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Issue Number One
Severe Storms on the Plains; Postponing Retirement; Ready for Retirement; May 13 Primary in West Virginia; Stimulus Scam Alert; Where's My Rebate; Quick Vote Results; Election Express Yourself
Aired May 13, 2008 - 12:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ALI VELSHI, CO-HOST: All eyes on West Virginia.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: We are just worried about jobs and health care and the economy.
(END VIDEO CLIP)
VELSHI: What's needed to fix that state's economy? Which candidate do voters think can do it? And in a state where coal is king, we are talking about alternatives that could work for the entire country.
Then, putting off retirement just to make a living.
ISSUE #1 is your economy. ISSUE #1 starts right now.
Welcome to ISSUE #1. I'm Ali Velshi. Gerri Willis will be along in just a moment.
Well, another day, another record for the price of gasoline. You are now paying $3.73 as the national average. And much of that comes from the price of oil. Just moments ago, a barrel of oil came within two cents of $127 a barrel.
We're going to keep an eye on that and tell you what some alternatives might be for you as the show goes along.
But first, our clock says it all. Seven and a half hours to go for voters at West Virginia's polls.
Let's go right to Sean Callebs, live at Kanawha City.
Sean, what are the biggest issue you are seeing with voters in West Virginia?
SEAN CALLEBS, CNN CORRESPONDENT: Well, I think if you talk to a lot of voters here, look at the demographics. This is a state the population is getting older. Where unions had always been king and a labor-intensive state, we've seen them lose a great deal of clout over the past decade and a half or so.
So, people are looking at benefits, retiring benefits. Health care is a big concern. The ongoing war in Iraq, West Virginians take service in the military very seriously. This has always been one of, if not the highest per capita, serving in the military in the United States, going.
But I think when you talk about the issues, the economy. To a degree, everything else just becomes atmospheric at that point, because this is a state that doesn't have a great deal of money. A lot of high-paying jobs have left.
And people, we have heard them talk about the gas prices. Everybody we stopped, Ali, they talk about that $3.85 that they are paying here in West Virginia. About 11 cents higher than the national average.
VELSHI: All right, Sean.
We're going to keep an eye on that, and we're also going to be talking about coal, which is a big deal to voters in West Virginia. And it could be a big deal to Americans.
Sean Callebs will be on top of this story and we'll be checking in with him later.
Sean, thank you.
GERRI WILLIS, CO-HOST: Checking now the latest economic developments.
Wal-Mart announced today the results -- its results topped Wall Street forecasts, even while retail sales dipped nationally. Why did Wal-Mart dodge the bullet? Well, Americans are cutting back on their personal bottom line, looking to Wal-Mart for cheaper groceries and household items. The world's biggest retailer is reeling in customers strapped for cash with a $10 meal solution promotion and low-cost prescription drug programs.
Also out today, home prices continue their sharp decline. The National Association of Realtors says prices dropped nearly 8 percent in the first quarter. The largest year-over-year decline. It began reporting prices 26 years ago.
And Congress is telling President Bush now is not the time to top off the tank of the Strategic Petroleum Reserve. Both the House and Senate are expected to approve legislation today directing the president to temporarily halt the shipment of about 70,000 barrels of oil a day to the reserve. President Bush argues doing that won't do much to lower record high gas prices. He says it's imperative to increase the stockpiles to its full capacity for security reasons.
We'll go live to Capitol Hill for more on this in a minute.
So, what about coal? The U.S. is sitting on 268 billion tons of it. That's about a 250-year supply at the rate we're using it right now. Compare that to oil's 11-year supply and the math makes you believe we should consider coal as an alternative fuel source. CNN's Deb Feyerick introduces us to an inventor in Bowling Green, Ohio, who is trying to make it all work at a cost of about $1.50 a barrel.
Listen in.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT (voice over): Albert Calderon knows everything there is to know about coal.
ALBERT CALDERON, INVENTOR: Forty percent of this is gas right now by weight.
FEYERICK (on camera): Right.
CALDERON: And that's the rich guys.
FEYERICK (voice over): For the last 30 years he has been working on a process to safely turn coal to gas that can then be converted to clean methanol or gasoline.
CALDERON: For one ton of coal you would get 122 gallons of methanol and 1.34 megawatts of power.
FEYERICK: Coal already produces more than half the country's electricity. And Calderon is convinced he has found the missing link.
(on camera): Is it an overstatement to say that this could possibly solve America's dependence on oil?
CALDERON: I wouldn't say only possible, I would say probable.
FEYERICK (voice over): Traditional plants burn coal. Calderon's technology bakes it, dividing the coal into four components, including rich gas used for gasoline and lean gas used for electricity.
CALDERON: The objective is to take coal and maximize the components of the coal.
FEYERICK: Several big companies have looked at Calderon's technology, but so far none have picked it up. As with all coal, the Department of Energy says a key issue is what happens to the carbon dioxide, or dangerous greenhouse gasses, created during the process.
KATHARINE FREDRIKSON, U.S. DEPT. OF ENERGY: You would need to know that you could capture the carbon and sequester it safely in a long-term basis, and know that it would stay there under the ground. That's what's keeping coal from going forward.
FEYERICK: And one expert says there are better ways to reduce America's reliance on imported oil.
