SLEEPING AND OLD AGE

I have always slept well. That is, until I hit my 60's. Suddenly, the ability to go back to sleep is becoming elusive. I'm not sure what has changed. My diet remains constant. I still have the same wife, dog, and cat. The neighbors haven't changed in years. We've lived in the same house for over 20 years.

But now, when something wakes me up, the chances of remaining awake are much greater. I don't think it's hormones. Only women have that problem. I have had great sympathy for Lin in that area. Men are supposed to be able to roll over and resume peaceful slumber within a few minutes. I have been proud to count myself in that group for years. Women, however, once they hit the magic age, remain awake for hours if they are disturbed. Lin even keeps a book at the ready with a little flashlight. Thank God for little flashlights. I know now why God has younger people have babies. It would be a different world if old people had to get up at night to change a diaper. I think they would be zombies during the day. Not to mention that a 60 year old woman having a baby would probably destroy her body.

Actually, remaining awake at night does have it's advantages. I lay there wondering why I was so sleepy in the first place. Why could I hardly hold my eyes open at 9, and then be Mr. Big Eye at 2? There are all kinds of things to think and pray about. It's interesting that when you get one issue taken care of in your mind, that another one floats to the top to take its place. It's like dross floating to the top when you purify a metal. My mind is pure gold, and there are these nasty things that don't float up until I wake up during the night. I wonder if my brain is over-heated? That might explain the dross. So I finally get up and change the venue. Like moving to the couch. That's when the images surface. Images of bacon and eggs, fresh biscuits, jelly, cold milk. If I ate everytime those evil pictures presented themselves, I would weigh 400 pounds. Fortunately my will power goes into action and eventually the hunger subsides. A small glass of milk does the trick.

I think I see certain advantages to retiring. People who only sleep 3 hours the night before are not the quickest minds at the office. At least when you retire, you can join the legions who take a morning nap. I used to think only babies take naps. Now I realize that there are growing millions of people who nap after breakfast. My opinion of them has gone from disdane to sympathy. I am trying to figure out how I can avoid the same fate. When I'm focused at work I don't get sleepy, even when I've shortchanged my sleep. Once I retire, I can see the temptation of the easy chair. I see the solution clearly: When I retire, I need to keep busy during the day. The Bible has some bad things to say about those who slumber. However, it also says that He gives his beloved sleep. Maybe it depends on the context.

OFF TO AFRICA

Son-in-law Dan leaves soon for East Africa. Follow his adventures on the Lahash.net website. I always get a little nervous when he makes his semi-annual visit to the partners in Africa. After all, I have a daughter and grand-daughter remaining behind. I'm always glad when he returns safe. I know he is in God's hands so I keep reminding myself of that. When our children were small it was nice when they were all at home in the nest. Now they travel on a whim. Do they ask my permission? No. Should they? No. I felt in greater control when they were young. I know, my feelings of control were an illusion. I keep reminding myself of that. With every stage of life comes renewed commitment to God. I suppose when I am 95 they will worry about me.

NATIONAL DEBT: A FIVE MINUTE PRIMER

See this CNN article on the national debt. What can I do? Have no personal debt, and establish a rainy day fund. It may be needed.

OREGON CITY YARD SALES

We spent Saturday morning walking the hills of old Oregon City, stopping at multiple yard sales. It was the one weekend each year when the whole town tries to get organized and sell their junk. The most enjoyable part of it was admiring the historic houses. Many of them have plaques identifying the original owner. Some have been designated as historic landmarks. Those fortunate few receive a property tax discount for 15 years. The yards around the homes are the most interesting. Some have traditional grass, but many look like a jungle. This photo is representative of a typical side yard. It looks as if you tried to walk through, that vines would grasp you about the head and neck. In fact, most of their children under the age of two are lost in such a manner.

"MATCHES MAN"

Animals in a home can be a blessing and a curse. We have two cats; an evil, black & white tom cat (Nike) who reminds me of Osama, and a mild-mannered grey cat (Tofie) who reminds me of a sick, spoiled teenager.

We did not ask for either cat. Nike was an orphan in a box, found by my daughter when he was about 3 weeks old. We had to purchase a special bottle and formula to feed him. In the beginning, after being fed, he would lay on his back with a swollen kitten belly and eyes closed in contentment. It was only later that he turned evil.

