Yesterday I had lunch with a friend who is considering retiring in July. She is 62 and has worked as a teacher for over 30 years. My friend is widowed with a grown son and four grandchildren. (Thankfully, her son will not be a financial burden... he is a successful engineer). According to her retirement estimate, my friend's pension will be about 72% of her current working income. My DF wanted to "pick my brain" because I retired last August, and she's searching for other perspectives on anything and everything related to retiring, especially some of the financial aspects.

So we chatted about what she's done to prepare for retirement. My friend has a 403b account ("small" in her words... not sure what that means) and a savings CD with about "one year's gross salary." DF owns her home that is almost paid for and has no other debt. In talking to my friend, here are some things she DID NOT take into consideration:

1) Inflation: although the state teacher's retirement system guarantees an annual 2% COLA, inflation will likely be higher. DF said she would use her 403b funds as needed to keep pace with inflation.

2) Health insurance: she will not be eligible for Medicare until almost 3 years after her retirement, so she has to plan for health coverage once COBRA runs out. (She thought COBRA would go on until she is eligible for Medicare, but I think it is only 18 months.) She said she would substitute teach to help pay for her health insurance until age 65, or take money from her savings.

3) Paying for increased cost of travel: after retirement, DF will reduce some expenses, but she didn't take into account that travel, a priority for her, might incur more expenses. She said she would use her savings or take on part-time work to pay for travel. Fortunately travel is a "want" and not a "need."

All in all, it seems my friend is on track to retire. She shared that she currently lives on about 80% of her net income, so that is another big plus for her. DF will use her retirement benefit "lump sum" to pay off her small mortgage. And, since she will no longer have a mortgage payment, she will try to add to her savings each month.

I did advise my DF to meet with her HR department regarding COBRA, and a financial planner and/or accountant to get specific financial and tax advice. Taxes in retirement can be an unpleasant surprise if you're accustomed to sheltering income and then find you have few deductions. However, I was happy to share some of the steps I took in my own retirement planning. My DF is doing exactly what I did prior to making the decision to retire... talking to others who have been through the process and leaving no detail to chance.

I was without Internet all day yesterday but my situation was minor compared to what could have happened. There was a major communication services outage in the south Bay Area caused by the

sabotage of someone who climbed down a manhole in the middle of the night and cut several critical fiber-optic cables (in four different locations). It is clear our infrastructure is unprepared for acts of vandalism of this magnitude. I also think it also gives us a preview of what to expect in the event of a serious natural disaster (e.g., major earthquake). This vandalism will cost thousands of dollars to repair, impacted all communication and emergency services, and put lives at risk.

Aside from the inconvenience, the worst part is that many people were without BOTH cell phone and/or landlines. They were told to go out to flag a patrol car in case of emergency... as if this were easy or practical. Fortunately no one died as a result of a 911 emergency or a fire that could not be reported, but I heard of some very serious situations involving critically ill people. I hope they throw the book at the wretch who committed this vandalism and make him pay. There is a $100,000 reward for information leading to the arrest of the perpetrator(s) so that gives you an idea of the seriousness of the crime.

On the positive side, we got some much-needed rain yesterday. So, I caught up on my sewing, went to the bank and the grocery store (saved ~$15 with specials), and enjoyed reading by the fire with TC snuggling next to me. My DD1 is coming today to spend the weekend, and I can't wait to see her. I'm off to the airport in a few minutes. We will spend a few hours relaxing at a local spa, enjoying each other's company. On Saturday we are supposed to go whale watching off Monterey Bay, weather permitting. My DS and BIL will go with us so it should be a fun family outing.

When dh submitted his retirement application, he had to provide a copy of our marriage certificate... not a big deal, and dh was "almost certain" we had a copy in our safe deposit box. We just celebrated 15 years of wedded bliss, but for some reason, this requirement resulted in a chilling thought: what if we are NOT really married? To explain why I would think this way, I must share some of the details of our wedding day.

Our wedding was the epitome of simplicity. We got married on a glorious spring day in our own home, in the company of our children and our closest family and friends, about 25 guests in all. The ceremony was officiated by a friend, a kindergarten teacher I worked with. The delicious food was catered by another teacher and her husband and cost ~$125. The exquisite wedding cake was baked by my sister and was a culinary work-of-art decorated with fresh roses from our yard. My DS also made my delicate wedding bouquet.

The live music (guitar and vocals) was provided by my step-children's godparents and added a very special touch. Champagne and drinks were from Costco, and my stepdaughter and I had fun making the favors. My wedding dress cost ~$150 and was an elegant tea-length ivory gown (bought on sale, of course). We married on a Sunday and took Monday off for a mini-honeymoon in San Francisco. On Tuesday, I returned to work.

Somehow, the details of filing the official document to record our marriage fell to someone else, because I KNOW I didn't do it. What was most alarming was that dh told me he didn't do it, either. Well, the good news is... we ARE legally married! I carefully read the certificate and it is true AND official. Neither one of us remembers how the paperwork was filed, but all that matters is that it was. Phew!

The trip to San Antonio is going well except that I lost my camera. It was a careless thing on my part... I put it down to pay at the food court of the Rivercenter mall, then walked away and only remembered it later. By then, it was long gone. We checked with Security and the Lost and Found to no avail. It's disappointing that it was not turned in and that I lost an entire day of photos, including those taken at dinner with some good friends.

