I Don't

We went to the doctor for our annual physical exams earlier this week. We dread it, but do it religiously. After all, what good is it to be retired if you don’t take care of your health? All is well, other than that we both require meds for high cholesterol. Even with that, I naturally have VERY high “good cholesterol”, so my ratio is well within a normal range. I continue to have to manage my carb intake in order to keep Type 2 Diabetes at bay without medication – that will likely be a lifetime challenge.

Sometimes I judge myself harshly (I would like to lose another 15-20 pounds). But I need to remember that I have made a lot of positive changes to my diet and lifestyle over the past 2 years, and give myself credit for those. Here are some of the things “I Don’t” do anymore…

I don’t keep bread in the house.
I don’t eat rice, potatoes, or pasta (except for the occasional spoonful or two when eating out).
I don’t eat sugar, and have replaced it at home with Splenda.
I don’t have potato chips anymore.
I don’t have (my favorite) pancakes for breakfast, except on my birthday and our anniversary.
I don’t regularly use butter – substituting olive oil or Pam instead.
I don’t have sugary desserts.
I don’t eat fruits or veggies that are high in carbs, banning some favorites – like apples and corn.
I don’t snack on popcorn or raisins – both were favorites, but are way too high in carbs.
I don’t eat cereals. Breakfast is usually eggs or an Atkins shake.
I don’t drive anywhere (in Chicago), we walk - or walk to public transportation.
I don’t take my health for granted. I have to make sacrifices to keep it!

I guess this blog today is part bragging and part complaining. But occasionally I need to remind myself about why I made these changes and how important it is to stay on track. I always read labels at the grocery store. You wouldn’t believe how many carbs are lurking in many “healthy” products! We avoid most processed foods, and know exactly what we are eating. I want to keep enjoying my life.

Long Term Outlook

(Please be aware that the following information is part professional opinion of our financial advisor, and part decisions based on our personal financial situation. In no way should this be considered expert advice on which to base your own financial decisions.)

We just had a quarterly call with our financial advisor (I’ll refer to him as J.S.). As always, we look at our current situation, the performance of our investments, our future needs, and the outlook of the economy. I have to say that this session wasn’t as upbeat as some we have had, although we still have confidence in our plan.

Many indicators have bounced around in 2010, but J.S. anticipates that we may have a little positive “pop” at the end of the year. Expected tax increases (or the lapsing of the Bush tax break) will likely cause tax-free municipal bonds to become more popular. Investing in municipal bonds carries some risk – municipalities could conceivably default on their bonds. But the yield from our municipal bond investments is running at about 6%, compared to about 1% for safer U.S. Treasury Bonds. It’s a calculated risk.

One possibility is that the U.S. economy is in a prolonged “sideways” situation that could cause the market to be flat for from 5 to 10 years. J.S. compared the stall in the U.S. economy to what happened to Japan’s economy after their boom years in the 70’s and 80’s. We are about 10 years behind (remember our boom in the 80’s and 90’s?). There is still money to be made, if investments are targeted into growth areas. The silver lining is that this climate is keeping inflation rates low (between 1-2%, when we projected 3-3.5% in our model). We have to hope we don’t slip into a deflationary period, resulting in a double-dip recession, which would be bad for the economy.

When we retired, we rolled over our 401K’s into an annuity, back when their guaranteed return rates were really good. ING doesn’t even offer the plan we have any more, and it’s producing well for us. We have to thank J.S. for that investment. We can’t tap into that fund until I am at least 59 and ½ (about 5 years from now).

After buying the house in Prescott, we will be dual home owners for from one and a half to two years, with increased expenses. We’ve asked J.S. to help us look at our cash flow (income) needs between 2011 and when Social Security kicks in. We sent him our Social Security Statements and the payout info from my Hilton Pension. He’s hoping to find a way to keep our investment principle intact until we are in our 70’s. (As an aside, read your Social Security Statement. This is in black and white, “In 2016 we will begin paying more in benefits than we collect in taxes. Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of scheduled benefits.” Depending on your age, you may need to consider this looming issue in your financial plans.)

It’s still really important to plan for your financial future, and we believe it helps if you have a knowledgeable and trusted financial advisor. Ours has come up with some ideas and plans that we might not have unearthed ourselves.

What have you done on your plan lately?

Holiday Without TV

We spent 5 weeks visiting our new home in Prescott, AZ – without television. That probably makes some of you gasp, and others shrug. What’s the big deal? Good question.

I’m a Baby Boomer, you know. We remember when TV was a sometimes privilege – not a constant in the fabric of our daily lives. In the summer we hardly watched TV at all, as we were anxious to burst past the screen door to play in the yard, the suburban streets, and the neighborhood. By evening, we were so worn out from kickball, roller skating, bike riding, hopscotch, and general childish mayhem, that we ravenously replenished spent calories, bathed and went to bed. Special TV shows, like Disney’s Wide World of Color (which we watched in black & white), were a family event. It was a different time.

