Dale Says

September 29, 2008

I was in a mildly bad mood all afternoon today after I heard about the House voting against the Federal Government’s proposed bailout program. The Bush Administration wanted Congress to approve spending at least $700 billion to buy bad loans (many of them home mortgages) from the country’s financial institutions, which are failing. Wachovia (#4) went down today, bought at a fire-sale price by Citigroup, which itself is on unsteady legs. Washington Mutual was taken over the past weekend by the Feds (the largest single bank failure in the country’s history), and Bear Sterns, Lehman Brothers, Merrill Lynch, Freddie Mack, and Fanny Mae went down or were bought out earlier. Unfortunately, it looks like there are more on the horizon.

So the Bush Administration came up with a plan for the U.S. Government to bail out financial institutions by buying their bad debt. Today, the House voted against that proposal, so there’s no plan and the markets are running for cover. The U.S stock market had its worst day ever and the Dow Jones Industrials dropped nearly 800 points.

I had a slight headache when I got home, and I wasn’t in the mood to hear any more about the economy on TV or the radio, so I put on “The Best of Van Morrison.” By the time “Have I Told You Lately (That I Love You)” came on I was feeling better, and I actually got up and danced to “Moondance.”

Things will get better.

We woke to the sound of our phone ringing. It was Patty’s aunt Maxine calling from her home in Tulsa.

“Do you know where your father is?” she asked Patty.

“I thought he was with you,” Patty told her.

Maxine had dropped Paul off at the Tulsa Airport earlier that morning. He was flying to San Francisco to spend a couple of days with us before we were to go with him and Patty’s brother, Allan, on an Alaskan cruise. Maxine had driven home, turned on the news, and heard that a plane had flown into one of the World Trade Center towers in New York and that all U.S. flights were grounded.

We jumped out of bed and turned on the TV just in time to see a plane fly into the other World Trade Center tower. It was eerie — like watching a really bad disaster movie. We couldn’t believe it was really happening and I remember being frightened. No one knew how many more attacks to expect, and we were helpless to do anything about it.

Within an hour we received a phone call from Patty’s father. His plane had taken off, reached cruising altitude, then been summoned to land at the nearest airport, which was Wichita, Kansas. He had found a room in a motel there and was holed up in his room, watching the developments on TV.

We tried to reach Allan. As a pilot for Southwest, he was scheduled to fly out of Pheonix that day but his flight, like all others in the U.S., was grounded.

We called our jobs to see if everything was OK there and whether we should go to work. A recorded message told us not to come in, and to check again later in the day.

I was scheduled to speak to a group of company public relations executives from around the world at a hotel in San Francisco. I assumed the meeting was still on, so I dressed and had Patty drive me to the hotel. On the way, we noticed that many homes and businesses had already put up American flags, in a sign of patriotism and unity.

When I arrived at the hotel I found the meeting had changed into a monitoring session. Large TV screens lined the room and each was tuned to a different network, following the developments. We watched as a third plane crashed into the Pentagon, then as a fourth went down in rural Pennsylvania.

Several people were on phones, trying to determine whether any company employees were on the planes that had gone down (the two that were flown into the World Trade Center were headed for San Francisco) or in the World Trade Center buildings. My job was to try to figure out whether any of our banks or competitors had lost employees. I drafted letters to the CEOs of our two major competitors, expressing condolences and offering help, and then I began running Internet searches to see if I could find out what buildings had been damaged.

We finally called it a day mid-afternoon. Staff from San Francisco headed home to be with their families; those from out-of-town went to their rooms to call their families and monitor the news.

For the next few days we were glued to our televisions. It was a period of fear, anger, and uncertainty, but also a time of harmony. Everyone was friendly and concerned.

Looking back, the events on and after September 11 were extraordinary. For a few weeks the U.S. pulled together like never before. That unity is now gone, but in its wake is a knowledge that when we have to we can act together with a common purpose. Following such a sad and tragic series of events that’s a comforting feeling.

Like everything else in life, successful retirement requires planning. Here, based on the author’s experiences, is a five-step guide to preparing for post-career happiness.