On the positive side, I did buy a replacement camera (Nikon S210) on sale at Office Max for $109 and soon resumed taking photos. The camera also came with a "free" digital key chain that is a $20 value. It's not something I need but, hey, it was free. I like to carry a small, pocket-sized camera and the Nikon fit the bill. I still prefer the one I lost which was a Canon PowerShot 1100.

Yesterday we drove to Natural Bridge... the cave tour was very interesting and I think worth the money.


Then we went to the wild animal ranch next door... maybe worth it if you have kids.


I did enjoy feeding the animals with the bag of alfalfa pellets they give you. The beasts will come right up to the car but guests are cautioned to throw the pellets on the ground.

I have a friend who is 92 and an inspiration to me. I'll call her Rose, although it's not her real name. Rose is a very independent woman, a widow, and she lives alone in the beautiful home she has owned for 50+ years. And, yes, it does concern me that she still occasionally drives her well-maintained, new-looking 1985 Honda to visit her older sister who is in a nursing home, but she is still a good driver. But at her age, we know that reflexes diminish, so neighbors and friends help out by driving her on her errands whenever possible.

Rose is spry, intelligent, and personable and she has impeccable manners. It amazes me she can still walk at a fast clip in heels, something that would challenge much younger folks. At 92, Rose is the same age my mother would have been had she not died so young and I'd like to think my mother would have been like Rose.

I am convinced Rose's diet and work ethic have helped her live this long. She loves to drink tea and eats a healthy diet with little meat, but lots fruits and vegetables... and she enjoys a glass of red wine with dinner. Rose has several fruit trees in her yard and still grows a small garden each summer, although she is slowing down a bit in this area. About six years ago she relented and hired a gardener to mow her lawn and prune her trees.

Rose and I have lunch together about once or twice a month although I check in on her more frequently, and I always enjoy our chats. What is remarkable about Rose is her positive attitude and a resilience that enabled her to survive a host of challenging events in her life, events she tells me about with stoicism and sometimes even with humor.

Rose was a teenager during the

Great Depression. Everyone in her family pooled resources and worked to bring money to the home. Rose and her siblings took turns being out of school to work in a cannery to help put food on the table. She had one pair of shoes and two dresses, one for everyday and one for Sunday and special occasions. Her dresses were hand-me-downs from relatives that were better off. This is quite a contrast from what many of today's teenagers make do with.

I asked Rose what she remembers from those years that has remained with her to this day. Here is what she shared:

~ Never waste anything - buy only what you need
~ Try to do things for yourself instead of paying someone to do it for you
~ Wait to buy something until you have the money to pay for it
~ Take care of your things so they will last
~ Save money so you will always have something to fall back on
~ Work hard and get along with people - it could mean you will keep your job

Can you imagine rebuilding your life after the Great Depression only to have everything you've worked for taken away again? This happened to Rose. In a future post I may share Rose's story about her experience as a Japanese-American in the Tule Lake interment camp starting in 1942, but this was a time in her life that was difficult and the good memories are few. She did meet her beloved husband of 50+ years at the camp and they married in 1945 when they were freed. To their disappointment, they were never able to have children but she helped raise and support several nieces and nephews over the years. I admire that Rose is not bitter or angry about the events in her life and I am convinced her positive attitude has been another factor her longevity.

Yesterday I took my SUV to the dealer where I bought it in 2007 for a service appointment. The car is running fine but the LCD panel alerted me to the need for an oil change. No problem... I decided to take it to the dealer because they will do the service for $29.95, and will also wash the car for free. And, since the car is still under warranty, having it done at the dealer seemed like a good idea.

While I was registering with the service representative, he pulled up my file and informed me the car really needed, in addition to an oil change, an "intermediate" service that should be done every 15,000 miles. My car has 16,000 miles so I didn't think this was unreasonable, but I but did ask how much it would cost. The service rep crunched numbers, flipped through some papers, entered some data in the computer, and then announced: "We can do it for $499.90 but I will give you 10% off."

After I picked my jaw off the floor, I asked him for the details. He said it was $399.95 for the 15,000-mile service and an additional $99.95 for "Throttle Body & Air Intake Cleaning." The latter is supposedly required so that my car "doesn't forget how to drive." I told the rep that if I had to pay $100 every 15,000 miles for my car to remember how to drive, then it must have a major design flaw. I also told him there was no way I would pay their prices.

As I was leaving, the rep warned me that the warranty would be void if I used filters that were not made by Nissan. Long story short: I called our trusted mechanic, Ed, that we have used for 20 years and he told me he could do the entire service for $165, including the tire rotation. Ed specializes in Honda and Acura and is certified, but he is very competent and can work on Toyotas or Nissans, too. He is reasonable, honest, and has never steered us wrong.

It really bothered me that the rep at the dealership tried to scare me into paying their exorbitant prices for a routine service. He must think I just fell off a turnip truck or maybe because I am a woman, I can be talked into thinking service work must be done at the dealer to keep the warranty valid. I noticed I was the only customer there and maybe it's a sign of the times and the desperate state of the auto business. The evening news just the other night had a segment about how DIY auto repairs are creating a little boom for auto parts stores. Who knows, except I won't be going back to the dealer any time soon, not even for a cheap oil change and free car wash.

