The Survive and Thrive Boomer Guide

More women in their 60s living with their friends

Some say the ‘60s hippies are going back to the commune. Others call the growing number of female baby boomers rooming together “‘The Golden Girls’ phenomenon.”

It’s really about women choosing to live with friends, Martha Nelson, author of “Black Chokeberry,” novel about three older women who unexpectedly end up sharing a home, said in a statement.

“As a group, we’ve been empowered more than past generations of women,” said Nelson. “We’re more worldly, stronger, financially savvy, and healthier than our ancestors… and we know what we want.”

Increasingly, what women want is to actively age with the camaraderie, laughter, understanding, and support of other women who share their ideas of healthy lifestyles, good food from their own gardens, green living, and other activities.

In 2010, 480,000 boomer women lived with a least one unrelated female, according to an AARP analysis.

And, the number of U.S. HomeShare programs, which help connect people interested in sharing a house, has been steadily rising since the Great Recession.

“This concept is really trending on the East and West coasts and is very big in Europe,” said Ryan Cowmeadow, vice president of the National Shared Housing Resource Center, a clearinghouse of HomeShare programs.

HomeShare’s numbers are up about 15 percent since 2007, and about 75 percent of applicants are female.

The cohousing movement – where residents have private living spaces but share common areas, such as dining rooms, and tasks, such as cooking – started in Denmark and is becoming popular in the United States.

Cohousing can be found in more than 200 communities in America, with the states of California, Colorado, Massachusetts, North Carolina, Oregon, Pennsylvania, and Washington offering the most cohousing opportunities.

Nelson said more women are interested in living with other women because women usually live longer than men, and men are more likely to remarry after a divorce or the death of a spouse.

“And fundamentally, I think it’s as much about the special bonds women share,” she said. “We form these wonderful, supportive, 'tell the truth' friendships, which survive the demands of husbands, children, and careers.”

A former journalist and educator, Nelson’s marriage ended in divorce when she was in her 50s. After regaining her balance as a single woman, she turned to her friends as she stepped back into life.

"I came to fully understand the importance of women friends in my life," she said. "They are the gold standard and as we age, they are critical to happiness, regardless if one is married or in a committed relationship."

The practical considerations of creating close living communities – include health and safety, care in times of an accident or medical emergency, and financial considerations – are important for many women who find themselves single or widowed after long marriages, Nelson said.

But boomers are known for demanding more than creature comforts from life, she said. “We want to be happy; we’re healthy, active and we want to enjoy ourselves as we age. We want to travel, go to a movie with a neighbor or housemate, cook a meal, share a garden, and feel that we are contributing to our communities.

“We’re strong women, and we can choose to live the way we want as we get older,” Nelson said. “Very often, that will mean with other women in close knit communities."

Copyright 2012, Rita R. Robison, Consumer Specialist

Banks, telecoms, electronics, retailers among companies requiring forced arbitration

If your bank, cell phone provider, employer, or other company that you conduct business with violated your rights or cheated you, would you want to be able to take them to court?

Many companies are now using fine print to stop consumers from taking legal action, according to Public Citizen, a consumer advocacy group.

Below is Public Citizen’s listing of some of the largest corporations that have placed “forced arbitration” clauses in their terms of service. Forced arbitration blocks consumers and employees from holding companies accountable in court because they must take their claims to private, secretive tribunals that often favor the companies, the consumer group said in a statement.

Telecommunications: DirectTV, Verizon, AT&T, Comcast, Sprint, T-Mobile, Clearwire, Time Warner Cable, Tacfone.

Consumer banking and credit: Wells Fargo, US Bank, Regions Banks, BB&T, Discover, PNC Bank, Chase.

Student loans: Sallie Mae, Citibank, Chase, Discover.

Consumer electronics: Sony, Dell, Gateway, Electronic Arts, XBox Live.

Nursing homes: Candansk, Covenant Dove, Driftwood Rehabilitation and Nursing Center, Kindred Nursing Center, Manor Care of Florida, OP Winter Haven, SA-PG Sun City Center, Triad Health Management of Georgia.

Home builders: D.R. Horton, Pulte Homes, Centex Corp., Lennar, KB Home, Hovnanian Enterprises, NVR (Ryan), The Ryland Group, Beazer Homes.

Gift cards: Starbucks, Pep Boys, Gold’s Gym, Ticketmaster, Crocs, In-N-Out Burger, Red Mango, Patagonia, Discover.

