120 million. pacquiao's pay won't be as much. only estimated to make only $100 million. tickets haven't gone on sale. right now prices range 1500 to the upper deck to 7500 ringside. >> wow. that is it for us. "willis report" is coming up now. gerri: hello everybody i'm gerri willis. this is "the willis report," the show where consumers are our business. the obama administration rules on the environment face a critical test in the supreme court. has the epa gone too far? investigators open the cockpit voice recorder from the jet that crashed into the french alps. >> the voice recorder was recovered yesterday. authorities here think they are going to be able to get some information out of it. gerri: consumer products safety commission launches an investigation into lumber liquidators. will it lead to a recall forcing millions of homeowners to rip up their wood floors? distracted behind the wheel a troubling new report from aaa about teens and traffic accidents. it is not just texting and driving. >> 58% of all crashes involving

teen drivers due to distracted driving. >> you are for sale. radioshack selling private information to the highest bidder. all that and more coming up on "willis report" where consumers are our business gerri: we had a big, big selloff today in the markets. we'll tell you more about that later in the show. first a showdown at the supreme court. the environmental protection agency is pushing the obama administration's green agenda for years. some complaining agency is over reaching its mandate but now that power is being challenged in court. peter barnes has details. peter? >> hey, gerri. the epa and electric utilities have been fighting over tougher pollution rules for power plant, the majority coal-fired for 25 years. the battle at the supreme court now comes down to one word, appropriate. can clean air laws congress passed in 1990 said epa could

regulate plant emissions if it studied them and found now rules, prepare and necessary. in 2000 it did just that, targeting mercury emissions specifically. then the epa and industry battled more. they were in and out of court until finally the epa issued new revised rules in 2012, but when it did it did not include a cost analysis as part of it is formal assessment. power companies say it was required to do so by any reading of the law, that would be appropriate. but epa said it did not have to do one of those because congress did not specifically require one. all it required was a determination that emissions posed a hazard to public health which it said they do. but turns out some epa the epa did do some cost benefit studies along the way outside of formal rule making. it estimated the new rules would cost the industry $9.6 billion a year. and estimated value of curbing

mercury emissions only at 4 to 6 million. but then it said the broader benefits in limiting all emission with the new technology, would be valued at 37 billion to 90 billion including stopping 11,000 premature death as year. the industry says the low estimate on mercury proves the rules are an overreach. the government says it doesn't matter what any cost benefit analysis shows because the only thing that matters is protecting public health. gerri? gerri: any signs how those justices are going to decide? >> well the questions and comments broke down along idealogical lines today. the conservative majority signaled it was hostile towards the epa's approach. and, we kind of would include justice anthony kennedy the key swing vote in that bloc based on his questions. the courts four liberal appointees appeared to suggest support the epa's rationale for new regulations. gerri? gerri: peter, thank you for

that. >> you bet. gerri: will the supreme court finally put an end to the epa overreach? here to weigh in guy benson political editor for town hall and fox news contributor. always great to have you on the show. set aside cost benefit for just a second. the epa is saying the country's power plants are belching mercury arsenic acid into the air at alarming rate. are they right? >> look i'm not an expert and they would hold themselves out as expert as an that question. i think most americans would agree we want the air that we breathe to be clean. but you know what else we want, gerri? we want jobs to stay in this country. we want people to be employed and we want affordable energy. and it is a balancing act. so the fact that the epa and the government did exactly what you just said not just because you posed a question a hypothetical question setting aside the cost question. i don't know how you can do that, when you're actually making policy. gerri: let's get to those

numbers. peter just actually debriefed them. when you see a $9.6 billion cost, and the epa's estimates of the range of benefits are massive. it could be anywhere from 4 million, to 90 billion. >> come on. gerri: i got it tell you, i don't trust these numbers. >> that is such a broad range but what is true this will cost businesses and therefore consumers billions of upon billions of dollars. gerri: let's dig into this for just a second because they're saying something like prevention of 11,000 deaths. really? do you know that? how do you figure that out? what kind of math you've done? you come in lay the numbers in front of a judge, hopes he believe it? >> you tell the public are you for death? do you want children to die? gerri: emotional argument. >> very emotional argument. the fact people's jobs depend on this. people's energy bills will be impacted by this you simply can not separate the cost of something we've talked about this before, it is old adage, the power to regulate is the

power to destroy. we are seeing that and that's why this industry is pushing back hard against the administration. gerri: i want you to look at geeinggraphy the plants at risk here and could close -- geography. 600 plants in the south and upper midwest. i wonder how those people vote? >> i wonder. it is interesting because i am glad you brought up politics of this. we've seen the administration punishing idealogical adversaries using the government, the tentacles of bureaucracy on numerous occasions whether irs or "operation choke point." this another one, american people republican party campaigned hard against the war on coal and war on energy across the south and in particular and midwest and they have won. the veriers have spoken. what has the administration done? as they so often do, they have said, screw that. forget congress. gerri: do what we want. >> do what we want. let's see who can stop us only answer might be the courts. gerri: mitch mcconnell is on a campaign to stop all that.