Today I finally got around to checking out

hulu.com and was pleasantly surprised. If you have the software requirements (e.g., OS X on my computer), you can watch TV programs and movies free on your computer. Now I can watch my favorites TV programs or movies on my computer (using headphones) while dh watches his on the big screen (and vice versa). What will they think of next?!

A few days ago, during a completely normal online session, my Internet stopped working. Just like that, I was offline. First of all, I didn't even know whom to contact about the outage. After all, I always access my ISP account online. Fortunately, my cell phone has Internet access, so I was able to get a phone number. I won't go into the gory details, but the customer service agent (in the Philippines) was not able to get me online after more than an hour of troubleshooting, and he determined I needed to have a technician come to my house the next afternoon. So, now I just had to wait.

My resulting behavior, though, has given me cause for concern... am I addicted to the Internet? Why did I keep checking every 30 minutes to see if maybe I was somehow able to get online? I even caught myself looking out the window, as if somehow the problem would be sitting out there in the front yard. This is not good, and it's made me wonder if I have a problem. Was I experiencing withdrawal symptoms?

It's not as if I surf all day long, but I do have my habits. In the morning, cup of coffee in hand, I read the news online, check my email, read my favorite blogs, and maybe comment or post if I have something to say. If I'm home, in the afternoon I check my email again... and, after dinner I usually check my email and maybe go online, depending on what's happening on the home front. And if I happen to be in the vicinity of my laptop and the email alert sounds, I will check it then. I don't know, is this excessive and why do I feel so disconnected when my Internet is down? (no pun intended!)

do we still need credit cards? This

article in yesterday's Wall Street Journal caught my eye. It is thought provoking, although I don't agree with the premise that it's impossible to live without a credit card because sometimes you HAVE TO use a one (like when you buy a "$10,000 home entertainment center"). People who want to pay cash would do so by writing a check or using their ATM card. Only a fool would carry around $10,000 in cash.

I think if you really wanted to, you could get by without a credit card, a good idea for people who tend to spend more than they earn and want to get out of debt. But, then again, maybe I'm not seeing the whole picture, since I use a credit card for everything. But, I pay off my balance each month and I love taking advantage of the reward miles that never expire.

The video clip that's part of the article was interesting to me because it discusses how closing a credit card account can hurt your credit score. It suggests some alternatives in lieu of closing accounts that have been paid off. It definitely is making me reconsider my plan to close some credit card accounts I haven't used in years.

I previously posted about having to repair our gas fireplace. It cost $122 to have someone come just to "diagnose the problem" which was determined to be a malfunctioning part. So, we paid $122 for the house call plus $33 (10% of the $329 part that had to be ordered).

Well, late Tuesday afternoon the repairman came to install the new part. He removed the old part and replaced it with the new, but the fireplace still didn't work... it would not light. Then he started systematically checking other things and finally got it to work.

What astounded me is that the repairman then told me the original part was working "perfectly well"... that it was not broken. The problem was that the system had to be reset. That was all... a very simple fix. The nice man then showed dh how to reset it in case it happens again (it was not something we would have figured out).

The best part of this story is that the repairman said there would be "no charge" for the visit, that he would take back the part that had been ordered, and the company would refund us the 10% we had paid to order the part. I couldn't believe it!

So, even though the original visit cost $122, we saved $329 on the replacement part and we now have a fireplace that works. We are so grateful that this honest technician told us the truth. He could have replaced the old part, reset the system and charged us... and we would not have been the wiser. His actions have reinforced my faith in the basic honesty of people.

Today I came across Thomas Jefferson's Ten Rules for a Good Life and thought it was worth sharing. IMO, these "rules" are still applicable 180+ years after he died:

1. Never put off till tomorrow what you can do today.

2. Never trouble another for what you can do yourself.

3. Never spend your money before you have it.

4. Never buy what you do not want because it is cheap; it will never be dear to you.

5. Pride costs us more than hunger, thirst, and cold.

6. Never repent of having eaten too little.

7. Nothing is troublesome that we do willingly.

8. Don't let the evils which have never happened cost you pain.

9. Always take things by their smooth handle.

10. When angry, count to ten before you speak; if very angry, count to one hundred.

Yesterday dh invited my DSS (31) and DSD (29) to lunch at one of their favorites restaurants which happens to be a national chain. It was not very busy so we were seated promptly in a private booth. The hostess gave us our menus and told us someone would soon be back to take our order. When my DSD opened her menu, she gasped... inside the menu was a $100 bill! Of course, we were all stunned. We even looked around to see if maybe we were on Candid Camera. (We weren't!)

We began a debate about how a $100 bill had gotten in the menu to begin with, and what to do about it. I suggested asking the manager if anyone had lost any $$, but not mentioning an amount... or that DSD could just give the $$ to the manager and let its disposition be on his/her conscience. DSD felt the $$ couldn't possibly be traced to anyone and that she should keep it because she had "found it." DSS adamantly agreed with DSD and dh agreed the decision should be my DSD's. Both DSD and DSS felt it was a "finder's keeper's" situation.

I suggested that DSD think about it and decide what to do after we ate lunch. Well, after lunch she made the decision to keep the $$ rather than turning it in "for someone else to keep." I wasn't comfortable with her decision and dh was no help ("It's up to her."). In the end, I decided not to fight the battle as I've had friction in the past with my DSD over her spending habits and I wanted to avoid conflict related to money. What would you have done?

