Spending Your Retirement Years in Hell, AKA Sunny California

"The question isn't at what age I want to retire, it's at what income."

--- George Foreman

In America, many people spend the early decades of their life struggling through school and then work, often with few days off and fewer vacations, all in hopes that one day, they might retire and finally be able to do all those things that they've put off for most of their lives. Just as every individual has his or her own preferences and talents in the professional world, every person has some ideal retirement, whether it be a modest bungalow on a white sand beach that stretches for miles, or a penthouse apartment that overlooks Central Park. For some, however, their latter years are less golden than brass.

A recent article from U.S. News & World Report listed the ten "worst" locations to spend those years of leisure, and the results are surprising. Where one might expect to see detailed such vacation destinations as Duluth, Minnesota or Gary, Indiana, Report lists, instead, household names like Honolulu, New York City, Los Angeles, and Washington, D.C. What, aside from stunning architecture, pleasant seasonal temperatures, gorgeous landscapes, and historical landmarks, could be wrong with spending those olden, golden years in any of these world-renowned cities?

There is only one answer to that question and, uncannily enough, it's the answer to a staggering number of questions on the minds of the general public in America today: money. As inflation continues unfettered, stocks continue their roller-coaster acrobatics, and government agencies warn of greater evils to come, the almighty dollar and its attainment have become increasingly elusive, even to those who had, previous to the recession, never given their seemingly ever-present financial stability a second thought. In this new landscape of political, economic, and social unrest, the concept of prime vacation and retirement destinations takes on new meaning.

One might argue that those employed by the federal government should be rewarded for their years of service to their country; this argument is quite valid, and is supported by a host of benefits available only to federal employees. Perhaps one of the biggest perks offered only to these employees, military included, is the Thrift Savings Plan (TSP); not only can workers use this as a savings account for their eventual retirements, but the government also matches a certain amount of each contribution an employee deposits. Sounds like federal employees, then, should have the luxury of retiring anywhere from Connecticut to California, right?

With evidence mounting that the federal government's threats of temporary shutdowns and sequestrations are anything but idle, those federal employees who once relied with unfailing faith on their employers are now wondering whether their financial futures are secure, after all. Sequestration often means layoffs and lost wages, and the recent issuance of the first wave of federal employee furlough notices lends more credence to this cloud of doubt. Missing even a couple weeks' worth of pay and TSP contributions might prove disastrous to some employees who rely upon a fixed income; for others who might escape this round of cuts, there are likely more to come.

In the event of another stock market crash as witnessed in 2008, however, all bets are off. Forget furloughs; for those federal employees whose TSP funds are positioned in particularly volatile accounts, their retirement plans might include such posh accommodations as the local weekly-pay roach motel. With assisted living prices in the thousands of dollars per month, many retirees might find themselves with no option other than securing a post-retirement job... or forgoing the warm sands of San Diego for the brisk, biting breezes of Fargo.

Before exposing their hard-earned retirement savings to the unpredictability of the stock market and risking a post-career job in customer service, federal employees should explore their options in savings, particularly in repositioning retirement monies from more to less volatile funds. Otherwise, that dream penthouse in Manhattan might become a garden studio in South Harlem overnight.

References (click to link to articles):

"Furlough to affect Thrift Savings Plan contributions," American Forces Press Service, 3/22/2013.

"The 10 worst places to retire," U.S. News & World Report, 3/11/2013.

John Allen Dodges a Second Bullet

"Retirement, we understand, is great if you are busy, rich, and healthy. But then, under those circumstances, work is great, too."

--- William E. Vaughan

http://creativecommons.org/licenses/by/2.5/

Caught up in the web of rumors surrounding the David Petraeus scandal, Marine General John Allen, whom President Obama had recently nominated as head of European NATO forces, declined this offer and, instead, chose to retire. If you'll recall, when Petraeus, then director of the CIA, was indicted for a suspected extramarital affair, certain communications between Allen and a Florida socialite fell under suspicion, as well. Despite having been cleared of any charges or suspicion, Allen felt it necessary to retire, citing family reasons.

While this decision has sparked talk of a guilty conscience in Allen, others might see this as the General's way of avoiding greater misfortune in future, this time financial. In the upper echelon of federal workers, Allen's job might have been secure from such recent plagues on employees as furloughs or layoffs, but greater evils may well be on the horizon for those employed by the U.S. government. In the lower ranks of the military, for example, even a partial government shutdown, which has been looming for months now, could mean lost wages and livelihood that might not easily be recovered.

