Financially Free

Long before retiring, dh and I saved and planned for a trip to Peru, primarily to see Machu Picchu, the ancient city of the Incas. We've been looking forward to the nearly month-long trip that was scheduled for mid-February. But it is not to be. Yesterday our tour company informed us our excursion was canceled.

Due to the worst torrential rains in 15 years, the railroad that takes visitors to Aguas Calientes, the town closest to the ruins, has been shut down... the tracks were swept away by floods. About 3,000 tourists were evacuated by helicopter and at least 10 lives were lost.

Our "problem" is insignificant compared to what others have suffered. Thousands of Peruvians have lost their homes and businesses, especially around Cusco and Aguas Calientes. From one account, Machu Picchu will be inaccessible for at least three weeks. This is a major disaster that is wreaking havoc on the Peruvian economy. Fortunately, we will adapt and have already rescheduled the trip for early October.

Things I am grateful for:
1. We can still go, it'll just be later in the year (and it's paid for);
2. I paid $64 for the optional travel insurance which means we will get a complete refund for the air fare ($900);
3. The tour company will pay up to $250 each if the air fare is more in October than the cost of the original tickets;
4. I now have more time to continue my conditioning so I can hike in the Andes without getting altitude sickness.

It's the last day of January and looking back, the month has flown by. We were in Idaho for the first week then drove back to CA. Since weather conditions were very icy, we opted to break up the trip by spending the night in Reno instead of making the 12-hour drive in one day. We stayed at La Quinta, a "pet friendly" hotel that was clean and reasonable (~$63). The hotel didn't charge extra for TC the cat and provided a free continental breakfast in the morning (with choice of warm oatmeal, cold cereal, juice, coffee, yogurt, toasted bagels/cream cheese, hard-boiled eggs, and more).

A few days after arriving back in CA, dh's colleagues honored him at a brunch at the Dolce Hayes Mansion. My DDs flew out from ID for the event, in honor of his retirement and almost 30 years of distinguished service. The day before the celebration, we took the girls whale watching on the coast. This is something I've always wanted to do, but never had. The excursion was reasonably-priced, very successful and one we'll do again. Some of the best experiences are in our own back yard.

We saw an abundance of migrating gray whales... this one flashing its beautiful tail.


We encountered a school of Risso's dolphins. Here a calf is sheltered between two adults.


These California Sea Lions like to pile up on the jetty.


Mid-January, I took off to NYC with my DS. There are some great fares to be had from SFO to NY, even cheaper than flying to Boise. After spending a week with my sister, I realized how much fun it is to have our "girls only" time. Well, we did have a little man with us... my grandnephew who just turned one. One of the reasons DS and I went to NYC was so my grandnephew's parents could take a much-needed vacation. So DS and I enjoyed being grandma and great-auntie for a week. Fortunately, the baby was happy and easy to care for. We enjoyed decent weather... very little rain, and clear but cold (low 30s and high 20s).

Staying in my nephew's apartment was an interesting experience. Their apartment is one of ~22,000 (not a typo) in an East Side complex known as Stuyvesant Town. The apartment is ~700 square feet and they pay ~$2,500 in rent that includes heat, electricity, water, and garbage. I guess this is average rent for NYC.

It struck me as odd that they cannot regulate the heat in their apartment. For my taste, the apartment was frequently too warm, so much that I'd wake in the middle of the night. When I did, I'd look out the window and see many apartments with the lights on and windows cracked open. What a waste of energy, and especially alarming since Peter Cooper Village and Stuyvesant Town are having economic woes.

I stayed well below budget on this trip. We saved money by shopping at Trader Joe's, Whole Foods, and in Chinatown for produce, all within walking distance. Dinners were home-cooked gourmet meals but we did eat lunch out several times. The thin-crust NY pizza is yummy but my favorite is Bon-Chon chicken.


In Chinatown, a good place for bargains, I bought dried mushrooms and ginger at reasonable prices for my CA pantry.


On many street corners you can find small "bodegas" that sell groceries and fresh flowers.


One of the most entertaining things to do in NYC is "people watching." This professional dog-walker has her hands full. New Yorkers love dogs.


And for those who want to save time...

Thanks to Fern, I joined the January "Purge 30 in 30" challenge. I am pleased to report I have exceeded my goal, but decided not to keep track of the points because there are already many far ahead of me. But nonetheless, the "contest" motivated me and has been very productive.

At our Idaho home:
~ Sold 7 books to Hastings for store credit ($32. 47);
~ Donated 31 books to the library.

At our CA home:
~ Donated two blankets and a jacket to a drive at a local school;
~ Donated a box of household items to Goodwill (mugs, vases, frames, and 2 small throw rugs);
~ "Donated" a wool pantsuit, 2 sweaters, vest, and 3 blouses to a friend (good work clothes);
~ Donated a box of office supplies, a printer, and two file cabinets to some of dh's former colleagues (he just retired and these were items in his work office not supplied by the university);
~ Donated at least 88 professional books to dh's colleagues and his niece.

Yay for us!

In June, we hired a property manager who promptly evicted the tenants at one of our rentals. Back in August I posted about how the evicted tenants had trashed the house. I am happy to report that the property is FINALLY back to normal and it has been rented effective January 1. It was expensive to renovate and if it were not for the sad state of the real estate market in ID, we would sell it in a heartbeat. We are finding that rentals require far more work than we have the energy for.

One of the mistakes we made was hiring a property manager who wanted to do all the work himself. In the long run, he cost us more money because he has a full-time job apart from his rental management business, and he did the work when he had time. He is a hard-working, honest man, but it took him way too long to complete the repairs. And since we were in CA most of the time, it was "out of sight, out of mind." But we are grateful he was able to evict the tenants who had stopped paying rent.