ROBBIE DIAMOND, SECURING AMERICA'S FUTURE ENERGY: Natural gas, which is a much less carbon-intensive fuel, will start to replace some of the coal used in electricity. FEYERICK: Even if Calderon's vision of coal-based gasoline comes to fruition, filling your tank with it remains some 20 years down the road.
Deborah Feyerick, CNN, Bowling Green, Ohio.
(END VIDEOTAPE)
VELSHI: And this is a lump of coal where it all starts. More than half of America's electricity is generated by coal.
Let's talk a little bit how this method would work to make gasoline out of coal. And the technology does exist and is used to do so.
Basically, you take this coal and you make it into a waxy crude oil which then gets refined into gasoline, which is identical to the gasoline that you see now. It operates the same way.
The advantages, as Deborah was pointing out in her story, is that it reduces America's reliance on crude oil as a source of fuel. It's also a cleaner burning fuel at the gasoline level. But as her story pointed out, it is not cleaner to make coal into gasoline. And that's one of the disadvantages. The refining process releases a lot of carbon, a lot of CO2.
The other issue though is that, like we've seen with corn, when you use a substitute for the gasoline that we use, it could drive the cost of that product up. So right now we all -- while we don't eat this, we depend on coal to heat our homes and to provide our electricity, in many cases. If we make coal into something that we use for gasoline, that could drive the price of it up.
So those are the issues we face with respect to using coal as gasoline. But it's just one of those things that we are talking about as alternatives.
Now, it's not the only big player in West Virginia's economy, although it is a big deal there. Jobs, gas prices, low income, all of those things are affecting voters in that state today as they go to the polls.
Robert Rupp joins us now from West Virginia. He is a political science professor at West Virginia Wesleyan College. And he's a contributing columnist for "The Charleston Gazette."
Thank you for being with us.
You were saying that West Virginians, when it comes to politics, the four Fs are what's important.
ROBERT RUPP, CONTRIBUTING COLUMNIST, "CHARLESTON GAZETTE": Right, Ali. The four Fs of West Virginia politics are food, flag, family and faith. And these kind of reflect the values that are in the electorate and that any candidate should address. VELSHI: Sean Callebs, who is there as well, was telling us that right now, whether it's gasoline or food or inflation, economic issues seem to be weighing very heavily and probably will play a disproportionate role in people's decision as they go to the polls today.
RUPP: Right. As I said, the number one priority was food. And we are talking about jobs and income in this state. So, Hillary Clinton's ability to list concrete issues, including that gas holiday, are attractive in this state.
VELSHI: That's -- you know, that gas holiday suggestion, Hillary Clinton's, John McCain's, it really met with a lot of criticism after it first came out. Some people really thought it was a good idea. How is it playing in West Virginia?
RUPP: Well, you have to realize that West Virginia is one of the biggest commuter states east of the Mississippi. And the reason is because a lot of people can't find jobs in their own community. Then they'll go an hour, an hour and a half, in another county to find a job. So this question of high gas prices does resonate.
VELSHI: Let's talk about longer-term concerns in West Virginia. We've talked about the fact that it is a coal state. It's got a lot of coal mining.
What does the future hold for West Virginia and how does this campaign play into that? What are people thinking that West Virginia needs to become to remain competitive in 2008-2009?
RUPP: Well, the irony is, is that West Virginia is countercyclical. You are in an energy crisis that hurts the nation. It helps West Virginia.
But a lot of people here in the state realize that while coal production is high, the number of coal miners is decreasing. So they are going to have to find other sources of jobs for this state. And that's the long-range view.
VELSHI: And, in fact, the unemployment rate in the mining industry in West Virginia is much lower than it is in the rest of the states.
Robert, good to talk to you. Thank you very much for weighing in on what's going on in West Virginia.
Robert Rupp is a columnist with "The Charleston Gazette," and he's a political science professor at West Virginia Wesleyan College.
Well, now it's time for to you weigh in on today's "Quick Vote," even if you don't have a primary to vote in on today.
Time to check in with Poppy Harlow from cnnmoney.com.
Hello, Poppy.
POPPY HARLOW, CNNMONEY.COM: Hi, Ali.
Well, yesterday we asked if you felt you would be able to afford your child's education. What about paying for yourself? Once you stop working, it's a concern among a lot of baby boomers.
We want to know -- here's our question today -- will you be able to retire at age 65, yes or no? Weigh in on cnnmoney.com. We'll bring you those results later in the show.
It's going to be interesting to see what people think now.
VELSHI: All right. We'll keep track of it.
Thanks, Poppy.
HARLOW: Sure.
WILLIS: All right. Put off the bills, dip into the 401(k). Sometimes you've got to do what you've got to do. And nobody knows that more than baby boomers.
We've got new information just out today showing how realistic it is for you to retire any time soon.
And still waiting? Why haven't you gotten your stimulus check yet? We know. We'll share it, too, when you come back.
You are watching ISSUE #1.
(COMMERCIAL BREAK)
VELSHI: Well, money and politics go hand in hand. And we're putting the two of them right together here in our studio on the money team.
I'm joined by Senior Correspondent Allan Chernoff and Business Correspondent Stephanie Elam, and two members of the best political team on television, CNN Senior Political Analyst Bill Schneider and CNN contributor Roland Martin.
Welcome to all of you. Thank you for being here.
It's the smackdown, face-off, whatever you want to call it. But the best teams dealing with the stuff that is on people's minds right now.