1. Have a plan.

It’s important to have a plan for how you will spend your free time after retirement. Don’t wait until you actually retire to start on your plan; instead, write it down now a little at a time as ideas come to you. “I’m going to golf” doesn’t count as a plan; neither does “we’re going to travel.” Figure out how you want to spend your days (and months and years) for the next 2-3 decades, put it in writing, and make changes until it makes sense to you. When you actually retire tinker with your plan as you see how your new life is developing.

The good news is that you (rather than your boss) get to decide how you will spend your time.

2. Include activities in your plan that will produce “meaningful” results.

Most of us were raised to do consequential things with our lives, and even after retiring you will probably find you need to feel like you are accomplishing something meaningful (besides relaxing, having fun, and traveling). Add at least one activity to your plan that will let you look back at the end of the year and know that you achieved something important.

The good news is that you get to decide what is meaningful.

3. Take on some (but not too many) challenges to acquire new skills or accomplish things you’ve always wanted to do.

All of us dream about what we would do “if we only had the time.” Well now you are going to have time. Learning to play the piano, for example, or hiking in a Brazilian rainforest are the types of activities that are possible when you have more control over your schedule.

The good news is you will have time to do whatever you want.

4. Be prepared for unexpected developments to force you to fine-tune your plan.

Unforeseen events like health issues, family emergencies, or friends in need could sidetrack you and force delays or changes to your retirement plan. That’s part of the deal. You might want to start an annual ritual of reviewing your plan, seeing what you were able to accomplish, and making adjustments for the next year.

The good news is you will have the time to dedicate to those situations.

5. Expect to go through your retirement savings faster than expected.

Despite careful planning and diligent saving many retirees spend more than they thought they would. Health care is a frequent culprit and inflation, travel costs, and unanticipated home repairs are others. After a year or two you may become uneasy because your income has stopped but your “outgo” hasn’t. A suggestion: at the end of each year add up your assets and see if the total is on track with where you hoped to be. If it is, you are probably doing OK.

The good news is that you will have more control over your spending and can adjust your income or expenses to get back on track.

A successful retirement requires planning, but includes a lot of good news. If you are diligent about developing and following a plan, you are likely to find (as I have) that retirement rocks!

About the author:

Dale Fehringer is a freelance writer who lives and works in San Francisco. He has been “retired” for five years and has learned that careful planning and staying active with meaningful activities is good for his mental outlook and his marriage. Dale can be reached at dalefehringer@hotmail.com.

With the Olympic Games getting underway in Beijing, we are learning a lot about China – about its size and growth, the efforts to compete globally, and the challenges the country is facing as it becomes a global player. But we don’t read as much about China’s young people. These youth, who are now becoming adult consumers, were raised under different laws than their parents and many of them have different values than previous generations. And those beliefs could greatly influence how they feel about the U.S.

China’s Gen Y: Smart and Receptive

China’s Generation Y includes a huge generation of China’s youth (around 200 million) who were born between 1980 and 1989, just as China was opening to the West. Today, many of them are educated, receptive to brands, and tech-savvy – and many of them have generally favorable attitudes toward Americans and American products.

These Chinese youth, who are now becoming adult consumers, were raised under China’s “One Child” laws, which produced a generation without siblings. As a result, many of them have been overprotected and somewhat spoiled. Sometimes referred to as “Little Emperors,” they are used to more material things than their parents, and an easier life.

China’s urban teens have grown up with television and computers and they are influenced by what they see on TV and the Internet. They like foreign goods, which they view as superior to those made in China, and many of them are receptive to brands and advertising.

China’s Generation Y youth also have complex relationships with their parents. They are highly dependent on their parents and are expected to care for them in their old age, but different values have caused a generation gap, and many Chinese teens are rebellious and independent.

Education is crucial to China’s Generation Y, whose focus is on learning and succeeding. For many of them, career success entails earning large sums of money in white-collar occupations.

Many of China’s youth are used to having and spending money. Between what they will make and what their parents will give them, they will have enough funds to be a major force in the Chinese (and global) economy.