Recent reports indicate that not only are the predicted furloughs already being enacted among federal employees across the nation, but no increase in federal pay is predicted for this year, despite this having also been the case for the past 2 years. Some theorize that the government is targeting a particular economic demographic of federal workers; rather than covering funding deficits by reducing salaries among top earners, they have enforced furloughs, pay cuts, and benefit revocations among only middle-class workers. To an already financially stressed American middle-class, this is not a welcome move.

For General John Allen, however, the future is certain: he will spend, by his own admission, his remaining years enjoying life with his wife and family. And why shouldn't he? Why shouldn't any American who has poured his or her heart and soul into a job with the federal government, toiling toward this common dream we all tend to share? That is, of course, the question on the minds of so many hit hard by furloughs, budget cuts, and layoffs.

John Allen dodged a bullet when cleared of all charges in connection with the Petraeus scandal, but his retirement is no stroke of genius; rather, it is simply what every federal employee in America deserves. The second bullet was in planning well for his retirement and knowing that when he chose to leave his post, his financial future would be well-secured. For more information on how to ensure the security of your own future retirement, contact us, and start your journey toward financial freedom. 

References (click to link to articles):

"Gen. John Allen, caught up in David Petraeus scandal, is bypassing NATO post and retiring," The Daily Beast, 2/19/2013.

"General Allen to retire from military," Associated Press Eyewitness News, 2/19/2013.

"Hoyer doubtful of salary increase for federal workers," The Washington Post, 3/6/2013.

Modern College Financing in a Nutshell: Would You Like Fries With That?

"Everyone has a right to a university degree in America, even if it's in Hamburger Technology." 

--- Clive James

It's a classic Catch-22: to make a good living, it's necessary to earn a college degree. In order to get that degree, however, one must have a glut of expendable income. Now, while some lucky individuals manage to subvert this modicum and craft their fortunes in the absence of higher learning, the average American citizen is not so fortunate. What is there to do, then, in this paradoxical situation?

For many, the solution in the past was to simply forego a degree in favor of working one's way into a comfortable income. This practice, however, became almost ostensibly a thing of the past once the Great Recession set in, with its accompanying avalanche of unemployment, inflation, and heightened expectations for job-seekers across the board. While many who have, wisely, chosen to attend college in this time of turmoil use federal and private loans or scholarships to finance their educations, some of this contingent as well as the majority of self-pay students obtain employment to cover the rising costs of tuition, books, and housing.

The funny thing is, this is far from a novel trend. In 2000, 52% of all traditional, full-time college students had off-campus jobs. The current figure, contrarily, is far lower at 40%. Seemingly out of sync with statistics that show rapidly rising tuitions throughout the U.S., this figure is notable due less to its numeric value than the dedication and time expenditure of the group it represents. While students in 2000 worked in greater numbers, students of 2013 work longer hours, and often for lower wages than did their predecessors.

Among students attending college part time, the statistics are even more striking: 73% of students in this demographic hold jobs, 80% of them above 20 hours per week. Such a busy schedule can put great strain on a student's social life, as well as his or her psychological and physical welfare, among other risks. Chief among most working students' concerns, however, are typically grades and sleep, both of which are far more prone to suffering than in those students who do not work while attending school.

Perhaps in retribution for the complaints lodged by students and parents who have seen tuition rates rise precipitously in recent years, education researchers recently stated that students who work are likely to have higher grades than their unemployed counterparts. While this is partially true, these studies focus solely on those students who work from 10-15 hours per week, the typical work load for a federal work-study recipient.

Regardless of the immediate consequences of working while attending school, however, many students look forward to the eventual payoff of their educations, regardless of how they obtained them. For many recent graduates, having a degree in the "real world" has been a bitter pill to swallow: while there are more jobs available to degree-holding applicants, the opportunities are limited in scope and financial gain. Graduates hoping to land a six-figure job on Wall Street upon receiving their degrees often, instead, find themselves filing paperwork or frying burgers to the tune of $10 an hour.