Bill, let's start with you because you track this so much in terms of politics. It remains that the economy is the number one issue, and going into this primary, it remains the number one issue for Americans across the board and for West Virginians.
WILLIAM SCHNEIDER, CNN SR. POLITICAL ANALYST: It does, but when I was in West Virginia I interviewed a political analyst there who gave me an interesting observation. He said the economy here, while people are poor and it's bad as it is in the whole country, it's not as bad as you might expect. The price of coal is $100 a ton. He said...
VELSHI: Which why you can't -- nobody can touch my lump of coal. I'm holding on to this.
SCHNEIDER: He said, as coal goes, so goes the economy of West Virginia. And he had spoken to a coal mine operator who said things are so good, I'm going to open a mine -- a new mine every 17 days.
ALLAN CHERNOFF, CNN SR. CORRESPONDENT: This economy is based, to a certain degree, on energy right?
VELSHI: Right.
CHERNOFF: So if oil is soaring, coal is going to enjoy that, as well. And if oil prices remain really high, that almost ensures the security of this state's economy.
VELSHI: But -- and I'll ask Stephanie about this -- you'll recall when I was in Texas -- and Roland, you're from Texas -- while there are a lot of people making money out of the oil industry there, they've got jobs because of it, they were still paying high gas prices. They're still paying the higher price of food.
So what role does it play in the economy?
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: It's still huge, because a lot of the people in West Virginia have to drive farther to get to work because they want to stay in their communities. So, that fact of gas prices still being high is a huge issue.
Also, coal, as far as an energy source, is great. But when it's being produced, it is not the cleanest. So that's another issue that factors into coal that they still have to work out there. And that's a factor for West Virginia.
VELSHI: Go ahead.
ROLAND MARTIN, CNN CONTRIBUTOR: The most important thing is this -- you might be doing well now, three, six, nine months. Then what happens 12 months from now, 15 months from now? What kind of consistency do you have? And what many states are looking to do -- look at West Virginia, look at Texas -- trying to diversify their economy so they are not solely dependent upon one sector, because that's when you have a problem.
VELSHI: Right.
MARTIN: Because if anything happens, your whole state goes down the drain. You talk about property taxes, you talk about homes.
VELSHI: Look at Michigan. Yes.
MARTIN: Now all of a sudden education is a problem. That's why it's important to go beyond just coal in the state of West Virginia. ELAM: And it really is a fragile economy. It has the third weakest economy of all the states. So, really, one little thing could get thrown off there and it really could impact the state.
VELSHI: Bill, give us a little historical perspective as to why this is important in the Democratic race.
SCHNEIDER: Democrats want West Virginia back. After Herbert Hoover in 1928, West Virginia did not vote for a non-incumbent Republican candidate for president -- non-incumbent -- for the next 72 years. They only voted for second term for Eisenhower, a second term for Nixon, a second term for Reagan.
And then all of a sudden something happened in 2000. They voted unexpectedly for George W. Bush, who was not the incumbent. That surprised everyone.
And then they voted for Bush again. And there's been a big debate -- how did Democrats lose West Virginia? How do we get it back? A lot of people say it had to do with suspicion of Gore -- remember Bush's father called him "Ozone Man -- as a staunch environmentalist in a state where environmentalism is actually very controversial.
VELSHI: I love that he knows all this stuff.
CHERNOFF: And now everybody has to play the environmental card though. So that complicates the situation.
VELSHI: Well, I don't know if you've seen the ads, but coal is supposedly 99.9 percent clean.
SCHNEIDER: Did you get that for Christmas?
(LAUGHTER)
VELSHI: I have several of these. I've been getting them for years.
MARTIN: But, you know, Ali, I think one of the things that Democrats have to do, they have to begin the focus in terms of voting your economic interest.
I heard the guy from the newspaper who was on before talked about family, talked about the flag. You know, those values.
You know what? Those things are great, absolutely, in terms of family values, in terms of the patriotism of the flag. But the reality is here -- if you are broke in West Virginia, you are the exact same as somebody who is in inner city Chicago or Houston or Oakland.
And so at some point the Democrats are going to have to be able to bring those two together. That's what Bobby Kennedy did in 1968. He talked about the blue collar in terms of saying, look, the economic interests are the exact same. That's what Democrats have to focus on. VELSHI: Right.
Well, then I've got one quick question for you. Maybe a lot of our viewers haven't heard this, but Hillary Clinton made a comment about white working class voters. What did she say and how is that playing out?
MARTIN: Well, first of all, I mean, what she is trying to do is she is obviously trying to say, look, this is where I have a strength. She's saying we need these voters.
Let's just be hones. OK? Democrats need white working class voters, they need black folks who work, Hispanics who works. They need gays and lesbians. They need young people, old people.
So, you need anybody when it comes to winning. And so to somehow say that this one group is most important, not true. You need all of those to win, pure and simple.
ELAM: But if you're looking at West Virginia, that is who is there. It is 94 percent white. So...
VELSHI: I've got to tell you, not so much of a smackdown. All of the best political team guys have come over to our side, on the money side.
Good to see you all. Thank you for being with us.
CNN Contributor Roland Martin, Senior Political Analyst Bill Schneider, Business Correspondent Stephanie Elam and Senior Correspondent Allan Chernoff -- Gerri.
