The Survive and Thrive Boomer Guide

‘Brain drain’ predicted – again – as boomers get ready to retire

Before the Great Recession, the Internet and newspapers were abuzz with articles about the bad shape American companies and government agencies would be in when large numbers of baby boomers retired.

With so many people, including boomers, out of work, the topic hasn’t come up much lately. In fact, many articles have been written about boomers working well beyond retirement age.

However, in a recent report, Ithaca College sociologist Stephen Sweet says, as millions of baby boomers prepare to retire, “the inevitable talent drain threatens to alter the national economy.”

The report – "The Pressures of Talent Management" – examined talent management practices at 696 organizations across the 10 leading sectors of the economy.

“Four of every ten employers surveyed anticipate the aging workforce will have a negative impact on their business over the next three years,” said Sweet.

However, 77 percent of employers surveyed had not analyzed projected employee retirement rates or assessed employee career plans.

In 2000, baby boomers represented the largest portion of the U.S. labor force at 48 percent. By 2010, they're projected to shrink to 37 percent of the workforce. As a result, some economists are predicting a shortage of 10 to 15 million workers in the coming decade, with large numbers of inexperienced workers in a dwindling labor pool.

U.S. companies need to start planning for this loss of workers, Sweet said, adding:

Employers should take advantage of programs designed to meet the evolving needs of employees nearing retirement, while at the same time meeting business needs by keeping experienced talent longer and ensuring business continuity.

That’s good advice. Boomers need flexibility, such as being able to work part time, if they stay in their jobs, or if they look for new ones.

Copyright 2009, Rita R. Robison, Consumer Specialist

‘Capitalism’ the movie calls for consumer action

Having missed the opportunity to see Michael Moore’s “Capitalism: A Love Story” when it briefly played at local movie theaters, I was pleased to see it’s being shown at our local alternative theater.

As a consumer specialist who’s written about consumer issues for three decades, I think the movie has a lot to offer.

When I studied consumer economics at Washington State University and The Evergreen State College, the role of the consumer in the economy was emphasized. Consumers have power in the economic system and a role to play that’s as important as the roles of business and the government.

However, consumers don’t often use their power. Instead, they identify with the producer interests of the companies they work for. Consumers don’t join groups and work for their economic interests. They’re influenced by advertising and capitalistic rhetoric.

While “Capitalism” did a good job of reporting on the abuses of the capitalistic system, especially what went wrong to create the Great Recession, it was outstanding in its call to consumer action.

We need to create new systems that help working people, the people on Main Street not Wall Street.

Look for groups that are working in your community on issues such as affordable housing, health care, the environment, economic justice, and simple living.

To find a Public Interest Research Group in your state, see the Web site of U.S.PIRG.

National groups that are worth working with are: Public Citizen, Center for Science in the Public Interest, and the Environmental Working Group.

We can improve the economic situation of consumers in this country. But we need to get back the power that has been usurped by corporate interests.

Copyright 2009, Rita R. Robison, Consumer Specialist

Watch your wallet on Black Friday and Cyber Monday

"Black Friday is soooo close. It’s my favorite holiday!!!"

"Debating whether or not to enjoy Black Friday shopping. Nothing really needed, just enjoy the thrill of the hunt."

"Old Navy started their Black Friday sales this morning [Tuesday]!"

That’s what three consumers writing on Twitter said about Black Friday, the big shopping day after Thanksgiving that got its name because it was the day that retailers started making money after being in the "red."

Black Friday, Saturday, and Sunday will attract up to 134 million shoppers this year, up from 128 million last year. According to the National Retail Federation, 57 million people say they will definitely hit the stores while another 77 million are waiting to see what retailers are planning before heading out the door.

Cyber Monday is a term coined by Shop.org in 2005, when retailers noticed a large increase of people shopping online on the Monday after Thanksgiving.

But don’t be stampeded into spending a lot of money this weekend or on Cyber Monday just because of all the news in the media about Black Friday and "how important it is to give the economy a much-needed boost."

The article "Dirty Secrets of Black Friday" describes these problems shoppers may run into on the big shopping day:

• Limited quantities.

• Derivatives offered, models that have a few less features than a standard model in that product line.

• No information on what Black Friday sales are offered online.

• Online deals that don’t get shipped.

• Rain checks that don’t result in the cheap Black Friday deal.

Public Citizen, a consumer advocacy organization, urges consumers to not get wound up in the hype about Black Friday:

So let me get this straight. One year after the financial sector took our economy to the brink of collapse, we’re rooting for Wall Street’s success, which depends on the willingness of consumers to spend as much as they can – most likely more than they can afford, since that’s how the financial sector makes its money– during the worst economy in 26 years and while 10.2 percent are unemployed? Sounds like some seriously misplaced priorities.

