The Black Hole of Retirement – 6 Tips to Light the Way Out.

Why must the retirement planning process end with retirement?

As advisers/planners we become immersed in the process; there’s nothing better than assisting clients map out financial strategies which lead to successful conclusions.

Then what?

black hole The first year of retirement can be scary.

There exists a level of anxiety for new retirees even though we as professionals feel a sense of accomplishment. Years ago I discounted this discomfort as “crossover risk.” Clients who told me they were going to “retire,” were back at work a year later and the opposite occurred too.

Eventually, crossover risk lessens. However, the first year of retirement, the bridge, has become increasingly stressful. Enough to where I now call the first year:

“The Black Hole.”

It’s a place we rarely want to venture because it reaches dark deep into the vulnerability, misgivings, guilt (yes guilt) first-year retirees experience. And in a way, as consultants, we are uncomfortable to secure ropes around our waists, jump in to the holes and pull the clients out because generally we work with numbers, not feelings.

Out of respect, we allow new retirees the “space” to figure it out and ostensibly they do. There’s light at the end of the tunnel (hole), eventually. The adjustment is complete.

But is this a strategy? Not really. So if you’re in the dark as a retiree, or a financial professional who is aware of the dissonance in clients, what can you do to help?

Six points of light:

1). Listen. Hard. For queues of uncertainty and opportunities to provide reassurance. Don’t skirt or discount the uneasiness. Oh, you’ll know the queues, the words that will cause you as a retiree or a professional to squirm in your seat.

If you actively listen, you’ll become sensitive to the frustration or apprehension of working out of the black hole. And there’s a lot going on in the dark – It’s a realization of one’s mortality, a challenge to an inner sense of worth; some experience guilt because they’re no longer feeling like productive members of society.

No more deadlines, phone calls to put out fires. I’ve noticed men have a tougher time working through the first retirement year. As one client shared – “I still need the fires.”

fire dude Burn me, baby. Burn!

2). Provide Reassurance. It can be as easy as a brief review. A focus back on the highlights of the written retirement plan. Your advisor said you’re gonna be fine. All the numbers work. As a financial professional, a positive focus can increase confidence and provide comfort.

3). Ask Questions. Don’t be afraid to ask yourself or introduce questions that kindle new fires. The right questions can ignite thought, reflection and set a person off on a smoother transition.

How would you apply your work skills to a new venture? What motivates you to wake up in the morning? What adventures have you always wanted to pursue? The more you ask, the more comfortable you’ll be with the communication dynamics which will flourish.

4). Be Sensitive. To input from a spouse or partner. There’s nothing better when someone who is close to a new retiree can vocalize observations and/or ideas. You may pick up on frustration as this is a transition for others too.

As a spouse lamented “I didn’t know I was going to be dragged into the black hole, too!” A partner can be a motivator and provide valuable insight for an advisor. Recently, I asked a working spouse for ideas on how I can help her husband work through the unease of retirement and she was happy to flood me with suggestions.

5). Think Homework. I know it’s painfully clichéd but a bucket list activity is not a bad idea. One client told me a bucket (literally) was on his bucket list as he had an idea to turn buckets into painted art work. Give yourself or give gifts (as an advisor) of knowledge like books and magazines that focus on hobbies and other pursuits.

6). Get Social. Treat work associates to lunch; gather regularly with former colleagues, associate with company retirees. The sense of community is still important as we’re deep inside, social animals. As a financial partner I’m happy to spend time with new retirees in casual settings, engage in conversations to light a path out of the black hole.

So who said retirement was supposed to be easy?

The first year, the one mile out of the comfort zone of once was, can be incredibly stressful.

But with a little self-help and assistance from others.

There’s a way out of the darkness.

The Conversation Startlers –5 Ways to Startle The Parents into a Estate Planning Conversation.

My father was horrible with money.

Mine and his.

Grandfather (on my mother’s side), worked six days a week stocking shelves in a downtown New York City grocery store. Thirty years – Twelve hours a day.

When he died in 1969, Joe (Giuseppe) Zappello, a frail man who lived above an ethnic grocery, saved $10,000 – a life’s effort, which he instructed be used for my college education.

Dad spent my inheritance on a new 1969 blue Mercury Cougar with white leather interior. Admittedly, it was a beauty. I still remember that car like it was yesterday.

In pristine condition, the classic commands about $30,000, which looking back, may have been a better “investment” than my college education.

cougar interior

Dad saved once in his life. Just in time for my manager at a penny stock firm to put the entire ef­fort in jeopardy by liquidating all his quality stock positions (without my knowledge) and purchasing worthless securities for a hefty commission. Great.

Dad was part of the working poor and deprived of even the littlest of luxuries as a kid; my grandfather was emotionally freezing cold and my grandmother was the entrepreneur and breadwinner for the most part (very odd in the good old days), so except for his maternal grandmother, dad didn’t receive much attention to compensate for the lack of material goods.

Even when I tried to approach the subject of money with him in 1991 he dismissed my questions as if I was the village idiot even though strangely enough, he allowed me to invest for him.

You never questioned elders about financial matters in my family or dug into the reasoning behind money decisions.

Discussing finances with family, especially parents is difficult and awkward. Conversation starters are tough. It’s important to have them however, as bad decisions or no decisions by parents, will leave you, the kids, the family, in a dilemma later.

Here are five “fire” conversation starters that will help. They’re controversial.  I’ve used them successfully.

1). When you die can I please have that diamond necklace grandma left you?

Replace “diamond necklace” with any heirloom you want. Deliver the line and shut up.
I would soften the impact with a couple of glasses of shared wine beforehand. Coming
across as a selfish ass on purpose is tough. The goal is to jolt your parents to a response which can lead to a discussion about proper will and legacy planning.

2). What do you think I should do if I told you I had a month to live?

Here, you’re asking the parents for guidance. What a way to make the parents go mushy inside.  Lower the defenses.

“Not my baby!”

not my baby

If they start going on about how you should have a bucket list – blah, blah, blah, make sure to steer the conversation back to them. Segue to asking the parents how they’ve prepared. It’s a long way around the subject but ultimately you’ll get where you need to be. I’m sorry.

3). What do you wish you would have said to or asked granddad (grandma) before they died?

Gee, I wish they would have told me where all their important documents were kept so
I didn’t need to ransack the house at the worst time? I deal with clients who
lost parents a decade ago and abandoned investment and banking dollars are still surfacing.

4). Do you realize if you die tomorrow I have no idea whether you want to be cremated or buried?

We’re planning a coin toss but you won’t care because you’re dead. Even parents who laments “Oh don’t fret over me, I don’t care what you do, I’ll be dead,” are full of it.

They do care!

It’s their responsibility to provide instructions for others to follow. This should NOT be your decision.

5). How do you think Snowy would feel if she was whisked off to an animal shelter if you died?

I don’t mean to throw the pet in the line of fire however it’s an effective ice breaker. We
love our pets and can’t imagine the horror of poor Puffy carted away after we die. I’m a passionate animal person.

I’ve experienced, more often than I prefer, owners not communicating intentions for pets. Like those left behind are supposed to assume. Placing Trixie strategically into an estate conversation can break down walls, allow information to flow.

Communicate with your children & loved ones about money. Share your successes and failures. They shouldn’t feel threatened to ask about your financial situation.

If grown kids inquire about your estate planning answer them. Help them understand your intentions.

Don’t make loved ones feel questions about money are “off limits,” or “unacceptable.”

Cater these “startlers” to your situation. Parents will remember your frankness, your sense of humor.

Occasionally, shock and awe works.

Next: How to use a third party to facilitate the conversation.

The First Meeting with a Financial Adviser – 5 Signs to Cut and Run.

It’s frustrating, time consuming and intimidating to find the perfect financial professional.

It’s the first meeting (finally).

What signs should raise the hairs on the back of your neck?

hair back of nneck

First hair: Products are discussed. How can an adviser discuss products when they have no idea of your situation? The initial meeting is one of inquiry and discovery, not solution or product. It’s fine if you have a product-based question, other than that? No.

Second hair: Too talky. You are seeking an inquisitive, active listener. Not a talker. You should be doing most of the jaw boning, not your prospective adviser.

Third hair: Not enough questions. A good adviser is like Columbo in less-wrinkled clothing. Keep a detective’s eye out for open-ended questions which allow you to tell your story and share concerns.

columbo one Heck, if it’s a good adviser, forgive a messy tie.

Fourth hair: Limited eye contact. A new client recently told me about her interview experiences. “He appeared in a hurry, like we were cutting into his lunch. He didn’t look us in the eyes. He wasn’t engaged. He kept peeking at his watch.” Enough said.

Fifth hair: Not enough experience. Ok, experience isn’t everything. Advisers can get “stale.” Some stop learning because they’re used to doing things “their way.” Hey, financial services is an ever-changing business and your future financial partner better be up for the job.

Experience is important. You don’t want an adviser who gets spooked by bear markets or volatility. However, you must make sure a “seasoned” professional finds value in keeping current and has a passion for ongoing knowledge.

Take notes. It’s an interview. Ask for clarification on key topics discussed.

Remember – it’s your money.

You’re in control.

There are great advisers out there.

It’s only a matter of time before you find the right one.

heart Aw. Just aw.

