Financially Free

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

Today I went to the local hardware store to buy a replacement plant for a large rubber plant that suddenly lost all its leaves. I'd had it for almost two years and it was lovely. But I also learned it was TOXIC to cats, so I was not heartbroken when it died. Fortunately, TC did not bother this one so all is well.

The replacement plant is a

Sansevieria that cost $19.99 plus tax. It is commonly known as "Mother-in-Law's Tongue" and it has large, striking leaves. I hope it will last for years, much like one I used to keep in my office when I worked. They are easy to care for and best of all, safe for pets.


I love to decorate with flowers and plants but now that I have TC, I have to be selective. Unlike my dearly departed MC, TC has been known to chew on some of my plants and get into mischief. Orchids are one of my favorite cat-safe plants... the blooms last for months and I can usually purchase a nice large one for ~$20. On the other hand, when I buy fresh flowers, they only last about 5-7 days and a nice bouquet is ~$15. So plants are an economical alternative.

TC on top of the kitchen cabinets.

These were the teasing words of my friend, LM, as a group of us rode to the Capitola Wine and Art Festival a few weekends ago. We were discussing retirement, a popular topic with my friends. Of the five of us on this excursion, four of us are retired. Three of the four, myself included, have continued to work part-time in our retirement. My friend, LM, is the exception and he likes to remind us he "knows how to do retirement." LM loves his leisurely lifestyle that includes playing golf three times a week, and he is fortunate to live in a 55+ community that has an 18-hole golf course among its many amenities.

On the other hand, I do not play golf nor does my dh, and although we have hobbies and interests, we also have ample time on our hands. So we chose to take part-time work, not just to keep busy but also to help the university fill a need. We will continue our jobs until mid-December of this year. Then we will begin some serious traveling that will take us far and away for months at a time. This is something we have planned and are looking forward to... new adventures exploring the big wide world.

The reality is that we Boomers are redefining what it means to be retired, and there is no set way to do it. I recently read an article,

"The End of Retirement?" in the AARP newsletter that discusses the increasing number of seniors who continue to work in their 70s, 80s, and 90s. Many of the folks in this article are working because they must "make ends meet." But for some, working after retirement is a choice. One woman was 101 (not a typo!) and still worked part-time.

For me, a "successful" retirement means having choices and more control over my life. One of the best payoffs of 30+ years of saving and planning for retirement is that I can live comfortably without HAVING to work. But I know I can choose to work if it is a mutually beneficial situation for me and for my employer. In fact, many of the adjunct faculty at my university are retired from administration or teaching and like me, are enjoying the opportunity to keep mentally active.

So, even though dh and I will not be working (for pay) after December, I have a feeling we will be working at something once we get the travel bug out of our system. And when we feel the need to get involved in something again, we know we can find a volunteer job that is a good fit for us. And who knows, maybe we will even find jobs that pay.

This brings me back to the importance of planning and saving for retirement. According to the AARP article mentioned above, more than half of the baby boomers are in peril of not being able to maintain their standard of living in retirement. Rising health costs and dwindling Social Security benefits will have a negative impact. We are living longer, so retiring later will become the new reality for many. So, if like me, your goal is to retire early (or even at age 66 or 67) and be able to sustain a comfortable lifestyle, then planning, saving, and becoming debt-free will be key to attaining that goal.

I've been reflecting about my SA blog and think perhaps I don't focus enough on "financial" topics, so I haven't posted for a while. I've always had an interest in personal finance and felt that by blogging here I could learn from others and also share the experiences that led to my "financial freedom." I was able to retire at age 58 (not really "early" but 8 years ahead of full Social Security retirement for my age group).

One of my goals has been to enjoy a comfortable retirement through the careful management of my financial resources. It's hard for me to separate living my life in retirement from the psychological and philosophical role that money plays in our lives.

After years and years of planning for my future retirement, the future is here. But it doesn't mean I can't continue to learn from others or that others can't learn from me. But still, I have to remember the focus of this forum is personal finance. I guess I will continue to post, although it probably will be less frequently. However, I will continue to enjoy the SA blogs.