Why, then, put in all the work if the end result is no different than the means by which one arrives at it? For students who work their way through school, this question may be all the more salient; many of them, unfortunately, may find themselves remaining in the same jobs after graduation, at the same pay rate. While this may be a dream of the unemployed and uneducated, it is little compensation for four (or more) years of working one's fingers to the bone in multiple arenas.

However, as the American economy shows signs of recovery, albeit slow ones, there is hope that all those hard-fought college degrees will prove their merit, after all. Once the job market is once again rife with opportunity, degree-holding applicants will become increasingly valuable, and will command a higher share of the company dollar. Until that point, however, many college graduates may find themselves continually fantasizing about the day they can hang up their grease-stained aprons, leave behind those golden arches, and enter the careers for which they studied, and worked, so diligently.


References (click to link to articles):
"College costs: As tuition rises, more students are saddled with expensive loans," Tribune Chronicle, 3/10/2013.

"It takes a B.A. to find a job as a file clerk," The New York Times, 2/19/2013.

"Students scramble to make college work," The Kansas City Star, 3/9/2013.

Tiny Houses, Understaffed Construction, and the Stagnation of Rebuilding

"The one who adapts his policy to the times prospers, and likewise that the one whose policy clashes with the demands of the times does not."

--- Niccolo Machiavelli 

Step aside, Airstream trailers: there's a new domicile on the market, and it's coming soon to a parking lot or backyard near you. Dubbed "Tiny Houses" or "Tiny Homes," these miniature domestic masterpieces are quickly becoming a trend. Certainly, population expansion and land shortages in the world's metropolises necessitate the eventuality of a move to create more space-efficient housing, but this is far from the sole cause for the popularity of these diminutive architectural wonders.

For some, the draw is ecological: tiny houses afford the owner the ability to make a smaller carbon footprint, and enable one to live in nature if local law permits. For others, it's a matter of convenience: Akua Schatz and Brendon Purdy of Vancouver, B.C. built a 500-square-foot home in the backyard of Purdy's parents to aid in the care of his ailing mother. Still others see tiny homes as the simplest solution to the predicament of poverty which has befallen exponential amounts of Americans since the beginning of what media is calling "The Great Recession".

Despite recent reports that the American unemployment rate has hit a five-year low, dipping to 7.7%. While this does indicate a rise in available jobs, it also reflects a new trend in unemployed workers of simply giving up the job search altogether. As more and more Americans reach the limit on their unemployment benefits, rates drop in concordance, but do not tell the full story of unemployed adults in America. While job creation has been steadily rising since the economic collapse of 2008, it has not come close to making up for the mass layoffs and corporate bankruptcies of the Great Recession.

Within the Federal Reserve, vilified by many as the cause of this five-years-and-counting economic plague, there is talk of a return to pre-recession currency creation practices; this would mean an end to what has, since 2008, been a crisis-management operation. The problem inherent in such a return to past policies, however, is that we cannot expect an American landscape so marred by the current recession to operate in the same fashion as it did prior.

A prime example of such a shift in values and spending habits is that of the construction industry, which would be currently booming if not for a distinct lack of suitable workers. It's not that all those construction workers previously disenfranchised by the economic collapse have simply vanished from the face of the earth; rather, they have long since moved on to greener pastures. In an era when technology can advance in the blink of an eye, could we truly expect American citizens not to have evolved in response to such rampant and cloying adversity?

Klif Andrews, president of Pardee Homes in Las Vegas, expressed astonishment at the recent trend of previously unemployed construction workers not only having found new industries in which to work, but also having relocated for jobs in states where unemployment rates never rose to begin with. While the landscape of America has, indeed, shifted in a matter of mere years, the spirit of the American citizen has not betrayed its roots: when our dreams are challenged, we find new ways of achieving them. Construction workers, witnessing rampant job loss and pay decreases, chose to modify their careers to compensate. Still, some hold tight to the tethers of the traditions of the past.

For those who still might idealize the 4000-square-foot mansions in the hills or 4-wheel-drive gas guzzlers, America may soon be less hospitable, thanks to a move toward making what little one might have stretch as far as possible. In an age when there is a 17% discrepancy between construction employment and demand for new houses to be built, thus driving up building times and costs, those still mired in the past may find themselves designing their own tiny homes when the challenges of modern house-building become too much for their pocketbooks to handle.