So, more than $15,000 later, here is where the money went:

~ Six PITI payments @ $835 each
~ New linoleum and carpets
~ Two coats of KILZ on the subfloor
~ New paint throughout
~ New blinds on all windows
~ New backyard landscaping (top soil, lawn, sprinkler system)
~ New DW and micro-vent
~ Electrical outlet repairs
~ Trash hauling and cleaning (it was utterly unbelievable)
~ Utilities, including the $329 water bill of former tenants

As it was, the house would not have been ready to rent by January 1 if it had not been for my DDs and SILs who spent the day after Christmas helping us finish up the cleaning and repairing the front and back doors. The property manager was out of town on a family visit and dh and I were determined to get it ready.

You may be wondering if the evicted tenants vandalized the house. They did not! This was the result of four years of living in a house without ever cleaning it. We made the mistake of not having a property manager for several years and not bothering to do an annual inspection. So, most of this is our own fault for being lax about an investment and "assuming" all was well. We paid dearly for our mistakes and learned something about human nature through this experience.

There are people who are simply not clean... they think nothing of fouling their own nest, worse than animals. I have a hard time understanding what would compel a human being to live with animals and their feces... how do they present a semblance of normalcy outside the home? In my career as a school principal, I saw youngsters removed for "neglect" from filthy homes that were cleaner than this one.

And, no, we will not try to recover anything from the former tenants. It would be like trying to get blood out of a turnip. They apparently lost their jobs and like many people living on the edge, were only a heartbeat from being homeless. I feel sorry for these people, especially the children in this family.

New paint, carpets, and blinds:


Sparkling clean kitchen with new micro-vent:

Once a year I analyze our net worth to get a current picture of our financial position. For the sake of simplicity, I don't include the value of autos or personal property, and I use the assessed values of real estate, minus mortgages, to determine equity.

I was surprised our net worth actually grew by 3.44% in 2009. It would have been significantly more except that real estate values continued to drop in CA and ID. Nonetheless, I am grateful for the positive growth, far better than in 2008 when our net worth shrunk by 5.6%.

My goal for 2010 is a 5% gain. It will be a challenge now that we're both retired, our income is lower, and we can no longer contribute to tax-sheltered accounts as we have done in the past. CD interest rates at 2-3% are not much help, but if all goes as planned, we will save about 20-25% of our net income. We'll see where things stand a year from now. Check out the page on my sidebar for my 2009 Net Worth Analysis if you're interested in more details.

If you're curious how your own net worth stacks up against other folks in the same age/income bracket, use this calculator to compare. I did, and I learned our net worth is above the median for people in both our age and income brackets.

December is almost over and what a busy month it's been. I've enjoyed reading the SA blogs I follow and posting to my travel blog, but I don't have much "financial" news to write about. We did come in under budget on our recent trip, so that's good news. In the near future, I will be reviewing my 2009 goals and developing new ones for 2010.

After our trip through the Panama Canal, we returned to CA for only one day. Then we hit the road for the 12-hour drive to ID with TC. I did not want to leave her alone for another 2-3 weeks after she'd been cared for by our cat sitter for almost two weeks. She did remarkably well in the car and has adjusted beautifully to our ID home.

We are currently in ID... we enjoyed a quiet Christmas dinner with our DDs and SILs. There was some snow on the ground when we arrived, but we have had fairly good weather. Last night a storm came in and left ~3 inches of snow. This morning, dh went out to shovel the walkway (and also the neighbor's), more for the exercise than because it needed to be done.

I am still trying to get over a cold that started on my last day in Acapulco, so I am taking it easy and just enjoying some quiet time reading and relaxing.

The day after I retired in August 2008, I took a part-time job at a local university supervising student teachers. Then my dh decided to retire in July 2009 from the same university. But he went back to work full-time for the Fall 2009 semester under a program allowing retired faculty to work 50% for up to five years.

My part-time work brought me full-circle... I began my career as a teacher and I ended it as a teacher. In between, I spent more than 15 years as an administrator but teaching has always been my passion. The most enjoyable aspect of my "retirement job" was working with my students, a dedicated and passionate group eager to begin their teaching careers. And while the job helped me transition from intense full-time work to retirement, it also prevented me from doing some things I really want to do.

So, when my dh decided to opt-out after just one year in his post-retirement program, it was my cue to bow out too. Now it's official... as of yesterday, we both are completely work-free and 100% retired. Our goal is to take time for some serious traveling so we can decompress, regroup, and reflect about what we want to do for the next 20 years or more.

So now we are free to travel the world without the encumbrance of jobs, and we have made plans. At various times in the next year we will be somewhere else: Panama, New York, Peru, Mexico, Hawaii, Bryce Canyon, Brazil, the Amazon... and maybe other places not yet dreamed of. So far, 120 days are scheduled. Some trips will be on our own, some will be cruises, and the Peru trip will be with Exploritas, a travel program formerly known as Elderhostel. We are also looking into a volunteer trip to Latin America through Habitat for Humanity, if the dates work around other commitments.

Some people don't like to travel at all, but it's always appealed to us on many levels. We learn about other cultures and people, and in the process we learn more about ourselves. And, although it's the perfect escape for some people, we're not the types to spend all our time sipping margaritas under a palapa on a beautiful beach somewhere. Well, maybe I could handle it for a day or two, but that hedonistic life would eventually get old. We especially want to see places that are UNESCO World Heritage sites.