Thanks to gamecock for the idea, I used

ChartTool to get a "visual" of our monthly expenses. Taxes are not included in this graph because it reflects how we spend our net income.

The "Misc." category includes:
~ spending allowance
~ clothing
~ prescriptions
~ entertainment
~ personal care
~ house cleaner
~ gifts
~ incidentals
~ anything and everything not accounted for elsewhere

The "Housing" and "Utilities" categories include expenses for both our CA condo and second home in ID. The "Travel Savings" category includes timeshare dues, prorated expenses for planned trips, airfare to ID, etc. Eating out about once or twice a week is included in "Groceries."

Funds needed for emergencies, home maintenance, eventual replacement of cars or appliances, repairs to rentals, etc., are taken from the "Savings" category. I like to keep this account padded because emergencies are as sure to come up as the daffodils in spring.

We had to evict tenants that had been at one of our rentals for more than four years, and it has made me realize I may want to get out of the rental business altogether. We have never had to evict a tenant before and it is a very unpleasant experience even though I am not directly involved. It is especially distressing to me because the tenants had two young children and I feel very badly about the impact on the children.

In June we employed a property manager who is a "no nonsense" type of person. The tenants had been late paying their rent for the last year and a half, but they eventually paid. We even let them pay in two installments to help them but things only continued to deteriorate. Long story short, the tenants were three weeks late in June and did not pay in their July rent, so our manager gave them their three-day notice at the end of July and proceeded to evict them.

What is mind-boggling is that when the manager went to collect the rent, he found a person living there who was not on the lease (she said she was the sister of one of the tenants). This woman told the manager the tenants were on vacation on the Oregon coast. Beats me how you would go on vacation when you haven't even paid the rent. This was the straw that broke the camel's back, so we agreed to the eviction.

Well, the tenants are out and it looks as if we will need the entire month of August and possibly September to get the property rentable again. So far, the house needs new floors throughout, complete painting, major cleaning, and lots of minor repairs. The tenants left tons of garbage and unwanted items, not to mention they lived in filth.

Words cannot describe the stench and the dirt we encountered when we went to see for ourselves today. Their pets (unauthorized) soiled the carpets right down to the sub-floors. This environment is hazardous for children! The once-beautiful back yard is a weed patch and there are oil/grease stains in the garage and driveway.

Believe it or not, this backyard was once pristine and well-manicured with a lush lawn.


This is the sub-floor after the carpets were removed. The stains are from dog urine. The floors have to be treated and sealed before we can replace the carpets. All linoleum also has to be replaced due to gouges.


This is the space next to the refrigerator. The entire house is this dirty.


I am hoping we can get through this nightmare for under $10,000 including the two months of lost rent (assuming we get it rented by September 1). The security deposit will not even cover the cost of hauling the tenant's trash to the dump (broken washer, 12 tires, old CPU, broken desk, dog house, car parts, swing set, toys, etc.). Even if we decide to sell this house, we still have to clean and repair it. We DO NOT need the headache and expense!! To make matters worse, owning rentals gives us no tax advantage due to income limits, so why are we doing this?

When I decided to retire a year ago, I knew we could live more frugally in some ways but I also knew that travel would be a bigger expense, given that we'd have more time for it. And, after years of working hard and looking forward to retirement, it would be disappointing to have to limit travel due to lack of funds. So, to what extent would we be able to afford retirement travel? To figure this out, prior to retiring I analyzed our projected monthly expenses in relation to our retirement income. I included "travel" as a monthly expense.

For us, travel planning begins with reviewing our calendar and discussing where we'd like to go in the coming year. We take into account visits with family, work/volunteer schedules, other financial obligations, and timeshare options. In 2009, our travel plans have included Carmel, San Antonio, an Alaskan cruise, and a trip to Payette Lake in McCall, ID. Once we know when and where, I estimate expenses for airfare, hotels, meals, and excursions. That amount is prorated and I deposit a monthly amount to the savings account that holds travel funds.