WILLIS: Fascinating conversation.
Up next, delayed dreams of retirement. Why more and more people can't stop working.
And you've heard the experts. What matters to the voters in West Virginia on this primary day?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Twelve years ago, you know, it was $1- something a gallon. And now, you know, we're up to $3.85 a gallon. You know, that's crazy.
(END VIDEO CLIP)
(COMMERCIAL BREAK)
VELSHI: All right. Check this out.
For those of us who remember full service stations, this pump is a relic. And the 8,000 or so mom and pop operators around the country who still use these ones are having some problems charging today's prices. The dials on this type of pump can't register prices higher than $3.99 a gallon. And retrofitting them to go as high as $4.99 a gallon would cost hundreds of dollars per pump -- Gerri.
WILLIS: Wow. I think that's why my station next door is closed.
VELSHI: Yes.
WILLIS: On Capitol Hill today, the Senate voted to stop adding oil to the Strategic Petroleum Reserve. It's a play to lower gas prices.
CNN's Kate Bolduan joins us now from Washington -- Kate.
KATE BOLDUAN, CNN CORRESPONDENT: Hi there, Gerri.
Well, it's an issue on everyone's mind, including Congress -- oil. The Senate today, as you mentioned, passed a proposal that freezes the delivery of crude oil to stockpiles in the Gulf Coast called the Strategic Petroleum Reserve.
The thought is, by increasing the supply, the price of oil and eventually gas should go down. The stockpile was set up after the Arab oil embargo in the 1970s. And right now there are more than 700 million barrels of oil underground. And each day, 70,000 barrels of crude oil are taken off the market and put in to this reserve.
But this proposal stops that. And while Congress can't say how much relief this move will offer at the gas pump, lawmakers say it will be at least a modest help. And more importantly, this Democratic proposal has bipartisan support.
Lawmakers say while there is a need for a long-term solution to bring oil prices down, this move is one thing they can do that will have an immediate impact on the market. Here is a little bit of the debate this morning.
(BEGIN VIDEO CLIP)
SEN. BYRON DORGAN (D), NORTH DAKOTA: The question is this: with oil at $126 a barrel and gasoline around $4, or headed towards $4 and above, with the American consumer being burned at the stake, why should its government be carrying the wood? Why on earth should we be putting oil underground at a time of record high prices?
SEN. KAY BAILEY HUTCHISON (R), TEXAS: I hope the American people will look at these votes. Do they want political rhetoric, windfall profit taxes that send jobs overseas, or do they want real solutions, short term, by not putting any oil SPRO right now and putting it on the market to start bringing that price down and to let those who are hedging on commodities know that America is going to act?
(END VIDEO CLIP)
BOLDUAN: Now, I spoke with Senator Kay Bailey Hutchison, a Senate Republican leader from Texas, just this morning. And she says she's never broken from the president before, but is on this issue because she says prices are just too high. Now, I should mention that the final vote was 97-1 in favor of the freeze. The president does oppose this freeze, and he says that it would put national security at risk in the event of a terrorist attack, and also that he says that these 70,000 barrels, Gerri, that we put in each day are just too small to affect the overall price.
The House is taking on a similar proposal. It's expected to pass. But lawmakers do expect the president to veto the legislation, and that could set up a very high-profile clash between the White House and Congress -- Gerri.
WILLIS: Interesting stuff, Kate.
I don't think anybody though expects this to make much difference in the price at the pump. Isn't this just an election year ploy?
BOLDUAN: That's definitely something people are asking. You know, economists say the savings could be as little as three cents, up to, like, about 24.
But when I asked lawmakers about this, is this election year politics, you know, if it doesn't -- if it's really not going to do much, they say a modest help is a help. And it's the short term, while they continue to battle over trying to find a long-term solution. And they say right now is why they are doing it, because just now they finally have enough momentum to get something together in Congress.
WILLIS: Interesting stuff, Kate. Thank you for that.
BOLDUAN: Of course, Gerri.
VELSHI: Well, coming up next on ISSUE #1, delaying your retirement, not by choice, but out of need. Why more and more people can't stop working.
And then, as stimulus payments find their way to your account and maybe your pocketbook, make sure scam artists don't get that money first. We'll tell you how you can protect yourself next on ISSUE #1.
Stay with us.
(COMMERCIAL BREAK)
GERRI WILLIS, CNN ANCHOR: It's time to get you updated on all the latest headlines. T.J. Holmes is in the CNN "Newsroom" in Atlanta.
Hi there, T.J.
T.J. HOLMES, CNN CORRESPONDENT: Hello there, Gerri. Always good to see you.
We're going to start with some severe weather. Seems like we've been talking about that a lot these days. Chad Myers standing by for us in the Severe Weather Center. We're talking Missouri and other parts of the Midwest right now.
CHAD MYERS, CNN METEOROLOGIST: Yes, it's almost like I could just take the tape from Friday and replay it for today because it's just another storm coming out of the northwest. The cold air making snow in Colorado today. That cold air coming right down and clashing with the warm air that's already in place.
There's Quincy, Illinois. A severe thunderstorm warning for you, especially to the south of your city. But there will be more weather especially to the west of that today. I'm thinking Kansas City and Springfield, back into Tulsa, and even Oklahoma City and maybe even Dallas-Ft. Worth. That's the area we're worried about today. This is the danger zone for tornadoes and there will be some tornadoes on the ground.
