Many oregonians are struggling to make ends meet, especially with the extra expenses of the season. With so many changes brewing and un-certainty in the markets, it’s natural to feel anx-ious in times like these, though luckily there are tips and resources avail-able to help set your mind at ease.

Across the state, Or-egonians are losing jobs (as of Nov. the unemploy-ment rate of 7.3 percent remains above the na-tional average) and losing their current and retire-ment nest eggs. AARP reports show that many workers are tapping into their retirement accounts

help. That way you can set up a solid financial plan that you can stick to as it fits your stage in life and comfort level.

Lifetime financial secu-rity is the cor-nerstone of the American Dream. AARP Oregon seeks to support its more than half a million mem-

bers, but also Oregonians of all ages, to ensure a healthy and financially secure Oregon.

We hope this guide will help you learn about resources and opportunities, along with tips to start getting your money back on track today.

to cover day-to-day ex-penses, including mort-gage payments. Others are postponing retire-ment or re-careering to finance the future.

While Or-egon’s housing bubble was one of the last to burst, there have still been 2,800+ home-owners who’ve defaulted on their mortgage in Clark, Clackamas, Mult-nomah and Washington counties in the third quarter of 2008, accord-ing to county records.

What steps can we take in this economic down-turn? Be realistic, save and plan ahead, and seek

Q&A with Jonathan PondJonathan Pond is the AARP Financial Ambassador. He is also the host of the PBS show, “Grow Your Money,” and author of 16 books, including “Safe Money in Tough Times” coming out in January.

Q: There’s all this talk of Wall Street and Main Street...what’s really going on in the economy?

A: We’re in the throws of a very severe recession. It has been almost like a perfect storm for individual’s assets with a severe decline in stocks, multi-year decline in housing prices and low interest rates, which has affected virtually everyone.

Q: How will we see effects of the financial rescue or bail-out in our daily lives?

A: We are seeing a slow down in the economy unlike anything since the Great Depression. The bailout should gradually improve the economy in 2009, but the challenges will probably remain into 2010.

Q: What’s your advice for worried investors who feel like their future is at risk?

A: I say to them, ‘you’ve lived through these times in the past and survived them.’ There’s a high probability that 10 years from now we’ll see that staying with stocks now was a good thing.

Q: What factors should homeowners, and potential home buyers and sellers take into account as they plan for the next couple years?

A: Owning a house is still one of the best long-term investments you can make. If you are a home seller, be sure to set the price right. If you’re a home buyer your timing is impeccable, but don’t wait until the prices and mortgage interest rates have bottomed out.

For more financial answers, read the full interview at www.aarp.org/or.

“Set up a solid financial plan that fits your stage in life and stick to it.”

Achieving Financial Security in Troubled Times

■ Money markers at every age

■ Ageless job tipspage two

■ 15 ways to save hundreds

■ Retirement calculatorpage three

■ Resources: from avoiding foreclosure to utility bill assistance

page four

Managing money in a tough economy

■ Open a checking and

savings account. ■ Get your line of good credit started and pay bills on time.

■ Start investing monthly in a

retirement savings benefits, such as a 401 (k).■ Buy a home as a long-term investment.

■ Check your credit score

annually for free at www.annualcreditreport.com.■ If you’re not investing and saving – start! Keep it up, if you already are.

■ Check in with a financial plan-

ner to see if your invest-ments are well diversified.■ Use a retirement calcu-lator to see if your retire-ment savings are on track.■ Consider purchasing long-term care and life insurance.

■ Determine the best time

to apply for and access Social Security benefits. It can be wise to delay signup until 66–70 for most baby boomers.■ Enroll in Medicare for insurance benefits.

■ Research senior

discounts to make your money last.

Retirement made simpler

Last year Portland General Electric (PGE) implemented an auto enroll 401(k) plan for all new hires, which is an innovative benefit that’s just starting to catch on across the country.

In fact, retirement planning is still catch-ing on as more than half of the country’s workers have less than $60,000 saved for retirement.

Benefits experts predict automatic plans will soon be the norm. For employ-ees, participation in these auto enroll 401 (k) plans starts at a pre-set contri-bution rate into a pre-selected investment fund, unless they opt-out.

“Auto enrollment makes participation more convenient for our em-ployees and gets them started on saving for retirement earlier,” said Dale Ritter, PGE benefits administrator.

Research shows em-ployee participation rates can spike to between 85 percent and 95 percent, particularly among those who are least likely to partici-pate in a tradi-tional plan: women, mi-norities, and low-income workers.

Each day newscasts and papers report im-pending rashes of layoffs throughout Oregon as businesses look for ways to reduce costs and in-crease efficiency. Richard Lucero, 56, knows first hand the heartache of learning that his 20-year career would abruptly end as he and six cowork-ers were replaced by an automated printing ma-chine five years ago.

