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CNN Live Saturday

Planning for Retirement; Hurricanes and Global Warming; Miami Terror Arrests

Aired June 24, 2006 - 12:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

FREDRICKA WHITFIELD, CNN ANCHOR: Half past the hour now. Here's what's happening. Seven men allegedly planning to blow up the Sears Tower and other buildings are in custody. The FBI says the men didn't even have explosives and they had little money.
The second in command in al Qaeda says he's grieving over the death of the leader of al Qaeda in Iraq, Abu Musab al-Zarqawi. Ayman al-Zawahiri also warned President Bush that al Qaeda will seek revenge. His comments were broadcast in a new videotape that aired yesterday on Al-Jazeera. CNN has not independently confirmed the authenticity of the tape.

President Bush is urging Congress to give him more power to shape the budget. In his weekly radio address, Mr. Bush says the way to do it is to for Congress to pass a line-item veto law. He says the measure would enable him to insist on greater discipline in the budget.

Patsy Ramsey, the mother of JonBenet Ramsey, died today of Atlanta. Her attorney says she died of ovarian cancer. She was 49. Her daughter, JonBenet, was found beaten and strangled in the family's Boulder, Colorado home in 1996. Her death remains unsolved.

And the force behind TV shows like "Dynasty" and "Charlie's Angels," Aaron Spelling has died. Spelling, who was 83, died in his Los Angeles mansion yesterday. He suffered a stroke last weekend.

And now let's check in with Reynolds Wolf, where it is very dry in some parts and very wet in others.

(WEATHER REPORT)

WHITFIELD: We update the top stories every 15 minutes on CNN LIVE SATURDAY.

Unarmed but extremely dangerous -- that's what federal authorities are saying about seven suspects arrested in an alleged terror plot. But the government's aggressive pursuit of suspected terrorists is also raising red flags.

Here's CNN chief national correspondent John King.

(BEGIN VIDEOTAPE)

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT (voice-over): To prosecutors, a textbook post-9/11 sting operation. ALEXANDER ACOSTA, U.S. ATTORNEY: Our mission, given to us by President Bush, is to prevent terrorism.

KING: To others, though, an indictment that raises fresh questions about aggressive administration tactics in the war on terror.

PAUL CALLAN, FORMER PROSECUTOR: I would have expected to see a lot more meat in the indictment.

KING: The indictment runs just 11 pages and acknowledges those charged did not have the necessary tools or money to launch attacks. And it concedes they had no contact with Al Qaeda, meetings and offers of help instead from an FBI operative posing as an al Qaeda representative.

CALLAN: He agrees to supply machine guns, boots, and other equipment to these conspirators. He's really involved in every aspect of the crime, and, you know, that gives rise to the possibility that these men will have a good entrapment defense.

KING: The government says the case is solid.

ALBERTO GONZALES, ATTORNEY GENERAL: They did request equipment; they did request funding. They swore allegiance to Al Qaeda.

KING: Intent is key to the government's case. The indictment says alleged ring leader Narseal Batiste first decided to bomb the Sears Tower and other targets, then went looking for al Qaeda help.

CLARK KENT ERVIN, CNN SECURITY ANALYST: And that's not an entrapment issue. The intent was preexisting. It was simply a question of means.

KING: The Miami came on the same day of other news that stoked the country's most polarizing post-9/11 debates, where to draw the line between aggressive law enforcement and civil liberties like free speech and privacy.

COREY SAYLOR, COUNCIL ON AM. ISLAMIC RELATIONS: They're just casting a very wide net and seeing what falls into it. And most of what falls into it are innocent people.

KING: Other controversial administration terror tactics include the aggressive holding of prisoners, sometimes without charges, Patriot Act provisions allowing more wiretaps and surveillance, the National Security Agency's domestic eavesdropping program, and the newly disclosed database of international banking transactions.

The administration approach reflects the post-9/11 mindset of a president and a vice president who favor strong executive powers.

DICK CHENEY, VICE PRESIDENT OF THE UNITED STATES: It's important to remember how significant 9/11 was. We are now engaged in a constant effort, obviously, to protect the nation against further attack. That means we need good intelligence. It means there have to be national security secrets, it means we need to be able to go after and capture or kill those people who are trying to kill Americans. That's not a pleasant business. That's a very serious business.

KING (on camera): But the administration makes no apologies for its aggressive tactics an insists, in this latest Miami case, being aggressive kept threats from turning into attacks.