Seven Facts Your Broker Won’t Tell You About The Fed and Your Finances.

Don’t kid yourself. The Fed affects everything when it comes to your money. 

As I wrote previously, it was highly unlikely the Fed was going to pull back on purchasing $85 billion in Treasury and Mortgage bonds in September.

Because:

girl cry “Mom, I just saw Ben Bernanke!”

Have you checked the volatility in mortgage rates lately? The 30-year fixed breached 5% and now has backed off. How about activity? New-home sales are nowhere near pre-crisis recovery levels.

Wall Street and large investors have swallowed up existing homes which has spiked housing inflation, making them less affordable for home buyers like you and me. Ben Bernanke is clearly concerned about the overall state of the housing market which leaves him frozen to move away from the great experiment.

How would you feel about a higher interest rate on an auto loan or credit card? We’ve seen anywhere from a 4-10% decrease in median real incomes since 2008, for American families. Part-time employment is the new full time job. Anyone believe the Fed wants to weaken your shaky household balance sheet by creating monetary uncertainty in the face of inept fiscal policy? 

Have you checked the anemic interest you receive on savings accounts and money markets? It’s a bad joke. And what about the portfolio? There’s an impact due to interest rate policy.

There’s a big ka-pow  to the pocket and economic activity if rates continue to increase rapidly too, as they’ve done recently.

Brett Arends’ article about rising interest rates for MarketWatch was an eye-opener. Don’t blink: Click to read:

How the Fed can cause another 1987 crash.

As a student of the Great Depression, the last thing Ben Bernanke wants to do is create a 1937 like Fed hubris-induced market crash.

Higher rates matter. You’re smart enough to know that. So, what won’t your broker tell you about what looks like an imminent conclusion to the Federal Reserve’s grandiose bond-buying experiment? And what if the Fed puts off a taper as far out as 2015? It could happen. How will investors deal with the volatility?

Bonds are supposed to be the “safe” money, but is it?

What do you need to know to make you a smarter investor?

1). Cash is an asset class. No, it is. Really. Cash doesn’t gyrate. It provides protection when stocks and bonds are both heading south. Like now. Cash is a stabilizer. Think of it as the foundation under your house. Just because it’s not pretty and doesn’t feel like it’s doing much, realize it has an important job: To provide stability. Cash is a good diversification tool. It doesn’t zig, zag. It just sits there. Like an anchor. Think of cash as an anchor. Or a Snuggie.

Remember the Snuggie?

snuggie They “jumped the shark” with the doggie Snuggie.

Your broker would prefer all your money is invested regardless of prices paid for the investments. Having cash takes discipline. A portfolio strategy would be nice so there’s an ongoing  plan to put cash to work. Having cash won’t burn a hole in the portfolio. Eventually you’ll invest it. What’s the rush? Well, maybe you won’t since there’s nothing wrong with maintaining a targeted amount of cash in your asset allocation at all times.

From my own past experience I was advised by a “concerned” branch manager, that I held “too much cash” in client portfolios. I had ten percent across the board. You would have thought I committed murder. Ask your financial person: How much cash should I maintain?” Let me know when you get the blank stare, open mouth. Drooling.

2). I don’t have time to help you rebalance, I have a sales quota. Your broker’s main job is to sell. Then it’s pack you up and move you on to a place I call “no-rebalance land.”

Rebalancing is important at all times and especially important now. It’s a strategy to sell high, buy low. It’s also effective at managing portfolio risk over time.

Ask your broker – “What kind of rebalancing process is right for me now that interest rates are rising and stocks are off their highs?” I expect you to be met with more glazed eyeballs.

3). I’m relationship on the surface, transactions underneath. I was warm and fuzzy months ago when I sold you that fixed income investment. I’ve been out to lunch ever since.

Have you received a call from your broker to talk it out, gain knowledge about the current environment? Perhaps there’s nothing you need to change when it comes to your bond or fixed income allocations. It would be nice to know, wouldn’t it? A little reassurance and education can go a long way.

Leave a message. Your broker will get back to you.

4). I stink at understanding you from a behavioral perspective. I’m not a shrink, I’m a sales person. So many studies exist which outline how humans are not wired to place money into bonds, stocks, gold, widgets. Our brains are like primal beasts when it comes to investing. We are prone to emotional reaction (or overreaction), fear & greed, selling low, buying high.

We are our own worst financial enemies. Can your broker provide perspective? Odds are not good. It’s time for a good read. From Wall Street Journal writer Jason Zweig. He’s smart about this psychological money conundrum we all face. Here you go:

Your Money & Your Brain.

5). I don’t study on my own. I depend on a corporate think tank to feed me thoughts. This isn’t all bad. There are smart investment strategists out there. However, it would be refreshing if your broker had his or her own opinion about a macroeconomic event even if it conflicts with the corporate brain feeder.

A good broker will lay out the risks, rewards, pros and cons. Try this: “Forget what your company thinks about this interest rate train-wreck – What are YOUR thoughts?” I’m really setting you up for disappointment. I’m sorry.

6). I have no idea how Fed actions affect your portfolio long term. If you hear these words, keep your broker. He or she is a gem. Frankly, even during the Great Depression, interest rates were never this low for so long.

7). I have no thought-out rules to manage risk the Fed has created. First, to manage risk in your bond portfolio, shorten what’s called your bond portfolio duration (a measure of interest rate sensitivity) now. As prices have recovered in the face of a Fed “fakeout” or no taper, you now have an opportunity to re-position your fixed income allocation.

Currently, our portfolios are roughly 3-4 years in duration making them less sensitive to future increases to interest rates. We hold a targeted amount of risk in emerging markets bonds which possess attractive yields (4-5%). Municipal bonds are also priced attractively even for those in lower tax brackets.

Second, we are in the process of liquidating all GNMA investments – if interest rates increase again, refinancing activity will drop off which can lengthen a GNMA bond’s time frame to payoff or maturity. Longer time frames can result in greater principal risk or lower returns to current bondholders.

Third, we have created a series of duration-reduction rules based on our study of the long-term trends in Treasury yields. Currently, a 10-year Treasury yield of 3.15-3.25% would warrant attention and perhaps a reduction of bond durations to 2-3 years.

The unwind from this Fed experiment is beyond comprehension – there’s no historical precedent.

Make sure your adviser is at least searching for, inquiring about, gaining information from others who are smarter. Your financial partner needs to be flexible enough to change up your fixed income strategy if warranted.

Honesty, study and communication are the keys to make it through this period.

My thought? The Fed will not taper in 2013. However, the volatility in yields will remain as all of us cling to every word, each media bite out of Federal Reserve officials and then take action.

Overreactions will be the norm.

And you thought bonds were supposed to be the “boring” slice of your portfolio.

Don’t panic. Keep your cool.

Oh, and call your broker.

World War C (Campy): Zombieland Rules to Survive By.

I just read about Max Brooks, the writer of “World War Z” and son of Mel Brooks and Anne B. The fascination with zombies never ceases. It’s been with me since 1973. Every now and then I can feel a  rotting biter close by.

I never miss an opportunity to see the living dead: Return of them, Day of, Dawn, Shaun, a couple of “Night” remakes and ostensibly, the comedic genius of Zombieland.

As I’ve been watching Zombieland lately, I realize how incredibly clever this movie remains, although like Max Brooks and other “zombie zealots” I do not dig nor do I want to believe in, the fast zombies. The ones who can run faster than me scare me the most. Zombieland is four years old and the wit is timeless.

Years ago, I created several rules of my own to survive a zombie holocaust. Little did
I know we all would find credible guidelines in action on the big screen. I should have
turned my love for those decaying creatures into something lucrative a long time ago but no,

I wanted to work with money.

That’s such zombie thinking! This zombie biz brings in like $6 billion a year. Not too shabby for rotting, maggot-infested moving corpses.

Anyway..

The character Columbus in Zombieland was always prepared. He was a meticulous planner.

A young man I respect. A geek for bleak times. A man-boy I’d be honored to travel alongside on blighted, zombie-infested highways. Why? Because not only was Columbus (nicknamed after his hometown, Columbus, Ohio), smart. He was funny. He was a fatalist with a passion to get laid, he had an irritable bowel (been there). He always accepted the dark, yet underneath was a flame of once was. A desire to live. A desire to see a hot brunette naked. Sigh.

columbus shit

Columbus was so human in zombie-infested world. 

So in honor of you, Columbus and the opening of the movie “World War Z” I present the money rules of Zombieland (which are also worthwhile to consider while some of us prepare with alacrity for the zombie invasion. Apocalypse overused lately):

Rule #1 Cardio: The new breed of zombies doesn’t saunter (thank director Zack Snyder who brought back speed from the dead with his respectable remake of Dawn of the Dead). They run. Fast. You must stay in tip-top shape to survive in Zombieland. If you’re overweight in Zombieland, well, you’re done. Just done. 

fat zombieland

Take note of the humor of Zombieland as soon-to-be chubby victim is chased by zombie stripper with dollars secured in panties! Brilliant. So brilliant. Love you guys. 

Saving money takes incredible endurance. Your ability to save is going to take some sweat (and blood, possibly tears). To compensate for lower future investment returns, your  savings discipline will need to be robust for another decade. And as long as you’re attempting to be steps ahead of the “running” dead, aerobic exercise is just plain good for you.