So make a plan for your holiday gift giving and spend only what you can afford. It will reduce your holiday stress and make for a happier new year.

Copyright 2009, Rita R. Robison, Consumer Specialist

Top 10 best small towns in America

Small towns with strong economies still exist. Along with a good economy, you can also find great schools, affordable homes, and low crime in these towns.

Here’s Money magazine’s list of America’s best small towns:

1. Louisville, Colo. (shown in photo)
2. Chanhassen, Minn.
3. Papillion, Neb.
4. Middleton, Wis.
5. Milton, Mass.
6. Warren, N.J.
7. Keller, Texas
8. Peachtree City, Ga.
9. Lake St. Louis, Mo.
10. Mukilteo, Wash.

See “Best Places to Live” for details on why these towns made Money’s list.

Copyright 2009, Rita R. Robison, Consumer Specialist

Cash for Clunkers program trades old pickups for new ones

It’s extremely disappointing to learn that highly touted Cash for Clunkers program mostly exchanged old Ford or Chevrolet pickups for new ones that receive only slightly better gas mileage.

An analysis by The Associated Press, as reported by Yahoo! News, shows:

The single most common swap – which occurred more than 8,200 times – involved Ford F150 pickup owners who took advantage of a government rebate to trade their old trucks for new Ford F150s. They were 17 times more likely to buy a new F150 than, say, a Toyota Prius. The fuel economy for the new trucks ranged from 15 mpg to 17 mpg based on engine size and other factors, an improvement of just 1 mpg to 3 mpg over the clunkers.

The AP's analysis of sales of $15.2 billion worth of vehicles at nearly 19,000 car dealerships in every state also showed:

Owners of thousands more large, old Chevrolet and Dodge pickups bought new Silverado and Ram trucks, also with only barely improved mileage in the middle teens.

Those deals helped the Ford F150 and Chevy Silverado – along with Ford's Escape midsize SUV – climb into the top 10 most-popular vehicles purchased with the government rebates, reports Yahoo! News’ article “'Clunker’ Data Show Pickup-for-Pickup Trades.” The most common truck-for-truck and truck-for-SUV deals totaled at least $911 million.

It's a violation of the Cash for Clunkers program to give the rebates for new cars and trucks that got the same or worse mileage.

Although the National Highway Traffic Safety Administration is investigating these violations and dealers that submitted invalid trade-ins will have to return the rebate, it’s upsetting that consumers and dealers defrauded taxpayers and the federal government.

Consumers, businesses, and the government need to work together in a spirit of fairness and honesty to come through the Great Recession and restore our economy. Turning in a gas guzzling pickup or SUV for a new gas guzzling pickup or SUV doesn’t cut it in terms of producing a good outcome for all.

Copyright 2009, Rita R. Robison, Consumer Specialist

Flickr photo by JFeister

Banks working hard to kill badly needed consumer financial protection agency

President Barack Obama is proposing that Congress establish a new Consumer Financial Protection Agency to regulate consumer financial products such as credit cards and mortgages, and to simplify disclosure on them.

After the financial mess that was spawned by Wall Street and the banking industry, the new agency is essential for the development and growth of our new economy in the United States.

However, the banking industry is set on killing the proposed new consumer protection agency.

The article "Banks Resist Push for Tighter Regulations" on the Miami Herald Web site reports:

Though virtually every cause of the nation's recent financial crisis was rooted in weak consumer protection, the U.S. Chamber of Commerce is leading the fight against the proposed agency on grounds that it would make credit less available and more costly. The American Bankers Association, the Independent Community Bankers of America, and the Financial Services Roundtable also oppose the measure.

Here’s what’s being spent to defeat the new consumer protection agency, according to the article:

The chamber said it's spending about $2 million on ads, educational efforts, and a grass-roots campaign to kill the agency.

The Center for Responsive Politics said that for the 2010 election cycle, commercial banks have donated almost $3.7 million to lawmakers – 54 percent of it to Republicans. Companies that provide credit have given about $1.4 million, 59 percent to Democrats. Mortgage bankers and brokers have given $581,423.

This massive lobbying effort by banks is unfortunate. Changes are needed to protect American consumers in their financial dealings.

David Arkush, director, Public Citizen’s Congress Watch Division, said in a statement supporting the new federal consumer agency:

For too long, financial regulators have been too cozy with the financial services industry that they were supposed to be overseeing. Moreover, no single federal agency focuses primarily on consumer protection for credit products.

Lenders have run amok, writing their own rules and creating a maze of unfair and predatory products that have harmed consumers and destabilized the economy. The lack of oversight and regulation, along with Wall Street’s unchecked greed, drove this country into its current financial crisis. Americans deserve an agency that will put their financial well-being ahead of the short-term profits of a few Wall Street banks.