We had one kind of a funnel cloud in the sky being reported but it never really touched down. We will watch, though, as this part of Oklahoma, Kansas, Texas, all the way into Missouri and Arkansas, the same places that got hit over the weekend, get hit again today.
HOLMES: Same old story, same old song, same places. Chad, we appreciate you. We'll see you again at the top of the hour for the update.
MYERS: All right.
HOLMES: Also, the latest numbers from the massive earthquake in central China just staggering here. The official Shin Wuan (ph) news agency reports more than 12,000 dead, over 26,000 injured. Rescue teams continue a frantic search for thousands of victims buried or missing. The 7.9 magnitude quake tore through urban areas and villages early in the afternoon yesterday. Panic also swept through the Shungdu (ph) area, at the airport there, as the quake rocked that terminal building.
Also, an American in China who witnessed the quake and sent us his I-Report pictures will join us in the next hour. Just a few minutes ago he told us there were still aftershocks shaking his building. We'll get the update from him.
That's the news for now, though. More of CNN's ISSUE NUMBER ONE is next, followed by "Newsroom" coming up at 1:00 Eastern. We will see you then. But for now, we'll hand it over to you again.
Gerri, it's all yours.
WILLIS: Thank you, T.J.
Issue number one, the slumping economy, is hitting middle-aged and older Americans hard as a brand-new study by AARP shows. A survey of Americans 45 years and older show that fully a quarter of them, 25 percent, are dipping into their 401(k) plans and other investments or retirement savings just to make ends meet. Nearly a third are postponing paying bills. Seventeen percent are cutting back on buying the medications they need. And more than one out of four workers ages 45 and over have postponed plans to retire.
Now the study has important implications for the presidential election. Seventy-five percent of those polled say that elected officials are not doing enough to help people in trouble because of the economy.
Ali.
ALI VELSHi, CNN ANCHOR: Thanks, Gerri.
What about the empty nesters, though, who were looking forward to early retirement? Well, growing expenses and shrinking 401(k)s, in some cases, well, those people have to think those plans through again. CNN's Allan Chernoff introduces us to one couple who was ready to call it a day.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN CORRESPONDENT, (voice over): Charles and Anna Burge had already started packing, expecting they'd retire this year to their condominium in Florida. They wrapped up the china, took down pictures and filled up cardboard boxes.
CHARLES BURGE, DELAYING RETIREMENT: Where you're standing now, our dining room table was here. We sold our kitchen table.
CHERNOFF: But then the housing market collapsed. And then the stock market took a hit, bruising the Burge's 401(k) retirement account. And now the price of gas is soaring.
Does it make sense to retire now?
C. BURGE: No. Do I want to retire now? Yes.
CHERNOFF: Charles and Anna's dream of an early retirement is on hold even though 53-year-old Charles can get an annual pension worth nearly two-thirds of his salary if he retires from his job as a superintendent with New York City's sanitation department.
C. BURGE: I have college to pay for. I have gas to pay for on three cars. It just doesn't make sense.
CHERNOFF: The value of their family home has dropped. And realtors warn the couple it could take nearly a year to sell even at today's reduced price, which they would need to do to retire.
ANNA BURGE, DELAYING RETIREMENT: I was very disappointed. I was crying because I just want to go (ph).
CHERNOFF: A growing number of aging baby boomers are deferring dreams of retirement. In the past year, nearly a million Americans aged 55 to 64 have rejoined the work force. And another 400,000 over the age of 65 have gone back to work.
Financial planner David Fish (ph) says Charles is only one of his clients who is putting off retirement. DAVID FISH, FINANCIAL PLANNER: People are scared. People are scared. The ultimate question is, how long is the market going to be suffering? How much will expenses rise? How long will it take for the housing market to come back into play?
CHERNOFF: Charles now plans to retire in three years when he hopes the real estate market will have recovered. Anna is counting on it, leaving her fine china exactly where it is.
A. BURGE: Now everything stays in the box. It's too much. Too aggravation to take everything out of the box again and then start to pack again. So everything is going to be in the box.
CHERNOFF: For three years.
A. BURGE: For three years.
(END VIDEOTAPE)
CHERNOFF: The Burge's are still determined to retire early. But for a growing number of Americans, the whole idea of early retirement or even retirement at age 65 is no longer an option.
Ali.
VELSHI: All right. For anybody at this point, whether you're looking to retire early or stay on track for when you thought you might retire, steps to take now. It is always easier to take these steps beforehand then once it's upon you, right?
CHERNOFF: You have to take the steps beforehand if you want to retire at any point. You've got to put away that savings year after year after year. 401(k)s, IRAs. Really, do not dip into those unless absolutely necessary. What we saw in that survey, that's very, very bad news. You've got to plan ahead. And as you approach retirement, you want to have more conservative investments. Being aggressive in the stock market is not for someone who plans to retire within the next couple of years.
VELSHI: Don't have the time to make it up.
CHERNOFF: That can destroy the dream.
VELSHI: Yes. All right, Allan, thanks very much. Allan Chernoff.
Gerri.
WILLIS: All right. So what can you do to make sure you're ready to retire when the time comes? Rick Van Benschoten is a managing partner with Lenox Advisors.
Rick, welcome.