Based on credible studies you’ll need to command a pot of money in excess of $250,000 in today’s dollars to fund healthcare costs in retirement.And we’re not even talking how much you’ll need if you spend three years drooling all over yourself in a swanky assisted care facility.

Why not work harder now to combat high healthcare expenses later? Preventative action through exercise and a clean diet will pay off regardless of whether a zombie rising occurs or not. So..

Remember:

cardio

Rule #2 Double Tap: In Zombieland, this is the “insurance” rule; one shot usually isn’t enough to kill a zombie. Be on the safe side and insure the dead is dead by taking a second shot. Contact your insurance company and double-check coverage especially home and auto to make certain you’re covered in case of disaster. Check out the insurance hub at http://www.bankrate.com. Information about homeowners and auto insurance can be found at http://www.iii.org, the Insurance Information Institute.

Investigate an umbrella insurance policy which is an extra layer of protection against lawsuits resulting from damage to someone else’s property or injuries in case of accident. It can also protect you from false claims such as libel and slander. For roughly $400 annually, the coverage is downright cheap and worth a look. Think of it as extra bullets. And in Zombieland, you can never have enough bullets.

Rule #3 Beware of Bathrooms: Ok – a tough one you think, however this is really an overarching statement about being stuck in an awkward position at the worst possible time. You don’t want to be caught on the bowl when the living dead target you!

Don’t get caught with your pants down when emergencies arise. Make sure to maintain
six months of living expenses in a savings or money market account. Just as I always wear a belt so it’s tougher to get the pants down, I recommend six months as a bare minimum to be safe.

Three months of emergency savings as a rule, is a financial zombie that must be shot in the head. There still remains a good chance that your new job will pay less than the one you lost, so an adequate buffer is mandatory.

Rule #4 Seatbelts: Taking creative routes, stopping short, driving fast? It’s all normal in Zombieland and occasionally in Financialworld too. When it comes to investing, your
emotions are driven by fear and greed. They’ll take you on a breathtaking ride more often than you think.

Successful investors learn to manage their emotions. In disciplined doses you must be strong and sell into greed and buy into fear. The seatbelts of rules and disciplines will keep you secured.

As Zombieland’s Chairman Ben Bernanke roils every asset market, you just don’t feel safe. Gold is a shit storm, bonds are down, stocks are down. Cash appears to be the only automatic weapon with endless bullets available.

During these times in markets you feel like you’re standing in a parking lot. Naked. Coated in BBQ sauce. Holding a sign above your head that spells out “EAT ME.” Oh, and you’re screaming at a hoard of zombies to come and get it.

Sit with your financial pro now. Or find one who can help you outline specific portfolio buy and sell guidelines and master the greatest enemy of investment returns – YOUR BRAIN. And zombies LOVE BRAINS!

zombies eat brains

Rule #5 Travel Light: Zombies seemingly pop up anywhere-they’re eerily stealth. In Zombieland you don’t want to be lugging all kinds of junk when you need to be nimble at all times.

When it comes to money be sensitive to investment, credit and insurance expenses. Make certain to read the fine print and realize all choices have expenses. The key to success is to know what you’re getting for the hard-earned money you spend or invest.

For example, term life insurance is a lot cheaper than variable life; maintaining or using a credit card is convenient however realize you’ll pay on average 16% interest for the luxury. Fair and lighter fees mean more money in your pocket over the long term.

Rule #6 Don’t (DO) Be a Hero: Columbus eventually realized that sometimes you need to be a hero in Zombieland. Be sensitive enough to know yourself and realize when you must admit a mistake, change a rule and move on. It’s never too late to change a bad behavior.

According to several academic behavioral finance studies, most investors will hold on to
losing investments way too long and sell winners too quickly. Men especially have a difficult time admitting mistakes and changing strategies. Being close-minded to new ideas or holding on to losing investments until they “return from the dead,” is a sure fire path to bloody future returns.

Rule #7 Limber Up: Before working through an unchartered or questionable area it’s best to warm up. In Zombieland a pulled muscle can slow you down and before you know it you’re on the menu!

People I meet and many I talk with are seeking some form of investment to get them rich quick. It all sounds exciting but getting rich quick is a sexy fairy tale destined to pull the money muscle right out from under you. There is no excuse for homework and discipline. If you dig deep enough into get-rich quick schemes they’re surprisingly easy to unravel.

Rule #8 When in Doubt Know your Way Out: Perhaps one of Columbus’ best. You must have an exit strategy when entering a building in Zombieland. Precious time can be wasted by surprises or attempting to unblock an exit.

Know your rules of exit before you own any investment. Individuals should check their
investments at least semi-annually as they ebb, flow and change and occasionally not for the better.

It’s important to also make certain your beneficiaries are updated on company retirement plans, IRAs and life insurance policies to make certain those you don’t desire to receive the assets, are removed. You wouldn’t believe how common it is for ex-spouses to be unintentional recipients of assets you meant for others. And this shit is ironclad. Once you die, the wrong people will receive your money.

Rule #9 The Buddy System: It’s crucial for a friend to have your back to clear an area or help you out of a sticky undead situation. There’s nothing wrong with having another set of eyes to help you review your financial situation as long as the person is qualified, objective and has your best interest in mind. Heck, as long as the person you confide in has your back it’s worth gaining an opinion, right?

Oh, and if you do hire a professional it’s important to understand how they receive payment and divulge any conflicts of interest up front. Ask the critical question: “How do you get paid?” You want specifics.

Rule #10 Check the Back Seat: Heck, it’s necessary to do this whether the living or dead are hiding back there! Your financial situation must be able to withstand unwelcomed surprises.

A disability can devastate a financial plan, even if it’s short term in nature. Do not overlook the need for disability insurance coverage; don’t be tempted to play the odds. Most companies will provide short and long-term disability coverage as part of a benefits package. Consult your current insurance professional and secure coverage as
soon as possible.

Random Thoughts:

I write a lot. I keep a red Moleskine notebook with me all times. Yesterday, I wrote,spilled out the answers to these five questions. Happy to share them with you. Because at the end of the world, you want to make sure you have your shit in order emotionally. No regrets.

Here we go. But before we do that..One more Zombieland photo:

zombie clown

God I hate clowns. Zombie clowns? I can’t even go there.

1). Who would you say “I love you” to first in case zombies rained down on your neighborhood? My girl Haley. So why wait?  If you love someone tell them. Today. Now. Wake them up. They’ll be pissed off but do it. A zombie drop is scheduled in your vicinity, within the hour.

2) What would you take with you in case you needed to leave in a hurry? I keep with me an old letter. Almost 20 years old. It was written about my dying dad. From his doctor at the time. It explained how amazed this doc was at my dad’s mental ability to fight the cancer eating him alive at the time. “I never had a patient fight for life like this. I am in awe of him.” I’m thinking I would need to read this frayed note. Many times.

3). If you had to pick a female to be stuck with during the World War Z, who would it be? Hands down – Maria Molina from Fox News. I’m not even going to discuss or argue with you over this. It is what it is.

maria molina three

Sigh.

4). What are you grateful for in the present? Like it’s one year into Zombieland, you’re behind a barricade. What are you missing? I’m missing the smell of cinnamon, conversation with several close friends, anything written by James Altucher, a triple-cheeseburger from Red Robin. Live in the now. Step back and consider the texture, smell, presence of what/who you appreciate. I think I’ll have a milkshake today.

5). What would be your last words in the case (it’s inevitable) you become a buffet item at a zombie Golden Corral? I was thinking something funny like “I hope you die from all the fat you’re eating,” or just an “oh shit!” I need to work on this one. What would be your last words if you knew you were going to die today? The words you use will shape the reasons you’re still alive.

You’re not dead.

You’re not zombie chow.

Act every day like the dead are coming and you’ll live more than ever before.

zombie lady

Bag of Blood & Bones. A Baggage Story.

I knew something was up. She was acting weird. I could tell. I was six years-old but I could tell. She was unhappy, troubled. Mostly anxious. It was July and she wasn’t stuffing me into totally inappropriate dress for summer. Like corduroy. I recall a flee from our apartment complex that day – 10AM – dressed only in my huge, white-whale Fruit-Of-The-Loom underpants. Man boobs sloppy-free in the humidity. I escaped! Four blocks away before I realized I was running loosey/whitey-wild in the city.

Mom was normal, well let’s just agree that she was indeed “engaged” for a a period of my life. From like ages 0-10. She was super overprotective, strict disciplinarian, forced me to read multiple books by the age of 5, study everything. For this period, I remain grateful, outside of the fact she lost her mind by the time I reached eleven. She taught discipline and the lesson still comes in handy decades later.

But today, this July day she was aloof, disengaged, distant. Sick. Talking a lot to her friends. From what I recall, anyone willing to listen.

Mom was a slight hypochondriac.Well, she started out that way.  Actually, anything she focused on grew from the size of a pin top to the circumference of a circus tent, because she analyzed shit to the point of sublime. From every angle. She was an Italian housewife, 5’3″ 95-pound Sherlock Holmes.  I’m sure her strong focus (on every damn thing) was one of the personality traits which eventually drove her insane.