After the layoff, Lucero talked to the Veteran’s unemployment office and was struck by the reality check that his current skill set was not employable.

A survey of 1,300 Port-land Community College (PCC) students ages 40+ showed that four out of five students are taking classes not simply for

personal enrichment, but to upgrade their skills, re-enter the workforce or re-career.

Drawing on his medic experience in the Army Reserves, Lucero got help from the Capital Career Center in Beaverton to fast track a registered nursing program through PCC. Lucero now works

as a full-time RN in the psychiatric ward at Leg-acy Emanuel and Good Samaritan Hospitals.

“I’m very happy with what I do now and enjoy nursing and taking care of others even more as I age,” said Lucero.

According to the Or-egon Employment De-partment, the industry’s demand for workers is driven in part by an aging patient population, by aging health care workers who must be replaced as they retire, and by tech-nological changes in the workplace.

Health care person-nel represent 10 of the 25 fastest-growing occupa-tions in Oregon and will make up 13 percent of the state’s projected new jobs between 2004 and 2014.

7 Seven in 10 Oregon businesses have hired 50+ workers. Half say they’ve rehired retired employees.

95 Percent of employees who say auto enroll 401(k)s have made saving easy.

23 Percent of African Americans 65+ living below the poverty line (two times as likely as whites).

Changing economy offers new opportunities

Richard Lucero of Forest Grove has been a registered nurse at Legacy Good Samaritan for the last two years since he went back to school at Portland Community College to pursue a new career after a layoff.

It’s never too late to get your money in shape, whatever your age. Consider these tips as you manage your money and build your nest egg.

20s

30s

40s

60s

50s

70s+

Find more info online at www.retirement madesimpler.org/

Ageless tips for getting your next job

Speak to an employment ċcounselor. Create or update ċyour resume.Research professions ċwith lots of available jobs.Take classes to build ċyour skills.

Get more help for keeping your job or finding a new one at www.aarp.org/ jobtips.

OR

@ Healthy money any age.

If your calculation produces a negative number, you should probably consider continuing to work or at least work part-time. If your calculation produces a positive answer, you know that your basic living expenses are essentially covered.

To do these calculations (and other budget planning) online, visit:www.aarp.org/money/toolkit/articles/retirement_nest_egg_calculator.html

Money Saving Tips WorksheetWith tighter funds and the upcoming holiday season, everyone is looking for ways to cut costs and save money. Use this worksheet to save hundreds of dollars each month that “leak” out of the budget and redirect that money to pay necessary bills or add to savings.

Checklist for Cutting Monthly Expenses. ESTiMATEd Your ACTuAl MonThlY SAvingS* SAvingS

1. Cut out one restaurant meal per week. $40.00–100.00 ________

2. Make your daily coffee at home. $20.00–50.00 ________

3. Use coupons at the grocery store. $20.00–40.00 ________

4. Consider buying generic drugs. $20.00–40.00 ________

5. Rent a DVD rather than going out. $10.00–20.00 ________

6. Downsize from premium to basic cable. $20.00–40.00 ________

7. Switch from premium to lower octane gas. $5.00–10.00 ________

8. Use public transportation or carpool to save on gas. $40.00–60.00 ________

9. Keep your tires inflated and your engine tuned. $5.00–10.00 ________

10. Use a “basic” cell phone plan with limited minutes. $20.00–30.00 ________

11. Use a cell phone with prepaid minutes. $20.00–30.00 ________

12. Drop extra line services from your home phone. $5.00–10.00 ________

13. Save big on your home energy costs. $25.00–100.00 ________

14. Switch to a free-checking or one without a required minimum balance. $5.00–10.00 ________

15. Use only your bank’s Automated Teller Machines. $5.00–10.00 ________

ToTAl ________

*These estimates are based on a set of assumptions and national averages; your actual expenses might vary.

4 Four in 10 Oregon employees currently have no retirement savings at all.

53 Percent of Oregon employers who offered insurance to employees in 2004 (the lowest since 1998).

18th Rank of Oregon among states in personal bankruptcy filings (Chapter 7) per 1,000 people.

Still working to fill nest egg

While al youse of Sa-lem has loved his 22-year career with the Oregon Department of Agricul-ture, at 66 he thought he’d already be retired this fall. According to recent AARP research 27 percent of

middle-aged and mostly middle class workers say they postponed plans to retire due to the recent economic downturn. Oth-er AARP studies show that a minimum of 70 percent of older workers plan to

work into their traditional retirement years.

At the moment Youse has no formal retirement plans, though he is al-ways calculating how he can even-tually be “full time” at his hobbies, like yoga and volunteering, in-stead of in the office. As a state employee, Youse has taken advantage of avail-able investment options, including the Public Em-ployee Retirement System (PERS) and the Oregon Growth Savings Plan.