So how will we pay for all of this, especially now that we're retired? We didn't hit the lottery or inherit money. Travel in retirement is NOT as difficult as one might think... it's about choices, planning, saving, and of course, dreaming. We've gotten into the habit of saving something every month, plus any extra money that comes our way in our travel savings, so our 2010 trips are fully funded and then some. Our frugal lifestyle helps... we live comfortably, but below our means and saving is easier because we are debt free (except for a small mortgage).

To keep in touch with family and friends, I've started a blog that focuses on different aspects of travel, including some money-related topics. I'm encouraging dh to blog along with me, and he seems open to the idea. If you're interested in reading our travel blog or if you'd like to write a guest post about one of your trips, share photos or travel tips, please visit Sage Travelers. My last post was about the Running of the Bulls in Pamplona, Spain.

The other day I was visiting my 93-year-old friend who loves to reminisce about her youth. My DF said she didn't realize how poor her family was until she was in about third grade. That's when some classmates started teasing about her threadbare, hand-me-down dresses. A lot of folks were poor back then, but it seems that with a large family, they were very poor. Her simple lunches consisted of rice with a few vegetables and sometimes a hard-cooked egg and a piece of fruit, taken to school in a little tin pail... an actual pail, not an insulated lunchbox.

Her mother prepared nutritious but economical meals that my DF loves to this day. Of course, now she knows the ingredients were more affordable for her family back then: rice, beans, oatmeal, potatoes, fruits and vegetables grown in the backyard garden, and bread baked at home. They ate a lot of soups, stews, and casseroles. Meat was a luxury and they ate very little of it.

My DF shared that her parents taught her to take care of her belongings and appreciate what she had, not covet what others had. And, in the midst of the Great Depression, they had very little. In the evenings, her parents read to their children, played cards, or the family listened to the radio. They seemed to focus on spending time together and enjoying being together as a family. All the kids had chores and if the older ones worked, they contributed most of their earnings to the family coffers.

I admire that my DF's parents raised their children to feel happy and positive about their lives, even though they were poor. While it's good parenting to educate children about money, it should not be done in a way that makes them anxious about "being poor." After all, a child is powerless to impact the family's finances. Kids thrive when they feel loved and safe, and it does not cost to provide these things. My DF is a prime example... not only did she thrive, she is a resilient and remarkable lady.

This is probably one of the easiest years for my Christmas shopping. By mutual agreement, adult family that we exchange with wanted an honorary donation to their favorite charity in lieu of a gift. So, early this morning I made donations to:

~ Habitat for Humanity
~ Second Harvest Food Bank
~ Heifer International
~ Susan Koman for the Cure

Not only are we helping others, we can deduct these donations on our taxes. And because I used my CC, it will generate miles. These charges will be paid in full when the bill comes, so we are not creating debt.

The only exceptions are my grandniece (10) and grandnephews (6 and 11 months). I completed their shopping a few weeks ago, but it was easy to buy just for three. I do give gifts to the lady who cleans our house and my pet sitter, but their gifts are easy, too: a large box of Sees candy and money (a nice tip). So, yipee... I am done and it is only December 1!!

A good source of free eBooks is through Barnes & Noble. First you have to download their free reader. It can be installed on your PC, Mac, or cell phone. I've installed it on both my Mac and my iPhone.

Once you've completed the reader download and installation, you will be able to access from a large collection of free eBooks. Or, you can also buy others. So far, I have gotten the following free books:

Pride and Prejudice by Jane Austen
Dracula by Bram Stoker
Little Women by Louisa May Alcott
Hide in Plain Sight by Marta Perry (this is a "Harlequin Romance"-type novel, not classic literature, but hey... it's free)
Merriam Webster's Pocket Dictionary

To download the free eBooks, you have to create a B & N account (it's free) and enter a CC number. The CC is NOT charged but you will later need to enter the card # to "unlock" any books you've downloaded. Your eBooks, free or purchased, are archived on the B & N website under "My eBooks Library."

The B & N Reader lets you go into full-screen mode and has other handy features. For example, you can "highlight" passages or view the eBook in single or two-page mode.

With Thanksgiving Day tomorrow, I was reflecting about all I am profoundly grateful for and decided to make a list of my Top Ten:

1. My husband - He is second to none. It's great to live with a man who tells you he loves you every day, and you know it's true... tells you are beautiful, even though you know it's not true. My dh is my best friend who supports me in every way, except financially. In this regard, I support myself... but he supports himself financially, too, and this is how we make the financial part of our relationship work for us.

2. My daughters - When I got pregnant, I fervently prayed for a daughter. Well, it worked! Five days before my baby was born, I learned I was having twins... and it was TWO daughters! They are equally beautiful inside and out, my pride and joy. When I "kick the proverbial bucket," I will have left the world a better place by having produced two intelligent, caring, and socially responsible human beings. My best work ever.

3. My sister - She is my only sibling, older by twelve months, and my other best friend. She and I have lived through joy and sorrow, bonded by blood and experiences only we share. We are very close and she is always there for me, no matter what. Everyone should be as lucky as I am.

4. Friends/assorted other family - The friends in my life who are near and dear to my heart are a blessing, yet I count them on two hands... not many, but very special. And then there are my other family members: my niece, nephew, grandniece, grandnephews, BIL, SILs, aunts, uncle, and many cousins... I cherish having them in my life.

5. My health - Although not perfect, it's "good" and some days just "good enough." It's not a big deal to have a chronic condition or two when you're over 50... so, having a good health plan and access to excellent medical care is something else I give thanks for every day.