coal miner's granddaughter i am, i like hearing him talk. thanks so much guy. always food to have you. >> thank you, gerri. gerri: one thing the epa doesn't seem to be too concerned about, the company lumber liquidators. consumer products safety commission confirming today it is investigating the company's china-made laminate flooring which some say contains dangerous levels of formaldehyde. with more on this, attorney adam thompson. adam, great to have you on the show. okay here is what i find so interesting about this, you tell me what you make of it. we have consumer products safety commission, a small agency a couple of hundred of million dollar budget. this will be a massive project for them. they don't even have the in-house personnel to do it. they have go to outsource it. meanwhile epa significant around, hundreds of billions of dollars it has to spend, it is not playing. what do you make of that? why is it that this small tiny agency is playing this role? and epa is moving right on down

the line? >> that is a very good question. would you think that the entity with the larger budget and resources would be overseeing this process? but it isn't. in the big picture, i don't really think it matters who does the investigation or who looks into it. as long as they use the top expert who is know what they're doing to investigate this case, to determine if the laminate floors do pose a safety risk to the public. then, as long as we get that answer i really think all that matters. gerri: the way they will do, they will ignore what is california's method of testing. what they will do, is test flooring as consumers would use it. which is to say, they're not going to slice it into layers and test the formaldehyde that way. a lot of people are dismissing this concern. they think it is silly. they think cbs has it all wrong. do you think we need to know the real story from cpsc or are you happy to move on and not pay attention to the results? >> no i think this is important enough to get the right answers. the test that "60 minutes" did

in their piece may be off because they removed a top layer off the laminate flooring. gerri: but let's be clear about that, my friend. this is the very testicle fornash uses. and i think that is why they did it that way. talk for -- >> you by understand that, in the ordinary daily use of this type of product many in industry say that was not an accurate way to get the result. gerri: i heard that. >> they need to test it differently. should it be tested one way or another? after a while walking on the floor the top layer may peel back an be off which will expose that layer of dangerous chemical. if that the is potential what could happen, then they should do a test in both ways in my opinion to get a real proper result because you don't want your kids crawling on the floor, playing on the floor and get exposure to that and then get an illness. gerri: adam, thank you. still a lot more to come this hour including a new study showing how distracted driving is cause of many, many teen deaths. no not just cell phones to

blame. crony capitalism on capitol hill. hundreds of meetings between google and the white house while an antitrust investigation is on the way. we let you know what you think. tweet me @gerriwillisfbn or send an email to our website, gerriwillis.com. ♪

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at mfs, we believe in the power of active management. our teams collaborate around the world, which leads to better decisions for our clients. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. gerri: two big stores -- stories that is heating up in the news. crony capitalism between google and white house. "wall street journal" reporting that google executives averaging one meeting a week with the white house, during a federal antitrust investigation. plus federal workers owe billions in unpaid taxes. some of these delinquent workers are ones collecting your taxes. here with his take on the news, wayne rogers, chairman of wayne rogers and company. welcome back to the show. >> thank you, gerri. gerri: are you troubled by all these meetings between google and the white house? do you see this as crony capitalism? >> i'm always troubled by

anybody who is visiting the white house as often as once a week. when you say somebody visiting the white house, for example you got the reverend al sharpton. i think he registered being at the white house 75 times so far this, in the past year. what are they doing? and to whom are they talking? and why do they need to be there? it is never explained. gerri: let me tell you what was going on, my friend. the federal trade commission looking into antitrust lawsuits against google at one point. all of sudden out of the blue here comes google visiting once a week. once more they're advising on the obamacare website, some free advice just how to get that thing rolling. do you think that stopped that investigation in its tracks? >> i certainly influenced it. i think all these things have to do with undue influence on political, on the political life of our candidates. so we have gotten immune this country to what goes on like that.