Anyway, at age six she would read real strange shit to me. One tome I recall was some Good Housekeeping or AMA volume on medical ailments, complete with rich color illustrations of tumors, oozing wounds, deformities, clots, female private parts (scariest of all – like Jaws with no teeth).

The book was as massive thick as mom’s meatloaf and my complete fear of it (and her meatloaf) eventually blossomed into a morbid curiosity. I remember the blood. The bones (not in the meatloaf). There were at least two chapters devoted to amputation. For weeks I woke up in the middle of the night, in a haze, believing I lost a foot or a hand. I kept a red and white flashlight underneath the covers to repeatedly check on my appendages (and read comic books).

I wondered: What the hell happened to all those severed body parts? I asked. Mom said they were placed in bags. Then what? No answer.

And..

What kind of bags were they? Hefty? Gym? Body? Space? What?

What kind of science was this?

horrible science

The book sort of changed my world view. I began to think about the human condition, my condition, my flab. I realized: We’re just bags of blood & bones. In the beginning, middle, that’s what it it comes down to.

And, at the end, all I am is a bag of blood & bones which eventually rots fancy in an overpriced, ornate encasement, deep in the earth. Or would loved ones (if any) stuff me in a lawn bag and leave me out front for trash pickup? It’s possible.

Bag of blood and bones. That’s all we are. In the end. Maybe some little worms too, not sure. I read Elvis had worms in his colon when he died, I mean that’s what I heard. I think.

body in a bag

Random Thoughts:

1). What separates you/us from a bag of blood & bones? Is it perseverance, your attitude, a smile, your words, treatment of friends, family, pets. List those traits good and bad (and there will be bad, very bad) which comprise your triple-b (bag of blood and bones, silly). Does the bad outweigh the good? Yep. You’re blood & bones material. Does the good outnumber the bad? You’re still a bag of blood & bones however people may remember you for your contributions. Try to be remembered for your contributions.

2). How many other bags you carry around with you? I have a good friend. Something happened in another place and she won’t share (I tried) – I see the baggage in her eyes. I see how she carries that bag around. She’s tiny – the bag looks like it weighs a thousand pounds. May be healthy to air out the mental luggage on occasion. At least to someone who won’t judge (possibly laugh). Everyone has a bag or two, or three. Just know when to open them, know when to keep them closed. Felix the Cat always knew when to open the bag o’ tricks!! Sometimes baggage keeps your bag of blood and bones alive like a survival mechanism.

Fritz

NOT Fritz the Cat (FELIX the CAT). 

3). What’s your financial bag of blood and bones? What kind of imprint remains as you observed your parents struggle with money? Or save too much, or misuse credit, or lose a business? Or perhaps you know the parents are going to leave a fortune so you decide to check out on accomplishing anything. Sit around. Wait for them to die. Like a lumpy bag of blood and bones. Don’t believe your parents’ relationship with money affects you? Think again. You’re splattered full of financial blood and bone matter.

For my dad, his parents’ frugal nature morphed him into a spendthrift. For me, watching dad blow every dollar he earned made me appreciate the value of a buck. A generation of kids observed their family deal with the devastating effects of the worse financial crisis since the Great Depression. The end result is many younger folk are more risk aware/averse, less engaged with the stock market and believe they’ll be worse off than their parents. Perception is reality. These sentiments tend to stick around a bit. Perhaps for an entire generation.

“Mom, what’s wrong?”

She finally told me. It was a miscarriage. Not the first but for some reason this one hit her hard. I didn’t understand what that meant but I answered:

“Where is the bag of blood and bones?”

I wore that bruise from the smack in the face, for a week.

And to this day I wonder.

What the hell happened to that book? 

felix the cat

The Bond Markets are Downright Spooky! Don’t Panic! (Slight Panic).

Richard Rosso.

The bond markets are downright spooked.  Or are they??

It all depends on your perspective.

How much media hype can you absorb (and believe me there’s a feeding frenzy going on in the financial media) without running from bonds like victim trying to fruitlessly escape from “Leatherface,” the psycho killer in “The Texas Chainsaw Massacre.”

Texas Chainsaw You cannot escape!

What is a bond? Well, boys and girls a bond is a debt. You loan money to a corporation, a government, a municipality and for that you privilege you receive interest payments (income) and eventually, if the borrower is high quality, you’ll receive your original investment back (no this not like lending to your brother-in-law).  And when interest rates go up, your bond may be worth less (if you try to sell it before it matures). Most important, when interest rates rise…..

                                       IT’S THE END OF THE WORLD FOR BONDS!!!!

Bonderoid Look! A bonderoid just hit!!!

You would think we’re smack in the middle of the zombie apocalypse and bonds are biting and infecting portfolios.  It’s World War B! (Sorry Brad Pitt I stole your cinema thunder for WWZ, coming to a theatre near you, soon).

world war Z cat Look there’s a zombie cat in World War Z!!!

So, let’s take a breath and examine this situation with level heads, shall we?  Master Blogger, best-selling author, friend James Altucher advises readers, followers, to take deep breaths and hold for 4 seconds (or 4 ticks in the 10-year Treasury note yield).

Ok. Are we relaxed? Let’s get excited again!

Because..

OMG OMG OMG OMG!!! (MEDIA UNCUT INTERPRETATION).

Ten year June

Yes, is the short-term whoosh a bit unnerving in treasury yields? Sure. Most troubling, as bond prices were falling (due to rising interest rates), stocks were faltering too, especially the more “interest-rate” sensitive groups like utilities, MLPs, REITs. Overall, every asset class experienced a respectable pummeling. 

The positive connection was a bit scary as I have diversification phobia. Based on research and observation, true diversification has become a challenge, especially since the financial crisis.  As I’m paid to help clients reach personal financial benchmarks and manage portfolio risks, I’m a forever student on this topic.

Despite what you hear from the financial services industry, diversification is not some form of panacea. Yes, it’s important, however true diversification is becoming tougher to achieve these days. So, when bonds don’t provide diversification to the movements in stocks, it brings back night sweats circa 2008.

Some of my research for my second book leads me to the mysterious topic of diversification. Reading takes me back to the 1920’s: 1920-1929. From the writings of stock market sages long dust in the ground. From the defunct but once iconic “The Magazine of Wall Street.” Featured briefly in the recent remake of “The Great Gatsby.” Those movie people sure do their homework! I was shocked by the authenticity.

Here’s a meaty excerpt from October 23, 1926 I thought you’d enjoy:

“Diversification in securities is an art understood only by a few (comment: nice to know nothing’s changed) but remains prime necessity if the investor is to gain the greatest degree of safety without sacrificing the possibility of profit. To spread one’s cash among a number of different issues is not necessarily diversification.”

Strange. I’ve asked a few brokers what they believed diversification was and received the response: “To spread one’s cash among a number of different issues.” Hmm.

I miss you, 1926.

Stay with me. Hold the line.

“To diversify properly, it is necessary that a certain portion be allotted for safe-keeping and another portion for income and profit producing.”

I like that. So when bonds and stocks begin to move in the same direction, it causes me to sweat just a bit, become more aware of the macro conditions (mostly sweat).

Oh, where were we? Oh right: The move in bond yields.

And we have been deep-breathing, correct?

So. Oh yeah.

OMG OMG OMG OMG! Let’s think a bit longer term, shall we?

TNX longer term

Yields are still lower than 2012, and even lower than 2011. Whew. Perhaps the sell-off was/is an overreaction. You mean we overreact in the bond markets now too? Sheesh!

I can hear the cry now: Has Ben Bernanke abandoned us?

funny baby crying Awww, heck no!!!

Now, now dry your eyes. Let’s review why BB is still supportive of risk assets and bonds are not as terrifying as everybody seems to believe:

1). First unemployment is nowhere near the Fed’s target of 6.5%. And based on past interest rate action higher or lower, we know that the Fed moves like an aged Fed Governor’s gait on ice.  My favorite chart by Bill McBride shows how far the economy still needs to go before we even reach peak employment (pre-financial crisis). It’s like 62 months already. Is the situation improving? Yes. Slowly.  However, the bond market is reacting like the economy is ready to reach escape velocity and we’re going to see major hiring right around the corner. It’s all about aggregate demand, stupid. And speaking of such.

Employment

According to the BLS (the Bureau of Labor Statistics):

Within leisure and hospitality, employment in food services and drinking places continued to expand, increasing by 38,000 in May and by 337,000 over the past year.

 Retail trade employment increased by 28,000 in May. The industry added an average of 20,000 jobs per month over the prior 12 months. In May, general merchandise stores continued to add jobs (+10,000).

 Health care employment continued to trend up in May (+11,000). Job gains in home health care services (+7,000) and outpatient care centers (+4,000) more than offset a loss in hospitals (-6,000). Over the prior 12 months, job growth in health care averaged 24,000 per month.

So, if my math is correct 94,000 out of the 175,000 jobs created in May were in lower-paying industries of the economy.

My favorite waitress at Cracker Barrel restaurant, Jessie Lou, does a great job. I’m certain she consumes. I know I’m a good tipper too. That doesn’t mean Jessie Lou has a lot of spending power. I’m thinking Ben Bernanke is examining the quality of the underlying jobs too before he decides to alter his actions.

