The Survive and Thrive Boomer Guide

Obama did a better job this year of addressing consumer needs in his State of the Union speech

By Rita R. Robison

Maybe it was Occupy Wall Street or just the fact that he’s finally getting the message that consumers are suffering, but President Obama’s State of the Union address contained more for consumers this year than his 2011 speech.

Obama talked about the new Consumer Financial Protection Bureau and its role in keeping an eye on credit card, payday loan, and mortgage companies.

He also said he will set up a unit in the Justice Department, which will work with leading state attorneys general, to investigate the business practices that led to the housing crisis. This action is long overdue, but at least it’s happening.

On income equality, Obama suggested that millionaires pay more in taxes, at least the same percentage that average Americans pay. He suggested a rate of 30 percent.

Obama also talked about creating jobs, in clean energy and through public works projects, and the importance of keeping the slowly growing economy moving in a positive direction.

While Obama received lots of applause when he talked about cutting government programs and spending, it’s not an easy task to figure out how to make government leaner and work better.

Not so positive for consumers was Obama’s support of offshore drilling for oil and his willingness to work with Congress to cut Medicare and Social Security benefits.    

Copyright 2012, Rita R. Robison, Consumer Specialist

New emergency plan needed after big storm leaves me stranded and in danger

By Rita R. Robison

Last week’s snowstorm in the Seattle area showed me that my Emergency Plan needs revision.

When I went out Wednesday to take photos of the snow and pick up my mail after a vacation, I got stuck twice at the bottom of my driveway and slid around on the main roads.

Thursday, it was icy, so I knew I shouldn’t go out. At 10:20 a.m., my power went out.

I called the Sheriff’s Office non-emergency number in my community to ask where the warming centers were and how I could get ride there. The dispatcher didn’t know. Neither did the 9-1-1 dispatcher.

About 1 p.m. Friday, I began shivering and having fuzzy thinking. It was 45 degrees in my house. I had planned to walk to Safeway to get warm. However, when I saw that my street had been plowed, I thought I could get out.

It was raining, and the roads were bare and wet. I tried to find a credit union that was open, but they all closed early. I stayed at the food co-op where it was warm until it closed at 9 p.m.

The experience showed me I need to revise my Emergency Plan. I couldn’t get out, and no one was available to give me a ride to a warming center or a warm place. My friends also were snowed in. My neighbors were busy taking of their needs.

I’m going to see if I can get my fireplace insert repaired, buy a battery-operated lantern, keep a supply of D batteries on hand, figure out how to use a space blanket, and replace the outdated water and energy bars in my emergency kit.

What’s your Emergency Plan? Did it pass recent tests?

If you don’t have a plan, see “Are You Ready for an Emergency?” and “What Boomers Need for an Emergency” for details on making a plan and gathering supplies.

Copyright 2012, Rita R. Robison, Consumer Specialist

Make Martin Luther King Jr. Day a day of service

By Rita R. Robison

Today is Martin Luther King Jr. Day.

The holiday is a good opportunity for Americans to honor King’s legacy through service. The MLK Day of Service offers people a way they contribute to their community.

After a long struggle, legislation was signed in 1983 creating a federal holiday marking the birthday of the Rev. Martin Luther King Jr. The federal holiday was first observed in 1986, making 2012 the 26th anniversary of the King federal holiday.

In 1994, Congress designated the Martin Luther King Jr. Federal Holiday as a national day of service and charged the Corporation for National and Community Service with leading the effort. Taking place each year on the third Monday in January, the MLK Day of Service is the only federal holiday observed as a national day of service – a "day on, not a day off." It’s a part of United We Serve, the president's national call to service initiative. The MLK Day of Service calls for Americans from all walks of life to work together to provide solutions to our most pressing national problems.

King believed in a nation of freedom and justice for all and encouraged all citizens to live up to the purpose and potential of America by applying the principles of nonviolence to make this country a better place to live.

People of all ages, backgrounds, and abilities can get involved. Put your zip code in the Find a Project box to locate a volunteer opportunity in your community or plan your own project.

Copyright 2012, Rita R. Robison, Consumer Specialist

Recall of the Week: Chariot Carriers bicycle trailers and bicycle trailer conversion kits due to injury hazard

By Rita R. Robison

Thule Child Transport Systems Ltd., doing business as Chariot Carriers, is recalling about 44,000 bicycle trailers and 70,000 bicycle trailer conversion kits.