The semester is winding down and now it's time for me to meet with my student teachers for an "exit conference" to review their portfolios. It is a one-to-one meeting that lasts about an hour per candidate. I have been looking forward to these meetings because it's a time to reflect on the semester's successes and progress toward program requirements. Fortunately, I have a solid group of students and have no concerns with any of them... they are all on track.

My students asked to have our meeting at a little coffeehouse that's near campus but situated so that parking is free and abundant, unlike the university. So early yesterday morning, I went to the designated place and found a good table, one that would give us some privacy, relatively speaking, since it is a rather small but popular coffeehouse. It is not unusual to for study groups or faculty to park themselves for hours at this place. Between appointments, I observed those coming and going as well as people who sat at adjacent tables. Although I am not in the habit of eavesdropping, due to the close proximity of the tables I could not help but overhear some conversations.

Among the most "fascinating": Lady A and Lady B

Lady A: "So, you guys get any nibbles on the house yet?"

Lady B: "Nope. The realtor wants us to lower the price AGAIN! There goes any equity we might have. We may as well walk away if it goes any lower."

Lady A: "Oh, honey, I know what you mean. The equity in our house has dropped over 300 grand from a couple years ago. We thought we were all set but we'd be lucky to get a mil for it now. At least we don't have a mortgage."

Lady B: Silence.

Me, to self: Lady A, may I recommend a class in Sensitivity Training?

Another interesting interaction between mother and child waiting in line to order:

Boy (about 4): "Mama, I want one of these!" (grabbing a icing-decorated Santa cookie from display case.)

Mother: "No! Put it back."

Boy: "But I waaaaaaa nit!!!" (in whiney high-pitched voice)

Mother: "I said no!"

Boy: "I hate you!"

Mother: "Listen, you better settle down, you hear me?" Then she says to no one in particular: "He always makes me spend money I don't have!" and proceeds to pay for the cookie when she places her order.

Me, to self: May I recommend Parenting 101?

Today I was reading an article about a young couple in the

"Millionaires in the Making" series on CNNMoney and something struck a chord with me. The husband in the article said he and his wife work at trying to "strike the delicate balance between saving for the future and living in the present" and that it is not an easy task. What a wise 27 year old! This young couple has saved some serious money, but they also understand the importance of enjoying the present.

This comment prompted me to reflect on my own experience and ponder the question of balance. All my life I've worked hard to save and prepare for my retirement and so now, here I am... retired. The future that was always the carrot that kept me focused is here. It is now. No more saving for retirement for me. I'm here.

In the last 15+ years since my daughters went off to college, I've probably been a workaholic, at least some of the time. My focus was on my job, working long hours, saving for retirement, working even longer hours, saving more... As I reflect about it, in some ways, before retiring, I had lost the balance in my life. And it wasn't because working longer hours resulted in more pay... I was salaried so it did not matter.

So here I am, happy to be retired and retired, trying to be happy. And while it's good to have the security of a pension and money in the bank - more than I will probably need in my lifetime - what was the trade off? I know I should have taken more time "to smell the roses," figuratively speaking.

Now that I'm retired, one of the things I've had to work on is learning to live in the present, to savor each and every day and revel in the simple pleasures that we can overlook when we make work an unbalanced priority in our lives. I have had to learn to get better at having fun and spending the money to do so without feeling guilty. It should not be this hard.

Balance is so important... and while I'm still working on finding my groove in retirement, I hope all the young people out there in the early stages of planning and preparing for the future do not forget to enjoy the present. Work to maintain that delicate balance because you cannot go back and "re-do" your life.

Over the years, I have practiced what I call my Rules of Thumb (ROT). These are self-imposed "rules" I use to make my life easier or better. For example, ROT #1 helps me keep our small home clutter-free, especially after the massive purging of the

Great Downsize of '06. Following this ROT makes me think twice before acquiring more "stuff" I can do without (read: clutter, junk, dust collectors, gewgaws, useless objects...). I will share other ROTs later, but here is #1:

ROT #1: For any article of clothing or household item I purchase I must select a similar one I already own to give away.

How does this ROT help me? Well, to start with, I have an abundance of nice clothes, most of which are left over from my working days. And, because I take care of my belongings, these can last a very long time. They still fit and I wear them according to the seasons (sweaters, coats, jackets, shoes, blouses).

But sometimes I spot a good bargain and I begin to think I like it better than something I already have, or maybe some favorite piece actually gets worn out, or a household item gets broken. And, then there's the weight-gain situation. If I gain just a few pounds, some of my favorites don't look so good anymore. So, I might want to buy something new.

But, my ROT requires me to select a similar item (two is even better) to donate, give away, or throw away, depending on the circumstance. This insures I still have room in my closet to actually walk-in, and helps me keep impulse buying in check. It's not always easy to apply this ROT, so sometimes I have to work at it.

My "internal conversation" might go something like this:

Me: Ohhh, look at that cute little fleece jacket...and it's 50% off. I love the color!

Frugal alter ego: Yes, very nice. So, what jacket will you give away?

Me: Hmmm, I want to keep my down jacket, it was expensive and I wear it in the snow. My microfiber jacket is warm and water-repellant... gotta keep that one. I love my red fleece jacket that DS gave me... and the black fleece has zip-pockets I use for my keys when I go walking, so I don't want to give away that one... and...