6. My cat - I've had a cat as far back as I can remember, since about the age of three. I am a cat person. My current cat is Antonieta, AKA Toni or TC (Toni Cat, The Cat, The Critter, Trouble Cat, Terrific Cat...) and a host of other secret cat names that only she knows. TC's silly antics keep me in stitches and it's good for my BP. Too bad she doesn't like walking on a leash, then she'd be good for my fitness challenge, too.

7. A "job" I can't get fired from - The greatest thing about being retired... I am my own boss and I can't get fired! Of course, it only took 30 years of working, planning, and saving to get here. But I am here, nonetheless, and it's great. Yep, "I am the boss of me!"

8. Our homes, humble as they may be - When so many are struggling to keep afloat and their homes are under water, we are blessed. Our small condo in Silicon Valley and our cottage in Idaho are perfect for us. We chose to scale down our habitats because we realized it gave us more financial freedom. No regrets.

9. Curiosity about the world - I've always had a sense of adventure and ever since I was a child, I've loved to see new places and learn about other cultures. Traveling is a great way to learn, to grow, to expand our worldview, and I do this with gusto (and with my dh!). And I am grateful to have the wherewithal to travel.

10. Living in the USA - I was born in a country people have fled due to political persecution. And as much as I love to travel and see other countries around the world, there is no place like the USA, where our freedom is sometimes taken for granted. I am grateful I became a naturalized citizen and take my right and responsibility to vote seriously. I am proud to be an American... sounds corny but it's true for me.

There are many, many other things that I am grateful for... being debt-free, having food in the pantry and freezer, having my blogs and other hobbies, but my Top Ten are, well, my top ten. What are your top ten?

I'll never forget these words from my Political Science professor when I was in college. He was a passionate teacher and kept us debating his often radical points-of-view about the American government and politics in general. Of course, this was back in the 70s and it was a radical time.

My poli-sci professor argued that we could never really own property in the USA, and in fact, home ownership was a myth. "You don't own your house... the bank and the government own your house," he would say provoking a debate. He maintained that even if our home was paid for, we would always continue RENT our property from the government and the rent is called "property taxes." "Just stop paying your taxes to see how long you will stay in your house," he asserted. Yeah, I think he was on to something here.

I got my ID property tax bill today expecting a reduction in my taxes. After all, our property value dropped almost 13% last year. But guess what? The local government raised the levy... the tax rate used to calculate taxes... so my taxes actually stayed the same. Well, maybe not exactly the same... they're ~$12 less. So yes, when you read in the local paper that taxes went down, it's technically true. And yes, I guess your landlord has the power to raise your rent, especially when you have no lease.

About a month ago, I took an online "IQ Test" and when I got to the end, I was asked to enter my cell phone number to get a PIN for the "results." Although I hesitated, curiosity got the best of me and I bit. I was texted a PIN, I entered it in on the website and got my IQ number.

So yesterday when I got my ATT bill I noticed it was about $30 higher than usual. After carefully reviewing it, I saw I was being charged for some "mobile purchase downloads." Turns out when I entered my phone number, somewhere in the fine print gobbledygook, I was SUBSCRIBING to Flycell. When they send you a text with a PIN, unless you text them back "STOP," you are subscribed!

I got on the phone with ATT and learned a lot. First of all, I had a block put on my line that prevents any download purchases without a PIN. It's free and part of the "parental controls" option (and we don't even have kids at home!). I further learned that unauthorized phone charges from third-parties is getting to be very common. There is a website gathering complaints for a class-action suit.

ATT was great... they reversed the charges and explained how dangerous it is to provide your phone number online... it could be a phishing scam, like the IQ test I took. So much for having a genius IQ... what a joke!.

I'm glad I check my bills as soon as I get an email alert they're available. Some of the stories I read about on the class-action website told about getting charged for months and months before they noticed.

Yesterday I met with my student teachers for the last seminar of the semester and led a discussion on interviewing strategies. Over the years as an administrator, I hired about 90-100 teachers, served on countless interview panels for other positions, and recruited for the district teaching pool. It was good to share information from my experience that will hopefully help them land jobs.

In CA, this is possibly one of the worst times to secure a teaching job. Due to state budget woes, school districts are laying off or cutting back their teaching staff. Getting a job in education is extremely competitive and thus it's necessary for candidates to stand out in a sea of applicants. During the last week of November, I will meet with each student to debrief and verify that all program requirements have been satisfied, then they will be ready to apply for jobs.

Work is really winding down for us. After December 4, we are completely and utterly free... me from my part-time job and dh from his full-time position. Then we will begin some serious adventures. I will be posting about our travels on my new blog. I welcome any guest posts if you are inclined to share your travel stories or photos.

As far as the weekend, things look good. Last night was a dismal and drizzly and I was concerned it would continue into the weekend. Today the sun is out and the weather is beautiful. Later today, we are heading to the Stanford stadium (with DS and BIL) for the big game... The Cardinal vs. Golden Bears. Stanford does not have an official mascot which I find odd. They are known as "The Cardinal" as in the color, not the cleric. They used to be the Indians but that is no longer PC and then there's a tree but it's not really a mascot. Strange. Hope it's an exciting game.

I have to chuckle about a conversation I recently had with a friend I go walking with. She shared she wants to retire in the next five years (she is 55, ~two years younger than I was when I retired). My DF is VERY tired of working but wants to repaint her house before she retires and says she needs to save up for it. I asked if she had used any of the online retirement calculators and she said she had not.

"You might want to check some out..." I told her... "A calculator can help you analyze your budget in relation to your retirement income, so you have a good handle on when you can retire. There are lots of calculators available online..."

"Budget? Oh, I don't have a budget. Except for the mortgage, I like to pay cash, and when I make an ATM withdrawal, as long as there's a decent balance in my account, I'm good. I think having a budget is too much trouble, so I don't bother. I'd never be able to stick to it anyway. I know where I am financially, more or less."