The bicycle trailer’s hitch mechanisms can crack and break, causing the trailer to detach from the bicycle, the company and U.S. Consumer Product Safety Commission said in a statement. This poses an injury hazard to children in the bicycle trailer.

The firm has received 24 incident reports worldwide, three of which occurred in the United States, involving the bicycle trailers and the conversion kits. No injuries have been reported.

Recalled trailer's versa wing

Chariot Carriers convert to strollers, jogging strollers, and bike, hike, or ski trailers. The recall involves Chariot bicycle trailers and bicycle trailer conversion kits. Recalled trailers have serial numbers from 1205-xxxx to 0710-xxxx – representing manufacture dates December 2005 through July 2010 – located on the left side on the frame.

Upgraded versa wing

Recalled conversion kits have hitch arms that attach the carrier to the bicycle with model number “20100503” printed on a label attached to the aluminum tube next to the warning label. Older conversion kits without a label, but with a release push button located where the hitch arm inserts into the carrier, are also being recalled.

Manufactured in Canada, the bicycles trailers and conversion kits were sold at specialty bicycle stores nationwide and on various websites from December 2005 through August 2010 for between $400 and $925 for Chariot bicycle trailers and from October 2002 through August 2011 for between $40 and $70 for bicycle trailer conversion kits.

Consumers should immediately stop using the recalled bicycle trailers and bicycle trailer conversion kits and contact Chariot Carriers for a free repair kit, which the consumer can install, the company and the commission advise.

For more information, contact Chariot Carriers at 800-262-8651 between 10 a.m. and 6:30 p.m. ET Monday through Friday or visit the firm’s website at www.chariotcarriers.com.

For details on other recalls, see www.recalls.gov.

Copyright 2012, Rita R. Robison, Consumer Specialist

Levels of cadmium reduced in jewelry for kids, adults by some retailers

By Rita R. Robison

To protect yourself and your children and grandchildren from the dangers of cadmium in jewelry, shop for jewelry at more than a dozen major jewelry retailers, including Saks Inc., Target, The Gap, Old Navy, Banana Republic, and Forever 21, that have stopped selling jewelry containing more than 0.03 percent or 300 parts per million of cadmium.

In September, an Alameda County Superior Court in California approved a legal agreement between the Center for Environmental Health and the retailers. The agreement sets strict limits on cadmium in jewelry, stricter than those suggested by the federal government.

“We welcome this strong action, which will protect our children and families from the health risks of an unnecessary hazard in jewelry,” said Michael Green, executive director of the center, said in a statement. “Importantly, the companies are going beyond California law in agreeing to instruct their suppliers to provide them with reformulated jewelry on a nationwide basis.”

In February 2010, the center initiated the legal action after finding high levels of cadmium in jewelry. Earlier in 2010, the center reached its first agreement limiting cadmium in jewelry with Tween Brands, a division of Dress Barn. That settlement also called for no more than 0.03 percent cadmium in jewelry and was effective on Dec. 31.

While the settlements apply only to the jewelry sold in California stores, the retailers agreed to adopt the approach nationwide, the center said. It would be financially and logistically difficult to separate their products for a California-only market.

The settlements took effect just weeks after the U.S. Consumer Product Safety Commission said it was satisfied with an alternative voluntary approach that the industry helped craft for jewelry marketed to children using the government’s scientific research, according to The Washington Post article “Cadmium-Laced Jewelry Removed From Stores.” There is no federally endorsed standard for adult jewelry.

The standard that the commission helped craft is limited to jewelry marketed to children12 and younger because that’s the age group that is most likely to suck on jewelry or swallow it.

The center said the approach backed by the commission doesn’t cast a wide enough net or embrace the toughest standards.

The Washington Post article also reported the commission-endorsed standard also would adopt a different testing method:

It also would test to determine that total cadmium content in a piece of jewelry doesn’t exceed 0.03 percent. But jewelry that fails that test could still make its way onto store shelves if it passes a separate “solubility” test.

This far more expensive test aims to determine if cadmium would leach into the body when swallowed. For a small metal part, the test entails dropping the piece into acid heated to about body temperature and shaking it for 24 hours – conditions meant to replicate the digestive process.