2). Households are still deleveraging.  A fancy way of saying they’re paying down debts. They’re not maxing out credit cards or using their houses as ATMs anymore. You see, corporations can shore up their balance sheets relatively quick, in a few quarters. It’s not the same for households. It takes time for household balance sheets to heal. Progress is happening. We’re just not there yet. I mean what are you gonna do? Fire the kids to lower expenses? No. You spend less (see below).

Personal-spending-YoY

3).Nobody rings a bell, blows a whistle, no Paul Revere stuff happens when it comes to the reduction of a bond buying program. A metric doesn’t exist which helps markets gauge when the Federal Reserve decides to “taper” or stop their grand experiment so markets attempt to decipher what Bernanke says and then overreact to the overreaction.

Even when BB is crystal clear about his intentions, traders, investors, the media are seeking the meaning behind the meaning and taking out their guesses on stock and bond prices. Tell me if you heard this – If the economic news is bad that means the stock market will like it and head higher. If the news is really good that’s good too because that’s a signal that the Fed can unwind gracefully. Huh? Frankly, all of us involved with investments are guessing at best.

There’s no way to judge how the Fed extracts from this zero/low interest rate experiment but believe me the world is watching. It’s like taking a shower with the curtain open and having all the heads of global central banks sitting on the bathroom floor watching, waiting.

It all reminds me of one of my favorite games as a child – The Milton Bradley classic – “Operation.”

With a skilled hand you use tweezers to reach into “patient Sam” and extract all types of hilarious body parts – Adam’s Apple, Butterflies in the Stomach (a plastic butterfly), Spare Ribs.

Now the challenge is the plastic ailments are tiny. The openings within “Sam” are slim, so you must go in and extract without touching the metal edges of the openings with the tweezers, otherwise a loud buzz goes off and Sam’s red nose lights up like a Christmas bulb.

operation

Right now, Bernanke has the tweezer on the Funny Bone and if he doesn’t use a steady grip to extract, he’s going to set off the buzzer on panic and stock, bond markets will light up red. Not an easy feat (and it won’t be funny). Appears BB has a real dilemma on his hands.

Markets will remain volatile and trade off headlines as we go through summer.

What to do?

FIRST, DON’T PANIC!!

Now..

1). Decrease your bond durations to 3-5 years. In other words, speak to your broker, adviser and have them decrease the interest rate sensitivity in your bond portfolio. Investors are not going to totally abandon bonds but we are going through a re-evaluation of bond yields which will drive you crazy.

 4). Dividend-based and interest-rate sensitive stocks are beginning to look attractive again. For example, the exchange-traded fund XLU, which holds, well, S&P utility stocks, has worked off an overbought condition. I’m waiting for a positive MACD crossover before I enter. As of the close of business on Friday, June 7, the twelve month yield is 3.86% according to Morningstar.

XLP

Overall, we live in interesting times and our grand interest rate suppression experiment will make history.

For now, all we can do is breathe.

The Pop-Culture Frustration of Demographics.

All this stuff on Japan and aging and productivity from the Socrates of money, John Mauldin (the king) got me thinking. Naturally, I’m not an intellectual so right away I revert back to the comfy tub I feel best soaking in: POP CULTURE.

I’ll add my poppy, fluffy spin to his intellectual arguments (because then they’ll be interesting).

Let’s face it: Demographics are an economy slayer: The kids of the 1960’s & ‘70’s are experiencing enlarged prostates and menopause. Marsha Brady is menopausal?

Mayer

OOPS I’m sorry. This is my “new” Marsha – Marissa Mayer President & CEO of Yahoo! If I had a cool name like Yaloo or Rumbler she’d buy me and I’d let her. 

This ain’t good, folks.

“Sanford & Son,” starring the late, irreverent Redd Foxx as an elderly junk dealer living with his ambitious (when it comes to peddling junk and get-rich-quick schemes), adult son Lamont, was one of the funniest television shows of the 1970’s. It had a successful run from 1972-1977.

dummy

In 2007, Time Magazine placed the show on their list of the “100 Best Shows of All Time.” As Fred Sanford, Redd Foxx delivered some of the most memorable, wittiest lines on television. I thought Fred was old then. Now I look around and everyone appears to shuffle along lead footed, like him. Our population is indeed aging. Usually, that’s not good because demographics are everything to an economy.

When Fred was stressed out or in a predicament he would fake a heart attack for sympa­thy. He’d look up to the heavens, raise one arm, place a hand over his heart, go unsteady on his feet and moan to his dearly departed wife, Elizabeth: “This is the big one, I’m comin’ to join ya honey!” Now, heart attacks and other afflictions plague even the late baby boomers. I can get real gassy.

The 70’s celebrities are dropping like flies. We’ve lost Don Cornelius of “Soul Train,” Robert Hegyes who played Juan Epstein in the program “Wel­come Back, Kotter,” and Bob Weston, musician and songwriter for the iconic 1970’s band “Fleetwood Mac.” Come to think of it  TV’s beloved Horshack has bitten the dust too. I refuse to tell you who Horshack was. Look him up.

Horshack

Here’ssss Horshack. NO, it’s not Anthony Weiner in high school. Don’t be silly. 

As a kid, I was a ghoul-incessantly curious over celebrity deaths. In the early to mid-70’s, I couldn’t wait for the latest edition of the “The World Almanac® & Book of Facts,” to hit the racks at the local convenience stores. I was anxious to investigate celebrities who died that year.

The chunki­est book around contained everything you wanted to know about everything, published annually. The almanac was the printed version of the internet-an extensive source of data. Actually, the book is still produced and remains one of the best desktop reference books available. You can purchase at http://www.worldalmanac.com. The latest edition is over a thousand pages. It’s not boring and presented well.

In the 70’s, I had a habit of sneaking into the creepy, overgrown old (I mean old, dating back to the 1600’s), cemetery in my Brooklyn neighborhood and do my best to read faded tombstone epitaphs.

Today, there’s http://www.findagrave.com. I’ve been a big fan since 2006. An extensive web zone of 76 million dead, including the famous (and infamous) along with photos, biographies, and the ability for visitors to leave sympathy messages for the dearly departed. Not only the well-heeled are electronically interred here. I found my precious nana Rose’s grave record by searching her name.

Being on the wrong side of the demographic slide compels my mind to dance with the macabre. I begin to wonder what it’s like not to breathe anymore or release my bowels for no reason or without realizing it. You don’t need to be an academic to comprehend how as you age, your ability or willingness to contribute to economic growth decreases. Speaking for me personally I plan to be an overall drag to U.S. economic activity if by chance I get old. I’m not optimistic as some of you know.

What’s all the fuss? What is this thing called demographics? Well, demographics are the makeup of the people. Demographics are a deep analysis of the herd. Everything about how the masses live, move, age, die.

It’s the population and its pulse.

So, what’s your position in the herd behind the fence in a place called the United States?

For example, I’m a late baby boomer among the herd. Studies remind me how I’m ill-prepared for retirement, my hair line is receding, I’m afflicted with “low T,” whatever that is, I watch a disproportionate amount of television and control half of all U.S. consumer spending. For extensive analysis of social and demographic trends, check out http://www.pewresearch.org.

Television blares at me, advises I’m ready at a moment’s notice to take off on a motorcycle before or after I swallow the pill that magically drops the “dys” from the function of my erectile. Note to self: No motorcycle just yet (next year, maybe)

It’s tough when your function doesn’t function. That’s going to be the bumper sticker of my generation. 

John Mauldin (Yoda) says:

“There are two, and only two, ways that you can grow your economy. You can either in­crease your (working-age) population or increase your productivity. That‘s it. There is no magic fairy dust you can sprinkle on an economy to make it grow.”

It’s not that difficult. You need more bodies to work, pay taxes, buy more stuff. Remem­ber, our economy is dependent upon society’s ability to purchase and use services.

Robert D. Arnott a money manager, cutting-edge thinker and academic along with co-author Denis B. Chavis in a study titled “Demographic Changes, Financial Markets, and the Economy,”  in the “Financial Analysts Journal,” using a large sample of countries and 60 years of data, outlines why a majority of us should be concerned.

The ominous conclusions of aging demographics have been in circulation awhile. This study identifies several key points that intuitively, without all the rigorous analysis behind it, make sense. Not only do the outcomes make sense, they will (do) have a material effect on how the herd lives, works and invests.

From the study:

Large populations of retirees (65+) seem to erode financial markets performance as well as economic growth. Retirees are liquidating investments to buy goods and services they no longer produce, and they’re no longer contributing goods and services into the macro economy.

Stocks perform best when the roster of people age 35-59 is particularly large, and when the roster of people age 45-64 is fast growing. Bonds prosper when the roster of people age 50-69 is growing quickly.

Per capita (each individual) GDP growth is strongest in populations dominated by young adults and in populations in which the young adult population is growing quickly.

If the working-age population (people between 20-60) is growing faster than the broader population, that should provide a tail-wind to per capita real (inflation-adjusted) GDP.

It’s finally time for me to reveal my lifelong frustration with David Cassidy.

