Who can you trust?
Here's what I'm doing: Lita Powell-Drake
Marketplace presents "Here's What I'm Doing," a series asking people from all walks of life how they're coping with the financial crisis. In this edition, Marketplace Money listener Lita Powell-Drake.
Financial data chart (iStockphoto)
More on Retirement - Saving, America's Financial Crisis
TEXT OF STORY
Kai Ryssdal: All throughout the program today we've been asking, what are you doing? Have you changed the way you saved or invested?
We've heard from a former labor secretary and a cartoon editor. Now we turn the mic over to a Marketplace Money listener for our series "Here's What I'm Doing."
Lita Powell-Drake: Hello. My name is Lita Powell-Drake, sometimes called "Lita of Lincoln" -- that's Nebraska of course -- and here's what I'm doing:
I'm senior, I'm a woman and I have no pension, so I really rely on my Social Security and I have a small income from a part-time job. Every Nebraskan listens to the "oracle of Omaha," Warren Buffett, and he says only look at your portfolio once per year and so I'm taking his advice.
I am probably the most frugal of the frugals. I still save plastic bags and string, so therefore I've been OK. Last year I took a strong, hard look at my savings. I decided that yes, I could retire comfortably. Now, the bottom has fallen out.
I've heard about the economy going down, of course. it makes me a little concerned. However, philosophically speaking, and as Alfred P. Newman that other sage would say, What? Me worried?
Yes, I am worried.
Ryssdal: That was Lita Powell-Drake.
Comments
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From Oklahoma City, OK, 07/20/2009
My wife and I have always been financially conservative. We have been together 37 years and have no children. These factors are probably more important to financial security than any short term changes in behavior.
However we have made some adjustments recently. We bought two cars of the same make and model that get over 35 mpg. We drive less than 10K per year. I make my own wine and beer. Kit wine is very good and cost about $3 a bottle, and I have had nothing but compliments from guests. We will both be 60 this year, and we both changed jobs recently. I was laid-off from an oil related engineering job. I chose to apply with the Federal Government and got an engineering appointment. It pays somewhat less, but has much better benefits and stability, and no age descrimination related drawbacks. We still eat out, but keep limit drinks at restraunts. And, oh yes, there is the new green propane powered weed trimmer.
From Berkeley, CA, 11/20/2008
Your program and posts give short shrift to the elderly who can not return to the job market and must depend entirely on minimal amounts of Social Security and returns from (conservatively-oriented), now devastated mutual funds and a homes that have lost much of their value... I'm 84- (SWF)- did not run for the exits - and now find my situation growing worse by the day. How do you address these concerns at a practical level? Cash out and compound my losses or hang in there waiting to hit bottom?
From schenectady, NY, 10/29/2008
I agree with Barbara Carroll. I am a longtime listener of your program, and also a skinflint. Grubby old cars, forgoing movies and dinners out to save for retirement. After years of saving off a very modest income, I retired last year, only to lose $60, OOO of that retirement saving in one swoop into the pockets of thieves wearing outfits that cost that much. What do you suggest for Barbara Carroll and me? My comments are FYI, not for the air. But after loyal listening it's time to address our concerns. Just e- mail me when you plan to address this. thank you
From Lawrenceville, GA, 10/28/2008
My wife and I are doing something we should have done years ago -- dumping our debt. We're both 50 and were taken in by a lot of the debt marketing being good for our prosperity. One "financial consultant" even told me a home equity loan was "good debt". To use the line from the song, "I was blind but now I see."
Our economy has been propped up by consumer buying financed by increasing personal debt. An issue I think has been largely ignored is most borrowers can't afford any more debt. They are tapped out and have maxed out every credit line they have. If this isn't addressed so that people can quit borrowing money the economic drag will continue for a long time.
We both have 401k plans and we are basically not looking. Our emotions might lead us to sell low. They are invested in mutual funds that will hopefully recover although I wish I had better choices. The fees were killing my returns before the market collapsed!
From Canton, MI, 10/20/2008
I second Barbara Carroll's point of view. I often find
the program's comments shallow and cavalier. I am
a retiree who has been retired for 13 years and cannot go back to work again for medical reasons.
I have lost at least 25-30% of very hard-earned money in a moderate folio with a local investment firm. At nearly 70 I do not have the 10-30 year recovery period that 20-50 year olds do. You are not speaking to our needs. We are probably a big part of your listening audience.
10/19/2008
Your program broadcast on Sunday, Oct. 19 was extremely insensitive regarding the huge financial losses to people who have their retirement savings nearly wiped out by the recent financial crisis. I did not appreciate Tess Vigeland's flippant attitude in this program suggesting that I find humor through cartoon's about the loss of more than $45,000 out of the $100,000 I have saved for my retirement. I am at retirement age and will not be able to retire. I don't find the neighborhood barber shop antidoes to be consoling; I don't find someone's novel consoling. I don't need to hear about anyone being frugal and saving string; I've been frugal and am sick and tired of it. I need actual help and I believe a lot of others do also. I do believe the FDIC is there to support us. I want a program on how our bankers, brokerage houses, our federal regulators became so corrupt, greedy and why "ethics" seem not to apply to them. I doubt that I will ever be able to trust them again. I, for one, feel that I have been had. These people were graduates of Harvard, Yale, Wharton, etc., and yet they mismanaged our money. We need a program on explicit information on how we take and make our money back and that it happen now and not 10 years from now. Who is going to bail us out? People need to know exactly how to purchase Treasury Bills - not a one second reference to Treasury Bills. Why aren't US Savings bonds again being utilized? We need to know how we can really ensure that our money is something we can really rely on being there for retirement. Tess Vigeland mentioned that this is a great time to purchase stocks because the price is cheaper. That might be great for Tess, but I no longer have the money or the stomach or the time to wait for the value to go up just to have it snatched away from me again. When you again have sincere and helpful information on your program, I will once again be a listener. Suggestions on your other programs appeared to be primarily for people in their 20's and 30's and not for those of us who are at the brink of retirement and caught up in this tragic financial mess. I am sorry to say your program on trust was a big flop. Here's hoping that you get it right next time. My comments are not for reading on the air. Thank you.
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