The industry said this second test is necessary because it’s more reliable and gives better of results. Instead of testing for how much cadmium is in the jewelry, it tests for how much cadmium would actually be absorbed into the body, which is what matters most from a safety perspective, said Brent Cleaveland, executive director of the Fashion Jewelry and Accessories Trade Association and head of the panel that crafted the voluntary standard.

If the cadmium doesn’t leach out, then it poses no health risks and therefore couldn’t be regulated by the commission because it can’t be defined as a hazardous substance.

But the center said that total content testing is less costly and more health protective because it:

• Is more consistent and doesn’t vary as much as a product ages, thus protecting children and adults for the life of the product.
• Can be included in specifications that manufacturers require their materials suppliers to meet. Non-compliant materials can be identified before they’re used in the manufacture of a product, resulting in a more efficient manufacturing process and consistently health-protective products.
• Is already required by federal children’s products law for lead for toys and children’s jewelry. Test results for cadmium can usually be obtained from the same test for no additional expense.
• Is cheaper and less time-consuming than leach tests for products not already tested for lead under federal law.

Cadmium is a heavy metal that can cause cancer, genetic damage, and kidney damage, according to the center. A study published in March 2011 found that children who mouth on or swallow cadmium-tainted jewelry can be exposed to as much as 100 times the maximum exposure limit.

Also, a 2006 study concluded that exposure in children "should be limited as much as possible" to prevent direct health problems and problems later in their lives. People can be exposed to cadmium if they touch, suck on, or accidentally swallow metal pieces, and studies show the toxin can stay in our bodies for more than two decades.

Copyright 2012, Rita R. Robison, Consumer Specialist

Obama appoints another chief of staff who lobbied against consumer interests

Obama, Bill Daley, and Jacob Lew

By Rita R. Robison

It was disappointing to learn that President Obama’s new chief of staff, Jacob Lew, will be the second appointment to the position with ties to Wall Street.

Lew, currently Obama’s budget director, headed the "alternative investments" division at Citigroup, a team that handled private equity investments, hedge fund bets, and massive gambles on subprime mortgages.

Lew's tenure as head of Citi's unit was disastrous, according to The Huffington Post article “Bill Daley Resigning: Obama Chief of Staff Stepping Down.” Although he personally earned $1.1 million for his efforts, the division lost $501 million in a single quarter of 2008.

As part of the 2010 Wall Street reform efforts, Obama supported legislation to ban banks such as Citi from taking part in such highly risky activities, with a regulation known as the Volcker Rule. It's part of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.

Bill Daley was the head lobbyist for JPMorgan Chase, the nation's second-largest bank, which issued at least $30 billion in subprime mortgages during the housing frenzy that led to the Great Recession. During his work at JPMorgan, Daley lobbied against the creation of a Consumer Financial Protection Bureau.

Daley also has ties to the pharmaceutical industry, serving as a director of Abbott Laboratories for several years after leaving the Clinton administration, where he was secretary of the U.S. Department of Commerce.

By selecting Lew to be his new chief of staff, Obama is replaced one opponent the Dodd-Frank with another.

Public Citizen, a consumer advocacy group, is glad to see Daley go.

“Dailey served as the Big Business conduit to the highest levels of the White House,” Public Citizen said in a statement. “He never should have been brought in...

The group wants Lew not serve as a Big Business channel to the president in the way Daley did, but to carry out policies in the consumer interest:

It’s long past time for the Obama administration to abandon its unrequited affection for Wall Street and Corporate America. We live in populist times – enormous economic, political, and ecological crises call out for populist policies that are both right on the merits and strongly favored by the public. Now’s the time for the administration finally to pursue a populist agenda.

I agree. Consumers must exercise their power in the halls of government to combat the tremendous amounts of money that the banks and business interests pour into the coffers of the nation’s lawmakers.

Copyright 2012, Rita R. Robison, Consumer Specialist

Recall of the Week: IKEA ANTILOP high chairs due to fall hazard

By Rita R. Robison

IKEA North America Services is recalling about 169,000 ANTILOP high chairs, 133,000 in the U.S. and 36,000 in Canada.

The high chair's restraint buckle can open unexpectedly, posing a fall hazard to the child, IKEA and the U.S. Consumer Product Commission said in a statement.

IKEA has received eight reports worldwide of restraint buckles that opened unexpectedly, including three reports of children who received minor injuries after falling from the high chair.