You know, this is a tough time for folks out there. You know, no more retiring at 50, 55, 60. Sixty-five is good news for most folks out there. What do you do here? Is a recession going to ruin people's retirement? And how do you know that you're ready to retire?
RICK VAN BENSCHOTEN, MANAGING PARTNER, LENOX ADVISORS: Well, I think the trend long term is that we're in a fairly low interest rate environment and I think that will continue. Interest rates . . .
WILLIS: That's not good news for retirees generally, right?
VAN BENSCHOTEN: No because you'll have your CD rates, your municipal bond rates all go down.
WILLIS: Plunge.
VAN BENSCHOTEN: You know, look at gas prices. Real estate values are now plummeting. You have inflation starting to percolate. Plus, the biggest problem is, people are living longer.
WILLIS: So lots of issues here. And you said that you're seeing people in your own practice who are delaying retirement.
Now is this a long-term trend or is this really just related to what's going on in the economy?
VAN BENSCHOTEN: I believe it's a long-term trend. And I think interest rates, although they're low right now, they'll start to inch up over the next 12 to 24 months. But I think long terms, over the next decade, we're looking at a fairly low, relatively low interest rate cycle.
WILLIS: That's not good news.
OK. So how do I know that I have enough money to retire? The big question, of course, is, when are you ready? How do you know that you're ready?
VAN BENSCHOTEN: Right. So there's a few things you can do. I think the most important is to find a financial advisor that you like and that you trust and that you can talk to. They can do financial projections for you, cash flow models to take you out 10 or 20 years to see what will your financial situation . . .
WILLIS: And, obviously, get professional help.
VAN BENSCHOTEN: Absolutely.
WILLIS: Lots of different products out there for people to buy. I know you recommend annuities. One of the issues with annuities, though, is that advisers charge a lot of money to buy these. The commission rates can be 7 percent, they can be 14 percent. Why are annuities a good idea now?
VAN BENSCHOTEN: Annuities are not for everybody. And annuities used to be a very stale investment product. But now insurance companies have made annuities that are not too bad. The fees are not too strong, but they do have some guaranteed rates. So you can get into a product that might pay you out a guaranteed 5 percent in retirement. WILLIS: All right, great help today, Rick. Thanks for your time.
VAN BENSCHOTEN: Thank you, Gerri.
WILLIS: Get your hands on your stimulus payment before a scam artist does. A rip-off warning next.
(COMMERCIAL BREAK)
VELSHI: All right, we're back looking at politics and money. From the CNN Money team, I'm joined by senior correspondent Allan Chernoff and business correspondent Stephanie Elam and two members of the best political team on television, CNN's senior political analyst Bill Schneider and CNN contributor Roland Martin.
That smackdown we had a little while ago was so much fun we brought you folks back to talk about the same (ph) -- Allan, I'm just going to reach over. I've been carrying this lump of coal around because coal is the topic, not just because of West Virginia, but because of record gas prices and record oil prices. Is this an alternative for fueling your car? We know we get a lot of energy -- our electricity in this country comes from coal. But they call it clean coal now.
ALLAN CHERNOFF, CNN SENIOR CORRESPONDENT: And the candidates are talking about that a lot. Both Clinton and Obama say they're very much committed to clean coal technology. The fact is, engineers have been working on this for decades. Coal gasification has been in the works. It's very important. It is part of our energy future, without question. And that is going to benefit West Virginia.
VELSHI: And it (INAUDIBLE) in some place.
CHERNOFF: I know the environmentalists want to get rid of coal. That's not happening.
VELSHI: We use a lot of coal.
One of the issues, again, in the economy, not just gas prices and inflation and things like that, but health care really is a big deal. Bill, you were talking about the fact that Hillary Clinton continues to bring that theme back to try and play off of people who are very concerned about their health care.
BILL SCHNEIDER, CNN SENIOR POLITICAL ANALYST: She does. Something caught my eye that she said at a children's hospital in Portland Oregon, last week. She said, "how can anyone run for Democratic nominee for president and not have a universal health care plan? This is a huge, huge difference and one I feel passionately about."
When I read that I said, aha, this could be her line in the sand issue. She may want to go to the convention, fight for a plank (ph) to the party platform. This is one of her big differences, one of her only differences with Barack Obama, universal health care, and argue that this must be in the platform and call it a moral victory if she gets this in the platform. That would be the whole objective of her campaign.
VELSHI: Yes, well, they need a line in the sand. They need something that's going to separate them. That federal gas tax holiday was part of it. But, Stephanie, as somebody who has to look at these health care plans, while there are some distinctions, including the real universal aspect of Hillary Clintons, that's a hard place for them to differentiate themselves.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: It's not really that much of a change. And I was looking at it specifically for veterans, because we were talking about West Virginia. There's a lot of vets there. And, overall, the military has been able to bring in a lot of people in April. Their numbers have been really strong. So that's not an issue.
But what about bringing these people back after they're done? The platforms for Hillary Clinton and Barack Obama are pretty much the same. They want to revamp the V.A. system, make sure everyone is taken care of, make sure that no one's homeless. They're all pretty much a similar idea that they're going for there.
SCHNEIDER: Not on universal health care.
ELAM: No, I'm talking about specifically for veterans.
SCHNEIDER: Veterans, no. They are the same.
ELAM: Veterans are the same.