Frugal alter ego: Well then, you really don't need ANOTHER cute little jacket, after all, do you?!

Anyway, you get the idea.

Kiva contacted me to confirm I have been accepted as a member of their translating team. I applied a few months ago, had to submit my resume and take a translating test (I passed). So, it's official... I am now part of the Kiva translating team, and I will work about 3-5 hours a week on the batches they send me. This is very doable and I have the option to decline an assignment if I am unable to meet the deadline (e.g., due to travel).

Before retiring, I spoke Spanish daily... 75% of my students and their families were Spanish-speakers, so it was a necessity. I also frequently translated newsletters and notices that were sent home with my students. Now, I only occasionally speak Spanish. By translating I will continue to use my skills and perhaps even expand them. Use it or lose it. Plus, it's great to be able to do volunteer work without leaving home, especially for a cause I believe in. Volunteering for Kiva is one of my 2009 goals, so I'm off to a good start.

Today is the last day of November and I've been blogging on SA for just over six months. So, I was thinking it might be time to share some things about me that most people do not know. I've read similar lists on Koppur's and baselle's blogs and found them interesting. So I've posted my list on my sidebar. I'd love to read your list if you are willing to share.

This was the question a friend asked me recently, and I'm not surprised. Every day the media has commentary about the fate of those about to retire or recently retired. The calamitous state of the economy has ruined many a retirement plan and has had a negative impact on the quality of life of many retirees.

Well, I didn't even have to stop and think... my answer was a resounding "NO!!" Then I explained to my friend that my retirement was planned over a long period of time; it wasn't a decision made on the spur of the moment. But I've always believed that even the best-laid retirement plans have to take into account future economic challenges, and it is naive to think that situations like the current recession won't recur again in the future. Retirees have to be prepared for the best of times and the worst of times.

My friend asked what I'd done to help me prepare for retirement, so I shared some strategies that I think played a key role in helping me be ready to retire and that should help me weather fluctuations in the economy after retirement. And, while it is crucial to save money in one's retirement accounts, there is far more that can be done to be solidly prepared. So, what did I do that made possible my goal of early retirement?

1) I live below my means. When I worked, I lived below my means, and now in retirement, I will continue to live below my means. And while it's good to at least live within your means, living below your means will allow you to be more successful saving money. Another benefit of living below your means: you can more easily avoid debt.

2) Saving by "paying myself first" is a habit. Starting at 16 when I got my first job, I saved some money every month. It could be more or less depending on the circumstances, but I have to say that in the last 40+ years, it has been a rare month when I have not been able to save something, even if it was only $20.

3) Saving for retirement was a focused effort. From my early 20s, my savings included "untouchable" money: my retirement accounts. I opened my first IRA at age 22 and saved something for retirement every paycheck. As soon as I could, I would increase the contributions and in later years, it evolved to sheltering the maximum allowed in both my 403b and 457 Plan. And if eligible for a Roth IRA, I would contribute to that as well. (This is "doable" if you have mastered living below your means and do not have to use all your earnings to make ends meet).

4) I try to separate "wants vs. needs." From the time I was 19 and lived on my own, I learned to be a careful shopper and have always tried to avoid impulse purchases. Over the years I've had a few slip-ups, and though guilty of some regrettable impulse buys, I can honestly say these never prevented me from meeting my financial responsibilities (because I had savings...). As I've gotten older and wiser, I've gotten better at asking: "Is this a want or a need?" Other questions I ask when I see something I think I need: "Do I love it? Do I have something like it already?" It keeps me from buying things that I really can do without, like ANOTHER pair of black pants.

5) I educated my children about finances. My two DDs were raised frugally and were taught life lessons about money: people and experiences come before things. It was a necessity because I became a single mom when they were 7 and remained single until they started college. My DDs had no problem wearing hand-me-downs or bargain fashions. Both worked from age 16 on, saved money, and helped pay their college (along with scholarships, some student loans, and what I contributed). One DD has a BS in Nursing, the other a BS in Wildlife Biology. Now as adults, they are financially independent, frugal young women. And why is this important? Well, aside from my obvious pride, my DDs are not a financial burden on me, unlike the adult children of some of my friends.

So, do I regret retiring last August? Absolutely not, but it doesn't mean I don't worry about the economy or that I will not continue to live frugally. I do and I will. In fact, frugality is so ingrained in me that it's become a character trait, one that has helped get me where I am today and one that will help me survive in the current turbulent economy. As a retiree, I will not "live high off the hog," but instead will "live low off the bacon" *smile*... that is, I will live with the help of what I've systematically set aside for this season of my life... and it will be more likely to last because I have planned and prepared. And although I am careful with money, I do not live a deprived existence. On the contrary, my life is rich in terms of pursuing the interests that call to me and in traveling to continue life-long learning and seeking new adventures.

This morning I read a thought-provoking

article that predicts a second Great Depression by 2011. I like to think of myself as a positive person and try not to fixate on doom and gloom. But, I do believe this article addresses some of the issues that are contributing to the general instability of the economy. And, apparently at least 1,665+ people were compelled to comment after reading it. How I hope Paul Farrell is wrong this time.