it is embarrassing. people meet all the time with higher-ups in agencies to relief relieve the pressure on them. they influence some. are they taking bribes, in some form or fashion? yes. because an ordinary citizen can't do the same thing. gerri: well, it is friends and family right? like people i know, you know. we have to help them out. here are our friends. here is what "the wall street journal" reported today, officials at the ftc concluded that in 2012 google used anticompetitive tactics and abused monopoly power that influenced rivals. they brought a lawsuit challengings three google practices. on january 3rd, voted to close the investigation. it is all over never mind. we'll stop looking. all after google giving tons of money. in fact the contributions from google employees, second only to microsoft. >> well, gerri, we know all of that. the problem is, nobody is willing to do anything about it.

we know that the government, government employees are susceptible to this all the time. we know that. there is no competition among an agency. in other words, the system itself is corrupted. you can't ask, for example, you have an agency supposed to overlook somebody. i don't care who it is, in this case we were talking about google. but the agency that overlooks them, people who are involved in administrating that, are people who are supposed to be regulating. you can't have the same people doing that. there is no, there is no way that is fair system. and in addition to which you know in the federal government, or any government whether federal, local or state, there is no competition for the job. in other words there is a regulatory agency. they are assigned to take care of overlooking and making sure that these people pay attention to whatever the regulations are. there is no incentive. there is no incentive for them to do their job properly.

gerri: there is not. >> what incentive is there? in private sector there is incentive. gerri: there is no incentive for them to pay their taxes. did you see the numbers. nine million federal workers. >> i know. gerri: 3.5, trillions, $3.5 trillion. unpaid taxes. these people don't pay their taxes. they work for the government. the government pays them. the government is the source of their wage, weekly salary. yet they don't pay their taxes. what do you make of that? >> well we are, we, the people are paying the government is administrating that. you've got to a person head of the irs, lois lerner who defied congress, takes the fifth amendment. does not explain her lost emails. you have got people in there who essentially just corrupt. the government is a corrupt, all of these agencies are corrupt. we the people don't do anything about it. through our representatives in congress, if you will forgive me who are part of the system. you know. >> well, you know, the house oversight committee is

considering a bill that will penalize workers for not paying their taxes. hmmm. gee what a great idea. why did it take 200 years to get there? >> not only did they take 200 years to get there what makes it so sure it will work anyway? gerri: good point. >> they don't do -- follow bills in first place. person laughs at them. lois lerner was laughing at the committee investigating her essentially saying you're not going to find out anything. hillary clinton has done the same thing about benghazi. you know, you just, if you can't cover it up you obfuscate it giving them 35,000 pages of nothing. and it takes that long to get through it. the system is, the system is broken. >> the system is broken. >> unless we return it to the people, we're finished. >> i knew we would get back to hillary clinton at some point. wayne, good to see you. thanks for coming on. >> my pleasure. thank you. >> when we come back, investigators in the french alps, desperate for any explanation as to what caused a germanwings plane to crash.

we'll have latest on that. next, more issues with teen drivers, as a new report just how distracted they can be. how deadly that is. we'll have details to get your reaction.

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you can save up to $423. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance. gerri: france's aviation investigative agency says audio block box was recovered from the germanwings plane but final communication from the plane was routine message continuing on its route. meaning there still isn't slightest, quote, explanation for what caused the plane to crash. the plane was flying until the end. it slammed into the mountain it did not break up in the air. ceo of lufthansa which owns the

budget airline that the late takeoff from barcelona to dusseldorf was because of airport congestion and had nothing to do with the crash. there is still speculation what caused the accident. according to lieutenant taunts is a the plane had clean maintenance bill the day before the crash and no distress signal. more than half of the 150 on the plane were germans and spaniards. three people were americans identified by the state department. one is pending notification of next of kin. the other two were a pentagon worker and her daughter. we know how hard it is to keep a teenager attention. a new study shows how dangerous it can be, new research from aaa finds distracting drive something much bigger problem than previously thought. incredible dashboard video used in study shows terrifying moments of distracted teens losing control.

[crash noises] gerri: with more on this study aaa's michael green. this is pretty dramatic video you guys have. i want to know first how you put the study together? what was your methodology? >> we actually looked at more than 1,000 crash videos. narrowed it down to nearly 1700 moderate to severe teen crashes. we had coders go through, look at everyone of those crashes and determine what was the behavior that was going on in six seconds leading up to a crash. what we found is that the distraction is far too common. in fact the big headline from the release today, is that, distraction may be four times more common in teen crashes than previously estimated based on police reports. this is very concerning to us. >> we're looking at video after young girl putting on lip sting. she is about to have car accident. what are the most common reasons that teens are not payings