All the adolescent girls in the neighborhood adored the genderless David Cassidy. He was a mega teen sensation rising to stardom in ABC Television’s “The Partridge Family.” I mock his existence, call him genderless, clearly out of sheer jealousy. He made me look and feel like “Lancelot Link, Secret Chimp,” from said named Saturday morning television program which ran in the early 1970’s.

lancelot

Lancelot was the coolest chimp EVER. James Bond with back hair. 

Candidly, David Cassidy was beautiful and I was disturbed over the pretty. I wanted to be pretty. What a flowing mane, what a nose, what a voice. He was everything I’m not (still is). Damn.

Do you realize David Cassidy aka Keith Partridge, as of this writing is 63 years old? The lionized former teen idol is now eligible for social security (although I wouldn’t advise him to take it until he’s much older).

By the way, if you go to http://www.davidcassidy.com, it appears his hair hasn’t aged at all. Hate him.

David cassidy

I’m secure enough in my manhood to say: DAVID CASSIDY WAS PRETTY. 

When Keith Partridge celebrates his 72nd birthday, he’ll be one of ten senior citizens for each new working-age person. So things are going in the wrong direction as the working-age population shrinks. Again, what’s the significance to you? (Some info is repetitive but worth it).

Random Thoughts:

1). Overall long-term returns for popular asset classes like stocks and bonds will be muted. Saving more, working longer and smarter debt management are tactics that are going to result in greater financial reward. David Cassidy is still performing so he’s wealthy. He doesn’t need to worry. (Damn again).

2). Don’t be a big dummy like Fred Sanford’s, you know – Lamont.  If you’re in good health, long life expectancies exist in your immediate family and you can postpone it without obliterating your lifestyle, wait to take social security for as long as financially possible. For the majority of us it’s the only “pension,” we’ll ever have so I understand if waiting isn’t advisable for you. Want an estimate of how long you’ll maintain the mortal coil? Check out http://www.livingto100.com.

My thought is if you’re 55 and older social security is going to be there, relatively intact. David Cassidy would benefit financially by waiting until he’s 70 years old to begin collecting social security benefits. For every month you delay social security benefits after “full retirement age,” whether it’s 65, 66 or 67, you receive a credit or an increase in benefits which is equal to two-thirds of 1 percent per month or 8 percent a year.

Anson Williams from the smash hit 70’s television show “Happy Days,” played a sort-of-goofy character named Potsie Weber. Potsie is 64. I’d advise him NOT to take social security yet.

I mean goofy is one thing, dumb is another.

3). The superstars of the 1970’s now require walkers. And when they fall they can’t get up without assistance. However, most are probably set for life and can make the social security payout decision easy enough because they don’t need to depend on the benefits to survive. You can’t be so dismissive.

I just read that the Scooter Store got raided by the Feds. Can this be possible? It’s a nightmare. I was truly upset. The Scooter Store, one of the nation’s largest suppliers of power wheelchairs and scooters, had about 1,800 workers. You ever see that Hoveround Power Chair? Jesus, it’s like a Harley to me.

hoveround

I mean this Hoveround is a work of art. 

Social Security is probably the only pension you’re ever going to receive. Be smart and labored with the decision. Work with a financial pro­fessional who can help you clarify your thinking and run the numbers for your unique situation.

4). Create your own pension. I vacuum when I’m stressed. I got that from my mother. No matter what shape mom was in, she always appeared ordinary, felt better when employing the vacuum cleaner. Perhaps she believed, in some way, it cleansed the personal psycho dirt she shed. Not sure. She had the most expensive vacuum on the block, I’m certain. And it was always a canister type. Never an upright model. Mom had her standards.

I’ll never forget. It was a 1974 turquoise “Model L, Electrolux” metal elongated baby with white trim. I must admit it was a pretty sight to behold (remember I grew up when the Ford Pinto was popular). I never thought a household appliance could be pretty, but it was. It was a loud sucking, rolling apex of normal in an abnormal household. Vacuuming gives me piece of mind and has absolutely nothing to do with annuities,

But…

There are a series of annuities called deferred-income annuities which are funded now for a lifetime income later on, preferably ten years or later. Best to purchase around age 50 or older. Generally, they’re less expensive than variable annuity options and you pretty much know how much income you or you and a spouse are going to receive for life. Bad part is you generally need to “annuitize” or have the insurance company have complete control of the money. In return, you’ll receive a check in the mailbox for as long as you or you and spouse will live.

A  financial planner, adviser, consultant or qualified whatever can run the numbers and show you how or if an annuity structure is necessary.

All the strange talk I remember overhearing back in the 70’s: Pension, pension, pension. The word made me envious and I had no idea why. The “regular” older kids would talk about how their dads or granddads at a ripe old age like 55, would collect a check forever and never need to work again. They were excited about vacations. Imagine. What the hell is a vacation?

Even several episodes of “The Little Rascals,” referenced old people and their precious
pensions. The word got stuck in my head. I was sensitive to the sound of it. Those reruns
ran constantly in the 1970’s, too. They were considered antique even then.

crabtree

Side note: Mrs. Crabtree from “The Little Rascals” was so hot. Sorta reminds me of Mayer.

As John Mauldin (God) wrote in the following, and he’s been writing about Japan for years:

Japan is on the Brink of Disaster.

Demographics are not on their side.

Let’s face it.

We’re all getting older.

Did you hear that?

It was my knee.

Great. Just great.

Nap time.

A Sign of the Times: Ten Reasons to Envy the Undead.

Zombies are overwhelming your metropolis. No, no, not politicians and bankers.

Real live (dead) zombies!

Zombie one

Ok, not as spooky as politicians or bankers (especially the central banking types), but you get the picture.

Someone I admire, he’s like a Socrates for our times,suggests that zombies represent a world of pervasive loneliness. I love this man to death but I sat there puzzled, thinking:  I still don’t comprehend the zombie loneliness theory as they do tend to stagger together in groups. In the blockbuster TV show “The Walking Dead,” the living “living” coins this behavior as “herding.” The living dead herd. Who knew. That’s a form of bonding, no?

Good enough reasons to keep your doors locked, people!

Not that locked doors work for long. After all, a mere few zombies can turn over cars; bolted doors and flimsy plywood nailed over windows buys you just enough time to say goodbye to loved ones. Let’s face it: Sooner or later you’re a food source. I was told that by a senior-level executive at one of those big box home improvement stores that most plywood is now exported from China. Chinese plywood = balsa wood? I don’t trust it.

zombies and windows

Zombies are so white hot-popular right now; these decaying, staggering masses or the dead­est of “us,” easily steal attention away from the likes of a Kim Kardashian or the pinkish-hue of a Lindsay Lohan. I could be a bit off base about Lindsay. Her antics can easily draw attention away from zombies depending on the severity of the wardrobe misfire or an occasional sexy bikini wedgie (thank you, TMZ).

The living dead have risen in prominence. And this time the uprising could be permanent.  For decades their popularity has ebbed and flowed yet their presence has never truly decayed. Now they’re everywhere you turn. It’s the zombie time to shine!

I’ll occasionally catch myself darting an eye over my left shoulder when in a public place because I’ve grown downright zombie paranoid. In this economy, I should be more concerned about the living seeking to steal my wallet but since I believe a zombie apocalypse is now imminent, I continue to be increasingly living-dead aware.

I’ll list the rationale behind my deep-seated zombie fever and why I so envy them:

Random Thoughts:

1). They don’t fret over making ends meet.  As a matter of fact, their ends are sort of decomposing, falling apart. Zombies don’t fret to pay the cable bills, meet mortgage payments or deal with brain-rotting college tuition costs. The days of anguish over the daily money monkeyshines of the living are gone! Surviving takes on a totally different perspective. How I relish those with reckless abandon who can just chase and bite, stagger and gnash like rabid animals.

The Federal Government has even been known to send dead people unemployment and social security checks but they have no need to cash them. I’m jealous. The very mortal coils of everyday fiscal obligations are broken. We are envious of the financial freedom. Who wouldn’t be?

2). There’s a thrilling bon vivant nature about the undead I admire. Zombies are brazenly wasteful and they just don’t care!  Again, I’m envious.  If the living dead are so hungry why do they take no more than two bites of prey and move on? It’s not like there’s endless supply of warm bodies to nosh on. Humans don’t grow on trees.  Has anyone seen what’s happening to global demographics? We’re all aging. It’s only a matter of time before there are more living dead than living.

The undead must do better with food handling. What about all the starving zombies in China? Even when they decide to dig hard and tear deep through a victim, zombies don’t appear to be eating. Looks like they’re playing with their food (in this case elbow-deep in intestines, organs and other nondescript red slimy entrails). If I played with my food with such passion as a kid, I would have been in enormous trouble.

Again I reference the best cable show out there – In the AMC hit television series “The Walking Dead,” a believable explanation for the genesis of said program title emerges. At least it allays some of my frustrations over the deliberate waste of the fresh, walking food supply.

In the Season One finale “TS-19,” the sole remaining doctor at the Center for Disease Control (gingerly insane yet very sage from a lethal combination of: Isolation under­ground for an extended period, shooting his wife, test-subject 19, in the head once-her usefulness as an infected under observation concludes, and conceding to the awful truth that there is no cure for the afflicted,) outlines findings I find plausible.