China’s Teens: Optimistic, Rather than Happy

(From an interview with Michael Stanat, author of China’s Generation Y: Understanding the Future Leaders of the World’s Next Superpower, Homa & Sekey Books, 222 pages, $17.95).

In your book, you give readers a look into the lives and minds of China’s Generation Y. Who are they and what are they like?

They are made up of around 200 million young people born between 1980 and 1989, largely comprised of single children. They have seen many rapid changes in China since their births (economic, social, cultural, etc.) and they are trying to absorb these changes. Unlike their parents, China’s Generation Y tend to embrace technology and consumerism.

Are China’s teenagers happy? What aspirations and dreams do they have?

I would characterize China’s youth as optimistic, rather than happy. That optimism can be represented by their music, by their desire to explore the world outside China, and by their pride in a changing China. There is also some unhappiness, caused by the pressure to be successful in school, by the high rates of unemployment in China, and by expectancies that they will take care of their parents and grandparents.

Most Chinese teenagers were raised under China’s “one-child laws,” which has introduced an entire generation without siblings. Your book talks about how parents are overprotecting these “Little Emperors,” as they are sometimes called. How has that influenced their behavior, and what affect do you think it will have as they age?

This policy has left China’s teens without their parents as their only support system. They are the only source of attention, and they don’t have to share – which is much different than what their parents experienced. They are dependent on their parents for guidance, and have been somewhat spoiled by their parents, generally receiving better health care, education, and brand name toys and clothes. Some Gen Y children in China receive generous allowances from their parents – larger in some cases than comparable US teens. In some cases, between costs of education, food and clothing, and spending money, Gen Y children take up as much as 50% of their parents’ income. The long term effect will probably include a focus on their parents and grandparents. It could also translate into some interesting spending and savings habits as they become adults.

Your research found that Chinese teens believe there is a significant generation gap between them and their parents. What do you think has caused that gap, and how do you think it is influencing the relationship between them and their parents?

I believe the generation gap is caused by the rapid changes in China since the 1980s. The parents of China’s Generation Y were raised in a closed “we” society where the good of the whole is more important than that of the individual, and they experienced very difficult economic times. In the early 1980s, as Gen Y kids were born, China was opened to the West, and since then TV and the Internet have since been widely introduced. China is still largely a “we” society, but the teens want more. These are different values than their parents were raised under – more concerned with fashion and more individualistic. And those different values are not well accepted by parents. That’s causing a generation gap between them and their children.

How important is education to China’s Gen Y? What are their long-term educational goals?

Education is highly valued in China – parents see education as the one thing that can make their children successful. It’s also the most important thing in Chinese teens’ lives now. For the most part, they embrace that. Some are obsessed with obtaining a quality education and their career goals, and many believe that college is the way to the future for them.

In your book you say that “career success for China’s Gen Y entails earning large sums of money and is predominantly envisioned as a white-collar occupation requiring a university degree.” How many of them will wind up in white-collar jobs, and what differences do you foresee between them and the ones that don’t?

I’ve seen estimates that there are around 5 million white-collar jobs in China with international exposure, which will increase to around 75 million by 2010. When America’s Gen Y graduates from universities, they will find that their counterparts in China and other countries will have taken 25 percent of all American Information Technology jobs, especially in manufacturing, software and engineering. That’s a tremendous increase, but still not very many jobs for 240 million people, and the competition will be intense for those jobs. Therefore, getting into a big name university is very important to them. Chinese who obtain a white-collar job can expect to make somewhere around US$8, 830 per year, versus around US$2,000 per year for those who don’t get those jobs. That’s a significant difference, which would mean quite a different lifestyle. Some Chinese teens who don’t land white-collar jobs will likely become entrepreneurs (e.g., own their own small businesses, or work in engineering, medicine, etc.

Your book describes some surprising trends among China’s Generation Y such as increasing obesity and higher rates of drinking and drugs. Most Americans probably wouldn’t associate those behaviors with Chinese youth. What is behind them, and do you foresee long-term affects from them?

These problems are largely confined to China’s urban areas (where teens tend to have more spending money), and they are a minor problem. Drinking and drug use, I believe, is much less common in China than in the US, for example. But they are on the increase, and I think it shows that China’s teen are looking for ways to cope with the changes and stress they are experiencing.