Then I challenge myself to reduce the cost of our planned travel as much as possible. For example, our hotels in Carmel, San Antonio, and McCall were reserved through our timeshare, so aside from the annual dues, there was no hotel expense. The airfare for San Antonio was purchased with miles, so we paid only the airport taxes (~$20). The airfare to Seattle (departure port for cruise) was 50% off because I used my mileage card rewards.

For the Alaskan cruise, we received a "military discount" available to anyone who has ever served in the military, no matter when. We were eligible for the discount due to dh's service during the Vietnam War and this saved ~$500. A few days before the final payment was due, I called the cruise line and negotiated an additional savings of $240 plus $100 onboard credit. A few days before departure the cruise line called to see if we were interested in upgrading to a suite for a reasonable price and we did.

The effort to systematically save and reduce travel costs pays off because the travel fund is growing. I usually deposit any "windfalls" into this account. In 2010, we want to go to

Machu Picchu and take a Hawaiian cruise, so I'm starting to plan and save for those already. Retirement travel is possible because we live a simple life with no debt (except for a small mortgage) and we carefully plan and save for each trip. We've always said travel would be a priority in our retirement and we definitely want to make hay while the sun shines.

For the last two weeks, dh and I have been in Boise enjoying our second home. Most of the time the weather's been great but it's gotten very hot in the last few days. It hasn't stopped us from making some great summer memories, though.

Last week we spent two days in McCall, one of my favorite areas and about a two-hour drive from Boise. Payette Lake is in McCall and we found it to be very quiet and not at all crowded during the week.


For a reasonable fee, you can dock you boat at the marina. Payette Lake is popular for waterskiing, jet skiing, and fishing. There are abundant hiking and biking trails at the Ponderosa State Park.


Through our timeshare we were able to stay in a comfortable two-bedroom apartment with great amenities... we were able to cook some of our meals in the well-stocked kitchen.


We had fun watching the resident raccoon. I think he lives under the deck and comes out when he hears folks talking or grilling on the gas BBQ that is provided for guests. "Mmmm... can I have a piece of chicken, pleeeease?"


There was no cost to use the apartment, except for the annual fee that we pay. When you take into account these timeshare fees, it comes to ~$37 a day for accommodations. Not bad for a place that sleeps six.

We are finding that in Boise, most people are friendly and helpful. Life just seems slower-paced and simpler. We can go to the local theater complex and see a movie for $6.75 each (senior discount) and not worry about getting a seat. We went to see Harry Potter on the second day of its release. It was good... it was long and lacked the impact of the first movies, but still worth seeing.

Boise is a bike-friendly city. We've been riding our bikes quite a bit but since the heat wave started, we are riding less. The

Boise greenbelt provides about 25 miles of paved pathway. It's great!

We went to the Shakespeare Festival on Saturday to see Comedy of Errors... it was a lot of fun, especially because DD1 and SIL went with us. We enjoyed a nice picnic dinner, followed by DDs homemade strawberry shortcake... which was decadently good.

Even grocery shopping in Boise is more enjoyable for me... you can actually find parking at Costco on a Saturday. That's a big deal for me because, back in Silicon Valley, we NEVER go to Costco on a Saturday due to the crowds and difficult parking.

I'm finding that the cost of living is much less in Boise, especially food and gas. I used Sperling's calculator and found that it is 42% cheaper to live in Boise than in San Jose. Housing is 62% cheaper in Boise than San Jose. This is good news for us because our retirement dollar should go farther when we move here permanently next year as planned.

In our neighborhood, it seems that the real estate market is perking up. Last year in June there were 40+ properties for sale (newly-built homes and lots). Now there are about 12. With a few exceptions, the homes in our neighborhood are well-cared for, thanks in part to our HOA that is doing a better job of monitoring CCR enforcement.

Our Boise home has limited storage so we are getting bids for adding a large storage area in the attic space above the garage. We will be getting two or three bids and will make our decision after we analyze the proposals. It will be interesting to see how ID construction costs compare to CA.

I'm happy to report that we continue to make good 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:

4/2008 $116.63
4/2009 $76.87
~35% less

5/2008 $94.53
5/2009 $80.31
~16% less

6/2008 $84.45
6/2009 $ 36.59
~56% less

The June figures are somewhat skewed because we were gone for several weeks, but I am still pleased that our usage has been lower each month in comparison to the previous year.

