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LA council votes to delay community center update

LA council votes to delay community center update


Ellie Van Houtte/ Town Crier
The Los Altos City Council voted to delay adoption of a community center conceptual design plan last week. The plan includes elements from a design charette held earlier this fall, left.

The Los Altos City Council last...

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Schools

Scientists bring experiments into MV classrooms

Scientists bring experiments into MV classrooms


Ellie Van Houtte/Town Crier
During a Science is Learning geology lesson, Theuerkauf Elementary School students learn about igneous rocks by observing how sugar changes form when heated.

Hundreds of local elementary students perform experiments w...

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Community

Local actors star in PYT's 'Oklahoma!'

Local actors star in PYT's 'Oklahoma!'


Courtesy of Peninsula Youth Theatre
PYT’s “Oklahoma!” features, from left, David Peters of Mountain View, Jenna Levere of Los Altos and Kai Wessel of Mountain View.

Time is running out to catch Peninsula Youth Theatre’s production of “Oklahoma!”...

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Sports

Eagles advance

Eagles advance


Ellie Van Houtte/Town Crier
Los Altos High’s Carmen Annevelink, left, and Kristen Liu put up a block against Mountain View. Annevelink totaled 20 kills.

Mountain View High’s out-of-the-gate energy could last for only so long against rival and he...

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Comment

Coping with addictions: Haugh About That?

Preparing to deal with my lifelong addiction, I stood in front of the mirror ready to confess the shame I’d been hiding. The first step to healing, I reminded myself, is to admit something is wrong.

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Special Sections

NASA, Google agreement preserves Hangar One

NASA, Google agreement preserves Hangar One


Bruce Barton/Town Crier
Hangar One, pictured here last January, will be restored under an agreement between Google and NASA.

NASA and Google Inc. forged an agreement last week that allows Google to lease a portion of NASA’s historic Moffett Fede...

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Business

State Street science center closing Nov. 30

State Street science center closing Nov. 30


Ellie Van Houtte/
Helix at 316 State St. is closing after the completion of a one-year grant from Passerelle Investment Co. The science center became a popular destination because of its various exhibits. Town Crier

A popular downtown destination...

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Books

Children's author signs books at Linden Tree

Children's author signs books at Linden Tree


Author Tiffany Papageorge is scheduled to sign copies of new her book 11 a.m. Dec. 6 at Linden Tree Books, 265 State St., Los Altos.

Papageorge’s “My Yellow Balloon” (Minoan Moon, 2014) is a Mom’s Choice “Gold” winner. In the book, the Los Gat...

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People

JAMES WINDELL SMITH

JAMES WINDELL SMITH

January 11, 1939 – November 6, 2014
Resident of Mountain View

James Windell Smith, a 40 year resident of Los Altos, passed away from complications after a post-surgery stroke November 6th, 2014 in Los Gatos, California.

Born on January 11, 1939 on...

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Travel

Olive Sonoma: There's more to the quaint town than wine

Olive Sonoma: There's more to the quaint town than wine


Eren Göknar/ Special to the Town Crier
While many day-trippers may think that Sonoma is all about the grapes, the region boasts other delights. Try a biplane ride over the patchwork landscape.

Sonoma, a scenic two-hour drive from Los Altos, boa...

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Stepping Out

LA Stage Company opens 'Fairway'

The Los Altos Stage Company production of Ken Ludwig’s new comedy “The Fox on the Fairway” is slated to run Thursday through Dec. 14 at Bus Barn Theater, 97 Hillview Ave.

A tribute to the English farces of the 1930s and 1940s, “Fox” is a romp that p...

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Spiritual Life

Author of Jewish historical novel slated at Congregation Beth Am

Author of Jewish historical novel slated at Congregation Beth Am


The Beth Am Women have scheduled “A Conversation with Author Maggie Anton” 7:30 p.m. Nov. 20 at Congregation Beth Am, 26790 Arastradero Road, Los Altos Hills.

Anton, winner of the 2012 National Jewish Book Award for Fiction, will discu...

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Magazine

Christmas At Our House home tour celebrates 26 years

Christmas At Our House home tour celebrates 26 years


Courtesy of Christopher Stark
Homes on the St. Francis High School Women’s Club’s Christmas at Our House Holiday Home Tour showcase a variety of architectural styles.

The days grow short on sunshine but long on nostalgia as the holidays approach...

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Congressional Budget Office paper says don’t buy annuities

A working paper recently published by Felix Reichling of the Congressional Budget Office and Kent Smetters of the University of Pennsylvania’s Wharton School concludes that most people should not buy annuities. This is a controversial finding bound to spark significant debate within the financial services community.

The annuity model is simple: You give up a portion of your savings to an insurance company in exchange for a guaranteed stream of payments for the remainder of your life. Gil Weinreich, editor-in-chief of ThinkAdvisor, an online and print publication family for financial advisers, interviewed Smetters to find out why he believes that’s not a good idea. He quoted Smetters as stating, “The average American should probably not annuitize any of their wealth.”

Smetters explained that it is in fact uninsured health-care shocks – the most common being disability while working or the need for long-term care while retired – that impact the usefulness of annuities more than anything else.

Here’s the logic: Suppose that you are retired and develop a medical condition requiring long-term care, for which you are not insured. If you had previously purchased an annuity, it would not be much help, because you now have the need for a lot more income than the annuity had been designed to produce. You could sell your annuity – there is a secondary market for this – but because of your medical condition, your expected longevity is reduced. As a result, the amount of cash you can get for the annuity will be lower, because its value is based on the expectation of its future cash flows. That’s just the opposite of what you need during such a situation.

Smetters went so far as to recommend that younger people actually “short” annuities.

“You can get a negative annuity by buying life insurance,” he said. “It is well known … that whereas an annuity pays me for living, life insurance pays me for dying. What happens when I get sick is that my life insurance increases in value. You can cash that out and get protection against uninsured expenses.”

Is there anyone who would benefit from an annuity? According to Smetters, “those who should buy annuities have already incurred health costs or are quite elderly.” Insurance companies can afford to offer such people annuities with larger monthly or yearly payments because there’s a higher likelihood they’ll die sooner.

Most advisers think of annuities as low-risk investments. But as Smetters pointed out, they are actually higher risk because they fail at exactly the times you need them the most: during health-care crises. The better alternative, he said, is long-term care insurance for older people and disability insurance for younger people.

I believe that annuities – particularly single-premium immediate annuities – can be a valuable part of a well-diversified investment portfolio. But Smetters and Reichling suggest that they should be used sparingly until you reach an age where the payments become significant.

To read the CBO working paper, visit cbo.gov/sites/default/files/cbofiles/attachments/44374_MortalityProbabilities-Reichling_2_0.pdf.

Artie Green, a Los Altos resident, is a Certified Financial Planner and professional investment adviser. For more information, call (408) 747-1222.

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