"Hmm. Okay... well, good luck with your retirement plans..." I say no more. What's the point? Yes, some people definitely have simplified view of retirement planning. Now I wish I had asked what she considers a "decent balance" in her checking account.

Today I enjoyed going to the American Girl Fashion Show, a benefit for the Lucille Packard Children's Hospital. This is the third year I've attended this special event, always as the guest of my niece who is one of the volunteers.

My 10 year-old grandniece also participated as a model... this year her costume was Felicity, a girl who grew up during the American Revolution. It's refreshing to see these adorable little girls modeling the attire of various historical periods. They looked very happy and wholesome, the way little girls should, and it was a good experience for them to learn about the daily lives of girls during different eras of American history.

My grandniece is the cutie on the right.

I am finding more and more, that it pays to check your credit card and bank accounts online DAILY if you can. Here in CA, WAMU fully transitioned to Chase Bank at the end of August. Good thing I've been checking my account daily because I caught TWO huge errors:

1) Through "Bill Pay" I send a monthly amount to a trust account at another Chase branch. The amount was deducted from my checking account on October 27. As of November 10, it still had not arrived at the other Chase branch (it normally takes up to 3 days).

It took two hours on the phone to resolve it. I had to place a stop payment on the check and set up a Quick Pay account with the Trustee. It was a nightmare. In case you're wondering, WAMU had required this to be done through Bill Pay instead of a transfer because I am not the owner of the Trust Account.

2) Also through Bill Pay, I noticed that my house payment was deducted and sent on November 6. Then, they deducted it a second time on November 12. The worst part of this was the customer service rep insinuating I did this deliberately.

Rep: "Well, this is how you set it up."

Me: "Umm, no. Why in the world would I want my house payment paid TWICE!? I haven't changed a thing since the WAMU transition to Chase."

Rep: "Well, we didn't change anything, either."

Me: "Something is wrong, and I did not do it. Looking at the scheduled payments link, I see that my December payment is scheduled to go through twice... Please put me through to your supervisor." Arghhh!

The supervisor was not much better, like dealing with dumb and dumber. An hour later, it was resolved, but not before I seriously considered getting a new mattress with a secret compartment.

About once or twice a month, on Tuesday, we enjoy the prime-rib special for TWO at one of our favorite restaurants. For only $29.99 it includes a spinach salad, freshly baked bread, and a half carafe of the house wine. The serving of prime rib is so large that we take half of it home for lunch the next day. The special is not on the menu, you just have to know about it and ask...

Tuesday is Senior Day at one of the local cinemas: tickets are $6 for any show, at any time (regular senior price is $9.75).

If you join the "Tuesday Club" at Ross, you get 10% off on Tuesdays. It's free and open to anyone over 55.

And things I love any day of the week:

10% senior discount at my vet ('cuz of my age, not the cat's)... you have to ask for it the first time, then it's in your file.

Going to Costco any day/time EXCEPT on the weekend.

It's weird thinking about my "retirement accounts" because I've been retired for almost a year and a half. I'm fortunate that for the time being, my state teacher's pension enables me to live comfortably and I have health insurance provided at no cost through my former employer. In my early 20s, I got into the habit of saving for retirement, and I never stopped contributing throughout my working years.

When I retired in August of 2008, the plan was to leave my tax-sheltered accounts intact as long as possible, possibly being able to hold off until age 70 1/2 when the Required Minimum Distribution (RMD) kicks in. An emergency and travel savings in taxable accounts rounds out our cash funds. If the need were to arise, I would tap these before the tax-sheltered funds.

Since retiring I hadn't thoroughly reviewed the status of my tax-sheltered accounts (403b, IRA, and 457). So today I analyzed the growth in these accounts from September 30, 2008 to September 30, 2009. I was surprised to see that growth has been 4.6% overall... I expected it to be lower. This is after taking into account that my 457 Plan had 0% growth last year (this account is keyed to the S & P index and makes up ~22% of my tax-sheltered funds).

If my calculations are correct, in ~12 years when RMD kicks in, the RMD will be less than 4% of the total. If the accounts continue to earn @4.6% and I withdraw ~4%, the funds will continue to grow. Of course, this is a hypothetical situation because in 12 years I may need a lot more than 4% to make ends meet... and then there's inflation. My pension has a 2% COLA that may not be enough in the future.

My tax-sheltered accounts include a Roth and a non-qualified annuity that I did not include in the projections because they are exempt from RMD. If I don't have to use these non-qualified funds for my health care or living expenses, then I may use them for a legacy gift. I am considering leaving a bequest to my alma mater to establish a scholarship fund to support single mothers working to become teachers.

Today I bought a domain at GoDaddy.com to use for a travel blog "we" are planning to initiate. I use the term "we" loosely because I haven't informed my dh that he is about to become a blogger. Since he will be 100% retired in December, I figure this will be our hobby and also useful to keep family and friends informed as we travel. In the next few weeks I will be designing our blog and will initiate it with the trip we have planned in December through the Panama Canal.

I suppose I could have gotten a free blog through blogger.com but I wanted to create something unique that I could potentially expand in some manner that might include the possibility of earning $$... not sure what, but the wheels are turning. Actually, I registered two domains, the .com and the .net versions. The two privacy-protected registrations and the web hosting service through Quick Blogcast is only $7 per month... for everything.

I chose Quick Blogcast because I'll be able to create podcasts, and upload videoclips and photos. If we find the need to expand, GoDaddy also offers several site building plans that would enable us to turn our domain into a comprehensive website. I've really been on a learning curve, but it's good exercise for my brain. I'll share the url (thenameofmyblog.com) when it's ready in case anyone is interested in the travel topics we'll be blogging about.

