October 23, 2006
 
Retirement Benefits or Pipe Dream?
I dusted off something I’ve been meaning to post for a while. According to the September 3, 2006 edition of Parade (an insert in many Sunday papers), an organization called the Employee Benefit Research Institute found that 61% of Americans currently in the workforce expected employer-paid benefits when they retire.

Only one problem. Currently only 33% of medium to large sized employers currently provide benefits for retirees and this percentage is declining (it was 84% in 1980). Even generous companies are moving away from future benefits, preferring instead to help employees fund 401k programs or other similar programs that the employee controls. I applaud this trend for many reasons (for example, if your company goes bankrupt, it will not impact your 401k unless you only invested in your own company).

However, I am concerned about the number of people who are expecting retirement benefits from their firm when their firm does NOT provide these benefits. Unless the EBRI did a poor job in their research and surveyed a very unrepresentative group, there are going to be many surprised people as they near retirement.

I took a few minutes to look around the EBRI site. Some very interesting trivia there, useful for people like me who love reading statistics about people.

 
 
 
October 18, 2006
 
Bulk Candy – Halloween Parties
I’m not sure if I should post this or not – Lady Quixote reads my site. However, if anyone is interested in bulk candy orders, check out the CandyWarehouse. My own Halloween weakness was listed too.

 
 
 
October 10, 2006
 
Free Credit Report
Under current fair credit legislation, all Americans have the right to ask for a free credit report once per year. This is an expansion over the old policy of only getting a credit report if you are denied credit. I recommend that you take advantage of this legislation.

You can call an automated service at (877) 322-8228 and ask for your report. Be careful, the voicemail system gives the appearance of hoping you’ll select the wrong option so they can hang up on you. But if you listen carefully, it only takes a few minutes to navigate the maze and make your request. The last part is the trickiest. Once you ask for a report from one company (there are three major players in the US and it is important to check all three reports), stay on the line and keep asking for more reports until you have requested all three.

You can also request instant access online, but I would not do this unless you are in a hurry. I still like printed records when the subject is important given how easy it is to modify an electronic document. By calling via the toll free number, you ensure that you will be mailed a hard copy.

I strongly recommend that you check your report once per year even if you are sure that your credit is in great shape. This is cheap insurance toward preventing long-term identity theft. If someone does try to steal your identity, you’ll be able to see activity that you do not recognize when you get your report. Consider this exercise cheap insurance; an annual financial checkup.

Don Quixote | | Windmill Tilts: 15 | TrackBack: 0
Category: Economics , Category: Education , Category: General
 
 
 
October 03, 2006
 
Free Markets, Filth, and Television
We do not have a competitive market for television channels in most of the US. Most consumers have four ways to obtain content if they want to watch TV. The simplest way is to just watch free TV that consumers can pick up from their antenna. About 15% of the US Market does this. The other 85% subscribe to cable, satellite, or both. The second way, and the most popular way, is to subscribe to cable. Most consumers do not have a choice about their cable subscribers as most cable operators have effective monopolies. A few places have options, but this is not the general rule. There are also two major satellite alternatives. Directv, which in my experience has much better service, but costs a few dollars more and DISH Network (the cheaper alternative with correspondingly bad service).

For these few subscription options, most content is sold in packages. You get so many channels with the basic offering and more and more content with more expensive packaging. A few offerings are sold on an individual basis (pay per view games, a few premium channels), but offerings are usually packaged in a way that you pay for a bunch of stuff you don’t watch in order to get what you really want. For instance, I only watch about 5 channels even though we get about 80. My wife and kids watch another 15 or so in total. So we are paying for 80 channels in order to get the 20 channels we want. This is not efficient nor is it fair. When we move (whenever Casa Quixote is completed), we’re thinking about dropping TV altogether because we feel like we are wasting money.

Some consumer advocates have been promoting another option, Cable Choice, that would legislate that consumers would have the option to only pay for the channels they want on a channel-by-channel basis. This movement has taken on new momentum as the subsidized channels continue to race to the bottom. Some consumer advocates are especially outraged that the FX network has been showing indecent material. I’m not going to quote this material, but if people want to be aware of what is freely available on most cable networks, click here for the offensive details.

It is one thing if people deliberately subscribe, and thus deliberately support, this type of material. It is another thing altogether when people are forced to subsidize unwholesome fare with their basic subscription (The perverted material on FX is subsidized by most consumers since FX is usually packaged with the basic subscription). Hopefully FX’s race to the bottom will motivate our legislatures to create a more competitive marketplace by mandating the option to subscribe to television on a channel-by-channel basis.

The Parents Television Council is asking that concerned people use their website to send an email or letter to the appropriate legislators and regulators. I encourage you to click on the link, scroll down to the bottom of the page, and send such a message.