Ecommerce and entertainment: amazon.com, Barnes & Noble, Netflix, Hulu.

Employment: Hooters of America, Forever 21, Nordstrom, Neiman Marcus Group, Macy’s West Stores, Yahoo! Inc.

Miscellaneous: New Leaf Academy, Orkin.

Public Citizen asks consumers to add more companies that are taking away their rights with forced arbitration by sending an e-mail to action@citizen.org.

Copyright 2012, Rita R. Robison, Consumer Specialist

How to be successful when filing insurance claims

Companies that insure homes paid about $35 billion in loss claims last year, and auto insurers say they’re alarmed about higher claims costs.

So consumers need to be extra careful to get their due from auto, home, and life policies.

If you have to file a claim on your auto or home policy, or on a loved one’s life insurance, it pays to know the right procedures and how to resolve problems, according to Consumer Reports Money Adviser. Here’s what you need to do:

Auto

When an accident occurs. When a crash involves another person or vehicle, call the police to officially document the incident. If you can, take your own notes at the scene. At a minimum, get the other vehicle’s license-plate information.

You should also get the other driver’s name, address, driver’s license number, insurer’s name and policy number, and vehicle-registration details. Use your cell-phone camera to take photos of the scene from all angles.

When filing the claim. Always call your own insurer right away if a crash involves another person or vehicle. Never agree to skip reporting a crash out of sympathy for an at-fault motorist who promises to pay you out-of-pocket.

If you’re at fault, you might not want to file a report with your insurer if damage is limited to your own vehicle and you expect costs to be within your deductible or slightly more.

You might be pressured to take your car to a shop in the insurer’s direct-repair program or to use cheaper replacement parts instead of original equipment manufacturer parts. You’re under no obligation to accept either.

Home

When the loss occurs. First, make sure your family is safe and that emergency personnel have been called to protect your home. As soon as practical, take pictures of the damage. Then take steps to prevent further damage, such as covering a hole in the roof with a tarp.

Keep receipts for any money you spend to prevent further losses. But don’t repair anything or dispose of ruined property until an adjuster has examined everything.

If you were burglarized, call the police first and your insurance agent later.  If someone trips and falls on your front stairs, see to their medical care first. Again, take detailed notes about what happened and get photos of the scene.

Make sure the adjuster sees everything. Ask for a copy of his or her report and scrutinize it for mistakes. You’re also entitled to a copy of your entire claims file.

Copy everything you give the adjuster and ask for a receipt. If he or she advises you to start repairs, get that in writing so promises and permissions can be accurately passed on if your case is transferred to another person. 

Life

When the loss occurs. An insurer might delay or deny payment to beneficiaries if the policyholder died within two years after buying the policy. No matter how long a policy was held, however, if no one files a claim, insurers historically haven’t done much to find the beneficiaries. 

When filing a claim. Send the insurer a claim form for each beneficiary and a certified copy of the policyholder’s death certificate.

To find out if a deceased family member had a life-insurance policy, check his or her files for the policy itself or billing statements; search bank statements for canceled checks to a life insurer; or contact the employee-benefits office of previous employers or unions.

Copyright 2012, Rita R. Robison, Consumer Specialist

Finding cheaper printer cartridges is this week’s best consumer experience, while a credit union error disappoints

By Rita R. Robison

Doing price comparisons on printer cartridges paid off this week. However, I found an error made by one of the credit unions I belong to.

My best consumer experience: Paying less for printer cartridges at Costco

While I was at Costco shopping, I checked out the price for the Canon ink jet cartridges I use. The warehouse store offers a package of three – two black ink and one colored – for about $50, around $17 each.

I usually buy my ink cartridges from Office Depot. I wait until I get coupons: $10 off is you spend more than $50 or $20 off if you spend $75. That cuts the price of the cartridges, about $25 each, but not as much as the Costco price. I’ve also purchased the cartridges at Target, also priced about $25 each.

My worse consumer experience: A credit union mistake

When I received my latest credit union statement, I didn’t see a reduction in my home equity loan for my January payment.

I called the credit union to see what happened. I thought the mail department might have made another mistake and send the payment to the wrong place again.

However, I remembered that I’d gone into the credit union to make the payment. The customer representative who helped me said the teller had placed the payment in my money market account instead of applying to my home equity loan.

This experience shows that it’s always a good idea to review your financial statements for errors.