John King, CNN, Washington.

(END VIDEOTAPE)

WHITFIELD: Friends an family members of the suspects reacted emotionally to the news of the arrests. They deny their loved ones are aspiring terrorists or involved in terrorist activities in any way.

(BEGIN VIDEO CLIP)

ELIZENE PHANOR, SUSPECT'S MOTHER: My son, he don't have heart to kill people. I tell God. He don't have heart to kill people.

SYLVAIN PLANTIN, SUSPECT'S COUSIN: Whoever the Feds talked to, that's the one they need to get in trouble for because this guy here don't have anything to did with it. The only thing he has to do with it is that he was hanging around somebody that might have made plans to do something wrong which he never knew nothing about.

(END VIDEO CLIP)

WHITFIELD: Police raided the group's bunker-like warehouse on Thursday. Miami's police chief says the notion of who is a potential terrorist is changing.

(BEGIN VIDEO CLIP)

CHIEF JOHN TIMONEY, MIAMI POLICE: I think law enforcement, along with the average citizen, has a stereotype in his head or her head regarding what a terrorist should look like. You know, Mohammad Atta, walking through an airport in New York. That's not the case.

You know, beginning with the last July 7 and 21st bombings in London, we saw that they don't fit the stereotype that we have, that they're homegrown. It's the same thing in California about three or four months ago and now two weeks ago in Canada, a whole other group and now today in Miami. And so there is no stereotypical, if you will, potential terrorist.

(END VIDEO CLIP)

WHITFIELD: And stay tuned day and night for the most reliable news about your security.

Checking stories from overseas now, another natural disaster for Indonesia. Widespread flooding and landslides have killed at least 216 people. Another 67 are missing. A massive earthquake hit Indonesia in May, a country still recovering from 2004's devastating tsunami.

She was born during the presidency of Andrew Jackson. Now Harriet, a 176-year-old giant tortoise, has died in Australia. She died at a zoo owned by crocodile hunter Steve Irwin. At the time of her death, it is believed Harriet was one of the world's oldest living creatures.

And actress Nicole Kidman is tying the knot this weekend in Australia. Celebrities are getting in from around the world for Kidman's marriage to country music star Keith Urban. Details of the lavish wedding are being closely guarded.

Hot, humid, hazy, hurricanes? Does global warming really help create these nasty storms? Some say yes. We'll take a closer look.

And later, on the road to retirement, do men refuse to stop and ask for directions about their future planning? Coming up, why men don't know jack about retirement.

(BEGIN VIDEOTAPE)

GERRI WILLIS, CNN ANCHOR (voice-over): Finding the right real estate agent is key when you're putting all your assets on the line. Experts suggest interviewing at least three agents before you sign on for the ride. Ask about expertise, references and the projected game plan.

Look for an agent who works full-time and who has been practicing for at least two years. And remember personality counts for something. You're going to be working closely with this person.

A good place to start is the National Association of Realtors Web site. There you'll find a list of certified agents in your area. Another great resource is the National Association of Exclusive Buyers Agents at NAEBA.org.

Finally, if you would like to check up on your brokers a track record, head to homethinking.com.

I'm Gerri Willis, and that's your "Tip of the Day."

(COMMERCIAL BREAK)

WHITFIELD: So we're talking retirement in today's "Dollars & Deals." Guys, when you get lost, here's a question for you. Are you the typical male who refuses to stop and ask for directions? Sam? Floor director. He says no. Well, our next guest says neither men nor women know much about the road to retirement, but that men are more reluctant to ask for help. In fact, the new "Money" magazine discusses why men don't know jack about retirement. See, it's their title, not ours.

Amanda Gengler of "Money" is here to explain. But before we harp on men, Amanda, let's talk about how both men and women do a lot wrong when it comes down to planning for retirement. They just don't see eye to eye for starters.

AMANDA GENGLER, REPORTER, "MONEY" MAGAZINE: The key is that men more likely say that they grasp these key retirement issues, but in reality, you're right, both men and women are both equally clueless.

WHITFIELD: So is there an underlying reason why both are clueless? I mean, they just are not calculating the future, right?

GENGLER: Well, one of the first problems is they don't -- especially men -- do not take a long enough view. The biggest risk in retirement is that you'll run out of money before you run out of time. That's why any good retirement plan, you must have realistic assumptions of how long your savings should last for. Only 43 percent of men said they're concerned about saving until age 85 versus, 57 percent of women. Well, yes, women live longer, but come on, guys, the average 65-year-old has a one in two shot of making it to 85. And those final years are going to be pretty grim if you're not planning for them.