Tofie was found at a family gathering in Coquille, Oregon. We found out later that the neighbor boy in Coquille had been mistreating her. Consequently she ran away and was found by my nephew Andrew on the front lawn of my parent’s home. We ended up taking her home to Portland, since the other family members were not in a position to own another pet.

Tofie is not evil, but she does evil things. By that, I mean she does not intentionally throw up on the carpet three times a week after eating a bowl of dry cat food, and running like a bandit when we attempt to catch her between retches to toss her out the front door. We have taken her to the vet, and are currently feeding her hair ball formula and trying to limit her intake, so please don’t accuse us of cat abuse. Her favorite thing is to jump on someone and “make biscuits” on their stomach. Except for the vomit, she is a good cat.

Nike is evil. He reads the daily comics and studies Bucky the cat in great detail. He practices bad thinking and doesn’t care what you think. We had him fixed years ago, and I don’t think he has ever forgiven us. To put it bluntly, he is not a Christian. He daydreams of taking flying lessons and crashing large planes into tall buildings. Need I say more?

We also have a black and white Boston Terrier. Her name is Pekah Boo. Normally, a female Boston should weigh in at about 18 pounds. Pekah is a hefty 40 pounds. Needless to say, she is strong, like the women in Minnesota. However, unlike the women of Minnesota, she cannot handle the cold very well, and would not survive even one day outside in the winter. She lives in the house and has access to the outside through a doggie door that she can barely squeeze through. We have to lay down old bath towels when it rains. Paw prints have a way of showing up on a wood floor. We have two animal houses in the backyard. Both are heated by an electric light. The cats love it, but Pekah is afraid to go in either house. I have never met a dog that is afraid to enter a dog house. It doesn’t make sense. I live in a human house, and I’m not afraid to enter my house. Perhaps she thinks she is human.

Another unusual trait Pekah has is a lisp. She tries, but cannot talk correctly. “Bad thing” becomes “bad ting.” “Love you” becomes “dove-oo.” I normally wouldn’t know this, but Lin is the dog interpreter. Otherwise, I wouldn’t know when Pekah is sad or happy, or wants to go to the office for the morning. Lin tells me when Pekah wants to gorge out on a bowl of leftover macaroni and cheese, or a pile of chicken bones. I have no idea what the dog is thinking.

However, when it comes to the hard things, I step up to the plate. Pekah sleeps on the floor by my side of the bed. It is my job to cover her up at night when Lin pokes me. Pekah tells her to poke me and do my job. I also am the Matches Man. I keep a little book of matches on my nightstand for those special evenings following her overindulgence of wieners or a large ham bone. It is not unusual to be awakened out of a sound sleep. I imagine it is somewhat like putting smelling salts under the nose of a person that is unconscious and near death. I know that if it ever happens when camping, I would bang my head on the ceiling of the camper. There isn’t a lot of head room. Thankfully, that has never happened. At home, however, I have on occasion, sat straight up in the middle of the night, with only one thought—to find the matches. The smell always hits me first, and by the time it drifts over to Lin she is gagging as well. My groping in the dark usually knocks my cell phone or glasses onto the dog below. She is sleeping soundly, of course, because a dog never seems to be aware of flatulence. She looks at me quite perturbed for disturbing her lovely dream.

Eventually, the blessed smoke fills the room and our gasping changes to normal breathing. We usually fall back to sleep in a short while. Sometimes I think our nights are more exciting than our days.

A GOOD TIME WAS HAD BY ALL

It is a little disconcerting to see your age reflected back to you in the faces of those you haven't seen for 45 years. Time is not kind. We had 85 students graduate from Bandon, Oregon in 1966. This was a small representation of some of us who met last weekend in Vernonia, hosted by classmate Bud Dow, who happened to be temporarily away when this picture was taken.

TIMMY MOUSE

You don't get a chance to hold a baby mouse very often. Lin did that and much more. Read it here.

GRANDCHILDREN

There's nothing like an afternoon in the sun with grandchildren. They like riding in the wagon. Lin gave them a tour of the backyard. She explained the plants and talked about the joys of shade and cool grass. They don't hold still very long, and they don't stay small for long.

