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News

Mountain View braces for Super Bowl crowds

Mountain View braces for Super Bowl crowds


Graphic Courtesy of City of Mountain View
The purple parking lots above indicate where paid parking for the Super Bowl is allowed in downtown Mountain View. Other lots are open but still carry three-hour time constraints.

Downtown Mountain View wil...

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Schools

Los Altos High student hopes to bring animal therapy to school

Los Altos High student hopes to bring animal therapy to school


Courtesy of Christine Lenz
Los Altos High junior Riley Fujioka, left, works with Animal Assisted Happiness program manager Simone Haroush-van Dam.

Research affirms that the therapeutic effects of animals help reduce stress in humans, and one Los Alt...

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Community

Sports

Panthers outpace Priory

Panthers outpace Priory


Shirley Pefley/Special to the Town Crier
Pinewood’s Matt Peery lays up the ball in Friday’s win over Woodside Priory. Peery paced the Panthers with 19 points.

While height helps, the Pinewood School boys are proof that basketball is not ...

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Comment

From the City Manager's Desk: Fulfilling our mission

 

For those of us who work for Los Altos, the mission is “to foster and maintain the city of Los Altos as a great place to live and to raise a family.” The city’s employees take this mission seriously and – individually ...

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Special Sections

'Machos': Middle Eastern nachos ideal for Super Bowl

'Machos': Middle Eastern nachos ideal for Super Bowl


Photos Courtesy of Blanche Shaheen
Blanche Shaheen, above with her brother Issa, shares her Middle Eastern take on nachos – ideal for a Super Bowl party. Shaheen’s “Machos,” right, feature feta, tahini sauce, Persian cucumbe...

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Business

Businesses on Main Street make moves

Businesses on Main Street make moves


Alicia Castro/Town Crier
Several stores on Main Street in downtown Los Altos are in the midst of changing hands.

In the coming months, Main Street will welcome several new businesses to fill empty storefronts.

Jennifer Quinn, the city’s econo...

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People

ROSEMARY FRASER

Rosemary Fraser, age 81, a long-time resident of the Los Altos/Palo Alto area, died peacefully Friday, the 22nd of January at her home. It was a sudden death; hypertension was the underlying cause.

Born in 1934 in Florence, Arizona, Rosemary enjoyed...

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Stepping Out

West Bay Opera tackles Tchaikovsky's 'Onegin'

West Bay Opera tackles Tchaikovsky's 'Onegin'


Otak Jump/Special to the Town Crier
Olga Chernisheva and Silas Elash perform in West Bay Opera’s “Eugene Onegin.”

The West Bay Opera production of “Eugene Onegin” is scheduled Feb. 19-28 at Lucie Stern Theatre, 1305...

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Spiritual Life

How to cultivate childlike faith in a grown-up world

And Jesus said: “Truly I tell you, unless you change and become like little children, you will never enter the kingdom of heaven.”

– Matt. 18:3

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Inside Mountain View

New right-to-lease ordinance promises relief for renters

New right-to-lease ordinance promises relief for renters


Mountain View Tenants Coalition/Facebook
Residents gather in the fall to protest Mountain View’s rising rents. Rent relief is on the way in the form of a new ordinance.

A controversial Mountain View law requiring landlords to provide lease opt...

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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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