I think these trends bear watching. The Chinese government is watching them and is launching anti-drinking and anti-drug programs.

What is the attitude among China’s Generation Y toward the US, and more specifically toward US products? Do you foresee a change in those attitudes as teenagers become adults?

Chinese teens can separate their product preferences from their overall feelings about a country, and they have a generally favorable attitude toward American products. Many of them view foreign products as higher quality than Chinese products, and they expect to pay more for foreign products. Some of the US products that are “hot” with Chinese teenagers are clothing (e.g., Nike shoes, NBA clothes), and food (e.g., KFC, McDonalds).

In your book, you suggest the Mandarin language should be more widely taught in the US, and we are now seeing some movement in that regard (e.g., the National Security Language Initiative and the Confucius Institutes). Is enough being done by the US to understand and communicate with China?

No. The US needs to take more steps to help its youth understand and communicate with China. We should start teaching Mandarin in schools when children are young, for example, or we will reduce our own competitiveness.

With the rising cost of fuel, we have experienced dramatic decreases in service from most U.S. airlines. Missing meals, sketchy customer service, hostile flight attendents, and long wait periods on hold have become the norm for most large U.S. airlines. But not with Southwest.

We got a dose of Southwest’s “proactive customer service” recently and our admiration and respect for that airline has increased even more as a result.

We flew Southwest from San Francisco to Phoenix on June 14. Shortly after reaching crusing altitude, the left engine shut down. The Captain calmly told everyone what had happened and informed us that we were being diverted to Los Angeles, where we would be put aboard another plane for Phoenix.

That’s where Southwest’s proactive customer service began. When we landed in Los Angeles, we were directed to a nearby gate where we soon boarded another Southwest plane and took off for Phoenix. We arrived at our destination less than two hours late, which was remarkable considering all the effort that was required to switch planes, gates, and passengers. Most importantly, we arrived safely! We were completely impressed with the way we were treated, the service we received, and the professionalism of everyone at Southwest.

Several days later when we returned home, letters were waiting for us from Southwest explaining what had happened, appologizing for any inconveniences, and offering a voucher for a future flight on Southwest.

You can be sure that we will continue to fly Southwest, and that we will tell our friends and family how well we were treated. In my opinion, Southwest’s concern for thjeir customers’ well being and their proactive customer service is exemplary!

We rode our bikes yesterday to AT&T Park and waited for two hours to see the Olympic Torch. We’re supporters of the Olympics, and believe they are one of the few multinational activites that promote peace and understanding between countries. We’ve attended several Olympic Torch relays over the years, and enjoy the wonderful individual stories and symbolism of the event.

The crowds grew as we waited. There were numerous groups representing numerous interests and a lot of families with small children who were just there to see the torch. There were pro-China/pro-Olympics contingents, pro-Tibet/anti-China groups, and hundreds of people like us waving U.S. or Olympic flags and patiently waiting in the sun. There were dozens of flags flapping in the breeze — flags of China, the U.S., Tibet, and the Olympic rings, and they framed a colorful illustration in a rennovated section of a beautiful city.

There were dozens of police keeping the streets clear, overhead helicopters, and media people weaving in and out of the crowds, photographing and interviewing the bystanders. There were lots of demonstrators, too, mostly Asian. Some chanted for Tibet and Burma, while others screamed “Liar, Liar” at them. There were signs that said “Free Burma”, “We Support Olympic Games”, and “Shame on China”.

As the afternoon dragged on, the police changed into riot helmets and added long wooden sticks and handfuls of plastic handcuffs. The crowd grew restless. Children became fidgety and some families began to move on.

Eventually a reporter approached us and told us the torch relay had changed courses and was across town on Van Ness Street. “How does that make you feel?” She asked.

“Pretty disappointed,” we agreed, and we didn’t know whether to be upset at the demonstrators or the mayor. The demonstrators had stolen our rights to see the torch, and the mayor had given up a chance to show that San Francisco can permit but contain political dissent. Our city hadn’t embarrased itself, but it hadn’t made itself proud, either.