to prevent or reduce layoffs, is offering school teachers an early retirement incentive.  The problem with early retirement incentives for school teachers and everyone else, and the reason why they are often unsuccessful, is that employees can’t figure out if the early retirement incentive will actually allow them to retire.

Green Retirement, a San Francisco retirement planning company has created a solution, the San Francisco Teachers Early Retirement Calculator, where teachers can accurately determine if the school board’s early retirement incentive offer will enable them to retire.

How You Can Prevent San Francisco School Teacher Layoffs

If you are a San Francisco School Teacher, use the calculator to find out if you can retire today, and even if you can’t yet retire, every school teacher will learn:

• How Much Savings You Need To Retire
• How Much You Can Safely Spend If You Retire
• When You Can Retire
• How To Retire Early by Going Green

The first five San Francisco School Teachers, who try the calculator and discover they can retire, will also receive a comprehensive retirement plan, a one hour retirement planning session, and Green Retirement Planning Software absolutely free.

If you are not a teacher, you can still find out if you can retire for free, by trying our free retirement calculators and free retirement planning.

If you are a San Francisco School Teacher, you can prevent layoffs by trying the SF Teachers Early Retirement Calculator, and spreading the word to your fellow teachers.  My hope is that together, San Francisco can become the city, where nationwide school teacher layoffs came to an end.

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Los Angeles government workers got one night’s good sleep, before they will once again, begin staying up late into the night, calculating how long they will be able to keep their house without a job.

Laying off Government workers during a recession is the absolute worst thing state and local governments can do to their economies.  In fact, state and local governments should be hiring, not firing workers.  Governments should do everything possible, including raising taxes, to avoid layoffs.

Layoffs harm the individual, their family, the community, the organization doing the layoffs, and the economy.

To the 1,000 Los Angeles City employees who were laid-off, my advice to you is to find out if you can retire, before you start looking for another job.  Use Green Retirement’s free retirement calculators, and free retirement planning, to discover if you can turn a negative situation into a positive outcome.

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Having accomplished much more in his career, than most NFL quarterbacks ever do, Kurt Warner decided to leave the game while his head was still securely attached to his body.  Even if it meant giving up a lot of money.

When asked shortly before he retired, how his family felt about him retiring, Kurt Warner responded that two of his daughters told him that they “don’t care anything about football so, ‘If you don’t have to get beat up anymore, we’d rather have you home.’ ”

Kurt Warner’s retirement holds a lesson for many individuals, who have had successful careers, but find themselves getting beaten up on the job.  There is no shame in retiring early.  Your family doesn’t care about your career, they’d rather have you home and alive, instead of dead on the job.

If you have accomplished everything you set out to in your career, but your family is concerned that your job is killing you, maybe it’s time to hang up the cleats and retire early.

Visit the Green Retirement Website, where you will discover that you need much less to retire, than you’ve been told by your financial planner.  Surprisingly, even though Green Retirement was developed to help the middle-class retire early, most of Green Retirement’s clients are wealthy individuals.

Try our free retirement calculators, and our free retirement planning, to see if you can say goodbye to your career and hello to your family.  Now, about Brett Favre’s retirement…

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In a matter of moments, the U.S. Senate will vote to re-confirm Ben Bernanke, for another term as Chairman of the Federal Reserve.   A monumental mistake by the Senate, that is yet one more example, of how Washington is in the pocket of Wall Street.

Back in September 2007 when the credit crisis began, I wrote a fictionalized story of how Alan Greenspan and Ben Bernanke robbed the American people.  A story that avoids the use of technical jargon like CDO’s, credit default swaps, and mortgage backed securities.  A story that any American, no matter how financially illiterate, can easily understand.  Although it may be too late to stop Bernanke’s confirmation, it is not too late for the the American people to understand, how they lost their life savings.  The original story is below.

