Showing posts with label really. Show all posts
Showing posts with label really. Show all posts

Tuesday, October 1

What a shutdown really means

What a shutdown really means
| By Eric Pianin and Brianna Ehley, The Fiscal Times

With no deal in the offing to pay the government’s bills beyond midnight Sept. 30, much of the federal government could begin to shut down when the new fiscal year starts next Tuesday.

As President Obama and congressional Republicans move dangerously close to a government shutdown early next week, it's time to take stock of how a shutdown would affect federal workers, the military, government contractors and average Americans reliant on government programs and benefits.

The last two government shutdowns -- in late 1995 and early 1996 -- were chaotic for federal workers, posed major inconveniences for the public, and prompted a political backlash against Republicans who controlled the House and Senate at the time.

This time may be different. Americans today are almost equally divided over the issue of culpability -- with 39% saying they would blame the Republicans and 36 percent saying they would blame the Obama administration, according to a study released today from the Pew Research Center.

The dispute, this time, is over congressional Republicans' attempt to defund the Affordable Care Act as part of a stop-gap spending bill to keep the government operating through Dec. 15.

With no deal in the offing between the Republican-controlled House, the Democratic Senate and the White House to pay the government's bills beyond midnight Sept. 30, much of the federal government could begin to shut down when the new fiscal year starts next Tuesday.

Here are the nine most important things to keep in mind as the first government shutdown in 17 years approaches:

$150 million a day. That's the price-tag to taxpayers for closing down the government. In 1995, the record three-week closing cost a $1.25 billion or $1.9 billion in today's dollars.

A shutdown would not block Obamacare. House and Senate Republicans say they are willing to go to the mat to defund the Affordable Care Act. But Obamacare is essentially an entitlement program with mandatory spending. This means that -- short of enacting legislation to repeal or sideline the new health care law -- most of its funding is beyond the reach of a continuing resolution or CR, which relates to discretionary spending.

So, for example, the money for tax credits and Medicaid expansion would arrive on schedule. State and federal exchanges would still operate. The individual mandate would still be in place. The CR approved by the House last Friday avoids this trap by approving the text of a bill that would sideline Obamacare. Yet that measure will die in the Senate.

Uncle Sam would limp along but not collapse. Many federal agencies are deemed essential to protect life and property, or to provide benefit payments. These agencies would be allowed to operate, although their workers could not draw a salary -- at least not immediately.

In the past, that has meant that employees involved with border and coastal security, protection of federal lands and buildings, the care of prisoners, law enforcement and criminal investigations, emergency and disaster assistance, the Treasury and financial system and maintenance of the power grid, were all kept on.

But plenty of services would disappear. The last government shutdowns were grim times for federal workers, with about 800,000 being furloughed.

The Centers for Disease Control and Prevention halted disease surveillance. Toxic waste clean-up work at 609 sites was halted. And while zookeepers continued to feed the pandas, the National Zoo in Washington, D.C., was closed to the public. So was the Washington Monument, the Lincoln Memorial and 368 national park sites, which resulted in the loss of some seven million visitors.

With non-essential workers on furlough, 200,000 applications for passports went unprocessed. U.S. tourism and airline industries incurred millions of dollars in losses; and more than 20 percent of federal contracts, representing $3.7 billion in spending, were affected adversely.

Social security benefits would keep flowing. Social Security is a mandatory program that would continue during a shutdown, but the entire system would be gunked up. During the 1995 and 1996 shutdowns, claims from 112,000 Social Security applicants went unprocessed, 212,000 Social Security cards were not issued and 800,000 toll-free calls for information went unanswered.

You'd still get mail. The U.S. Postal Service is an independent agency and doesn't directly receive revenues from the Treasury, so it will continue deliveries through sleet, snow, rain and government shutdowns.

Many federal employees and contractors would work for no pay. According to an OMB advisory memo to agencies last week, employees who stay on the job would not get a paycheck at first. But they would be entitled to retroactive pay once the government is running again. This includes all military personnel.

The situation is much less clear regarding nonessential employees. They would have to come to the office on the first day of a shutdown to secure files, fill out time and attendance forms and "otherwise make preparations to preserve their work," according to the OMB.

Contractors won't get paid on time. Federal contractors would likely have to push back project deadlines, because the agencies that hired them wouldn't be able to issue the necessary paperwork.

Garbage would pile up. Congress would heap one more indignity on the District of Columbia if there's a shutdown. The city's trash collectors would be furloughed, along with other D.C. workers whose operating budgets are approved by Congress. That's going to be a messy situation, since D.C. produces about 500 tons of garbage each week, according to The Washington Post.

Saturday, September 7

Enjoy your retirement 5 ways really messed up

Enjoy your retirement 5 ways really messed up
| By Brett Arends, the Wall Street Journal

Financial advisor call a long list of major errors that make new retirees once they hang up their tools or make their BlackBerrys.

Tomorrow, 10,000 Americans will withdraw as every day. And many of them will screw it up.

Financial advisor call a long list of major errors that make new retirees once they hang up their tools or make their BlackBerrys.

Most are preventable, often quite simple.

Many people rush to collect benefits as soon as she shall be entitled, at the age of 62. But it's a hassle. By it she be early less each month-much less collect. Those who can to age 70 delayed increase their controls of less than 70%.

Those who usually early to take social security make a simplified calculation: "I can earn less each month, but I gather it longer so that it somehow works in the long term," think so.

But he has poor, think. Robert Radhouane Chandran, a financial adviser in Chicago, notes that those who delay more collected unless they also have age 80 to 82 lives. Many are under the present new pensioners.

Moreover, those are to be able to meet the social security something very wertvolles-- abandon longevity insurance.

Many people risk today live in the 90s or even later. The years real financial danger for those who do will be later, if much savings were used up and treatment costs are skyrocketing.

A larger social security check could be a real help if you far beyond your life expectancy life.

Say that this money is too early the most common failure of social security, but it is not the only Adviser. Sometimes married couples more benefits by structuring, when and how each spouse claims can achieve, they say. Their ability to investigate before you submit must take the planning, social security.

New retirees are suddenly they have get time for these projects it on not around when working notes Bryan Wisda, consultant in carefree, Ariz., and that, he adds, can a real problem.

He sees people suddenly blowing $50,000 on conversion or other projects. The problem: the retirement portfolio may have to last for decades. Remove the first dollar are the most expensive because you forgo all future returns on the dollar.

The same argument applies to those who suddenly splurge on a boat, a new car or a bigger house, what they've always wanted. Marc Roland, a financial planner in San Diego, observed a trend among the new retirees trade to "dream home" when they retire.

Often you can not afford, he says. Insert "way too much in an asset that does not help pay for retirement."

John Sestina, a financial consultant in Columbus, Ohio, advises customers to bigger ticket purchases, how their cars to replace if they still work and be better positioned, can use the additional handle costs.

It is not only the more expensive measures, you will burn. "Michele Clark, a financial planner in Chesterfield, MO, says that some of their new clients are the recent retirees"who called me and said,' help, we bleed money. " "

They thought they could afford to retire, she says, but "they are amazed how fast they perish your checking account balance to see."

They no longer have a steady paycheck - and now they have a lot of free time on their hands, where they can spend money.

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