I pay the majority of our bills via auto-payments that are easy to manage online and ensure bills get paid on time. One exception is our property taxes. Our Idaho taxes were due in June and I mailed the check well before the due date. When we returned from our vacation, the payment had been returned due to a .02 shortage on the postage. Two cents!! I guess I was in la-la land when postage rates were raised to 44 cents in early May. So, my 2-cent mistake resulted in a $254.49 late fee.

So, I mailed the tax payment again, along with the late fee and included the envelope that showed the original postmark. Then I called the Ada County Treasurer's office to explain the "check was in the mail." To my surprise, they informed me I will not be charged the late fee because the original postmarked envelope proves it had been mailed by the due date. Instead, they will return my check. Lessons learned: 1) Not all government agencies are unreasonable; 2) From now on, I will only buy the "Forever" stamps.

My dh is retiring tomorrow, on July 1. Originally, once he officially retired, he was planning to participate in a program that allows tenured faculty to teach 50% for 5 years. He has decided that doing this for one or maybe two years may be enough. So he will teach in the fall and then may completely retire at the end of 2009. Although his decision is not set in stone, it surprised me. I will support him whatever he decides... working 50% for a few years or "completely" retiring. So, now we are facing some decisions.

We live in a condo in Silicon Valley and have a second home in ID, where my DDs live. Our plan was to eventually sell the CA condo and move to the ID home once dh was 100% retired. Until recently, I didn't think it would happen for at least five years, so we were just coasting along. But now I am facing the reality of moving from the area that has been my home for ~17 years.

I love the diversity of Silicon Valley and the excellent access to so many activities. But the biggest change will be moving away from family and friends. My only sibling and best friend, my sister, lives 45 minutes away. My niece and her children live 25 minutes away, and I am very close to them. Over the years, I've made good friends and will miss seeing them on a regular basis. My dh's children live in Fresno, ~4 hours away, so we will see them less often, too.

But ID is a beautiful state, made all the more special because my daughters live there. However, they have lives and careers of their own. Although it will be great to be minutes away from them, I can't and won't expect them to alter their lives for us. Once we are permanently living in our new city, dh and I will have to work on making new friends and getting involved in community activities. And while I don't think it will necessarily be an easy transition, it will be an exciting challenge.

Another issue is that real estate is extremely depressed in our area, and we may not be able to easily sell our condo. So, dh and I have been discussing the idea renting our condo, something we did for the first three years after we bought it. We can rent it for enough to cover the payment and a 10% management fee. And, we could rent it for up to three years and still get our capital gains exclusion. Not that it matters right now... I think the place is worth about the same as we paid for it in 2003, so there is really no gain to consider at the moment.

I have been reflecting about why I am leaning toward renting our condo. To be honest, I feel we can always move back to Silicon Valley if living in Idaho is not what we expected it to be. It's not that I think we won't enjoy living in Idaho, but I know it will be different to live there full-time instead of just spending a few weeks here and there. So, we'll see... time will tell and help us clarify our decisions.

Five days after returning from ~ a month of intense work in Guatemala, dh and I left on our long-planned cruise to Alaska. It was a wonderful experience, especially because we were joined by my DDs and SILs. It was great to see them every day for a whole week, enjoying meals and some excursions together.

Alaska is beautiful and we had clear but cool weather most days. Juneau was the exception, where it rained as we sailed away through the icy fjord. The wildlife is abundant... we saw seals, whales, dolphins, eagles, bears, and even some reindeer.

I photographed this eagle near the Ketchikan rain forest.


The Glacier Gardens in Juneau are alive with color and texture.


Here is a view of Mendenhall Glacier (Juneau) from the observation area... it is magnificent.


This is Dawes Glacier, seen as we sailed through Endicott Fjord.


We saw some beautiful, rugged country on the train excursion to White Pass in Skagway.


The view from our stateroom was amazing.


We had three adjoining staterooms and had fun visiting from our balconies. My DDs/SILs are enjoying the view as we leave Seattle.