ROLAND MARTIN, CNN CONTRIBUTOR: But, look, (INAUDIBLE). The reality is, she is still running a primary. Obama is running a general election campaign. If Obama says, even if does not like completely universal health care, maybe that's Hillary Clinton's is, John McCain has none. And so his whole deal is, I don't want anything to do with the universal health care. And so for the Democrat, that issue alone is simply going to be a major point. But they are going to have to go up against market conditions as well because Obama says, look, there are people out there who don't want to get rid of the health care they have right now. That's going to be a point of contention with John McCain.
The question is, is these states like West Virginia, Ohio, and Pennsylvania, is that going to resonate with them? Are they going to look at those kind of pocketbook issues or they going to look at, well, leadership qualities of a John McCain?
ELAM: And so overall, though, Barack Obama is saying children, all children, should be covered, but not all people.
MARTIN: Mandated. Mandated.
ELAM: Mandated.
VELSHI: Got to go. We'll continue this. We love having you guys back here for the political smackdown between the best political team in television and the CNN Money team. Thanks to all of you.
Gerri.
WILLIS: You've heard it before. The check's in the mail or maybe in your online account. And while we understand you're waiting anxiously for your stimulus money, don't be so anxious that you get scammed. A rip off warning next.
(COMMERCIAL BREAK)
VELSHI: Well, as stimulus payments arrive in bank accounts and mail boxes across the country, the IRS is alerting consumers to be on the lookout for scam artists. CNN's Kelli Arena has this story.
(BEGIN VIDEOTAPE)
KELLI ARENA, CNN CORRESPONDENT, (voice over): Edna Lawrence may be 69 years old, but she's no pushover.
EDNA LAWRENCE, SCAM RECIPIENT: Once he asked me for my checking account number, I knew that my Social Number would be the next thing he'd ask for. But he wasn't about to get either one.
ARENA: She says she got about eight calls from a man claiming that he was from the IRS and had a rebate check for her. He wanted her bank information so he could direct deposit the check.
LAWRENCE: He just said that we were owed $400 and we were to receive it back. And that's the only way we could get it.
ARENA: Lawrence called the Texas attorney general to complain. The office got so many complaints that it put out a consumer alert. The AG is worried that hard economic times will lead people to act before they think.
GREG ABBOTT, TEXAS ATTORNEY GENERAL: Here is my concern, and that is people may think, gosh, this may or may not be true, but what can it hurt for me to go ahead and give out my bank account number?
ARENA: The FBI has also put out a consumer alert. This one about an e-mail scam. The goal is the same, to try to get you to provide your personal information. And timing is everything. The IRS has just started mailing rebate checks. As many as 130 million households across the country should get one as part of a stimulus package. Kevin Kolbye is with the FBI.
KEVIN KOLBYE, FBI: I think if they can call 200 people in one day and they can get five to 10 individuals that will provide them with their personal identification numbers and Social Securities and dates of birth and banking information, that they've had a successful day.
ARENA: The only thing you needed to do to get your rebate check was file a tax form.
And what's more, officials say, that they won't be soliciting personal information over the phone or through e-mail ever.
Kelli Arena, CNN, Austin, Texas.
(END VIDEOTAPE)
WILLIS: All right. So if you haven't gotten your stimulus rebate yet, you might be wondering exactly where it is. I spoke with Tobie Stanger, a senior editor at "Consumer Reports," to learn why you might not have that money yet.
(BEGIN VIDEOTAPE)
WILLIS: All right, Tobie, well, I think a lot of people out there, they just haven't gotten their rebate check and they don't know what to make of it. You say there are many situations where you won't have it yet, and legitimately so. In fact, if you've filed electronically and arranged for direct deposit, you may be one of those people, right?
TOBIE STANGER, SENIOR EDITOR, "CONSUMER REPORTS": Yes. The IRS is saying that if you arranged for direct deposit and you filed and had your return processed before April 15th, you should get your stimulus payment around now. But there are a lot of people who are not and they're concerned as to why.
WILLIS: So obviously we started by talking about, if you filed electronically, you may be one of those people. What about if you split your refund into a couple of different accounts?
STANGER: If you split your refund into a couple of different accounts, you are not going to get your stimulus payments split into those accounts. You're going to get a paper check. There are a number of other ways that you might get a paper check even if you arrange for direct deposit of your refund.
WILLIS: OK. And if you did the refund in anticipation, this is just another reason not to like the refund anticipation loan, I think.
STANGER: That's right. The refund anticipation loan, there are a lot of people who arrange for direct deposit of their money into a debit card or something else. And the IRS is saying, we're not going to deposit your stimulus payment the same way. You're going to get the stimulus payment as a paper check. So you're going to have to wait.
WILLIS: All right. If the IRS didn't process your refund before April 15th?
STANGER: That's another reason. The IRS is saying, only the early birds are getting their direct deposit stimulus payments now. The others are going to have to wait. They'll either get it as a direct deposit or, in some cases, they may have to get it as a paper check, even if they arranged for direct deposit of their refund.
WILLIS: You know, Tobie, there's a lot of frustration out there. I think people -- a lot of people out there thinking, I should have gotten more money. Why aren't they?
STANGER: Well, the general rule is that the $600 per single person and the $1,200 per couple is a maximum. If you didn't owe the IRS that much, you're not going to get back the entire amount. If say you owed $450 as a single person, you are going to get back $450 as a stimulus payment and no more.