attention the road? >> teens in six sections leading up to the crash doing lots of things they shouldn't be doing. talking to passengers near them. looking at passengers. using their cell phone. putting on makeup. doing things like changing radio and receiving for objects across the way. got to tell you, it is really gut-wrenching to watch those videos. to see teens staring down at phones doing things they shouldn't be doing in moments leading up to a crash. gerri: turning on radio. putting on makeup. maybe eating or listening to music and dancing and singing while driving. the list goes on and on. what about cell phones? i always think that is a big thing of the was that the past study? >> cell phone use was very concerning. what we found is, on average, a driver using their cell phone was looking at phone for for out of six seconds leading up to a crash. half the time in rear end impact they didn't even brake or steer before crashing. that is very dangerous situation. if you're going four seconds down the road at 60 miles per hour. you've gone length of a football

field. many teen drivers looking at cell phones and really not paying attention to the road. it is very concerning. gerri: we saw one of those. trying to figure out what they're doing in each of the videos, with these kids kind of hard to tell from the video. tell me how you got these pictures? i can't imagine that teens are you know happily turning them over to aaa. how is it happening? >> well we actually worked with a company called litix. they work with parents who are interested in what their teens might be doing in the car. so in many cases these teens, you know they agreed to it with their parents in order to improve their safety. but i got to tell you what is interesting to me about that, is that here we have all these teens. they know there is a camera in the car. yet they continued to do things like look at their phones and act in very unsafe manner. >> really? they know the camera there is still doing stupid stuff? >> these teens. we have nearly 1700 videos. unprecedented research. though know camera is there. they continue to act in very

distracted ways. six out of 10 of crashes, teen driver was distracted one way or another. >> lack of experience at end of the day right? >> teen drivers are less experienced. in today's society, many teens have a fear of missing out. unfortunately that fear of missing out on things like social media and texting translated into worse driving. into, not driving as well. so that is real problem for us. we're really hoping that this is wake-up call for parents so that they can talk to their teens about the dangers of distracted driving. and you know, teens, and parents, they really got to talk about this it really is too dangerous. gerri: got to tell you, everybody needs to see that video. moms, dads, grandparents. kids themselves. michael, thanks for coming on. great stuff. >> thank you. >> we want to know what you think, here is our question tonight, should states raise legal driving age? log on to gerriwillis.com to voight. i will share results at end of tonight's show. latest on billion dollar food

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♪ gerri: welcome back to the willis report. in a moment, how radio shack is putting your personal information at risk. time now for a look at other stories in the news. the pentagon will charge sergeant bo bergdahl with decertification. he left his post in afghanistan. he was held by the taliban before being release north dakota being released. investigators were discouraged to see durable goods falling in february. the supreme court giving out former ups driver another chance to prove her claim of

pregnancy -- it threw out rulings rejecting her lawsuit. she claimed ups didn't offer her lighter due to when she was pregnant. facebook is opening the app so outside programmers can build features for the service including the ability to store shipping information when consumers interact with merchants. those are the other story in the news tonight. radio shack is putting he went up for sale as it goes through bankruptcy including your personal data. radio shack sold over 100,000 pieces of information. including names email addresses, and addresses to the highest bird. bidder. attorney general ken paxton is with us. thank you, sir. for joining us. what is your objection to this. explain. >> well we believe that this sale of personal information and you mentioned it, it was addresses, email addresses phone numbers, and customer

names, is a violation of state law and also a violation of federal law. so we file an objection in bankruptcy court asking the court to stop the sale of this personal information. we've been joined by 30 other states. >> wow. 65 million names. and physical addresses. and frankly that's enough to get a lot of information on individuals. now, here's what we found very interesting mr. attorney general about all this, so the signage in some of the stores would say at that store, we pride ourselves in not selling our mailing list. what gives? you don't do it in business but when you go into bankruptcy, you do. is that fair? >> no, we don't believe it is. their in-store possibly said they will not sell personal information. we believe now that they're doing that, this is a clear violation of law. >> their online privacy

policy is laughable. we respect your privacy. we pride ourselves in not selling or rent your identifiable information to anybody. is the problem here that once they sell it to somebody any information, the rules they might have agreed to abide by, well, they're gone. right? >> no, we don't believe that's true. once under our law and federal law, we believe they're still obligated to keep the information confidential. they promised their customers that they will not sell this information they're obligated under law not to sell that information. >> but what do you do now? the sale has actually taken place. right? i mean, do you have any room to maneuver here? >> absolutely. we've asked the court to withhold that part of the sale. we're not asking that the wholesale be stopped. we're merely asked if that information be withheld, and the sale be allocated and valued separately and kept