Everyone I know, myself included, is doing the happy dance over the falling gas prices. Here in northern CA we are paying ~ $2.15 a gallon, down from the high of at least double that just a few months ago. This is a good thing, right?

Well, not necessarily. This morning I read an article on CNN.com about the

negative impact of falling consumer prices. WT heck??? Yesterday we were worried about inflation and today it's deflation. Consumers are happy, but economists are not. Go figure.

I've posted before that our townhouse complex is being invaded by a flock of wild turkeys. Our unit backs up to a common area frequented by deer, songbirds, and other wildlife, including turkeys. Being a peace-loving and tolerant individual, I'm trying to share my tiny patio with them. Maybe they will go away after Thanksgiving and I can resume sitting under the pergola without fear of being bombarded by... well, let's just leave it at that.


Now they are even roosting on the roof. I will not call the HOA for fear the turkeys will be "relocated" the same way the wild pigs were (to someone's freezer, we think). So, I wait patiently, trying to maintain my sense of humor... Warning: funny turkey story ahead (sent to me via email)


A young man named Victor received a parrot as a gift. The parrot had a bad attitude and an even worse vocabulary. Every word out of the bird's mouth was rude, obnoxious and laced with profanity.

Victor tried and tried to change the bird's attitude by consistently saying only polite words, playing soft music and anything else he could think of to "clean up" the bird's vocabulary.

Finally, Victor was so fed up he yelled at the parrot. The parrot yelled back. Victor shook the parrot and the parrot got angry and even ruder. Victor, in desperation, threw up his hands, grabbed the bird and put him in the freezer.

For a few minutes the parrot squawked, kicked, screamed, and used language as foul as anything Victor had ever heard. Then suddenly there was total quiet. Not a peep was heard for over a minute. Fearing he'd hurt the parrot, Victor quickly opened the freezer door.

The parrot calmly stepped out onto Victor's outstretched arms and said, "I believe I may have offended you with my rude language and actions. I'm sincerely remorseful for my inappropriate transgressions and I fully intend to do everything I can to correct my rude and unforgivable behavior."

Victor was stunned at the change in the bird's attitude. As he was about to ask the parrot what had made such a dramatic change in his behavior, the bird continued, "May I ask what the turkey did?"

And now, compliments of a former student, some "corny" turkey jokes for the kids: *groan*

What did the mama turkey say to her naughty son?
Answer: If your papa could see you now, he'd turn over in his gravy!

What did the turkeys sing on Thanksgiving Day?
Answer: God save the kin.

Why did the turkey cross the road?
Answer: It was the chicken's day off.

Why was the turkey sent to the principal's office?
Answer: He used "fowl" language!

What did the little turkey say to the big turkey?
Answer: "Peck" on someone your own size!

This morning I was reading an article about a

strategy to prevent impulse buying and I reflected on some of my worst impulse buys over the years. At the top of the list is the $325 Hermes scarf I bought at the airport in Paris, minutes before departing for the US.

I am a scarf lover. Those who know me are used to frequently seeing me in a scarf, almost daily when I worked. Scarves are one of my favorite accessories. But a $325 scarf? It was a stupid, impulsive buy. I made the mistake of going into the duty-free shop and was immediately seduced by this exquisitely crafted scarf. The reality is I can buy a great scarf for less than $50 and wearing a $325 scarf would not make me look any better. And, obviously, it was impossible to return this scarf.

The truly sad thing is that my Hermes scarf has never left its pretty box... I have never ONCE worn it. In the back of my mind, maybe I am thinking I might sell it on eBay, but in the meantime it sits in the cedar chest. What probably will happen when I die is that my DDs will donate it to the Goodwill and some smart and lucky frugal person will buy this great scarf for 50 cents. Hmmm, well, maybe I will wear it one of these days, after all.

It's a small consolation that my impulse buys haven't prevented me from meeting my financial obligations, but I can think of much better ways to spend $325. Had I followed the strategy in the article, I would not have made the purchase. Live and learn.

To me, voting is a privilege and a responsibility. I have not missed an election since becoming a naturalized citizen in my 20s. DH is American by birth, so he has always been able to vote... and he does. For the last few years, we have been voting by absentee ballot and find that it is very convenient. It is easy to complete the ballot in the comfort of your home and then mail it. Voters can also drop off absentee ballots at any polling place on Election Day. In CA, you can apply to be a permanent absentee voter but regulations probably vary in other states.

This morning on CNN, I watched a segment about voter registration fraud, the long voter lines expected in some regions, and a myriad of problems with electronic voting machines. In one case, a woman using an electronic machine voted then saw all her votes jump up a line to the opposing candidates when she completed the process. Weird, but CNN actually showed a machine doing that.

Well, this only reinforces that we are happy to be permanent absentee voters. We mailed in our ballots several weeks ago, so we have done our civic duty. On Election Day, we will not have to deal with the stress of getting to the polls before or after work, or waiting in a long line as we have done in the past. (Well, since I'm retired, going before or after work wouldn't have been a problem for me, but no one likes waiting in line.)

I stumbled upon this interesting

calculator that lets individuals estimate the impact on their taxes for the next four years, based on the candidates' promised tax plans.

Personally, I do not put much store in political promises and will not be voting based on how much money I can save on my taxes. It is far more important to me to vote for the candidate whose policies I believe will more likely result in saving lives, creating jobs, and enabling Americans to afford the basic necessities (i.e., health care, housing, food, gas, etc.).