That's why we recommend both men and women should plan to at least live until 90.

WHITFIELD: So everyone needs to expect life expectancy is longer for all of us, so go ahead an plan for it.

Let's talk about, when people think about retirement, they think about access to money, how much they can dip into their savings or their portfolio, all those retirement savings plans that we're all working on. They see differently on how much they may be able to dip into. Men, women -- some think 10 percent, some think more. You say it's actually way low, 4 percent.

GENGLER: That's the most complicated issue for retirees. But nearly half of women are willing to say, they don't know how much they can pull out, versus only about 29 percent of men -- which would be fine, if the other 71 percent were actually anywhere near the target. Nearly half said they could pull out ten percent a year. And no, if you need your savings to last for about 30 years, you should really pull out 4 percent the first year, and then just increase that amount by inflation every year.

WHITFIELD: So what's your best recommendation right now, knowing some of the common mistakes, particularly men make, best recommendation on what they need to be doing right now to secure a better future?

GENGLER: Seek help. This is where it comes into, that sometimes men are unwilling to ask for directions. Well, they're also less likely than women to seek retirement help. You can start by just going to our website. It has an entire retirement planning section at CNNMoney.com. But in general, you need some outside validation that what you're doing is going to secure your future. So even if you don't want to establish a long-term relationship with a financial planner, consider seeing one on an hourly basis. And you can find those at GarrettPlanningNetwork.com. WHITFIELD: All right, Amanda Gengler of "Money" magazine. Thanks so much. And of course, we gave the dudes a hard time, but we all learned a little something, men and women, the mistakes that are made in retirement planning. Thanks so much for straightening us all out, Amanda.

GENGLER: Thank you.

WHITFIELD: You can read more about retirement in the new issue of "Money" magazine. And for more "Dollars & Deals," check out our website -- log on to CNNMoney.com.

Forty-five (minutes) past the hour now. Here's what's happening, "Now in the News." Family and friends deny that seven men indicted in Miami are homegrown terrorists. The FBI accuses the group of plotting to bomb the Sears Tower in Chicago. The indictment indicates the men had no money, weapons or supplies.

Several deaths to report to you now. This morning we got word that Patsy Ramsey has died in Atlanta, of ovarian cancer. She was 49. Ramsey was the mother of slain 6-year-old beauty queen JonBenet Ramsey. Her 1996 murder has never been solved.

The man who battled Playboy Playmate Anna Nicole Smith over his father's estate has died. The family says E. Pierce Marshall died unexpectedly yesterday from a brief and extremely aggressive infection. He was 67.

And TV producer Aaron Spelling has died. He was the man behind hit shows like "Love Boat," "Charlie's Angels," "Dynasty" -- the list goes on and on. Spelling died in his Los Angeles home last night of complications from a stroke. He was 83.

We update the top stories every 15 minutes on CNN LIVE SATURDAY.

Well, the heat is on this summer and hurricane season is heating up as well. Straight ahead, why some think global warming is to blame for those storms.

Later, Bruce Springsteen talks with Soledad O'Brien about his new album and its unmistakable New Orleans sound. That's straight ahead. Stay with us.

(COMMERCIAL BREAK)

WHITFIELD: A new study is heating up over the controversy over global warming. It suggests a link between global warming and increased hurricane activity.

(BEGIN VIDEOTAPE)

(Voice-over): This year's hurricane season opened on the heels of a record year in 2005, which included the devastating Hurricane Katrina. But had global warming been a factor in the high number of storms? A new study claims that global warming contributes more to high ocean temperatures than other factors like natural cycles or El Nino. CNN spoke with the director of the National Center for Atmospheric Research, which conducted the study.

TIM KILLEEN, NATIONAL CENTER FOR ATMOSPHERIC RESEARCH: The global warming increase in sea surface temperatures associated with greenhouse warming gave roughly half of the observed increase in the sea surface temperatures, about .5 degrees Celsius.

WHITFIELD: Warm ocean water is the fuel for hurricanes, and last year ocean water temperatures were unusually high. If global warming is contributing to hurricanes like Katrina, it would provide an argument for trying to slow global warming. But one of the nation's top forecasters says natural cycles are to blame, not global warming.

WILLIAM GRAY, COLORADO STATE UNIVERSITY: I think that's a gross exaggeration, that that's not true. Nature functions this way.