WILLIS: All right. Let's talk a little bit about -- you know, if you want to know whether or not you qualify, because the rules are byzantine. They're difficult to understand. Where do you go?
STANGER: You can go to irs.gov. They have a huge area on their web site to discuss all sorts of things about the stimulus payments, including a schedule so you can get an idea of when you should expect your payments. They also -- they have something called "where's my stimulus payment" that will give you more information. We haven't found it to be a great interactive, but you could go there.
WILLIS: Tobie, thank you for that.
STANGER: Thank you.
(END VIDEOTAPE)
WILLIS: Still waiting, I guess.
Well, the results of today's Quick Vote coming up next. You're watching ISSUE NUMBER ONE.
(COMMERCIAL BREAK)
WILLIS: Welcome back to ISSUE NUMBER ONE. It is time to get the results for today's Quick Vote. For how you voted, let's check back in with Poppy Harlow.
Hi, Poppy.
POPPY HARLOW, CNN CORRESPONDENT: Hey, Gerri.
Well, people are pretty split on the question. We asked, if you think you're going to be able to retire at age 65. Forty-nine percent of you said yes. Fifty-one percent of you said no. But the AARP study, pretty staggering results. Seventeen percent of people not paying their medical bills. More than a quarter, really, having to postpone their retirement. So there are some staggering numbers out there.
Gerri.
WILLIS: I think people are often a little more optimistic than they should be in those polls. Yes, I can feel their pain.
All right, Ali.
VELSHI: Thanks, Gerri. Well, we can ask the analysts all over the country what matters to voters. But when it comes right down to it, the only way to really find out is to ask you. So we sent our producer Josh Rubin out with the Election Express in West Virginia. Here's what he found.
(BEGIN VIDEOTAPE)
UNIDENTIFIED FEMALE: Hillary Clinton.
UNIDENTIFIED FEMALE: Hillary Clinton.
UNIDENTIFIED MALE: I voted for Hillary Clinton.
UNIDENTIFIED FEMALE: Hillary's the best person to pull us out of the recession that we're heading into.
UNIDENTIFIED MALE: Our gas prices are outrageous. And I think that Obama can do something about that also.
JOSH RUBIN, CNN PRODUCER: $630 to fill this up.
UNIDENTIFIED MALE: No, no, it's not a fill up. It's 150 gallons. It's about a half a tank.
RUBIN: As an independent trucker, are you having trouble keeping up with it right now?
UNIDENTIFIED MALE: Well, everybody has trouble keeping up with it.
UNIDENTIFIED FEMALE: Twelve years ago, you know, it was a dollar something a gallon. And now, you know, we're up to $3.85 a gallon. And that's craziness. Is there something out there that we can do in the world in general to bring our prices down? Can they walk in there and say, OK, we're going to give them $2 a gallon again? Or we're going to walk in and take the taxes off of West Virginia, or Ohio, the whole nation? Who knows. But I would like to see it done but, you know, that's not in my doing.
BONNIE GATENS, RETIRED: We're just worried about jobs and health care and the economy.
BETTY IRELAND, WEST VIRGINIA SECRETARY OF STATE: The state is not doing so very well. We don't ride the high crests and the low troughs of the rest of the nation. We sort of bounce around somewhere in the middle. And certainly energy is big. Coal prices are up record levels. We certainly have lots of high tech that's moving in here. But we have a long way to go.
PHYLLIS RUTLEDGE, RETIRED: This is a wonderful state. Anybody that ever comes here loves it. The people are so kind and generous. We're doing fine. We're doing fine. But we need help.
(END VIDEOTAPE)
VELSHI: And, of course, we've been telling you about those oil prices. Well, that affects travel prices. And we've been telling you on ISSUE NUMBER ONE about how Delta initiated an airfare hike. It was the fifteenth attempt this year. We now know from the folks over at Fair Compare, who track airline prices, that all major airlines have now matched this airfare increase. So it's the fifteenth attempt this year, the eleventh successful increase rate in fares for the year. So it's costing a lot more money to travel. If you are planning on traveling, buy the ticket now.
WILLIS: When do long distance phone calls go up? Because that's the only time . . .
VELSHI: That's all the time, right?
WILLIS: That I'm ever going to talk to my family.
VELSHI: We're going to take days off and just call each other.
WILLIS: Exactly.
For more ideas, strategies and tips to save you money and protect your house, watch "Open House" Saturday at 9:30 a.m. Eastern right here on CNN. And for more on how the news of the week affects your wallet, tune in to "Your Money" Saturday's at 1:00 p.m. Eastern and Sunday's at 3:00 right here on CNN.
VELSHI: The economy is issue number one. We here at CNN are committed to covering it for you. ISSUE NUMBER ONE will be back here, same time tomorrow, 12:00 Eastern, right here on CNN.
Right now it's time to get you up to speed on other stories making headlines. CNN "Newsroom" with T.J. Holmes and Brianna Keilar starts right now.
T.J. HOLMES, CNN ANCHOR: "We will save the people." That is a promise from the premier of China as thousands of soldiers finally reach ground zero of yesterday's earthquake. Many survivors are being rescued, but many thousands are dead. Many other thousands are trapped.
BRIANNA KEILAR, CNN ANCHOR: And here at home, tornado