As the Federal Reserve remains inextricably tied to the ebbs and flows of the stock market, nothing in the economic future of America is certain. It becomes, then, incumbent upon citizens to make their own adjustments and decisions as to the welfare of their own financial futures. Infinite banking can enable ordinary citizens to take control of their financial destinies and take them out of the hands of corporate bankers. Whether your dream is a palatial estate or an eco-friendly tiny house, the security of knowing your money will not be ripped from your possession by another Great Recession will be worth every penny you invest.

References (click to link to articles):
"A Vancouver home to blog about," The Globe and Mail, 6/16/2011.

"Housing jobs jump, but many workers aren't coming back," CNBC, 3/8/2013.

"Saving for the day he can buy his own tiny house on wheels," Southwest Michigan's Second Wave, 3/7/2013.

"Want the Fed to tighten? Don't hold your breath," CNBC, 3/8/2013.

The Student Loan Repayment Solution: It's All B.S.

“You have four years to be irresponsible here. Relax. Work is for people with jobs."

--- Tom Petty

 A recent study by credit-reporting agency TransUnion revealed that half of all student loans are currently in deferment. Being that the traditional pattern of student loan repayment is that payments are deferred until six months after the individual finishes his or her education, which supposes that the individual would have secured employment by that point, this may at first glance seem to be a startling statistic; in this, however, as in most cases, there are myriad factors at play.

This same study found that, from 2007 to 2012, the average amount of student debt increased by 30%. It's no surprise that the study period corresponds, ostensibly, to the period of time most affected by the economic recession; as federal funding for institutions of higher learning has become increasingly sparse, college tuition rates have increased to compensate. This can often be a shock to students or parents who had counted on more stability of college costs, prompting many to borrow money when they may not have had to do five years prior.

The recession has, inevitably, also brought with it a tidal wave of unemployment that has been particularly harsh on the generation graduating from college within the past decade. While the possession of a bachelor's degree is beneficial in attaining a well-paying job, it doesn't guarantee the presence of one. Without at least a bachelor's degree, however, many wind up facing unemployment or underemployment, neither of which is conducive to keeping student loan payments current.

With those rapidly rising tuition rates, unemployment, and rising housing costs, many students decide to forego a college degree. Despite this, over 30% of all American adults now possess bachelor's degrees, the highest percentage in recorded history. As our culture has increasingly pushed for higher education for all, many students choose to start college directly out of high school, only to realize they either cannot or do not have sufficient desire to attain degrees. While having a semester or 3 of college experience has been shown to correlate to a higher average income, the difference between incomes of those with high school diplomas and those with some college is negligible.

The U.S. Department of Education, in fact, reports that over 40% of all students who start college do not attain bachelor's degrees within 6 years. This might easily, in turn, account for a large amount of student loans being put into deferment; without a degree, individuals would have a lower likelihood of attaining high-paying employment, and may have greater difficulty in finding jobs to begin with. Simply finishing those degrees could have a drastic impact on this; a recent Georgetown University study indicates that over 60% of all employers are looking for degree-holding employees. With a national unemployment rate hovering at 8.2%, four years of college truly could be the defining factor between those who buy new homes and those rendered homeless.

With such potentially dire consequences to stalling or ceasing a college career mid-stride, why, then, do such high attrition rates exist? The answer to this question is simple: money (or the lack thereof). The U.S. Department of Education reports that 25% of all college students work full time jobs, while 60% work 20 or more hours per week. College drop-outs tend to be financially independent, typically due to lack of parental involvement. Often, due both to the strain of working while attending school and ignorance of the true economic benefits of possessing a degree, individuals make a value judgement and leave school in favor of a burgeoning career.

How can you avoid the trap of deferment, default, or drop-out? Well, the typical B.S. (or B.A., for that matter) can often do the trick, but it doesn't come cheap. A financial advisor who can locate sources of federal funds, as well as walk you through the process of applying for financial assistance and discover untapped sources of need-based aid can make all the difference. Click the company logo to the right for more information on how you or your child could attend college from commencement to graduation without fear of how the bills might be paid. An investment in the future is never a bad one, but loans must be repaid, and those two little letters, in our ever-changing society, can speak volumes.

References (click to link to articles):

"U.S. bachelor degree rate passes milestone," The New York Times, 2/23/2012.

"The value of a college degree," American RadioWorks, 2013.

"Why so many students who start college never finish," Examiner.com, 4/15/2010.