My parents died when I was twenty-five and consequently, my daughters grew up never knowing their maternal grandparents. I always felt this was a huge void in their lives as well as in mine. No matter how old you are, you can still feel like an orphan. My parents, while not perfect, provided unconditional love and were there for me when I needed them. And I've never stopped missing them each and every day of my life.

So, naturally, unlike some of my friends, I will never have the experience and the challenge of caring for elderly parents. Seeing what some of my friends are going through makes me determined to not be a burden on my daughters when I can no longer care for myself. To this end, I am making sure I address some of the financial aspects of being too old, ill, or frail to care for myself.

One of my friends is facing the likelihood of having to postpone her retirement because she has to subsidize her parents' income. She is dealing with an 82 year-old mother with Alzheimers and a father who until now has never been involved in the family finances. Sadly, he spends uncontrollably because he doesn't understand how to budget. My friend is fortunate that her dh is supportive because the care of her parents is consuming more and more of her time and money. This is just one example, but I know of several others. I have vowed not to do the same to my own children. So what steps have I taken?

My DD1, a registered nurse, is in charge of our advanced health care directives. We figured she would be in the best position to fully understand any health issues and the resulting implications. I also have two revocable trusts because of our somewhat complicated financial situation. I had considerably more assets than my dh when we married, so one trust addresses my sole and separate property (my DDs are the beneficiaries). The other is a community property trust (our 4 children are beneficiaries). My trust also includes instructions for my funeral... I guess you can say I'll be a control freak even after I'm dead.

Health care is one of the biggest expenses in old age and we are fortunate to have some good resources. I have limited long-term care through my former employer who also provides health care for life (through an HMO) to retirees meeting certain criteria (I did). My recently-retired dh also has health insurance through the Public Employees Retirement System, giving us access to a comprehensive PPO for a nominal fee (currently ~$46 a month). We earned these benefits through our 30+ years of service as public school educators, saving us hundreds a month on health care alone.

At a future date, we will move full-time to ID and live in the house we purchased in 2006. The house is small and easy to maintain and best of all, it's mortgage-free. When we get too old or incapacitated, our income should be adequate to pay someone to help cook, clean, run errands, and take us to appointments. Although I know my DDs would gladly help as much as they could, we do not want to burden them. And because I raised daughters that are honest and financially astute, I know I can trust them to oversee our finances when we can no longer do so. I dread doing some of the crazy or foolish things I've heard about... like another friend's mother who subscribed to 27 magazines and donated money she doesn't have to every charity that solicits through the mail.

And lastly, we've earmarked funds to be used if we have to go into an assisted living home. It comforts me to know my daughters will be there for me in the end, and that we will not be a financial burden on them. Someone was telling me about an 89 year-old woman with no family or friends. She apparently had been dead in her house for weeks before she was discovered because the mailman couldn't fit any more in the mail slot. It's very sad when you hear of someone dying alone and unnoticed. Even though you can arrange to pay for your care, in the end it's the relationships that matter most.

Over the years I've been to many weddings but yesterday I had the pleasure of attending one of the most beautiful and memorable, an elaborate affair that spanned the entire day. The bride is a young woman I met several years ago when she was a student teacher at my school. I subsequently hired her to teach full-time, and she proved to be an extraordinary teacher and continues to be a good friend.

She is Cambodian and very proud of her culture. So her wedding day began in the morning with a traditional Cambodian wedding ceremony. The bride wore a stunning gold-beaded traditional dress that highlighted her exotic beauty. She is tall and slender, the type that can wear anything and look gorgeous, but in this gown she looked like royalty.

The Khmer ceremony began with a procession around the block of the family home, then moved into four phases:
~ Presentation of the Dowry
~ Tea Ceremony
~ Hair Cutting Ceremony (symbolic, no actual cutting)
~ Pairing Ceremony
I was told some traditional Khmer ceremonies can last several days or a week, but it is becoming more common to have a "condensed" version that lasts several hours and is held on the same day as the Western wedding.

At the Pairing Ceremony, four songs were sung and the last one, Tying the Wrists, goes like this: "We tie, we tie three strings to each wrist of our children. We wish for true happiness and success to this couple, who will always be together like wet grass seeds. We tie your left wrist to make you remember your parents. We tie your right wrist to make you carry on the family lineage and traditions."

In the afternoon the couple held their Western wedding ceremony at a winery with beautiful grounds, and we were blessed with perfect weather. The bride wore a lovely Vera Wang gown, looking as if she were modeling for Vogue or a bridal magazine. Her long hair was combed up in an elegant twist and was accented with a birdcage veil. The vows were written by the couple and were romantic and sweet. After a celebratory toast and hors d'oeuvres, the formal photos began. After a while, dh and I got back in the car again for the next stop: the reception.

The reception for more than 500 guests, not all of who were invited to the ceremonies, began at 6:00 p.m. although guests were still arriving at 7:00 p.m. The venue was a restaurant known for its exceptional Asian cuisine. We sat through a 10-course meal that included some dishes I had never tried. I'm proud I tried everything, although I can't say the same for the squeamish folks at my table. We were served jellyfish and seaweed salad, crab soup, chicken, pork, sea bass, garlic lobster, abalone, prawns, shiitake mushrooms with bok choy, and the last course was white wedding rice with shrimp and scallops. Oh, and did I mention there was an open bar that served wine, beer, and spirits?