RELATIONSHIPS MATTER

Relationships matter. You can be the most successful of all your peers in financial planning, but if you accomplish that goal alone, it is in vain. Building relationships is more important than building a solid financial future.

I occasionally meet an older person who has no connection with any family members. After talking with them for a while I can usually determine what might have been the cause. Sometimes it's a history of alcoholism. Other times they are just plain mean. Sometimes there are multiple layers of dysfunction that have pushed away everyone they meet.

The most important relationship you can have is with God. I'd hate to reach a ripe old age and have all my financial ducks in a row except knowing where I was going to end up after I die. Not knowing would take the fun out of growing old. I think that not having made peace with God would lead to all sorts of anger and dysfunction.

When you make peace with God at the beginning of your financial journey, it makes the whole experience enjoyable.

EDUCATE YOURSELF

The next step is to educate yourself. As I mentioned previously, you can begin by subscribing to a financial resource such as Money. Read everything you can, and focus on what you are familiar with.

From there, you will find your horizons expanding into related subjects. Eventually you will be somewhat knowledgeable. Never hesitate to ask questions. Look for financial classes at the local community college.

The big payoff to you is that you will eventually have the ability to self-direct your investments. It is a payoff, because you can choose no-load mutual funds instead of paying an investment advisor to handle your money. If you want to buy individual stocks, you can use an internet service such as E-Trade, which charges far less commissions than a full service brokerage house.

STICK WITH MUTUAL FUNDS

A big mistake we make when we start saving money is to not leave it alone. Once the account balance reaches a certain level we begin thinking where we could invest all that cash. It is very tempting to start buying and selling stocks.

There is only one way to purchase individual stocks, and that is to buy and hold. Otherwise, it is just a sophisticated form of gambling. In my opinion, the vast majority of the public should avoid individual stocks. It is too risky.

A much safer method is to purchase mutual funds. It spreads the risk. Instead of investing in just a few stocks, a mutual fund allows your risk to be spread over thousands of companies with a small amount of money. You won't have the big gains of an individual stock, but you won't have the potential for big losses either. If you educate yourself, you can use a no-load company such as Vanguard. If that scares you, go visit a financial advisor. However, be prepared to pay a commission, typically $5.75 for every $100 invested. There are mutual funds for every level of risk.

Just before the 2008 economic downturn I invested a large sum for an older couple. The market at the time was red hot. However, because of their age and ignorance regarding finances, I recommended a mutual fund specializing in government securities. Prior to this time their money had been in CDs. Shortly afterwards, the market crashed. Their investment, however, continued to earn almost 6%. Their risk tolerance and age dictated a conservative approach. If they had been able to educate themselves and self-direct their money, they would have saved even more by not paying commissions. For them, however, they made the right decision.

It's never too late to get started. Read the Wall Street Journal. Subscribe to Money magazine. Take charge of your financial future.

AVOID PYRAMIDS AND GET RICH QUICK SCHEMES

When I was 14 years old, a friend of the family approached me about selling soap. It was called Zif. As he explained how it worked, I thought it sounded pretty good. I paid him $12 for a starter kit, and then hit the streets selling soap. The real money, however, was if I could get others to sign up. I would get a percentage of their start up money, as well as part of their soap sales, and those under them, and those under them etc. I lasted two days. I decided I wasn't a salesman. I didn't know it at the time, but that was my first exposure to pyramid sales.

With pyramids, the people who get in first make the money. This type of marketing is still around in many forms. Another name for it is multi-level marketing. When I was a young adult, Amway was big. The appeal was always about how much money you could make, or how you could own your own business. In my opinion, if you want to be a business owner, choose a legitimate career.

However, there are much worse critters out there, called get rich quick schemes. These will suck out all your blood and leave you dead on the highway. They appeal in a very base way to human greed. As my dad used to say, if it sounds too good to be true, it usually is.

My sister lives in a small Colorado town. A man came through selling investment opportunities. It was very convincing, especially since so many townsfolk were signing up. In the end, many lost their entire life savings. The greatest danger is in thinking that it can't happen to me, because I'm too smart.

Some of the sharpest minds in the financial world let themselves be taken in by Bernie Madoff. It seems like every week I read similar articles of innocent people losing their retirement savings. A friend of mine heard about a glowing investment opportunity on Christian radio. He lost all his retirement ($200,000) and owes the I.R.S. $10,000.