"As college debt grows, students delay payment," The Denver Post, 2/11/2013.

Federal Thievery and "The New Normal"

"A government big enough to supply you with everything you need is a government big enough to take away everything you have."

--- Thomas Jefferson

There was a time in America, not so very long ago, when careers with the U.S. government seemed the safest route to go. For the individuals planning on or currently starting families, a guaranteed salary, solid pension, and government-secure TSP and all the perks sounded like heaven. Rather than pouring countless hours into climbing random corporate ladders, trudging through the process of entrepreneurship, or reconciling themselves to tenured positions with less-than-acceptable "benefits", sensible people signed up with Uncle Sam, via one organization or another. For awhile, it was clear they had made a solid decision.

Of late, however, even those positions which, ten years ago or less, seemed to be the epitome of job security are on shaky ground. As the federal government throws around phrases like "fiscal cliff," "sequestration," and "debt ceiling," the average American is simply trying to continue putting food on the table and hoping his ability to do so won't be thwarted by the very organization into which he has put his faith, sweat, and tears for years, often decades, on end. Unfortunately, with the current state of U.S. affairs, the low-ranking government agency employee has no control over this.

In February, an article from CNN warned that as many as 2 million federal employees would soon receive notices of impending furloughs that could last anywhere from days to weeks. In this and other news sources, assurances are made that these employees will be secure in their positions in general, though they may see changes in their income and benefits once the furloughs have ended. All of this is in an attempt by the government to curb spending and reduce the overall national deficit.

What does all this mean for the average federal worker? Well, certainly, it could, for some, mean a much-needed vacation; for others, however, it will mean tightening belts, perhaps significantly. For those employees whose livelihoods depend upon a particular income, certain sacrifices will have to be made. In general, if the federal government is unable to concoct a suitable scenario for reducing government spending and debt in the long run, they will not be the only American workers affected.

Rather, modern prognosticators in the form of internet journalists predict a scenario far grimmer: widespread budget cuts in both public and private sectors. Tax hikes and inflation greater than we've seen over the past 5 years. Loss of those benefits many government workers formerly held dear, such as tuition reimbursement for military members or relocation allowances for Customs workers (the latter of which has already been retracted). Ultimately, we as a nation, even those formerly "safe" federal workers, are being forced to accept what the media has coined, "The New Normal."

Currently, this "New Normal" consists of such things as those of retirement age being forced to work 5, 10, or even 15 years past the point at which they had previously intended to retire, whether due to job loss, underemployment, or myriad other factors which have arisen in conjunction with the recession. Whereas college graduates previously had realistic aspirations of working in the fields of their choice and earning a steady, sufficient income, this has become all but a pipe dream in today's volatile business world. Higher taxes and medical care reforms will, inevitably, pave an entirely new landscape for the American generations of the future... and not likely for the better.

Though the federal worker furloughs are foreboding, government officials have reassured those with fears, saying that this is a temporary setback and will not permanently affect those workers' livelihood. That said, the furloughs are hardly the only thing threatening the futures of federal employees; rather, such factors as stock market volatility and state funding limits may result in these workers having quite uncertain futures in retirement.

Even those American workers who previously thought that employment with any of  a slough of government agencies was a solid investment and followed sensible steps to secure their financial futures might find themselves in trouble, should the economy take another hit. Many government-sponsored retirement funds, including the popular Thrift Savings Plan, are subject to market fluctuations, meaning that despite years of work paying into one or more of these accounts, many Americans may find themselves working with diminished funds due to something as unpredictable as a natural disaster. Additionally, news sources report that many states are now reaching their limits in paying worker pensions; all in all, the stability many once saw as unflinching is now terrifyingly tenuous.

What is the solution to all this uncertainty? For the individual, there is the option of having a financial planner well-skilled in federal benefits who can redistribute retirement money from volatile funds like the TSP into others with similar benefits but less or none of the same risks. Those federal employees early in their careers may benefit from such savings plans as Infinite Banking, which can aid them in avoiding the inherent downfalls of funds tied to the stock market. Clicking on the logo to the right of this post will take you to your first step in regaining the financial security for which you may formerly have believed you'd signed up. Without proper planning, the only inevitability is the ever-degenerating state of "The New Normal."