The first dance by the bride and groom was to "You Are So Beautiful" by Joe Cocker. They took dancing lessons and it showed in their polished performance. Then guests were treated to a slide show that featured the couple and their large family of many aunts, uncles, and cousins on both sides. Later the bride and groom, visited each table, accompanied by their parents, a videographer, and a photographer. By now, the bride had changed into the third outfit of the day: an elegant burgundy velvet dress with gold embroidery on the bodice. When we left at ~10:30 p.m., the dancing was in full swing.

I enjoyed catching up on all the news at my former school with guests I knew. Most were teacher co-workers (actually, I used to be their boss). One teacher shared she is expecting her first baby in April and had just learned it is twins, so she had lots of questions because I am also a mother of twins. Another teacher is expecting her first baby in January... it seems like I was just at her wedding, but it was actually a year ago. So, there will be baby showers and more celebrations in the future.

I've been noticing that more and more stores do not require a signature when you use a credit card, depending on the amount of the transaction. I like to pay for everything with a credit card for the rewards, and then I pay the balance in full each month. Yesterday I made a small purchase at Costco (~$27) and I was told I did not need to sign my AmEx receipt because the total was less than $100. This also happened to me a few weeks ago at Target with a purchase less than $50. Noah's Bagles at the airport and theaters are another example.

Although this practice streamlines checkout, my concern is that it makes fraud a lot easier. Years ago, when my purse was stolen, the thief ran up a huge debt with my credit card at the gas pump... he must have filled up the cars of every Tom, Dick, and Harry he knew. No signature or verification was required... he just had to slip the card into the machine at the pump. Now at least they ask for a zip code, but if someone has your license, this is easy to get.

I was thinking this was a CA practice until it happened here in ID. Is anyone else seeing the same trend?

is what I see in these beautiful fresh-cut alstroemerias from Fred Meyer. I am here in ID, enjoying the quiet solitude since dh stayed in CA. I arrived late Wednesday night and the next morning headed to the local store for fresh fruit, vegetables, and flowers. Back in CA I have a bounty of houseplants, some with flowers, but here... nothing. So I buy flowers and will enjoy them for the week. Once we move here permanently, there will be plants... all over. DD2 and SIL take care of our house and I will not ask them to add plant care as well. So for now, cut flowers will do.


On Saturday, the handyman came as arranged to sand, stain, and seal the front door. The trim around the glass was peeling and although the door wasn't as bad, it got thrown into the deal. It cost $120 and I think this was a fair price, considering it took about ~3 hours and he provided the materials. The house is only 3 years old but the afternoon sun hits the door directly. Hopefully the new paint job will last more than three years. The smell of the fumes was so intense I had to open front and back doors, deal with a headache, and now go catch a few flies.

Today we are experiencing the first severe storm of the season. I live in a part of CA that has relatively mild climate, so winter storms like this one are not too common. The weather reports have been heralding this storm that was supposed to arrive yesterday and deposit several inches of rain. I even stayed up late anticipating a spectacular storm, but as of the time I went to bed, nothing. Then this morning I woke to the sound of the rain pounding the roof and windows. There is nothing like a good rain to renew the landscape, not to mention how much I enjoy being cozy inside my house when the weather is stormy outside.

Downstairs, the house was chilly, so I turned on the gas fireplace. TC is in heaven because she loves to flop in front of the fire. It's funny because MC, my other cat, used to love to do that, too. There is something primordial about fire... it doesn't just provide warmth, it also seems to soothe the spirit. Today I started thinking about what we would do here in our townhouse if we were ever to have such severe weather that it knocked out the power for a good long while.

When my daughters were little we lived in the country and heated our house with a wood stove. Winter storms would cause us to lose our power at least 2-3 times each year. The stove not only heated the house, but it also enabled me to cook warm and nutritious meals of beans, soup, or stew and get us through the worst of the storm. One time, we were without power for three days. We cooked on the wood stove and flushed the toilets with buckets of water from the pool. My kids, toddlers at the time, stayed cozy, warm, and well-fed.

With the storm raging outside, I decided that today is a good day to inventory the pantry and assess exactly what's there and to make sure I'm rotating the items to keep up with expiration dates. I saw that Costco sells an emergency food kit for around $85. It has a shelf life of 10-20 years, depending on the storage temperature. I don't think I want to go that route but we have done some things that will help us get through a prolonged emergency.

First of all, we have an emergency box with candles, lighters, matches, flashlights, new batteries, a crank radio, and basic first aid. I keep 6 one-gallon jugs of frozen water in the garage freezer. In case of a power outage, these will help keep the food frozen longer and we can also drink it. I can boil water or cook a simple meal using my Cobb BBQ, making sure it is outside because it uses charcoal which must NEVER be burned indoors due to carbon monoxide emissions. But it heats up quickly with only 6-8 briquettes and will cook for hours.

And then there's the pantry. We keep a variety of packaged soups, canned chicken, tuna, tomatoes, corn, fruit, pasta sauce, pasta, brown rice, lots of dried beans, split peas, and lentils. We could easily eat for weeks with this bounty. So, off I go to take the inventory.

I'm somewhat amazed but very pleased at our progress on the goal of reducing our carbon footprint by saving energy. Here is the analysis of our PGE bill (gas and electric) for the last three months compared to last year:

7/2008 $83.85
7/2009 $63.38
~25% less

8/2008 $99.57
8/2009 $61.91
~38% less

9/2008 $130.14
9/2009 $ 82.02
~37% less

I am home more, but apparently using less energy. Reducing our energy consumption has not resulted in deprivation of any kind. We manage to keep warm on "cold" days and have stayed cool in the heat. On warm summer nights we always open the bedroom window to let in the cool night air. We also changed all the light bulbs to energy saving CFLs. PGE offers a "Balanced Payment Plan" option that is now at $91 a month vs. $125 about a year ago. I don't use this option but it illustrates that we are making good overall progress. This could change... it seems colder this year than last year at the same time. So far, we have yet to turn on the heater but it is waiting with new, clean filters.

but then again, maybe not. I'll never know, but I did what I felt was right at the moment. Let me explain.