“The Wall Street theatre is filled to capacity tonight. Bankers in tuxedos and men in overalls, share the auditorium, and respond to the act they are witnessing with the same sense of awe. Roars of astonished approval and clapping repeatedly echo through out the hall. As this evenings show has lived up to its billing. The poster hung by the entrance, features two well dressed and serious looking men, and promises everyone “The Most Amazing Show on Earth”. Mr. Greenspan and his young assistant Ben Bernanke, will perform “Feats of Financial Folly”, watch as entire economies disappear before your very eyes. Open to the public - everyone welcome. Price of admission - your life savings. Join us now as we enter the theatre to watch the final act of this most incredible act. The audience has seen some amazing things already, and sensing the climax are all hushed, as the amazing Mr. Greenspan addresses the audience.

“Ladies and gentlemen, you have seen how our volunteer from the audience, and everyone let’s give Mr. America a round of applause, gave us one dollar. Which he kindly removed from his wallet at the beginning of the show.” Everyone politely claps for Mr. America. The Amazing Greenspan continues, “And you all saw how my trusted assistant Mr. Bernanke, please everyone if you don’t mind, a show of appreciation for the efforts of Mr. Bernanke, took Mr. America’s dollar and placed it into this solid box.” The audience murmurs and nods. Another volunteer, a man who appeared to be a banker by trade, had been summoned from the audience to examine the box, and had declared it to be solid and empty. “And ladies and gentlemen, you witnessed did you not, how with a few magic spells, when the box was re-opened, Mr. America’s one dollar bill had magically turned into a one hundred dollar bill?” Mr. Greenspan, ever the show man, loudly exclaims to the incredulous audience as they cheer and hoot their approval. Mr. Bernanke beams on the sideline and dreams of one day being as skilled a performer as the old master. Mr. Greenspan quiets the crowd and lowers his voice solemnly. “Now I shall perform the grand finale of the evening. Mr. America if you would be so kind as to allow me your services for one final trick?” Mr. America steps back onto the stage, flushed with excitement, the one hundred dollar bill remains in the box. “Mr. Bernanke, if you would please bring over the magic box, and Mr. America if you would kindly open your hand.”

The Amazing Greenspan proceeds to lift open the box and deftly removes the one hundred dollar bill. Taking the one hundred dollar bill between the fingers of his two hands, the Amazing Greenspan holds the bill up in the air, and allows the audience plenty of time to appreciate the reality of the note. “Now Mr. America,” the Amazing Greenspan says rather heavily as he tries to get the attention of his volunteer. Mr. America, his eyes fixated on the one hundred dollar bill, imagines all the things he can buy with the money, and deafly nods in agreement. “This is a one hundred dollar bill, is it not?” asks the magician. “Uh-huh.” Comes the reply. Not a very intelligent response, but understandable, given the circumstances. “I am going to place this one hundred dollar bill into your hand, if you could please turn and face the audience so everyone can see me place the one hundred bill into your open hand, excellent, excellent, right there, both hands open and level if you please, perfect Mr. America.”

As Mr. America faces the audience, his sweaty trembling hand opened and empty, Mr. Greenspan neatly folds the one hundred dollar bill in order to fit it snuggly into his palm. Sensing the impatience of the audience, the amazing Greenspan quickly places the bill into Mr. America’s hand, and instructs him to close it tightly. “Mr. America, can you feel the one hundred dollar bill in your hand?” He asks a visibly excited volunteer. “Yes, yes, I can!” A smiling Mr. Greenspan produces a cane and waves it over the hand holding the note. “I am now going to recite a short magical statement.” Squinting very hard, and holding the cane over Mr. America’s trembling hand, the financial sorcerer casts his spell. “Economy fluxo, liquidity transparente, inflation alto digitatus, recession imminente!” His words echo through the room, no one in attendance quite understands their meaning, its a language known only to the wise one.