Cheers!

The trip to Guatemala was very productive and culminated in success for our 18 students. Everyone completed the course requirements and we made it back safely to the USA. Our journey was not without some "problems," though.

While we were there, we experienced:
~ 3 earthquakes (1 strong, 2 mild)
~ two torrential downpours
~ the closing of one of our schools due to H1N1 flu outbreak
~ my dh sick enough to warrant going to the hospital (he recovered)

The day after we arrived back in the USA, all schools in Guatemala were closed until July 1 due to H1N1 flu. Unlike the USA, the Guatemalan school year is from January to October. Our timing was perfect because we finished the program the Friday before all the schools were closed by the government.

But, we're back, and eager to go again next year. Dh and I will rent an apartment and live there a few months, doing pro bono teacher training and just enjoying the beautiful city of Antigua. The schools want us to return and even went as far as helping us find an apartment we will be able to rent.

It was truly an amazing experience to wake up each day in this beautiful part of the world. The Guatemalan people are welcoming, and the city is a mecca for learning. Language schools abound and people from around the globe come here to learn Spanish or Kakchiquel (the Mayan language).

Apart from the cultural dynamic, the geography is breathtaking. I took the photos of these two volcanoes from the roof of our posada. This one is called "Agua," taken the day after a heavy rain when there was no cloud cover.


On the same day, I took this photo of "Fuego" which actively sputters all day long, sending sheets of lava down the mountain. You can see the lava if you look closely.

We arrived at Chichicastenango after breakfast Sunday morning, en route from a night at Lake Atitlan. The volcanoes that surround Lake Atitlan look like a watercolor backdrop at sunset.


We will be here just a couple of hours and there is much to see. The sights, smells, sounds, and colors of the marketplace at Chichicastenango fill the senses. Here in this bustling marketplace, I catch a glimpse of the lives of the locals, so different from my own. This is the area in the market where the locals come to buy and sell their produce.


Artisans proudly display their wares and eagerly tell you about the artist or the weaver and the region where an item was produced. Each village has its own unique weaving style, so it is easy to identify where people are from by the patterns on their huipiles (traditional woven top worn by the women). I wish I could buy a trunk full of items to bring back home, but alas, space is limited. But this visual treat, now digitally preserved, will be enjoyed again and again.


These are Nativity scenes (creches) made of clay and hand painted. Guatemala is predominantly Roman Catholic.


Although a stranger looking in, I am touched by the universal bond of motherhood. Guatemalan mothers, babies snugly strapped in their rebozo slings, are no different than mothers around the globe. They love and protect their children and it is joyful to see. But I cannot be obvious in taking photos... Americans have been warned... NO PHOTOS... because some Guatemalans believe babies might be kidnapped for adoption by foreigners. It is now very difficult to adopt Guatemalan babies, unlike a few years back when adoption was a booming, unregulated business.


"He's not heavy; he's my brother..." for 5 Quetzales (63 cents), though, I am allowed to take this picture.


Dare I try the freshly made blue corn tortillas or the luscious fresh fruit ready to be eaten? In my younger days, I would not hesitate to eat food sold on the street. But now I am more careful, knowing I cannot do my job if I were to get sick... I simply don't bounce back the way I used to. But I can still take in the wonderful aromas of the typical fare while I snack on my Trio bar and banana.

There was no school on Wednesday, so at dawn, the air clean and fresh from the evening rain, our group took the shuttle to the starting point of our climb up the slopes of

Pacaya. After more than 100 years of being dormant, Pacaya had a violent eruption in 1965 and has been erupting continuously since then. In fact, Pacaya is one of the most active volcanoes in Central America. In 2000, the activity was such that flights to Guatemala City were suspended for two days.

This is a photo I took of Volcan Pacaya on the way up the trail.


I have to admit being a little apprehensive about the climb... but dh assured me even "old" people make it up the mountain. He does have a way with words! My right ankle has been troubling me after pulling a tendon a few months back, and despite therapy, it still gets sore easily. The perfect solution for me involved spending $25 for a guided horseback ride up and down the slope (more than 7 kilometers), led by Miguel, a young man of about 16. Even some of the more fit and younger members of the group opted for the horseback ride. Dh, an avid hiker, led the others up the steep slope.