The recall involves ANTILOP high chairs sold in red, blue, or white. The plastic high chair has detachable silver-colored metal legs. High chairs included in the recall have a manufacture date between 0607 and 0911 (YYMM format) from supplier number 17389. The production date and supplier number are molded into the underside of the seat. "ANTILOP," "IKEA," and the model number are printed on a label attached to the underside of the seat. Model numbers included in the recall are:

• ANTILOP high chair blue – Model No. 701.467.92
• ANTILOP high chair red – Model No. 501.467.93
• ANTILOP high chair white – Model No. 300.697.24

Manufactured in China, the high chairs were sold only at IKEA stores nationwide from August 2006 through January 2010 for about $20.

Consumers should immediately stop using the high chairs and contact IKEA to obtain a free replacement seat restraint, IKEA and the commission advise.

For additional information, contact IKEA toll-free at 866-966-4532 anytime, or visit the firm's website at www.ikea-usa.com.

For details on other recalls, see www.recalls.gov.

Copyright 2012, Rita R. Robison, Consumer Specialist

Boomer Project predicts baby boomers will continue to transform America in 2012

By Rita R. Robison

In its recent newsletter, the Boomer Project, a consulting firm focusing on marketing to boomers, predicts that baby boomers will continue to transform American culture, pursuing their own vitality through their midlife years and on into old age.

John Martin, on the left in the photo, and Matt Thornhill, co-founders of the Boomer Project, offer these top 10 predictions for 2012 for boomers:

1. Boomers will remain at the head of the table, heading more households than any other generation, including more multigenerational households.

2. More boomers will embrace city living, attracted by the variety of activities, energy, and hassle-free lifestyle advantages offered by the center city and new urban villages.

3. More boomers will get religion, since the median age in America increases every year as boomers grow older, and older people are more likely to attend church than younger ones.

4. Boomers will become even more wired to stay connected to their kids and grandkids.

5. Health and well-care will be everywhere, with boomer spending on wellness, fitness, and physical appearance increasing in 2012.

6. Boomers will volunteer even more, with boomers projected to swell the ranks of volunteering by almost 50 percent over the next 10 years. 

7. Boomers will drive green innovations that matter, because boomer consumers want to be responsible in their consumption, striving for sustainability, not planned obsolescence. 

8. Boomers will lead the age of responsible consumerism, because the Great Recession – timed with the green movement, volatility of retirement accounts, and anticipated governmental cuts – has helped usher in more responsible consumerism.

9. Boomers will create the "longevity economy," a growing portion of the American economy that will be based on the behaviors, needs, and desires of the 50-plus market.

10. Boomers will support a thoughtful plan for America's future, because boomers are transformational and have led or supported many societal shifts – from women's rights to gay rights.

Martin and Thornhill close their 2012 predictions by saying:

These predictions may paint an optimistic view of 2012, but we have never been fervent believers in the Mayan prediction that the world ends on December 21, 2012. For boomers, 2012 marks the first year of the rest of their lives. Another year when they can make a difference.

See the January 2012 issue of Jumpin' Jack Flash, the Boomer Project's newsletter, for more information on these 10 predictions.

Copyright 2012, Rita R. Robison, Consumer Specialist

Obama’s recess appointment of financial bureau chief is a good step for consumers

By Rita R. Robison

Yesterday, President Obama appointed Richard Cordray to head the new Consumer Financial Protection Bureau in a recess appointment.

While Cordray isn’t Elizabeth Warren, who conservatives saw as too powerful for the job, getting him appointed to lead the new agency is important for consumers.

After the housing market collapse due to fancy footwork by the mortgage industry and Wall Street and the ensuing Great Recession, Warren saw the need for an agency that would be a watch dog for consumers in credit card, mortgage, and payday loan transactions.

Warren served as interim director of the agency and hired Cordray to be its top enforcement officer.

Previously, consumers filed complaints with a number of different federal agencies, including those regulating different kinds of banks, with varying results.

Speaking yesterday in Ohio, where Cordray served as attorney general and state treasurer, Obama said:

When Congress refuses to act, and as a result, hurts our economy and puts our people at risk, then I have an obligation as president to do what I can without them. I’ve got an obligation to act on behalf of the American people. And I’m not going to stand by while a minority in the Senate puts party ideology ahead of the people that we were elected to serve. Not with so much at stake, not at this make-or-break moment for middle-class Americans. We’re not going to let that happen.