The TV is too much of a familiar companion now. When we are home, it’s often tuned into CNBC during the day. Most evenings we watch one or two shows, while dinner is often consumed in front of the TV. So it was with some trepidation that we faced over a month in our new home without the luxury of cable TV.

It turned out to be easier than we thought. We devoured a stack of books, re-reading some classic Travis McGee novels by John MacDonald and others by the recently departed Dick Francis. The Girl With the Dragon Tattoo kept Ron glued to the sofa for a few rainy days. We had brought some books with us, but bought more, and also borrowed a few paperbacks from the honor library in the club house at Talking Rock Ranch.

We ate our meals at the dining table, accompanied by music instead of what my father sometimes called the “idiot box”. Our days were filled with organizing, cleaning and enhancing our place, shopping, exploring Prescott, fixing meals, and working out. Golf fully occupied us from 2 to 4 times a week. We went to the pool a few times. I gave myself a manicure and took a jewelry-making class. Some special events enhanced our stay, including the Prescott Farmers Market, the Cowboy Poets Gathering, a trip to the horse races, and a Culinary Class taught by our club’s chef. We dined at least once a week at the club and made new friends, and attended a party at our neighbor’s home. Almost every evening we watched the sunset from our back porch, entertained by the birds, lizards, and cottontail rabbits. We weren’t bored.

We arrived back in Chicago late Tuesday night after a long day of travel via plane, trains, and automobile (literally). We unlocked our dusty, stuffy house and dropped our luggage on the floor, thinking we might wind down for bed by watching a little TV. Guess what? Our cable, phone, and internet were dead! Our favorite shows had not been recorded to the DVR.  It would be morning before I would call Comcast for a repair appointment.

As it turns out, one more quiet evening of reading was the perfect way to end our holiday.

Arizona Animals Alliteration (with Adjectives)

Hovering Hummingbirds

Agile Antelope

Scary Scorpions

Calm Cattle

High-Flying Hawks

Joyous Jackrabbits

Voracious Vultures

Flittering Finches

Rapacious Roadrunners

Carnivorous Cougars

Raucous Ravens

Capricious Cottontails

Quaint Quail

Restless Rattlesnakes

Crafty Coyotes

Blitzing Bats

Languorous Lizards

Mangy Mules

Disarming Doves

Docile Deer

Harried Javelinas

Evolution of a Community

When Ron and I purchased our home and membership at Talking Rock Ranch in Prescott, AZ a few months ago, we recognized the down side of investing in real estate in Arizona right now. But we were so attracted to the community and appreciated the design and value of the houses available, that we dug deeper to assess the level of risk. The developer, Harvard Investments of Scottsdale, AZ, is a U.S. subsidiary of The Hill Companies, a 100+ year old family-owned and operated company out of Canada. The Hill Companies are highly diversified, in real estate, manufacturing, broadcasting, bonds, insurance, and oil and gas.

Once we realized the financial breadth and depth of the developer's parent company and added our own observations about the quality of Talking Rock and it's member services, we decided to take the leap. (We were afraid that once the real estate market rebounded, we might not be able to afford to buy here!)

With time, we are happier and happier with our decision. Last night we attended an event at Talking Rock that gave us even greater confidence in the future of the community. It was an Open House for members, hosted by senior representatives from Harvard Investments (the developer) and Swaback Parters (architectural and community planning).

Among the things we learned...

• The architectural company developed its roots from the Frank Lloyd Wright Foundation.
• There is a deep and passionate commitment to continuing to enhance the appeal of the community, with a view spanning not just years - but decades.
• The architectural committee researches trends in communities and housing, and is adjusting design and building standards appropriately (and creatively) over time.
• Swaback Partners is the same company that does the planning for Kohler, Wisconsin (a community I much admire).
• In 2008, Talking Rock Ranch won a prestigious Gold Nugget Award for Best Detached Residential Project.

We appreciated the time and effort put into the event (and the hors d'oeuvres and wine-tasting), and left with an even greater confidence and pride in our purchase decision. A real community has to be more than just a collection of homes on common real estate... and Talking Rock Ranch is evolving with a long term view in mind.

Photo used with permission from Talking Rock Ranch Marketing.

Top 10 Facts that Prove I'm Hooked on Golf

#1: I have a golfer's tan

#2: You know, I really don't care when my golf cap gives me hat hair...

#3: Two pair of golf shoes isn't enough 

#4: I now consider televised golf tournaments exciting entertainment

#5: I have a painful regret that I never played golf with my dad

#6: The only pencils I have in my house are little stubby golf pencils

#7: Golf tees fall out of my pockets when I'm searching for other things

#8: My next car is going to be a golf cart

#9: I react exactly like Pavlov's dog when I hear someone hit a drive off the tee behind our house

#10: There is a new man in my life - my golf pro

The Milky Way

I saw the Milky Way last night
Clouds of stars strewn like diamonds
Across a grand black velvet cape
Wrapped all around us

I saw the Milky Way last night
While holding hands in the dark
We saw a shooting star
And gasped like kids

I saw the Milky Way last night
Space, Captain Kirk's frontier
Bright and deep
It felt like mine