Dave, Julie, Lenny, Ross, Jill, Nancy, Gerry, Joe, Linda, Victoria, Seowa and Mike welcomed Shirley and Mark to their first meeting.

Mike opened the space with a round of introductions, and we quickly began posting discussion topics.

* "The Persuaders" - PBS Special on Advertising
* Community - Interest in reforming a "Northside Group"? (Jill)
* Biking Year Round (Joe)
* Rent vs. Buy when living downtown (Shirley)
* Any point in long-term care insurance? (Shirley)
* Investments - US Treasury Bonds vs. US Government Agency Bonds in the market? (Shirley)
* Options for buying Gov't Bonds [direct vs. mutual funds] (Gerry)

And how about the SUV craze - why would someone living in Chicago need an SUV? Need is the key. Turns out advertising companies are tapping into our primal instincts. It's not about NEED, it's about survival. There is something inherent in our survival mechanisms that respond to ads featuring triumph in the wilderness. Anything that signals survival in our brains sells => bigger (is stronger), tint the SUV's windows (stealth - no one can see you), change the grill work (a growling sneer frightens your enemies), drive aggressively shows your dominance over nature (maybe that's why drilling in the wilderness for more oil is OK). The success of the "Survivor" TV shows and other "reality TV" shows are further examples. Just another case for turning off the TV and doing something useful.

COMMUNITY - INTEREST IN FORMING A NORTHSIDE GROUP (Jill)...
Is there any interest in forming a north side group. Jill talked about Penny Yunuba's Your Money Or Your Life (YMOYL) Groups in Boston and the community they create. Forming a north side group again would offer opportunity for folks to get together between VS Chicago meetings. The group could do pot lucks, book/YMOYL discussions, whatever the group would like to do. (Interested? Contact Mike at).

BIKING YEAR ROUND (Joe)...
Joe opened the discussion, "Biking offers many benefits - less pollution, saves money, better heath... What if I bike to work year round - what are the challenges? Should I get a 3-wheel grandma bike??" Folks shared their experiences with biking in Chicago.

Chicago's winters are definitely a challenge. There are on going winter bike safety programs featured throughout the area (2401 N Western had one on 11/13/04). Studded mountain bike tires are options - either buy them direct or make your own. There is a theory that skinner tires cut through snow better, while wider tires grab and throw muck. Most agreed this not to be the case. Road salt buildup on bikes, equipment, rider, ... is something to handle. Frostbite is a concern, and cables do freeze. Gerry noted once that really bad weather day hits and you don't ride, it gets harder to get back on the bike until spring. When that first day happens, make a commitment to getting back to riding. Of course there is the always present danger of folks opening their car doors into you - in winter especially, as most folks are not expecting riders.

Bikes get stolen from the fronts of buses (yep, someone walks by a stopped bus and they help themselves to what's in the rack). Suggestions included locking your wheels or getting a really old or clunky bike no one would want.

There are "Critical Mass" bike rides the last Friday of every month. Meet at the Daley Plaza and join the masses. The idea is to create biking awareness - enough riders passing through an intersection can stop traffic, sending a reminder to share the road.

RENT vs. BUYING WHEN YOU LIVE DOWNTOWN (Shirley)...
Shirley asked, "What does the book, Your Money Or Your Life (YMOYL), say about buying vs. renting?" There is no set answer, as it all depends on one's situation. Keep doing the YMOYL steps. The questions that arise from doing the steps raise awareness (like this very question). Keep doing the steps, and those questions will eventually deliver answers.

Folks noted a glut of condos in Chicago, rentals too, as interest rates came down affording opportunities for ownership. More buildings are converting over to condos - "is this a good time to buy?" It depends.

Discussion included making a list of your "burning desires". What do you want to keep, what do you want to get rid of, what is absolutely important to you? Your time of life is also another factor - are you in your 20's or 60's? There are ownership costs one doesn't think of - like not thinking about oil changes when you buy a car. Janet Luhrs' book, "The Simple Living Guide" features many examples of how folks handle their housing needs. Freedom can be an important factor. When Gerry writes a rent check, he thinks of part of this check as a small insurance premium for the freedom of being able to leave after the lease expires. There is also freedom from repairs, up keep and maintenance. Of course, there is the flip side of waiting for repairs, up keep, maintenance to be made.

RV LIVING and BURNING BIO-DIESEL (spontaneous discussion)...
The group then began discussing the option of Recreational Vehicle living. Suggestions included renting before buying to see if you'll really like this kind of lifestyle. Folks often travel from national park to national park, following the seasons, exchanging park work for free living space.

For about $500, Ross recently converted a Mercedes auto to burn used french fry oil (bio-diesel). Ross starts the vehicle on regular diesel fuel, switches over to bio-diesel after the engine warms up, then back to regular diesel before shutting down. He picks up the used oil from a local restaurant and filters it before using. He gets 35-40 mpg - how about that! When asked what burning bio-diesel smells like, Ross replied, "Well it smells like french fries, or sometimes shrimp depending on what the owner was cooking." This prompted a merciless barrage of bad french fry jokes from the group. ^_^

INVESTMENTS - US TREASURY vs. US GOV'T AGENCY BONDS IN THIS MARKET (Shirley)...
and OPTIONS FOR BUYING GOV'T BONDS (DIRECT VS. MUTUAL FUNDS (Gerry)...
A lengthily topic directly related to the book, Your Money Or Your Life's (YMOYL), Chapter 9 (Step 9). Since the book was published 12 years ago, is Chapter 9 still valid (with interest rates lower today then in 1992), and with 30 year bonds no longer issued?

Mike explained the basic premise of YMOYL is to transform your relationship with money by doing the book's steps, to create enough savings to generate a safe, steady, and sufficient income for the rest of your life.

There are many ways to generate income from savings. YMOYL Chapter 9 lists basic criteria for investing your capital (your savings). One can use the criteria to assess whatever investment they are pursuing. Turns out author Joe Donimguez choose 30 year, US Government Treasury Bonds to generate is income. Why? For all the reasons listed in Chapter 9's criteria.

"What about fallen interest rates?" Doesn't matter - the idea is to Do the Steps. Historical long-term interest rates are between 3-5%. Remember too, Joe Dominguez bought 30 year bonds in the late 1960's, when interest rates were about where they are today (4.96%). Rates don't matter. What matters MOST is doing the YMOYL Steps, and create savings to generate a safe, steady and sufficient source of income.

(*) ANY POINT IN LONG-TERM CARE (Shirley)...
Ran out of time - will resume this topic at December's VS Chicago Study Circle.