Which candidate to choose? Well, here's a quiz to see which candidate you align with philosophically. This is one of MANY candidate quizzes/calculators, something I don't remember from the last election.

I am here in Idaho, spending a quiet week and celebrating my DDs birthdays (they are twins). I've had time to enjoy the beautiful fall weather and go for long, leisurely walks. As I stroll through our fairly new subdivision, I'm troubled by the increasing number of homes for sale... about 35 to be exact, or 20% of the homes. A few are beginning to show signs of neglect and the HOA says these are foreclosures, but they are working on getting the landscaping up to standard. It goes without saying that property values have dropped dramatically. Apart from the physical evidence of financial misfortune, I am sad for the families that have had to make the decision to give their homes back to the lender.

The dire state of the economy is painfully evident not just in the many vacant homes in local neighborhoods, but also in the many businesses that are closing. Whether I am at a mall in Idaho or California, I see many businesses- big and small- that are now closing or have closed... their doors are locked, windows covered, the shops empty. It's alarming.

On a more positive note, today's local paper says home and retail sales are up for September in the Treasure Valley, although the "economic downturn persists." This was good for me to read because I'm finding that I can too easily get in a blue mood just thinking about the economy. I know I should focus on things I can control, but for me this is easier said than done. If I let myself, I will worry about the depression/recession/downturn or whatever you choose to call this state we're in. The fact that DH and I are financially secure doesn't help much... I still worry about others, especially children and the impact this is having on their lives.

But in my own way, I HAVE TO DO SOMETHING. So, whether it makes sense to anyone else or not, this has helped me to keep positive. In the last few days I've done the following:
~ swept and cleaned my patio, windows, and super-cleaned the house (easy job, considering the house is used infrequently);
~ donated the money I saved on house-cleaning to the local youth ranch;
~ stocked the pantry with non-perishables (dry beans, canned vegetables, soups, pasta, etc.) and bought enough to donate a like quantity to the food bank;
~ donated a box of like-new, unused warm clothing to a women's shelter;
~ watched a great interactive presentation on the Oregon Trail in Idaho (those pioneers do inspire courage and perseverance!);
~ made a list of all the blessings in my life (and there are many).

I'm interested in knowing how others are coping/surviving given the state of the economy. What are you doing to keep going and how do you stay positive?

The real estate market in my neck of the woods has gone to hell in a hand basket, although realtors like to use less graphic language like "it's a buyer's market" or "we are in a temporary downtrend." Today I looked up the house we downsized from in 2006 on

zillow and was astounded to see that it is currently valued $200,000 less than what we sold it for two years ago. Back then, when we put the house on the market, it sold in less than a week and we had three offers above the asking price. It's sobering... I think the family who bought our old house will be OK, though, since they were solid buyers.

No one's been left unscathed. The townhouse we moved to when we downsized has lost at least $115,000 in value in the last two years. Thankfully, we are not thinking about selling for a while, and we since we bought it in 2003, we actually have some equity. What would be a nightmare is to owe more on your mortgage than your house is worth.

A family I know is in that predicament. They bought their house for $620,000 in 2006 and got 100% financing through a special first-time buyer program for teachers. Believe it or not, their purchase was "entry level" in our area but they had to buy in a nearby town because there was nothing available in their price range in our city (only "dumps" according to them). Today, their house is worth $454,000. Their saving grace is that they are able to make the payments so they are OK for now. When will they have equity again? That remains to be seen, but it could be years.

This was a question from someone I've known for years. He tends to be very negative and is not someone I'd frequently associate with if it were not for a circumstance of fate: he is the significant other of a good friend but I don't hold that against her. (Have you ever noticed how negative people suck the life out of you?) Well, I explained, yes, I do have a job but it is because I choose to do it. I do not HAVE TO work. So I leave it at that since I know it is useless to try to explain myself to someone who just doesn't "get it."

I choose to work because I've found job that feeds a passion, not my pocketbook. That, to me, is the big difference. In my previous job, if I did not feel like going to work, I could not easily call in sick. There is not such thing as a substitute principal, although we have individuals assigned to carry on while we are off campus. It's just not the same. Our presence is required 99% of the time.

Now, I get to choose the days and times I work. I have tremendous flexibility, with the exception of having to meet seven times between September and December 1st for a two-hour seminar. But then, I was the one who decided on the dates/times, so it's not that bad. On some weeks, I have no scheduled workdays'these are my "free" days. On other weeks, I may work a day or two.

And a bonus: I get paid! I plan to use this extra money to expand our travel plans and increase my contributions to

Heiffer International and Second Harvest Food Bank, two organizations I regularly support. Here's what my job commitment looks like for September:

~ 21 possible workdays (not counting Labor Day)
~ Of these, 11 days are completely free
~ My longest work day: 1 day @ 6 hours
~ On 7 work days, I have scheduled ~3 hours
~ 2 days will require working ~ 2 hours
~ My net pay estimate: ~ $34 an hour (after 33% withheld)

While the money is nice to have, it is not my reason working. My part-time work is a self-imposed experiment because, to confess, I was afraid of having way too much time in retirement. Back in May, when I decided to take the final step into retirement, I had some doubts... about having too much time on my hands, not enough to do, and well...I guess I just needed to be needed somewhere for something. And so, I applied for my PT job at a local university and also accepted a consulting contract with my former employer. When the academic year is over, I may choose to continue working... but then, maybe I won't. Gotta love having choices!