The Constitution gives the president authority to make temporary recess appointments to fill vacant positions when the Senate is in recess. The Senate has been in recess for weeks. But, in an attempt to prevent the president from exercising his authority, Republican Senators have tried to use “pro forma” sessions, sessions during which no Senate business is conducted and one or two Senators gavel in and out of session quickly. Legal experts agree that the Senate can’t use sham “pro forma” sessions to prevent the president from exercising a constitutional power.

Without a director, the agency was unable to regulate non-bank financial businesses including payday lenders, mortgage companies, and debt collection agencies.

Conservatives want to further weaken the bureau by having it run by a five-member commission and its budget approved by Congress rather than the Federal Reserve.

For more information on the new federal bureau, see “Consumer Financial Protection Bureau 101: Why We Need a Consumer Watchdog.”

Copyright 2012, Rita R. Robison, Consumer Specialist

Standard light bulbs changed, not banned, as of Jan. 1

By Rita R. Robison

On Jan. 1, new standards took effect that make incandescent light bulbs 25 to 30 percent more efficient. Incandescent light bulbs aren’t being banned, they’re being changed so they’re more energy efficient.

The new light bulbs will cut consumer’s energy bills and reduce emissions from power plants because less energy will be consumed, according to the Consumer Federation of America. 

“Contrary to reports, incandescent light are not being banned, they are simply becoming more efficient,” Mel Hall-Crawford, director of the federation’s Energy Projects, said in a statement. “And consumers will have expanded choices, but will need to understand them so that when they go to the store they can buy the product that meets their needs best.”

A guide to help consumers understand the lighting choices they have under the new light bulb law is available from the federation and Consumers Union.

Called “How Many Tips Does it Take to Change a Light Bulb?” the two-page guide offers information to make selecting a new light bulb simpler.

Here are the three choices available to consumers:

• Halogen incandescent – These look like the older bulbs, but use 25 to 30 percent less energy and can last up to three times longer. A new 72 watt energy-saving incandescent bulb, which replaces the old 100 watt bulb, will cost about $1.50 but each one will save about $3 over its lifetime.
• Compact fluorescent lamps – CFLs are the best value. They use about 75 percent less energy than older bulbs and last up to 10 times longer. A $2 CFL saves up to $50 over the bulb’s lifetime.
• Light-Emitting Diodes – LEDs will last up to 25 years, based upon usage of three hours a day, and save 75 percent, or more, in energy costs. However, they cost more than the other choices. Even though LEDs today cost about $25 per bulb, they’ll still save around $150 over their 25-year lifetime. As they become more widely used, it’s expected their prices will go down.

Many consumers have expressed concerns about using CFLs after learning that they contain small amounts of mercury and require special cleanup if they break in the home, such as cutting out the square of carpet where the CFL broke.

The consumer light bulb brochure has this advice:

Even with the small amount of mercury, CFLs actually reduce mercury in the environment because they reduce the amount of mercury produced by power plants. Intact and in use, CFLs release no mercury. However, like nearly everything else in your house, they need to be properly recycled and cleaned up, if broken. Many retailers recycle CFLs for free.

Go to http://www.epa.gov/cfl for more information.

The guide also offers information on bulb brightness, color, dimming, and recessed lighting: 

• Watts are a measure of the energy used, not the brightness the bulb gives off. If consumers are trying to replace their old 60 watt incandescent bulb with a bulb that gives off the same amount of light, they should look for one around 800 lumens.
• Consumers should look for 2700 to 3000 K light bulbs, if they want bulbs to match the color of older, traditional incandescents, often described as “warm white.” Light color is measured on the Kelvin temperature scale. Lower K numbers means more yellow light and higher K numbers mean whiter or bluer light. For a whiter light, look for 3500 to 4100 K and for a bluer light, look for 5000 to 6500 K.
• Not every LED or CFL bulb is dimmable. Check the packaging for information on this.
• Pear shaped or spiral CFL bulb shouldn't be used inside a recessed ceiling can. They won’t shine the light down. Instead, choose an LED, CFL, or halogen reflector or flood light.

Since traditional 100 Watt incandescent light bulbs won’t meet the new light bulb standards, they’ll no longer be available at most stores.

Also see the U.S. Department of Energy’s “New Lighting Standards Begin in 2012” for more information.

Copyright 2012, Rita R. Robison, Consumer Specialist