Doc Jenner explains:

The disease invades the brain like meningitis (OK – I heard that’s bad).

The brain stem is restarted. Gets them up and moving (makes sense to me).

Most of the brain is dark: Dark, lifeless, dead. The frontal lobe, the “you,” the human part is gone (it does appear that way).  

TWD writers are so damn smart.

I have concluded (I think), animated dead folk are indeed ravenous. They just don’t possess the human or humanity (what’s left is a tiny spark of light at the base of the brain) to make the most of preserving the food source.

I’m cutting the dead some slack. Although I’m sure if they cornered me I wouldn’t be shown mercy. My physical trainer says I’m very “fatty,” so my succulence would be too much for all those walking brain stems.

Zombie two

Dr. Steven Schlozman, a psychiatrist, Assistant Professor at Harvard Medical School and author of the book “The Zombie Autopsies,” would agree with Dr. Jenner’s conclusions and sizes up zombie appetites in a further professional manner perhaps because he never lost a loved one to a zombie nibble:

“The ventromedial hypothalamus (in the brain), which tells humans whether they’ve had enough to eat, is likely to be on the fritz in zombies, who have an insatiable appetite.” 

It’s clear to me now.

3). Zombies don’t require exercise and it’s inevitable they’re going to lose weight without much effort. I so hate them for this. As a matter of fact, even though Hollywood never seems to get it, if survivors can survive long enough, hunker down, the dead are literally going to rot. It’s not like they’re embalmed. Well I guess some are – I’m sure, even preserved, staggering corpses ostensibly succumb to harsh weather elements.

I sort of admire how “walkers” (what zombies are called in “The Walking Dead,”) can be wasteful (and eat whomever they want) without any repercussions. Damn them. Damn them all even more than they’re already damned.

Give it time: The weight loss will be deadly. Zombies should be dragging around close to the ground like clumps of fermenting flesh if you’re patient and resourceful enough to stay alive. Then go ahead. Leave your hiding place, brazenly walk up and do a step and squash on what’s left of a head. Simple. My boots are ready! Although stomping on zombie cranium “feels” too much like exercise to me.

And what about those quick sort of disturbing athletic zombies in movie director Zack Snyder’s respectable remake of “Dawn of The Dead?”  I stubbornly refuse to relent to running zombies. These primal hollows of our living selves just cannot (should not) sprint.

From Doc Schlozman’s book “The Zombie Autopsies,” the wisdom flows freely like blood from a gaping bite wound:

“Slower degenerative processes in the cerebellum explain the initially intact gait of the infected, even though they all become increasingly unbalanced with time. That’s why they hold their arms out in front of their bodies: for balance and increased coordination. They just want to remain upright, on their feet. But the process continues, the cerebellum degrades, liquefies. Virtually all late-stage ANSD humanoids ambulate via crawling.” 

AH-HA! See? Running zombies are an abomination! Listen up movie-makers!

I prefer my zombies slow, staggering and overwhelmingly off kilter. Like me on a Friday night. Hey, call me a purist. AMC’s “The Walking Dead,” gets it right. Again!!

FYI – ANSD stands for: Ataxie Neurodegenerative Satiety Deficiency Syndrome. The internationally accepted diagnostic term for zombiism. Thanks again Dr. S. Feel free to steal this for your next cocktail party. 

running zombies

4). Zombies don’t seek to bathe. And the living don’t seem to care! C’mon – Zombies should stink to high heaven. So, why don’t victims smell them coming from at least half a mile away? I once went an entire week without bathing in 1989. That’s after parent-basement sex with two women, eating several boxes of Entenmann’s orange-swirled icing and chocolate Hal­loween cupcakes, ten Big Macs and washing it all down with large cups of coffee overwhelmed with  heavy cream. I recall plenty of female grimaces followed by waves of disgust. Good thing I barely left the house back then.

You rarely see disgusted looks on the faces of the living who meet up with the rotting side of us.

How many times have you heard the following lines in zombie flicks?

“I can’t handle the smell of these walking maggot bags.”

“My eyes are watering from the stench of these fuckers.”

“I’m going to vomit from the ungodly odors these dead things throw off.”

Not many.

Well, to give further credit (yet again) to the writers of “The Walking Dead,” there have been various references to puke, puking and zombie dead-body odor peppered throughout episodes. They’re passionate about authenticity unlike most who cater to us zombie zealots. I salute them.

5). Zombies don’t discriminate. They’re equal opportunity biters, infiltrate all races and cut a bloody swath across political lines. They gain greater attention when economic conditions deteriorate or improvement is anemic. Sure, they seem to pop up during times of social unrest. Since the last recession, the most severe in decades, zombies have been in a downright frenzy to take over the world.

6). The undead have been around longer than you have. I envy the staying power. Although, I don’t recall them as relevant and so overwhelmingly popular. And I’ve been keep­ing track of their ebb and flow since I first bug-eyed watched the groundbreaking black and white cult classic “Night of the Living Dead,” by zombie Master Movie Maker George A. Romero, on a yellow plastic thirteen inch black & white TV in 1973.

In 1968, the year “Night” was released, the Vietnam War was raging, civil rights protests were grabbing headlines and Martin Lu­ther King, Jr. was assassinated. It cost a grandiose $114,000 to make which even then for a movie was a pittance of a budget. It had grossed over $30 million worldwide.

Romero created a controversial stir by featuring a black man, unknown stage actor Duane Jones, as the brave and re­sourceful hero while most of the men in the cast were blowhard, wishy-washy or backwoods white folk.

Romero also played up the contemporary theme of government distrust as dead body brains are “activated” (allegedly) by radiation expelled from the explosion of a space satellite, the “Venus Probe.” Throughout the film, there are shots of military/government officials (actors) fleeing from television news cameras all the while denying the connection between the radiation and the returning dead who make a meal out of the living. For gosh sake I thought I saw Eric Holder running from a reporter.

The bitter irony of the movie is how Ben (Duane Jones) solely survives the night of ghoul attacks by locking himself in the basement of an abandoned farm house only to be shot in the head the next morning by a white member of a sheriff’s posse as he’s mistaken for one of the remaining zombies roaming the countryside.

I remember watching: Scared to death, frozen. Shocked. I recall muttering the words: “This really sucks.” I hated the ending but I understood the point Romero was trying to make. Well, I think I do. Back then I interpreted the messages through a warped mental pre-teen siphon. Actually, I still believe my interpretations hold up.

I wondered:

First, why even bother to survive a zombie hoard if you’re going to be shot in the head by your own people (the living kind) anyway? What a waste.

Second, make more noise and scream actual words like the living (not guttural grunts like the dead) if you see a posse out a window! Ben, Ben, Ben. You were too quiet. I understand you just went through hell and you’re bit dazed but if it’s me I’m screaming like a sissy living, defecating human who just soiled his Fruit of the Looms!

Third, based on the social turmoil of the 60’s, I think Romero sought to use the film to convey messages about the futility of the Vietnam War (conflict) and the tragic assassination of MLK, Jr.

In other words: Go ahead fight the good fight, be honorable, stick to your convictions, but understand there is still a great risk. The hero can indeed fail or die.

I hated how Romero sacrificed Ben at the end (I know I mentioned that, already).

Fourth, an interracial couple holed up in a farm house (even when the female is young, blonde and completely unresponsive) doesn’t mean sex is definitely gonna happen. Huh? Not when Ben is around!

I was wondering when he was going to rip off Barbara’s (played by a very blonde actress named Judith O’Dea), clothes but all he did was com­fort and protect her. Well, he did knock her out with a hit in the face but it was perfectly understandable. She was unhinged after watching her brother become zombie brunch.

Even after she clawed at her scarf  – “it’s hot in here, hot.” NOTHING. Ben, you helped me understand what being a gentleman really means. Can you imagine if Romero had Ben have his way with Bar­bara? Talk about controversy in 1968! Today, Ben would be in hot water for placing a slipper on a white woman. DID YOU SEE WHAT HE DID? A MINORITY WITH A FOOT FETISH LIVES AMONG US. 

Ben and barbara Night

You sure do get to see the best (and worst) in people during times of disaster. THAT was the true message in Romero’s classic to me.

I still vividly remember the first time I watched “Night” on the ABC Satur­day evening late show. The idea of zombies was sort of goofy to me before then. I believe I watched Scooby Doo trip one up on morning television. To me they were clunky comedy relief. In black and white, late at night and thirsty for blood, zombies gained more of my respect. Scooby Doo was either brave or just a big dumb dog.

It was that dead woman at the top of the stairs. It was that devoured face. It was the eyeball staring, piercing me through an old rabbit-eared RCA television screen. My perception of zombies had changed. Forever. They haunted me from that moment. If I would have known how popular they were to become I would have given up on this money management business a long time ago. There was a fortune still yet to be made exploiting the undead.

night woman top of stairs

OK, enough of that. Next. 

7). These ghouls laugh at our complacency with money. Actually I believe it’s a gaping, black-mouthed sort of bloody drool they mock us with.  If they could, walkers would indeed chuckle at the jaw-dropping (and on occasion zombies are missing a jaw) willingness for many investors to remain with financial firms that don’t treat them as they deserve to be treated. Not enough communication, too much conflict of interest, high fees which eat up returns. I hear the complaints consistently and then inquire about or suggest a course of action.