References (click to link to articles):

"Federal worker furloughs could start in April," CNN Money, 2/19/2013.

"Furlough Friday: 10 questions and answers," The Washington Post, 2/28/2013.

"6 realities of the 'New Normal' for seniors," U.S. News & World Report, 2/11/2013.

"10 states where pensions are running out of money," Yahoo Finance, 5/4/2011.

Gas(oline) Pains, Pick-Ups, and the True Price of Freedom

“We think this is the American dream, of driving your car fast, seeing what it can do." 

--- Michael Kaplan

How much are Americans truly willing to spend, and to sacrifice, in order to attain and keep those things that always, in the past, defined the "American Dream"? If recent trends are any indication, quite a bit. Certainly, the methods have changed with the times, but somehow, some way, Americans continue to cling to those values with which they were raised.

A recent article from The Denver Post reports that despite gas prices having risen precipitously from the beginning of 2013, car sales have risen, particularly in the area of truck and SUV sales. Why, with gasoline prices projected to top $4.00 per gallon by the summer, would Americans purchase vehicles well-known to be gas-guzzlers?

As is tradition among people raised in a particular culture, Americans feel the need to maintain the status quo, regardless of the consequences. While joblessness has risen and new opportunities have waned over the past years since 2008's economic collapse, Americans have overwhelmingly found themselves in a position of belt-tightening. While you can take away the typical American's ability to buy a new truck every year, however, you can't take the old standard away from the typical American; as with the shift in many demographic groups from healthier, more expensive food to pre-packaged, overly-processed convenience goods, we learn to sacrifice quality in order to have some semblance of our original dream.

Instead of forsaking long-held aspirations of a sprawling ranch in the country and a new Ford F-150 gracing the driveway every year or three, Americans are taking longer to pay off their new cars, now taking, on average, 6-7 years to pay in full their new cars, as opposed to a maximum of 5 in years past; this, in turn, means that most Americans will buy fewer cars in a lifetime than our predecessors did. Smaller monthly payments, however, do not a lower overall total create.

Unfortunately, while spreading car payments over a longer period of time will decrease monthly payments perhaps by a sufficient amount to leave a little extra in the buyer's pocketbook, this practice is also accompanied by higher interest rates, particularly if one's credit is low (as is now the case with many Americans, thanks to the 2008 recession and its aftereffects). As if this weren't penalty enough, those people fortunate enough to have the money to pay off their vehicles in a shorter time than their contract allows may be hit with steep prepayment penalties; those who fall prey to rampant layoffs, contrarily, may find themselves without a vehicle after spending five years paying the majority of the loan.

Inevitably, the case may not be that the average American, watching gas prices soar with no ceiling in sight, is not foolhardy in his/her decision to purchase a less-than-fuel-economic vehicle, despite a volatile market and looming second recession. We can make decisions, after all, based only upon what knowledge we currently possess. Statistics show that Americans are, in general, more inclined to make vehicle purchases based upon what makes and models have worked for them in the past; therefore, while a hemi-powered Dodge Ram may not be the most economical in terms of fuel consumption, a man whose previous purchase of this vehicle resulted in ten-plus years of faithful service and safe transportation is making an educated decision, knowing from experience he won't be trading it in for a different car when it begins to have problems before the loan is even repaid.

What if, however, there were another option for car financing? What if all those penalty fees and interest could become money in your gasoline fund? What if, rather than trudging through the arduous process of applying for car loans despite bad credit, bearing the disappointment inherent in the numerous denials of that credit, and inevitably settling for an interest rate higher than you can perhaps afford, you could avoid the entire process? Americans have made a valiant effort to maintain their status quo and their ideals of that American Dream to which we all grew up aspiring, but we assume it's us who need to change in order to continue to accommodate our needs. We are mistaken.

To discover the secret that could mean financial freedom to many Americans, click on our logo to the right of this post, and check out our information on Infinite Banking. True, humans can only make decisions based upon the information they have at their disposal; that said, new information can change one's entire perspective and, therefore, his world.

References (click to link to articles):

"American auto sales post gains in February despite high gas prices," Denver Post, 3/2/13.

"Americans buying fewer new cars in lifetime," CNBC, 10/22/12

"New car buyers stretching out payments," CNBC, 9/24/12

"We're driving less, but spending more on gasoline," Bloomberg Businessweek, 2/5/13.