How Boomers Will Choose a Retirement Locale: Weather? Taxes? Or One Other Key Factor…

retireesWhen our parents got down to choosing where to live out their years of retirement bliss, they based that decision, generally, on the following criteria:

  • warm climate
  • lower taxes (particularly for those in the Northeast)
  • affordable, senior-friendly communities
  • golf (or other favorite sport like boating)

Not in that order particularly; perhaps even equal in importance.

Then came Boomers’ turn to choose retirement Eden, and I predict – or hope, or both – we will include one key factor; for some of us, it may even trump one or two of the others on our list:

  • political & cultural climate

That portion of our youth, activism and strong political/social views, just might influence where we finally settle down to live out our last 30+ years.  After all, that’s almost 1/3 of our life, so we’re wanting more than early-bird specials and Jai-Alai.

As the country becomes ever more polarized (thanks to us…we started out polarized and remain so in our current dual roles as powerful voting block/generation in charge both legislatively & industrially), we will want to live in a place that shares our views governmentally & socially, from gun rights to health care.  Boomers who lean left politically will choose states like New Mexico and California. Boomers who lean right to far-right will love places like Arizona & Florida run by the Tea Party and the NRA, where their views are embraced by the populace and the leaders they choose.

The importance of these factors as we determine our retirement move is driven by the role cultural & political comfort plays for us (far more than it did for our parents): Culturally we care greatly about such things as quality elder care for our parents and then us, a supportive environment for mid-age & older workers/entrepreneurs as we pursue our “second act,” affordable health-care options (as we live longer and more active lives than our parents did), and 55+ communities’ emphasis on healthy lifestyles; politically we are not comfortable in a place where we would be surrounded & governed by those whose world view is the opposite of ours – and if we can’t move to a state that meets the criteria, we will at minimum find safe haven in a city/county that does.

So, states wanting to woo us, play this socio-political ace in your deck to attract our lucrative generation to your shores.

Boomers, pay close attention to this key ingredient when you make this very important decision.  I can tell you from personal experience; living in a state far removed from your cultural/political sensibilities is very painful indeed.

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An Open Letter to My Peers…And Congress

I am:

  • a business owner
  • a centrist Democrat
  • a woman (we are still the gender majority and statistically the greatest users of healthcare)
  • a Boomer (we too are a large number & statistically the ones who have the most to win/lose w/any reform)
  • a member of the middle class (ditto above)
  • self-insured (e.g. not through my business)

As you see, I represent a broad cross-section of those most impacted by any healthcare reform, and as a Centrist Democrat, I believe in fiscal responsibility while helping my fellow Americans who fall ill and/or die every day because they have no insurance.  Useful reform requires thinking and/both, not either/or.

I wish to speak directly to each constituency, member to member.

To my fellow business owners:

When we want to address a problem that only our company/industry is in a position to resolve, we would not ignore it – we would most likely take out a loan (or shall I say would like to if banks were lending…), and get to work on expanding what we must to take advantage of a window of opportunity.  We would carefully calculate the risk and determine that if we do it right, we will not only be able to pay back that loan, but make a profit. 

The “problem” that needs to be resolved here is that clearly the competition created between private insurers alone has not only not reduced customers’ costs, but continues to increase them, so that model has not worked in our market place.  Therefore a new model is called for.   Applying this business model to reform, the Feds would become an insurer so that we “customers” can then reap the benefits that such good ol’ American competition would generate with private insurers (because they are the only “industry” in a position to do so).  There will be an upfront cost – of course.  But using that as a reason for not doing it at all doesn’t make sense.  Doing it in a way that will ultimately pay back the “loan” and then remain solvent, does.

We say that compelling private companies to compete with the Federal Government is not fair competition, thus insurers will be placed at a huge and unAmerican disadvantage.  After all, without significant government subsidies, no insurer has attempted to provide coverages that compete with Medicare.  That said, however, this model has worked in other industries.  The best examples: public and private colleges/universities; what has compelled the US Post Office to work more effectively (or at least try…) has been the private company competition to it.  There is simply no well-thought reason this model cannot also work with health insurance. 

As for co-ops, those few in existence work so well because they are non-profits – like the government, they are not in it to make money, but simply put their earnings-above-expenses back into improving their services.  Therefore, isn’t that unfair competition to for-profits that must pay huge salaries and give shareholders returns on investment?  Either way, private industry will be competing with a not-for-profit entity of one sort or another, so in essence, co-ops would be equally “dangerous” as competitors.  Then, there is the icing on the co-op concept-as-misguided cake: the fact that the plan being considered right now would be in very few States/areas, and most likely would not be available to the majority of Americans in our lifetime.   There is another glaring flaw to the co-op concept, and that I’ve covered in “to my fellow self-insureds” below.