The president’s proposal to create a new Consumer Financial Protection Agency will add much needed oversight of an industry that has run wild at great expense to consumers and homeowners.

Establishing an agency to protect consumers in their financial transactions is essential. Let your senators and representatives in Congress know today that you support this important consumer protection measure.

Copyright 2009, Rita R. Robison, Consumer Specialist

Baby boomer spending drops significantly since last year

Last year, Baby boomers’ average daily spending was $98. This year it’s $64, reports a new Gallup Poll.

Boomers, born between 1946 and 1964, are the largest generational group, making up 36 percent of U.S. adults.

Boomer spending habits have a greater effect on the economy because they’re the largest bloc of U.S. consumers. About two-thirds of the total gross domestic product comes from consumer spending.

Like boomers, daily spending also has reduced sharply from last year in other age groups:

• Greatest Generation, before 1930 – Down from $63 to $35

• Silent Generation, 1930-45 – Down from $84 to $50

• Generation X, 1965 to 1979 – Down from $110 to $71

• Millennials, 1980 to 1991 – Down from $92 to $61

Copyright 2009, Rita R. Robison, Consumer Specialist

Is the recession over for you?

 

It was startling to read the headline on the front of Newsweek magazine: “The Recession Is Over – Good Luck Surviving the Recovery” when I was in the supermarket.

The Great Recession is most likely over, the article says, adding American consumers now need to focus on surviving what's likely to be a poky, painful recovery.

What’s your situation? Is the recession over for you as a boomer consumer and your loved ones or are you still struggling?

Copyright 2009, Rita R. Robison, Consumer Specialist

How important is price when you buy?

Do you use the Internet to compare prices before you buy? Do you shop at Wal-Mart to get the lowest prices? Do you like Ikea furniture? Do you belong to a warehouse club such as Costco or Sam’s Club?

Price is important to me when I shop. I compare prices before I make major purchases and enjoy getting a great deal at a sale.

But Ellen Ruppel Shell, author of the book "Cheap: The High Cost of Discount Culture," argues cheap goods have replaced medium-quality products, and this is detrimental to people throughout the world.

Shell, a professor of journalism at Boston University, said large multi-national corporations such as Ikea have a low profit margin and make money by selling to millions of customers.

With this business structure, companies cut corners and, as a result, the environment suffers and workers in third-world countries are exploited. And, all that stuff needs to be shipped across the sea to be sold.

Shell, who was interviewed today on KUOW’s The Conversation, said Wal-Mart offers one-third of its items at low prices, while the other products in the store are one-third higher than other stores in the region.

She called for the return of quality products with a reasonable price tag.

And Shell said governments need to address the environmental degradation and poor working conditions that result from the production of cheap goods.

Copyright 2009, Rita R. Robison, Consumer Specialist

Top 10 reasons for baby boomers to be optimistic

Yesterday’s post on the “Top 10 Baby Boomers Challenges” wasn’t upbeat. In these tough economic times, the problems can be great.

Here’s the other side of the coin, ways baby boomers can embrace new thinking and opportunities during the recession:

1. Reinventing yourself

A job loss or downsizing at your workplace can lead to the opportunity to look at what you really want to do in your work life. Doing research and finding companies or agencies that are hiring rather than only responding to ads are techniques that work even during a recession.

2. Reducing spending

Buying less and having fewer things often lead to a simpler and happier lifestyle.

3. Focusing your business

A recession offers the opportunity to slow down, examine your business, and make plans for the future.

4. Thinking positively

It promotes positive solutions and can draws things to you as in the Law of Attraction.

5. Investing opportunities

The financial crisis offers investment bargains if you have any new money to invest. Be sure to work with a financial planner to help you make wise choices in these unusual economic times.

6. Making different retirement decisions

Delaying retirement may have its advantages. You may be able to come up with a plan, such as moving to a lower-cost community with fantastic part-time employment opportunities, which will be better able to meet your retirement needs.

7. Improving health

Job changes and spending less may free up more time for exercising, walking, running, cooking nutritious meals, and learning relaxation techniques such as yoga. 

8. Contributing to the community

With the economy sagging and unemployment at record levels, you have the opportunity, through various community programs, to help those who have lost their jobs and homes.

9. Experiencing a more progressive society

With an administration in the White House that believes in pro-work, health-promoting policies and consumer protection, boomers can benefit from a federal government that serves them better.

10. Getting greener

Green projects and organic food sales are on the upswing. It’s a good time to consider green jobs, goods and services, and volunteer opportunities. Check green Web sites such as Green America, formerly Co-op America, Worldchanging, and Global Exchange for information on what’s happening. You won’t find many reports about green activities in the media.

Let me know your opinions. What do you see as opportunities for baby boomers today?

Copyright 2009, Rita R. Robison, Consumer Specialist