With a moment of silence for added effect, the distinguished crowd edges up on their seats, and crane their necks for a better view. “Would you please open your hand Mr. America.” Instructs the Amazing Greenspan. Hesitating for only a moment, not sure what to expect, Mr. America does as he is told. An audible gasp engulfs the room, Mr. America looks down at his hand. “But, but, it’s gone.” Mr. America semi-coherently begins mumbling. And as rehearsed, the Amazing Greenspan’s assistant Bernanke rushes forward, beside a befuddled Mr. America, and gestures toward the master. “Ladies and gentlemen - the Amazing Greenspan!” The audience is stunned, they have never seen a trick such as this, this is indeed magic! Not wanting to appear fools, they rise from their seats and cheer wildly, as the Amazing Greenspan takes a slow bow.

The curtain begins to descend, lights begin to illuminate the hall, and Mr. Greenspan rises from his bow. Mr. America has not moved, not even a twitch, still mumbling incoherently, “but, but, I had the hundred dollars in my hands.” Mr. Greenspan places his hand into the open and empty hand of Mr. America, and thanks him for his participation, as he gives it a quick shake. Meanwhile Mr. Bernanke thanks the crowd, “Thank you ladies and gentlemen, thank you, be sure to catch us next month when we appear in Shanghai, tickets are still available. Drive safely. Goodnight.” The Amazing Greenspan has already stepped behind the curtain. As Mr. Bernanke, before making his way to join the master, leads Mr. America to the edge of the stage and likewise thanks him for volunteering. The crowd collects their coats and purses, checking the seats for any coins that may have fallen from their pockets, and a confused and shaken Mr. America makes his way back to his seat. Mrs. America, is already standing in the aisle when Mr. America arrives, their belongings neatly gathered in her arms. “It was their, right their in my hands, the hundred dollar bill?” He says to his wife while gesturing at his empty palm. “Yes, dear, should we be going now?” Responds Mrs. America.

Mr. and Mrs. America join the crowd exiting the theatre. As they leave and make their way towards the subway, members of the audience, can be heard exclaiming “One hundred dollars disappearing from a mans hand! Incredible, just incredible, never seen anything like it!” Others, recognizing Mr. America, give him a hearty pat on the back and congratulate him for a “Job well done.” As they head down the subway stairs and toward the turnstiles, Mrs. America turns to Mr. America and asks, “Honey, where’s our dollar bill?”

End of story.  Visit the Green Retirement Website and learn how to retire early by saving the planet.  Try our free retirement calculators and our free retirement planning.

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You should not retire in debt.  Why?  Financially, it is much better to retire your debt, than it is to retire in debt.  Retirement debt can dramatically reduce your retirement income.

Many Americans retire in debt, afraid of the impact getting rid of their debt, will have on their net worth.  Keeping your debt when you retire is a mistake that leaves you poorer.  Let me illustrate with an example:

Say you have a net worth of $600,000, debts (mortgage, cars, equity loans, credit cards) of $150,000, and the average interest rate you pay on your debts is 7%.  Your monthly retirement income from a net worth of $600,000 is $2,000 per month.  Paying off your debt when you retire, would reduce your net worth to $450,000, dropping your monthly retirement income to $1,500 per month.

So, it makes more sense to keep your higher net worth, enjoy a higher monthly retirement income and pay off your debt over time, right?  Wrong.  The monthly interest payments on a debt of $150,000, at a 7% annual rate of interest, is $875 per month.  Which means that your net monthly retirement income, after paying for your debt, is $1,125 per month.

Your monthly retirement income with a net worth of $600,000, and debt of $150,000, is $375 less than a debt-free net worth of $450,000.  In this example, if you payed off your debt when you retire, you would enjoy an extra $4,500 in extra annual retirement income.  Enough to pay for a couple of vacations a year.

Here are more articles on the Retirement Blog about Retirement Debt:

• Should I Retire With A Mortgage?
• Should I Rent or Own a House in Retirement?
• Get Out of Debt by Going Green

Visit the Green Retirement Website and learn how to retire early by saving the planet, try our free retirement calculators, and our free retirement planning.

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