Later, I was pleased to receive a note from a credit union employee, written on a yellow sticky, apologizing for the error. She’s attached it to my receipt.

Copyright 2012, Rita R. Robison, Consumer Specialist

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

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

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

Occupy Wall Street: Americans are furious, and they're right to be, says consumer group

Public Citizen, a consumer advocacy organization, is supporting the Occupy Wall Street protest.

Robert Weissman, Public Citizen president, offered the following comments in a statement:

It’s no mystery why the Occupy Wall Street and related protests are capturing the country’s attention. Americans are furious about the state of our nation, and they’re right to be. Millions of people are out of work because of Wall Street’s recklessness. Millions more have been thrown out of their homes for the same reason. Meanwhile, the federal government fails to take obvious steps to address these problems because of the outsized influence of the very Wall Street firms and giant corporations that caused our economic problems. The country is past due for a mass protest movement demanding justice.

Occupy Wall Street has been criticized for not offering a clear set of demands. In fact, the protesters have been eloquent in rejecting the idea that they produce 'one demand,' and also in articulating in broad terms what they want. More to the point, it’s not for a lack of ideas that the country is in crisis.

Put the unemployed to work retrofitting energy-inefficient buildings, teaching children, and meeting other unmet needs. Invest in a green energy revolution. Impose a financial speculation tax, and increase taxes on the wealthy and corporations - and make them pay. Put in place a single-payer, Medicare-for-All health care system. Undo NAFTA-style corporate trade agreements – and don’t enter in any new ones. Force banks to renegotiate mortgage terms, and let foreclosed-upon families stay in their homes as renters. Overturn the U.S. Supreme Court’s decision in Citizens United v. Federal Election Commission with a constitutional amendment and reestablish the principle that corporations exist to serve the people, not the other way around.

The country’s problem is not the lack of a policy agenda. It’s not even winning strong public support for the policy agenda – the public does support these ideas. The problem is translating the popular anger about the nation’s state of affairs into a political movement strong enough to overcome the corporate opposition. We can only hope that Occupy Wall Street serves as a spark to that political movement.

Public Citizen stands in solidarity with Occupy Wall Street. We thank the protesters in New York and at Occupy protests around the country and world for their courage, commitment, creativity, and leadership.

Yes, let's move the country forward instead of fighting. So much needs to be done to help consumers who are struggling.

2012 retirement guide on how to live well on less offers tips for baby boomers to explore

By Rita R. Robison

While I don’t think I’d want to live in Boise, Idaho, one of the cities recommended by Money magazine’s article “Five Great Low-Cost Places to Retire,” the retirement guide has numerous tips worth considering.

In addition to this article, Money’s October issue includes these suggestions for a scaled-back retirement:

• Fine-tune your budget to cut expenses.

• Turn time into money by comparison shopping and cooking more at home.

• Live smaller by downsizing your home.

• Move to a low-cost area such as Marquette, Mich., Cape Coral, Fla., or Danville, Ken.

• Work part time.

• Become debt free.

For more information, look for copies of Money magazine’s October issue at newsstands or your local library.

Copyright 2011, Rita R. Robison, Consumer Specialist

Gallup is off the mark to call federal government an industry

By Rita R. Robison

Things were going well as I clicked through the list from a Gallup Poll of the most hated industries in America:

10. Advertising and public relations industry

9. Pharmaceutical industry

8. Airline industry

7. Education

6. The legal field

5. Banking

4. Healthcare

3. Real estate industry

2. Oil and gas industry

Then I clicked on No. 1: It was the federal government. I couldn’t believe it.

In every economics class I’ve ever taken, including consumer economics, it’s clear that businesses make and sell “widgets.” Government has a different function; it provides services. Business and government are two entirely different segments of the economy.

Dictionary.com defines industry as follows:

1. The aggregate of manufacturing or technically productive enterprises in a particular field, often named after its principal product: the automobile industry; the steel industry.
2. Any general business activity; commercial enterprise: the Italian tourist industry.
3. Trade or manufacture in general: the rise of industry in Africa.
4. The ownership and management of companies, factories, etc.: friction between labor and industry.

I don’t see any thing in the definition that would classify the federal government as an industry.

Gallup started polling about the popularity of American industries 10 years ago. Two years later, it added the federal government.

I think Gallup is way off with this poll that classifies the federal government an industry.

What do you think? Let me know in the Comment section below.

Copyright 2011, Rita R. Robison, Consumer Specialist