There is a lesson here for all. Be very careful. Make sure they are not appealing to your greed. Be aware of investments that put time constraints on you. Make sure they are licensed with your state. All companies and representatives selling securities are required to have a securities license in their state. Take a look at the overall picture. As I said previously, if it is sounds too good to be true, it usually is.

BE A CONTRARIAN

When it comes to keeping up with the Jones', be a contrarian. This is a popular word in the financial world, usually referring to someone who sells stocks when everyone else is buying, and buying when others are selling. I'm using it in the same way, but in the context of consumerism.

The world is spending, so I will not spend. The slogan "You deserve a break today" is targeted at you, the consumer. What they are really saying is treat yourself right by eating at McDonalds. A contrarian would hear that slogan and say, "I'm an independent thinker and will not be sucked in to cheap advertising." If you do eat at McDonalds, do it on your own terms; not theirs.

My problem is that I think I am immune, but the next day find that my actions tell me otherwise. Being a contrarian is a state of mind. In the 70s the most visable contrarians were the hippies driving VW buses. Some of them even rejected cleanliness. They made a whole subculture out of it. Now we are mainstream grandparents.

Remember the reason for being a contrarian is to start on the road to financial freedom. Small decisions have lasting consequences. Passing up a latte and taking your own thermos to work can make a substantial financial difference after a few years, even though it seems inconsequential now.

One way to strengthen your resolve is to picture yourself as a nonconformist. Deliberately choose what you will conform to. Hopefully you will choose cleanliness, unlike the early hippies. Honesty is another good trait. As you review all the values of your peers, it will become apparent what to avoid and what to embrace.

Don't be overly concerned about your image. If you worry about what others think, stop it. Get your kudos from the knowledge that you are making wise financial decisions. That is much more rewarding than outward appearance. I like the cat picture. Cats do what they want, when they want to. They don't care what others think. Be a cat, but not at the expense of others.

LIVE BENEATH YOUR MEANS

I don't think it is possible to follow the advice of the two previous blogs unless you learn to live beneath your means. I spoke with a friend from Panama who related to me that in their culture, it was demeaning to purchase and wear used clothing. I immediately could see the implications of that thinking. They would have less money to spend on more important things. Of course the interesting thing about that is that they consider the clothing to be more important than many other things in life. I value health care, nutrition, and a college education for my children. They value looking stylish. Which is more important?

A high school teacher told me last week about her feeling of distress in seeing some students wearing $200 jeans to school. What hope of success in the world does a student have who places that kind of value on clothing? We can all hope that they will eventually grow up. Sometimes it is hastened by the school of hard knocks.

I think a key concept to financial success is deferred gratification. We're talking major deferral, like 30 years. Not everyone can see themselves even living that long. Their philosophy is to enjoy it now. I can understand the short term thinking, but don't happen to agree.

Let's look at cars. The cheapest car you'll ever own is the one you are currently driving. That factors in repairs. There is a point at which it may make economic sense to upgrade. I got rid of my last two cars because the cost of the repair was way more than the value of the vehicle. If you do upgrade, wait until you can pay cash.

Living beneath your means will enable you to contribute to a Roth IRA. Most accounts will allow a $250 deposit to start. Everyone should have one.

Don't take away the idea that I value old clothes and cars. My clothes are decent and I wash my car every Saturday. More thoughts in the next blog.

PAY OFF CREDIT CARDS IN FULL EACH MONTH

A recent article on credit card debt stated that graduating college students have an average credit card debt of $2,500 to $3,000. That is in addition to student loans averaging $24,000. What a way to start your life!

The best way to handle credit cards is to have one major bank card, and to pay it off in full every month. Of course that puts limitations on its use. If you don't have the money in the bank, then don't use the card. That raises the question, "Why use the card if there is money in the bank?" The short answer is, don't use it. Use a debit card. A debit card is like an old fashioned checkbook. If the money isn't in the account, then the card will not be accepted.


If you are following my advice from the previous blog, and spending less than you make, then you can use the credit card for convenience, such as Internet purchases. Another reason would be to build up air miles so you can fly free to see Grandma. It also builds your credit rating, so when you buy a house the lender likes what they see. Learning to use a credit card responsibly is like a teenage boy learning to handle a rifle-- you can get hurt if you don't do it right.

