Can you afford to retire? on PBS Frontline

I saw an excellent documentary tonight on PBS' Frontline titled "Can you afford to retire?" It started by examining the case of United Airlines in the post-9/11 recession. United was deep in debt and declared bankruptcy. Using its bankruptcy status as leverage, it was able to extract more than $3 billion in concessions from employees in their pay, benefits, and retirement. Plus, it slashed retirement checks to currently retired workers by 1/3. The most shocking thing to me was, that the bankruptcy agreement which the lawyers prepared for United guarantees that all the creditors (meaning the big banks) got paid back all their money, plus interest, plus fees. The laywers, of course, got theirs. It was estimated that "professional fees" for guiding United through retirement (i.e. payments to lawyers) was $400 million. So, the final equation ... banks make billions, lawyers millions, workers get shafted. Sounds pretty much like Reaganomics to me.

The show then went on to examine the current model of retirement in place at many companies. It seems most Americans, IF they are lucky to have any retirement benefits at all, are relying on their 401K plan (where the company contributes some sort of dollar for dollar amount) for their retirement. Company-sponsored "retirement plans" are history. My company, the HMO Kaiser Permanente, has some sort of retirement plan. I guess I should feel lucky that I qualify. What I found interesting on Frontline was the analysis of data from current holders of 401Ks age 55-65. The top wage earners manage their money better. So, they are getting 20-30% annual returns in their funds. The "bottom" wage earners, those in the $35-$50 K annual salary range, manage their money worse. They are making like 5% a year. So, the rich get richer. What a great system.

All I can say is, if you read this blog, and you vote Republican, then watch Frontline every week (here it shows Tuesday nights at 10 p.m. usually). Then tell me in a year if you are still a Republican voter. And I hope you manage your money well.

Press Corps Dinner

You may have heard the talking heads talking about the press corps dinner last weekend in which an impersonator (his name is Steve Bridges I found out) got up on the podium alongside President Bush, and gave a "dual speech" with the President, followed by Steven Colbert making fun of everybody, especially the president. Someone I know forwarded me the link to the video of the dinner (on google video). I watched about 1 hour of it - far too much - and didn't like Colbert, but thought the Pres' was actually funny. Go figure. Usually I just cringe every time that man opens his mouth.

The most interesting segments I thought were actually at the beginning, when they showed footage from previous press corps dinners going all the way back to JFK. Seems like all the presidents could be funny, at one moment or the other. Clinton's crack about Jay Leno was pretty good. I also thought Lyndon Johnson was funny. Well I guess even a blind squirrel finds an acorn once in a while....