To my fellow Centrist Democrats (&  you, too, Republicans): 

Given the above formula, you disappoint me greatly by not seeing the fiscally responsible window of opportunity here to both improve competition/significantly lower insurance costs for us with a public option, and do so in a way that will pay for itself so any upfront costs are “repaid” and on-going costs offset.  That is both social and fiscal responsibility… which is what you purport to be all about.

To my fellow(?) women:

As the greatest users of healthcare, from child-bearing to the ever increasing incidence of breast cancer, we have the most to lose with reform that does not create real and significant competition – it is only such competition that will lower costs…that is capitalism…that is the American way and it works.  As I mentioned above, relying on insurance companies, even if you can purchase “across state lines”, to lower your costs as a result would be continuing to trust an industry that clearly does not have our ability to afford them at heart.  For example, they can simply congregate in states that have far less stringent laws for coverage, and then offer a lower premium…for less coverage – this is not a savings.  They will continue to do what they do now:  the two largest health insurers held half or more of all enrollments in 40 of the 42 states studied just last year by the American Medical Association.

Without an outside force keeping their prices in check, they have proven to us over almost a century that they will simply find ways around any lesser legislation, and we will continue to pay for it.

To my fellow Boomers:

All of the above in the “women” section, plus as we age we will be the major users of healthcare, and many of us have miles to go before we qualify for Medicare (the other “public option” of which we will happily avail ourselves).  That means years of exorbitant premiums, even if insurers can no longer drop us when we get sick or refuse to cover us with a pre-existing condition.  Great – we qualify – but we still can’t afford it….

To my fellow Middle-Class:

The poor will be covered – the rich can afford designer care so they don’t care – we’re the ones who will be left to live with the final results of this legislation.  So, what will reduce our costs without sacrificing the levels of coverage we need to stay healthy…or survive a devastating illness?  We’ve said we don’t trust the government to do a plan right…do we really trust insurance companies more…?  With reforms to Medicare to bring its spending under control, it becomes an excellent model to replicate. Apparently even without those controls everyone on Medicare loves Medicare and the rest of us can’t wait to get on it… If Medicare is that effective, useful, needed, it is worthy of replicating for younger Americans as an alternative to private insurance for those who qualify (which, like Medicare, would hardly be “everyone” but in fact quite limited – enough to make a real difference without creating an unfair advantage).

There is only one way we will realize not just immediate but on-going cost reasonableness while not sacrificing our coverages.  We can have both – this is America – when we want the best approach badly enough, we make it happen.

To my fellow self-insureds:

You, like me, have most likely at some point had insurance through an employer prior to buying your own for whatever reason.  Back in 2000 when I worked for someone else, I was given a choice of diminished coverages for the same employee share cost, or increased costs for keeping the same coverages.  This trend has continued and worsened for those with employer provided coverage.  To quickly emphasize this with a real example: Dawn Smith is an aspiring writer living in Atlanta; four years ago, she was diagnosed with a rare, but treatable brain tumor; her doctors are ready to remove it, but they can’t because CIGNA refuses to pay for the surgery.  This is a battle happening right now.

We know that this is then magnified 100% when we pay the entire bill ourselves, and with no more guarantee than has Dawn that we will be covered when we need it the most.

I have seen my insurance bill rise by 33% over the past 1.5 years.  This is simply unacceptable.  Yet I have the lowest-cost insurance available to me here in Florida, and the bare minimum of coverage (“catastrophic” only).  Of the “cost-reducing” options being forwarded in lieu of a public option by some members of Congress, one is the ability for us to go across state lines – in reality, that would reduce my premium very little (I’ve checked) and “co-ops” would take years to develop to the point of efficacy – that’s only after the years it will take to get them up and running…the existing co-ops being used as models have taken as long as 20 years to get to the point where they are now the models to be emulated.  You truly want to wait 20 years? 

And as for cost, co-ops may have premium increases that are less than their competition’s, but that doesn’t make those increases necessarily affordable. Washington State’s Group Health Cooperative of Puget Sound had annual increases for averaging 12.3 percent since 2000; they were 24.2 percent in 2003.

My fellow Centrist Dem’s/Biz Owners/Boomer Women/Self-Insureds, I ask you to consider my words to you peer-to-peer; they are long in coming and carefully thought out, I promise.  I have done my homework – do my own fact-finding rather than relying on pundits with a clearly self-serving motivation (ratings) on both sides of the issue.  I, like you, have the most to gain or lose if this is done…or not done…right.  I ask you to not only refuse to dismiss a public option, but insist on it. In fact, it is our only chance for reform that will be both meaningful and lasting.