All I receive is a zombie-like glazed over milky-white pupil stare. Fight the zombie of complacency!! Seek an objective, fee-based registered investment adviser. Check out the following blog entry from Clarityfinancial, LLC on the right questions to ask your current or prospective financial adviser.

How to Grill a Current or Prospective Financial Partner

Read more. Perfect segue to push my book, but I don’t want to appear self serving.  It’s too ghoulish. However, order Reformed Broker Josh Brown’s tome “Backstage Wall Street.” There’s lots of meat in this (for the living). Josh’s has a gift to communicate. His writing so sharp, the information delivered so lethal, it’ll slay the evilest of complacency corpses. Want the true story about what motivates your broker? Then..

Order Josh’s Book!

8). Zombies seem to get along just fine without technology.  It’s like when they die, then eventually rise again, they have a keen sense of where the next two-legged meal happens to be hiding. No GPS required. No Google Maps. I also like how the living dead don’t feel the pressure to create some retweetable bon mot along with clever hashtags for it – #holdinginmyliver #thatguytastedlikechicken #wheredidIleavemyseveredhand #birdnestineyesocket.

9).The ultimate revenge: Zombies may eventually be hired by large corporations.  The time is almost near. Employees of large publicly-traded organizations are burning out, dealing with lowest wage increases (if any) in decades in the face of some of the fattest profit margins in years. It’s all about the shareholders now. As a money manager I love it. As an employee I abhorred it.  So it’s only a matter of time before you as an employee are replaced by the living dead. Makes perfect sense. They won’t need to be paid,  just fed entrails.

No benefits, no vacations, no sick days. No more being pissed off over hiring workers in emerging and frontier markets as they no way could compete with a zombie workforce. Hey, you no longer need an HR department either (hell I don’t even know why they exist as they appear to be human and resourceful exclusively to the executive level).

In Romero’s classic “Dawn of The Dead,” the zany scientist was making progress  teaching “Bub” the zombie how to perform simple tasks. And that was over thirty years ago. Imagine the progress we would make with today’s technology. Stick ’em in a cubicle. When they desiccate, just scoop what’s left, discard. Replace. And no 401(k) rollovers to worry about either. Or pensions. Oh wait, what’s a “pension?” I’m thinking corporate R&D spending will be focused toward “Bub Projects.” Don’t laugh. You’re a bub away from replacement.

It’s all about the profits and share prices. You’re an expense to corporate America. Don’t think so? Read on:

Shareholder value is ruining America

10). Zombies compel me to examine the fate of the human condition. Why do they fascinate some of us? Do they represent how primal we can become?  Why did the first nude zombie turn me on? I’m just not intellectually gifted enough to interpret all this. Truth is I just want to enjoy being afraid.

nude butt night

Leave it to George Romero to feature living dead butt. In 1968. Not bad, right? Admit it.

Perhaps my smart friend was right. Maybe zombies do represent loneliness, our lost ability to communicate, the hunger for human warmth, the need to fortify when conditions feel out of control.

Or perhaps, we just plain like to be scared.

Don’t overthink.

Just go with it.

The Bullies Around (Inside) You – How to Defeat Them.

“The biggest bully I ever faced was underneath my own skin.” Johnny Cash.

Paulie Greco appeared. In the schoolyard. I saw him. Rising like a demon above cracked concrete. I couldn’t focus on anything else after that. For hours. Through the massive, thick Brooklyn public school windows behind heavy-gauge steel grating, I could still see him. I couldn’t stop seeing him. Waiting. I couldn’t stop feeling the ice, the fear coursing through veins I didn’t even realize I had inside my body, my head. Until they started throbbing. 2:15pm. He’d been out there. Since noon. High noon.

I remember shaking uncontrollably at my desk the closer the small, black super-ticky clock hand inched moved towards 3. My heart beat heavy in both ears. I wondered how I was going to lose blood, teeth. My spleen. I heard somewhere you could live without a spleen. That oddly seemed to calm me. Would I be able to walk? Please god not the face was all I could think. Thinking positively – Perhaps a good pummeling would work off some of the belly fat I carried around thanks to Drake’s cakes, Yodels to be specific.

yodels

Oh Yodels – the unnatural perfect food.

I didn’t do anything to him. In fact, I stayed far from him. I was always aware of his space so I could purposely avoid it.  He hated me because I was fat, I wore green corduroy pants in the summer (thanks mom), I was diverting the attention of a puerto-rican beauty in spandex pants who didn’t give him the time of day – she liked my brains over his brawn. I was friends with his girlfriend (the damn cute girls always liked to be friends with me because I was, non-threatening, funny troll-like figure). I had bigger pimples, maybe. For one reason, many reasons, every reason, this guy hated my guts.

All I knew?  I was dead soon. No more pencils, no more books, no more teacher’s dirty looks. Rest In Peace. In a dirt-blood pile. Smashed behind a city school. 

butch

America’s favorite bully then in rerun form – Butch from The Little Rascals.

There he was – leaning against a shaky schoolyard fence. Greasy dark hair. Black leather jacket with chains (as I think about it, looked stupid in June). He’d deftly bounce off the chain link, then shuffle – from one foot to the other. Right. Left. Right. Left. Rocking. Like a psycho planning a pounce on chubby prey. I’m sure he noticed me through the smudgy glass and steel-cage monster panes of glass. I know, at the least, he smelled me. My fear. I think it made him rock faster.

3pm was here. I couldn’t feel my legs, not sure how I rose from the desk…Numb.

I walked slow. To the bulls-eye. Not sure of my fate.

Random Thoughts:

1). External bullies never go away. Throughout your entire life they’ll re-appear. Even those who were once close friends can turn. Corporate masters like to bully too. Because they can. Shareholders, Boards of Directors encourage it (mostly by demanding greater results). Bullies hate the truth, however. They diminish in power once they know you’re not afraid and you possess the strength of the truth. But you’ll need to shiver in the ice water, feel the cold of loss, first. Today, many companies can pay less in wages, avoid raises, ask more out of you, work you out of a position for others less skilled, because they have the power. As the economy slowly improves, their ability to bully and scare will diminish. Be patient. Stay true to your cause. You shall prevail in finding greater more lucrative ventures.

2). Get to know your inner bullies. The bullies who push against you from within. They do stick around you until death. You know them. You’ve faced them. The ones who constantly, mentally pummel you. Telling you you’re going to fail, fall, falter. The ones who nag at you. Encourage you to flee. It’ll take some strong self-analysis to understand your interbullies as I call them, but if you remain aware, you’ll face your internal Paulies head on. You may stumble short term; oh, they’ll rock you, shuffle you up, but you will win, eventually. It’s inevitable. The more you fight them, the greater understanding you’ll have of their crude methods to shake you. Your mind begins to grow smarter than your interbullies. It’ll take time but it will happen. Don’t give up. You’ll surprise them when you least expect it.

3). Don’t be bullied to be stupid with money. There’s a lot out there to taunt you to overspend or misuse credit. Stand your ground. Stick to a budget. The less you spend the more empowered you will become. The more secure you will become in your future. A bully should possess a negative net worth. Not you.

4). Discover your reinforcements. Seek and then never forget what/who supports you. Understand the need to train for battle. Friends (some you never knew you had), exercise, a good diet, sleep, deep breaths,  meditation, reading, heartfelt discussion, all need to be employed as you fight the bullies around you. It’s ok to wallow in Yodels a bit (if you can find them); too many will weaken your body and spirit. Know when to shut down the devil’s food (which is a devil’s food).

I couldn’t feel anything. The larger Paulie grew in my line of sight, the more steadfast my pace. I wanted to flee in the other direction. I kept walking. Straight. Closer.

I recall closing my eyes briefly. I wasn’t going to run. I didn’t do anything wrong. If I got beat so be it. With all the adrenaline running through me I’m pretty sure I wouldn’t have felt a thing. So it appeared to be an opportune time for a thrashing. I just wanted one good shot. One good kick. One surprise that would shake him.

I stopped near the rocking bully. He stopped rocking. About seven feet from him. I tried to move in but couldn’t. Frozen. He moved towards me.

He spoke. Rough Brooklyn. Mostly hoodlum. Mumbled.

“You talk to my girlfriend?”

“Yea,” I said. What was I going to say? “She’s in my homeroom class.”

“I know people. I’m related to gangsters. You understand that?”

I knew that.

“I know people too. I hang out at Torragrossa’s Funeral Home. I watch them embalm dead people after school. You think my mother could get a discount if you kill me?”

I continued before he could say another word:

“You’ll need to realize I won’t die so easy though. If I can take you with me, I will,” I said. No reason why. Anger perhaps. All I know is I meant it at the time.

I had nothing to lose.

At that moment his girlfriend, my friend, ran up (reinforcements) and screamed at him not to touch me or it was over between them. He backed off.

A few weeks later I found out that he was a bit scared of me after that incident. It wasn’t his girlfriend’s threats. It was the fact that I watched the embalming process. It was a bit of information he wasn’t expecting. It was a surprise. A shock.

Bullies hate surprises. Shocks. The truth.

torregrossa

And apparently the embalming process.

Who knew?