The administration has put into play a change that will
affect all baby boomers headed toward an inflation protected retirement. The budget released Wednesday backs replacing
the Consumer Price Index (CPI-W) to a variant known as the “Chained CPI.” This is reported to slow the growth of the
social security benefits to present and future beneficiaries. The administration says that it is a more
accurate measure than the current formula, put in place in 1974, to offset the
effects of inflation on the benefits.
They claim that the CPI-W is not a good measure and the revised “Chained
CPI” would take into account price increases of goods, and peoples behavior
toward purchasing lower priced goods, or less of them.
This bi-partisan conversation over the past few years should put Baby
Boomers and Seniors on notice that your benefits are going to be reduced over
time. It is hard to predict how a
behavior based index could perform, as it has no history. The Wall Street Journal recently
reported, according to the labor department, that the “Chained CPI” would
follow the pattern on the historic CPI-W, but in back-testing, falls about 5%
less in benefits from 2002-2012. Does
not seem like a lot, until you take the compounding effect into consideration
for those that will live past age 85.
The administration is estimating that it will reduce benefits $180
billion over a decade.
Why do you need 101 Chicken recipes? The “Chained CPI” is set up to assume that
when a consumer is faced with the choice of a high priced item, or a item that
has increased in price, they will always choose the lower priced good or
service. So, on your trip to MegaMarket
in 5 years, when you see a prime rib selling for $14.99 per pound, to combat
the effects of inflation, you are going to bypass that delicious aged prime
rib, and opt for the split breast of chicken selling for $3.99 per pound! Always.
Every-time, every-day! I expect
the Perdue family is pretty excited at this new proposal, and at least for the
consideration should be handing out a thick recipe book to all baby boomers
heading to claim social security! The
effect on your retirement plan? You need
to make certain that you understand and outpace the rate of inflation. Historically, the rate averages about 2.8%
per year. Or better understood, a dollar
next year only purchases, $0.97 of product and services. Ten years from now, that dollar buys $0.80 of
goods, and twenty years from now, $0.60 of goods. If we are tied to a “chained CPI” estimated
to reduce the inflation rate index by 5% , twenty years from now you have $0.58 of
buying power. If you cannot change this,
at least understand it and plan for it.
I agree with the position of the AARP, telling
administrators and congress that Social security cuts are not, and should not
be the focus of deficit reduction. The
oldest and poorest Americans will feel the full effects of a “Chained
CPI.”
I cannot advise baby boomers enough about the fight for CPI,
and at least understand CPI as it relates to planning for a healthy and happy
retirement.
And if you do not want to listen, I have a recipe for you. This is my favorite “ Superfood” chicken
recipe that includes Apples, Goji Berry,
Kale, Olive Oil! Stay Healthy! Stay
Organic!
INGREDIENTS
·
1 cup apple, such as Gala or Golden
Delicious, cored, peeled, and chopped
·
1/4 cup goji berries or cranberry (goji
can be found at Wegmans and Whole foods)
·
2 teaspoons grated fresh ginger root
·
2 tablespoons brown sugar
·
2 tablespoons cider vinegar – pure organic
·
1/8 teaspoon salt
·
4 large boneless, skinless
chicken breasts (6 ounces each), trimmed of excess fat
·
4 slices prosciutto, trimmed of
excess fat
·
2 tablespoons olive oil, divided
·
1 large bunch kale (about 10
ounces), chopped
PREPARATION
In a small
saucepan, place the apple, goji berries, ginger, brown sugar, vinegar, and
salt. Bring to a boil, then reduce to a simmer and cook about 20 minutes, until
most of the liquid has evaporated and a thick chutney starts to form. Remove
from the heat and set aside.
Heat the over to 400° F. Wrap each chicken breast in one slice of prosciutto.
Heat a large, oven-safe skillet over medium-high heat. Add tablespoon of the
olive oil. Add the chicken breasts and cook 1 minute, turning once to brown the
prosciutto. Transfer to the over and bake 10 minutes, or until the chicken is
cooked through.
In a second large, oven-safe skillet, warm the remaining olive oil over medium
heat. Add the kale and cook 1 to 2 minutes, turning often, until the kale
starts to soften. Slide the skillet into the over and bake 5 minutes, or until
the kale starts to crisp. Remove both skillets from the oven and place the
chicken and kale on plates. Top with chutney and serve immediately.
ENJOY and STAY INFORMED! Only 100 more recipes to find!