Today I went to Walmart to buy birdseed and cat food. In the parking lot a nicely dressed woman approached me. She had just gotten out of a late model sedan parked next to me and proceeded to tell me her purse had been stolen out of her car. She had no money, not even for gas... Could I spare some cash? She had a desperate look on her face, so I gave her a few dollars, remembering that once my purse had been stolen and it was a horrible experience.

The woman thanked me profusely and further explained that she had left her purse in the car and her boys (teenagers) had forgotten to lock the doors. She said her purse contained her Social Security card and theirs, too, along with her cash and credit cards. I asked if she'd reported it to the police. She hesitated, then said she had but was told there was nothing the PD could do.

On the way home I reflected about the experience and began to think that maybe I'd just been scammed. I remembered that when I parked my car, the woman had also just parked hers and two boys got out and went into the store. As I drove away, I saw the boys return to their mother's car with a small bag.

If this was legitimate "emergency," then I did the right thing. But if she "had no money," how did the boys pay for their purchase? The experience made me think about the importance of being cautious and using common sense, myself included. In hindsight:

1. Why tempt fate by leaving your purse in the car?
2. Double-check your car is locked instead of depending on teens who aren't always careful.
3. Keep your SS cards in a safe place at home.
4. An emergency cash stash at home can save you in a pinch.

Today dh and I headed for a nearby Farmer's Market that features organic produce. This was an impromptu trip because we had the carpets steam cleaned early this morning and we wanted to give them a chance to totally dry. I hit the jackpot at the market. For $17, I bought:
~ two baskets of strawberries, picked this morning (so sweet!)
~ two extra large white meat peaches (one is enough for two people)
~ two large onions
~ a bunch of long beans
~ two bunches of bok choy (two different types)
~ a large bag of squash blossoms
~ a medium-sized white phalaenopsis orchid

Squash blossoms are highly perishable and should be used the day of purchase. Here is how I prepared them for dinner: First I cleaned them by removing the stamens and sepals (there was a mix off male and female blossoms), then washed them and used the salad spinner to completely dry. Next, I sauteed one fresh crushed garlic clove in EVOO, added the blossoms, and tossed in some fresh chopped basil and cooked until wilted. What looks to be a huge amount will be greatly reduced (it's like cooking fresh spinach).


Today's dinner menu: sauteed squash blossoms, brown rice, and grilled tilapia. For dessert: fresh strawberries with 1/3 cup plain Fage yogurt (0%) that I flavored with a little honey. Delicious!

I love to cook with fresh herbs but find that they are quite expensive at the supermarket and they are also very perishable. Several years ago I began to cultivate my favorite herbs in pots and keep these on the patio. When I need some for cooking, I just step outside and clip. My herb garden includes:
~ rosemary
~ thyme
~ oregano
~ basil
~ mint
~ lavender

I probably have less than $20 invested in the original plants and because we live in a mild climate, they usually last several years. Herbs are easy to care for and great for small or patio gardens. The exception is basil which I buy each spring from Trader Joe's. A a gallon plant is ~$2.99 and I will use it until December.

I also dry my own bay leaves because I have access to a beautiful Bay Laurel on one of my walks. A very small clipping will yield dozens of leaves that will quickly dry and will last for a good long while.

Have you ever eaten a dish that contains lavender? A lot of folks don't realize that lavender is edible and there are many culinary uses. A few years back, at a little quaint restaurant, I tried a "flower omelet" that included lavender flowers... it was one of the best I've had.

One part of my fitness challenge is that I've finally joined the gym. I did so in mid-August and here I am at the end of September and I have been THREE times... not three times a week as was my original plan, but just three times. The gym seems like a waste money for me at the moment, but I will try it until the end of the year and make a better effort to actually GO. Lucky for me it is only $29 a month and I can quit at any time without a penalty. The usual $100 membership fee cost me only $8 because of an August promotion.

I've also started taking a yoga class on Monday nights through a wellness program offered by my HMO. The classes are held at the HMO's hospital and I pay $85 for 8 sessions (non-members pay $160). The class is small, about 12 students and most of us are novices. The best part of my class is the instructor, Bob. He is my new role model. Why? Well, at age 78, he proves that age is just a number. Yep... 78, limber, kind, funny, and wise. This is Bob. And here I am, ~20 years younger, and I feel like what I used to think a 78 year-old should feel like.

Tonight I'll go to my third session. At the first meeting, I took a towel to use as a mat and found it did not suit the purpose mainly because it did not grip the floor. So I invested in a yoga mat and bag Target... It came to about ~$44 with tax. I haven't been to Target for a while because I was surprised when I paid with a CC, that they didn't have me sign the receipt. When I questioned it, I was told Target does not ask for a signature if the purchase is less than $50. I DO NOT like this because I think it makes it easier for a thief to use a stolen card.

So what is the challenge? I've decided that every time I go to the gym, yoga class, or walk for at least 45 minutes, I will "pay myself" $5. What will I do with this money? I am not sure... but I am leaning toward donating it to the March of Dimes or using it to sponsor my grandniece in her school's annual run-a-thon. So here is what I have so far for September:

Yoga - 3 sessions = $15
Gym - 3 sessions = $15
Walking - 6 times = $30

TOTAL: $60