In 1992, a friend gave me a bottle of Marilyn Merlot, vintage 1988. I decided this wine would be worthy of consuming only for a very special occasion, like celebrating my retirement. Through the years, and through two moves, I stored it carefully, always monitoring the temperature. Then, one day in May of 2007, I drank it and for no special reason. Why?

A close friend had died the month before, suddenly and unexpectedly at age 55 while on vacation. He and I had talked frequently about retirement and all things we would do and the fun we would have when the day finally arrived. For my DF, that day never came, and his death made me take stock of my life and acknowledge how uncertain our future can be no matter how well we plan.

So, I finally opened that bottle of 1988 Marilyn Merlot and toasted my DF. The wine was exquisite... it exceeded my expectations. Over the course of a week, I finished the bottle. (DH was in Central America or I would have shared it with him.) Later, wanting more of this great vintage, I decided to buy another bottle to share with DH. To my utter amazement, when I got on the Marilyn Merlot website, I saw that a bottle of

1988 Marilyn Merlot sells for $2,000! I was astounded and my first thought was... I would never have opened it if I had known it was that expensive. (Gee, I could have sold it on eBay!!)

Then, I reflected about how easy it is to put off living in the moment and enjoying the simple things in our lives, waiting for some vague "special time" that may never materialize. Now, if someone gives me a nice bottle of wine "for a special occasion," I enjoy it sooner than later... just because. No more waiting... Carpe diem! Make your own special moments every day. BTW, I never did buy another bottle of the 1988 vintage, but when I retired, a friend gave me a bottle of 2004 Marilyn Merlot... and it's gone.

My favorite local radio station asks listeners a “call-in” question every morning. Today it was: “Where do you hide your money?” One caller said he had hidden $1,000 in a DVD to surprise his wife for a Disney trip… but she sold the DVD at their garage sale before he could surprise her! Another fellow called and identified himself as a “senior citizen.” He said he hides money in different places and for a variety of reasons… only problem is he can’t REMEMBER where. What was the most he’d ever hidden? He said it was $2,000 he’d stashed in a shoe for a home remodeling project.

The DJ nicely said, “Hey, it doesn’t just happen to senior citizens!” Well, at 58, I do not think I’ll call myself a senior citizen for at least 15-20 years (unless I can get an “over 55” discount somewhere for it), but I can sure identify with stashing money so safely I never find it again. The other day I found $60 in an old wallet I took out to put in the Goodwill box. I got the same rush as I did last summer when I won $7 on the penny slots in Vegas. Yeah!

Actually, I mostly use the bank for keeping my money, so when I “find” money, it is more about having forgotten it was there to begin with. One thing I have done for the last 20 + years: I keep a $100 bill folded behind my driver’s license in my wallet. This is my DIRE and IMMEDIATE emergency money. I’ve had to break it out only three or four times over the years… and it gets replaced if I use it.

Each time I’ve had to use it, I’ve been somewhere that takes only cash but I didn’t pay attention until it was too late. Out of the blue, my pedicure place stopped taking CCs and had just placed a tiny sign by the cash register. Another time, DH and I had taken my DSS to a Basque restaurant for his birthday and while we sat enjoying our meal, I spotted a sign on the door that said “Cash Only.” The restaurant was out in the boon-docks, with no ATM or bank open. The look of horror on DH’s face told me he only had his usual $40-80 on him. It was great to say, “Don’t worry, I have some cash.”

Well, I will add the $60 I found to my $20 Challenge:

Balance Forward = $155.43

8/25
NSD = $3
NDD = $4

Forgotten but Found $$ = $60

New Balance = $222.43

My goal by December 31, 2008: $2,500

Yesterday was my first official day of retirement and it feels a little weird to not have a million problems to solve, meetings to attend, and tasks to complete… but it was a great day. In the morning, I spent two hours at a local spa, getting pampered. One great massage and deluxe pedicure later, I met DH for a romantic lunch at an Italian restaurant that we love. The best part is that I used gift cards that were given to me as retirement gifts, so I did not spend any money.

Today, I am looking forward to having lunch with a friend whom I’ve not been able to see for a while. She’s been asking to take me to lunch or dinner in honor of my retirement. Well, now that my “retirement” is finally here, I think the best part is that I have choices. I’ve heard said that change is hard, especially if like me, one is retiring from a position of great responsibility (I was the administrator at a large urban school with over 800 students and 75 employees).

For me the key will be to continue to be productive and to have a purpose greater than just “playing” all day long, although I do have to get better at playing, too. For so many years, my job took prominence in my life until I realized I did not have balance and my health was affected. All work, no play. So, in retirement I will strive to enjoy a life with more balance, a life that is simple but at the same time, rewarding. Next week I will begin to research volunteer opportunities.

To help me “transition” to retirement, and to give me the opportunity to continue working in my field, I have accepted a part-time job working at the local university (same one where DH works). My job will require working about 1 day a week, and on certain weeks, it will be about 1 ½ days if I have a meeting or training to attend. My PT job begins Thursday, but I am looking forward to it. I began my career in education as a teacher, and now I am back to being a teacher… a role that gives me great satisfaction.