I suggest you start your child out at about age 12 with their own checking account and debit card. Spend some time teaching them how it all works. Later help them get a credit card from the same institution with a $500 limit. Put the fear of God into them about paying it off in full every month, and carefully supervise what happens until you have the confidence that they understand how to use credit. Don't let your child be one of those college graduates with a big credit card balance!

SPEND LESS THAN YOU MAKE

Over the next few blogs I will be offering one piece of financial advice per blog. The first rule is to spend less than you make. It sounds simple, but you would be surprised how easy it is to begin spending more than you earn.

For example, if one spouse is suddenly laid off, there is a substantial drop in income. However, if there is not an immediate drop in spending, you find yourself suddenly spending more than you are bringing in.

If you were cutting things close while both were working, it is easy to start making up the difference by relying on credit cards. It's just temporary, you think, until you are called back to work, or manage to get another job. The problem is that you have started down a slippery slope ending in bankruptcy unless you can turn it around.

The key is to anticipate the problem before it rears it's ugly head. One way would be for the two of you to agree that you will limit your expenditures to the income brought in by one spouse. I'm using the example of a married couple.

There is a big advantage to doing that. First, it allows you to begin saving a nest egg for future investments, like your first or second home, or perhaps for the kid's college fund.

Second, it allows that spouse the freedom to quit work if there is a family emergency, or a need for child care, or health issues.

Third, it prevents you from putting yourself in a position of being financially overextended if there is a crises.

If you have even a small financial nest egg, it give you breathing room while you work out your plans. If the emergency never happens, you have the beginnings of a retirement fund.

In real life things are never that easy, and you may already be in a situation where you need both incomes to just survive. In that case, I suggest you make some hard decisions. It may involve downsizing, or looking for another job, or one spouse working two jobs. None of those choices are easy, and may not be practical. However, it is better to be proactive now than to let circumstances dictate your destruction later.

Here is a funny Steve Martin SNL skit that goes along with the theme.

MAY 21ST and Twitter

If you have been unfortunate enough to drive by one of Harold Camping's billboards, you have seen the announcement of May 21st as the rapture of the church. I was dismayed, and grieved. It gives Christianity a black eye when a professing Christian goes off the deep end. How much better if he had preached repentance! Oh well. Not to mention that the theology of the rapture has only been around about 200 years. The traditional church doctrine teaches the return of Christ in power and glory.

On a different subject, I encourage you to give twitter a try. I've been doing it about a month. You are limited to 140 characters per entry. It's like a mini-blog. You'll find me if you search for hungerisgood. Reply to one of my entries, and I'll "follow" you.

GET READY FOR A LONG ROAD BACK

This month's Money magazine interviews economist Carmen Reinhart. History shows that recovery from a severe financial crisis can easily take ten years. I highly recommend this article if you want to educate yourself about what is going on. Carmen makes a lot of sense and is refreshingly easy to understand.

RICE AND BEANS

March is Rice and Beans month! Sponsored by www.lahash.net. We are eating rice and beans (with spices, vegetables, etc) for 30 days. You wouldn't believe how many variations you can cook using just those basic ingredients. It is a way to identify with our brothers and sisters in East Africa, as well as contribute to the food needs of the orphanages that Lahash partners with. If you want recipes, go to http://www.eatriceandbeans.com/. Of course this is only day three, so I may have some much stronger opinions of rice and beans by day 30.

MORE ABOUT THE NATIONAL DEBT

The Sunday Oregonian PolitiFact column has some alarming facts about the national debt. Basically, if we eliminate all discretionary government spending, the national debt will still increase over one trillion dollars in the next year.

An editorial in the same issue by Tom Coburn emphasizes the short time we have to correct this coming fiasco. It is titled, "Leadership and Our Looming Financial Crisis." He makes the interesting statement that just as Nixon (a Republican) normalized relations with China, so it may require a Democratic president to push through legislation to reign in the mandated spending on medicare and social security.

If elected officials lack the courage to push through unpopular cuts, we are facing a future with 20% unemployment.

I have been very concerned about the national debt for 20 years, and now my nightmare may become reality.