7 Tips for Getting Your Boomer Mojo On!

Peace signThese are seven easy things we can do to reinvigorate our Boomerness – combining what made us great back in the day, with what makes us great now – for SUPERGREATNESS! (add the echo for full effect):

  1. We started the “caring about the environment” movement – and we are needed again.  We kinda got lost on this front, and have actually over the last 20 years lead the way for ultra-consumption and environmental carelessness just so we could feel  important/valuable (the 2-3 homes, the BMW, the power-boat, all the trappings of looking successful that are environmental killers..!).  So, to get going on this one, pick just one thing – make it a big one – to change from environmentally hazardous to “clean and green”.  By big, I mean trade that gas-guzzling car for one that gets at least 1/3 greater mileage (a standard “luxury” vehicle gets about 17 city/22 highway at best – a really fun to drive and surprisingly ample Honda Civic Coupe gets 30 city and anywhere from 35-45 highway depending on manual or automatic); trade that way too big vacation home for a much smaller but still lovely town-house or condo.
  2. We were the first generation to rebel against a “trumped up war” – and of course history has shown the Vietnam conflict to have been just that.  This step is not about war per se, but staying on top of what your elected officials are doing, why they’re doing it, and not letting them get away with bad behavior, poor decisions, and shoddy leadership simply because they can count on us not paying attention….or worse yet, not caring.  Get reconnected to your belief in what’s right, and hold accountable those who decide what happens in your life – START PAYING ATTENTION.
  3. Which leads to the obvious next step….VOTING….  We spent lots of time in our youth “dropping out” as a form of rebellion, and we’re still doing it…but in the wrong ways and for the wrong reasons.  It doesn’t work when it comes to electing those people who will vastly influence our lives for years to come.  Someone will be voted in – by not making your voice heard, someone else’s will be – it’s that simple.  So goofus down the street is choosing your Senator for you.  Not a pretty picture.  And if you need further convincing, the extreme closeness of so many elections literally shows that every single vote can make the difference between a win or loss.  OK, you hate all the candidates?  Another excuse – pick the lesser of to weevils – better a half-wit than Beelzebub.  P.S. – we’re being completely out Boomered by our kids…
  4. Back to “dropping out” – here’s where it is the right strategy, therefore tip #4.  The time to NOT do things for a huge impact is when you “vote with your wallet”!  Don’t buy from places that are known for poor human resource practices, for exploiting third world labor or natural resources (Chevron ravaging people’s farms without providing them compensation for their loss of income) without actually providing a benefit to that country or it’s people (very different from just paying “low wages” by US standards…), don’t buy from huge conglomerates when you have a local merchant struggling to survive, and don’t buy items that aren’t environmentally friendly (whenever possible).  Now that’s dropping out smartly!
  5. Contrary to popular belief from the Boomer myths swirling around, the extraordinary changes we created were not from our Pollyanna-like optimism.  In fact, it was from our pessimism and lack of faith in everything from “the man” to all the accepted institutions (like marriage, big business, and anything that required shoes…).  So, let’s use that pessimism that still lives within us!  Actually, now it’s more a healthy cynicism and an unwillingness to just believe everything we hear/see without getting all the facts behind it.  So that’s tip #5 – refuse to “do what you’re told” whether it’s by a doctor or the media.  Stay in charge of all you think, believe, and therefore act upon.
  6. We Boomers were famous for insisting people “tell it like it is!”  And we stopped doing just that.  We keep “should’ing all over ourselves and everyone else.  In fact, should shouldn’t be in the dictionary.  It’s a conditional verb, which begs the question, “conditional on what??”  Well, that’s the thing.  Conditional on whether you/they “will” or “won’t” – “can” or “can’t” – so, just say what you really mean!  When you say “should” you set everyone up for a lose-lose – your expectations are not clear, they can’t possibly live up to something that’s not well defined…and everyone’s unhappy.  When you stop should’ing, you at last know where you really stand – and you are much more powerful!
  7. Think “and/both” not “either/or”.  #6 notwithstanding, you will be much better able to find solutions to problems when you don’t back yourself into a fabricated corner.  You can have screwed up your new eating habits (notice I didn’t say the “d” word) and get back on it tomorrow.  Your spouse can be clueless about your favorite whatever and still love you immensely.  Bottom line, when you get in the habit of seeing all the options not just the ones in black and white, you’ll be oh so much happier – and accomplished.