I rode Canario up the steep 7 kilometer slope.


What can I say... by hook or by crook, I was going to see the red-hot lava flow close up. On my horse, Canario, the ascent was fast-paced but I was able to chat with my guide... my fluent Spanish coming in very handy. Miguel said he no longer attends school because he has to help support his widowed mother and 3 younger siblings. Despite the obvious challenges in his life, this young man demonstrated a strong work ethic, a positive attitude, and great interpersonal skills. Imagine what he could do with his life if he had access to a good education!

Miguel knew a great deal about the local flora because he told me all about the numerous plants we passed on the way to the volcano. For example, one plant, called "Hoja de Queso" is used to press cheese between two large leaves. It has antibacterial properties and can also be used as emergency TP or to wipe a sweaty brow. Miguel earned a nice big tip for his extra-special guided tour.

"Hoja de Queso" is a versatile plant.


At the summit, from my vantage point I could see the roiling red-hot lava spilling from the caldera... a wizards brew, complete with an occasional pungent whiff of sulfur. A tremendous heat radiated from the flow, and I was happy to observe from a distance. Thankfully, the thick soles of my hiking boots protected me from the sharp lava we stood on. To my surprise, I learned the lava we are standing on is only 5 months old. I am grateful I decided to pack my hiking boots and gloves to protect my hands as I negotiated through the craggy lava flow. As I steadied myself on the sharp, black lava, my walking pole was looking pretty beat up. I took photos with my Flip video and later will convert some footage to still shots. It was fascinating!

One of our students can be seen crossing to the lava flow on horseback.


I took this photo of the lava flow with a 3X zoom.


The ride down was harder than the ride up. Because of the steep grade I had to lean back very far and press tightly into the stirrups. Canario, only seven years old, was a veteran of the trails... not even phased by the poisonous snake he stopped for on the trail.

The poisonous snake on the trail down was more startled by the horse than vice versa.


I had a view of another volcano called Agua on the way down the trail.


By 1:30 we were back at the posada, in time to make lunch and then get to work planning the seminars for the coming week. Later, I paid $12 for a soothing 45-minute reflexology massage... what a treat for my tired feet!

One of the "must see" places in the beautiful Antigua, Guatemala is the five-star hotel, Casa Santo Domingo. It is actually one of the grandest monasteries from the 16th century colonial period of the Americas and it has been converted to a luxury hotel, complete with all the amenities and conveniences of the 21st century. The gardens are exquisite with a vast array of tropical foliage and perched macaws, and the artwork on display in the lobby and the many passageways makes for a museum-like experience. In addition, there is an actual museum beyond the ruins of the original structure and also a unique open-air church.

The lobby of Casa Santo Domingo.


The church is beyond the ruins seen in this picture.


The macaws are colorful and charming. It's almost as if they know you are watching because they perform silly "tricks" like hanging upside down.


You can see the macaws in the gardens.


Our group enjoyed the "all you can eat" Sunday brunch, reasonable at ~$20 per person, considering the vast array of food and drink available. The food truly defies description... one can choose from typical "American-style" breakfast fare such as waffles, pancakes, sausage and eggs to personally prepared omelets and crepes. Then there is the typical Guatemalan food such as tamales, beans, cheeses, enchiladas, exquisite tropical fruit and much more. The students were in heaven, sampling the many dishes. I chose the typical food, including some Salvadoran pupusas (stuffed tortillas) that are my favorite.


The experience was all the more special because my cousin, ML and her husband, were here from El Salvador for the weekend. And, no, they did not stay at Casa Santo Domingo. They stayed at the posada with us, where a small but clean and comfortable room is ~$40 a night compared to ~$250 or more at Casa Santo Domingo. In our travels, we rarely, if ever, stay at such expensive digs, but we know can still get the flavor of a place by dining, having a drink, or just visiting the public areas and gardens of interesting and unique places like Casa Santo Domingo.