WHITFIELD: Regardless of the reasons, hurricane experts say we should be prepared for another stormy season.

UNIDENTIFIED MALE: Even without invoking the global warming argument, the research meteorologists are tell us that we're in this very active period for major hurricanes that may very well last at least another 10 or 20 years.

(END VIDEOTAPE)

WHITFIELD: And nearly one month into the hurricane season, and the waters are very warm out there. Our Reynolds Wolff is in the Weather Center, and Reynolds, that seems to be the biggest worry when you look at hurricane season -- how warm are those waters?

REYNOLDS WOLFF, CNN METEOROLOGIST: They're very, very warm. Places in the Caribbean are 80 degrees or so. It's perfect to support these storms that they could form. If you have one that develops out there, it's got plenty of fuel to feed off. And that warm water is the real, I guess you could say, fuel for those big, huge weather machines as hurricanes to form.

(WEATHER REPORT)

WHITFIELD: Always hot there.

WOLFF: No question about it.

WHITFIELD: Thanks a lot, Reynolds.

Straight ahead, we hear from The Boss.

(BEGIN VIDEO CLIP)

BRUCE SPRINGSTEEN, MUSICIAN: A Pete Seeger record without politics in it wouldn't feel right.

(END VIDEO CLIP)

WHITFIELD: Find out what inspired Springsteen to make his latest album, "We Shall Overcome: The Seeger Sessions" straight ahead. GERRI WILLIS, CNN: Inflation is on the rise and it's a good time to look at ways to trim expenses at home. Are you paying for high speed Internet and a home phone? Think about canceling your land line and check out Voice over Internet Protocol. Using the Internet to make phone calls can cut your phone bill in half. Is that mortgage payment bumming you out? If you own 20 percent equity in your house, ask your mortgage lender to drop your private mortgage insurance. Or if the value of your home has gone up, have the lender reappraise the house and you could find you already own 20 percent. Dropping mortgage insurance could save hundreds of dollars a month.

Take a look outside for more big savings. Set an irrigation system to run in five minute cycles instead of 30 minutes. This gives the soil time to absorb the water and keep it from running down the street. It could save up to 25 percent on your water bill.

Gerri Willis, CNN, New York.

(COMMERCIAL BREAK)

WHITFIELD: Rocker Bruce Springsteen is looking back to simpler times on his latest album and tour. He pays tribute to American folk music pioneer Pete Seeger. He recently talked about it with CNN's Soledad O'Brien.

(BEGIN VIDEOTAPE)

SOLEDAD O'BRIEN, CNN HOST: You cover songs that Pete Seeger covered, really. And so, in a way, you're picking songs, not necessarily that he wrote, but songs that he thought were important, to highlight.

SPRINGSTEEN: In concert, we've played several things that he's written: "Turn, Turn, Turn" and "Bring'em Home." But on the record, I just went more to the music that moved me and you know I wasn't thinking about it that much.

S. O'BRIEN: Did Hurricane Katrina play a role in this album? Did you say, now is the time?

SPRINGSTEEN: No, because we cut it in '97. What was unusual was, there was a little serendipity in that the guys that came down to play, played in New Orleans in like a zydeco and Cajun band. So when they came, I said I want to play this sort of roots music. But they started to slip in a New Orleans feeling, the drummer particularly. You can hear it happen on "Pay Me My Money Down."

S. O'BRIEN: Oh, yes, you can. The show stopper.

SPRINGSTEEN: So all of a sudden, that just sort of happened, you know. And the Dixieland horns, that just happened. My pals come by, and that's what felt right to them, to play over the top of the music we were playing. It was unusual and a somewhat frightening thing. We'll go to New Orleans and you have all this roots music that has so much New Orleans in it.

(END VIDEOTAPE)

WHITFIELD: That story comes to us from CNN's "AMERICAN MORNING." You can watch it everyday at 6:00 a.m. Eastern.

A look at our top stories in a moment, but first a preview of "IN THE MONEY."

JACK CAFFERTY, CNN ANCHOR: Thanks. Coming up on "IN THE MONEY," heavy hitters. We'll look at whether the fed is going over the line with all these rate hikes, and perhaps more to come.

Plus if you can't stop the supply, stop the demand. See why so few U.S. companies get busted for hiring illegal aliens.

And relax: that's an order. Find out why American workers get balky, sometimes, about taking a vacation.

All that and more, coming up right after a quick check of the headlines.

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