Even with all this plan-ning, Youse understands his future is still at the mercy of the market. “I have been feeling very in-secure lately. I can see the bottom line on my quar-

Al and Julie Youse have had to shuffle finances and rethink retirement plans to make up for investment losses over the last six months.

“I have been feeling very insecure lately.”

Can I Retire Yet?

terly statements deterio-rating,” Youse said, as he’s lost thousands. More than

seven in 10 inves-tors lost money on their portfolio in the last year.

Findings from an AARP report

show that almost two-thirds of those asked own

stocks individually or through retirement plans like 401(k)s. Youse said it’s disheartening to see his savings plan, which was supposed to provide a critical cushion and finance “the fun stuff” in retirement, now worth a mere 30 percent of what it was last year.

Do you know what your basic monthly living expenses will be in retirement? ☐ Yes ☐ No

Do you know what your monthly income will be in retirement? ☐ Yes ☐ No

ESTiMATE oF BASiC ESTiMATE oF living EXPEnSES liFETiME inCoME

Housing Social Security Benefits

Utilities Retirement Plan Accts.

Food Investment Income

Transportation Other

Medical

Debt

Total Expenses Total income

AArP oregon9200 SE Sunnybrook Blvd., Suite 410Clackamas, OR 97015

Dreams and disappointments

It’s one of the proud-est moments in life – when first-time buyers get to walk into their new home. In the case of Bob Barney, 65, and his wife of eight years, Marty, 66, they had waited their whole lives for this mo-ment which was shattered when they got their first mortgage payment bill.

While the Barneys haven’t missed a payment on the four-bedroom Mil-waukie house since mov-ing in 18 months ago, the “upside down mortgage”

they inadvertently signed up for increases their pay-ment each month. At this rate, they can only afford the house for a few more months. As of the third quarter of 2008, there were approximately 30 defaults a day in Clark, Clackamas, Multnomah and Washington counties.

Oregon foreclosure rates more than doubled in October due to sub-prime and predatory

mortgage lending prac-tices and buyers investing over their heads.

In order to cov-er expenses, Marty had to come out of retirement to work as a part-time registered nurse, while Bob continues to work

as a magazine telephone salesperson. Bob Barney said, “Hopefully, with how the government is chang-ing, there will be a plan that will help us keep our home.”

“Hopefully, the government is changing…to help us keep our home.”

Real help in hard timesThere are numerous state and local community organiza-tions that are here for you, so call or go online to learn about taking advantage of these free and helpful services.

Bob and Marty Barney take care of the yard at their Milwaukie home during what may be their last fall at the house before potential foreclosure. Oregon foreclosures have increased 160 percent since this time last year.

consumer fraud and abuse – Report your consumer-related com-plaints with financial fraud and consumer protection volunteers via the Attorney General’s Consumer Protec-tion Hotline, 1-877-877-9392 toll-free. Or visit www.doj.state.or.us.

energy & utility assistance – Rising home-heating costs triggered the release of more than $6 million in ad-ditional federal Low Income Energy Assistance Program (LIHEAP) funds. For eligibil-ity requirements, call the Oregon Depart-ment of Hous-ing and Com-munity Services at 503-986-2000 or visit www.ohcs.oregon.gov.

fight foreclosure – Get advice and resources on navigating or avoiding home foreclosure. Call 1-800-SAFENET or visit www.dfcs.oregon.gov/ml/foreclosure/counselors.html.

find food – The Oregon Food Bank is the hub of a statewide network of 20 regional food banks and 884 agencies. Find food resourc-es close to you by visiting www.oregonfoodbank.org.

job search tips – Visit www.aarp.org/money/work for opportunities with thousands of employers nationwide that have age-friendly hiring practices. For advice on resumés and job-search strategies, go to www.aarp.org/jobtips and find local resources at www.lifebydesignnw.org.

refinance mortgage – Look at refinancing to lower your interest rate, go to www.consumerfed.org or call 866-554-5360 to ask for AARP’s “Borrower’s Guide to Home Loans” (D17381).

senior health insurance benefits assistance (shiba) Get free help navigating and accessing Medicare, Rx and other health insurance programs by calling 1-800-722-4134 toll-free or visiting www.oregon.gov/DCBS/SHIBA.

tax assistance – Learn more about Earned Income Tax Credit, schedule free tax preparation or get financial coaching through AARP Tax-Aide and CASH Oregon. Visit www.aarp.org/tax-aide or www.cashoregon.org.

Everyone has a stake in the economy’s success.

Join the Divided We Fail movement to bring lifetime financial security and quality, affordable health care to all Oregonians and Americans.

Speak up for change at www.dividedwefail.org.

Call: 1-866-554-5360 toll freeVisit: www.aarp.org/orEmail: oraarp@aarp.org

Serving 531,000 members statewideJerry Cohen, State Directorray Miao, Volunteer State President

Get free copiesof these AARP

publications and more.

Call 866-554-5360 or email oraarp@aarp.org for a full list.