apart until we can figure out what they're selling. we're not sure totally that that's all they're selling. >> is there more information they might have? >> we don't know. we should find out more as we go along. right now our focus is stopping what we know which is the information you already brought up. >> so at&t has a role in this. right? quickly. this was some of their information on individuals too. right? >> my understanding is that both at&t and verizon, i think are both involved in this lawsuit or this bankruptcy trying to stop some of the information that they provided from being disclosed as well. >> this will get ugly. thanks for coming on the show. good to see you. with us, adam levin cofounder of identity theft 911. what is your reaction? you are a privacy advocate. >> it's outrageous. totally outrageous. the ftc has taken a position with a lot of the major companies that you have a perfect right to have every privacy

policy you want. but once you set that policy, you better stick to that policy. a lot of consumers don't understand when you go to a store or any particular environment online or off line, and you give them your information, you're not thinking that five years from now, they could be gone, they could be merged, they could be hacked. i mean all the kinds of things -- >> and you don't know where that information will go. ultimately be with you don't, you don'tknow where that information will episode upend up.if i don't work with them, they won't work with me. >> they won't give you the benefits they offer other people. >> people say that's the bargain you make. i don't think you should have to do that. i think stores and companies should stick to their policies. if they stray, they should get hammered. it's inappropriate. >> this is a firestorm. a company in bankruptcy. they're trying to score any money they can. you know, the gym bag

that somebody left in the back of the store we're selling that. we're selling the furniture. the light fixtures are going. by the way, we have 13 million email addresses, that must be one of the most profitable items they have left. >> no. it's very profitable. and what happens is you have more and more companies that are online. their assets are basically the data that they collect. it's one of their most precious assets they have as our consumer data. >> you know, i was looking at the stories on this today, and i was blown away because actually the ftc the federal trade commission has allowed this to happen before with borders. why didn't anybody complain, or did they? >> they may have. there has been developing case law. and the case law is on the side of the texas attorney general and other attorneys general. and that is, if there's a policy in place that's a compact between the consumer and the institution.

and the institution has to stay with that policy. they can't go, oh sorry. and the scary part about it it's one thing when you have somebody this big and the heat is this high. but how many little stores go out that have tons of information and even if they had a policy that is arguably as protective as the radio shack policy was supposed to be, nobody is watching. >> that's true. well here who is apparently going to buy it. hedge fund. rich dudes with deep pockets. standard general. they'll probably buy this out. what will they do with it? >> that's the question. what will they do with it? who can they sell it to? one of the things they talked about in the new consumer privacy rights and the laws being proposed is that if you give data in a specific context, like if i come to you and say i'm giving this to you because i want to buy an electronic device, i don't want to get hit by auto dealers bed

manufacturers and everything else. plus, i don't know what the security is of the people who are buying this data. and in the hands of identity thieves you're talking about the issues phishing, mishing, every way they can come at you. you can be a coconspiracy in the theft of your own identity. >> that would be the worst. thank you for coming on. always good to see you. our money coach offers some couples a retirement advice. how much do you need to retire? two all american companies joining forces. a company involving kraft and heinz, what will that look like? first, your consumer gauge. ♪

>> a mega merger. a mega merger is heating

up the food industry and it's backed by billionaire warren buffett. hg heinz and kraft foods is joining forces to make the fifth largest food and beverage company. what does that mean for your bottom line? what creative food mash ups could we see going forward. we're asking phil. is this obvious, could you see it coming? >> no. we knew something would happen with kraft. buffett was pushing them long and hard. even when irene was ceo. then john took the ceo position and got rid of tony. >> i don't know these people. who was tony? >> he was the ceo of kraft when they split up and formed mondelez. we knew something would happen. we didn't know how soon. >> well this is a massive combination. and it's in the packaged food segment. to me, this is sort of an aging segment. a lot of people aren't buying these foods anymore. what's your outlook for

their products? >> it's interesting. both companies have laggard brands. brands that we might have grown up with. but frankly brands that the millennials don't like. the interesting part of it to me, is that 3g, that already did the deal with heinz and burger king, well, they also did a similar deal with anheuser-busch. they know it was the craft beers that turned the company around and made them relevant again. it's interesting to see whether 3g will push the companies to have artisan and more fun products that you and i will buy. >> i see these companies and the brand names are so famous. will they combine them in an interesting way? ketchup hotdogs? what might we see? >> certainly today on twitter and instagram we've seen lots of different combinations. yes, i think we'll see combinations but let's

not forget about burger king. 3g also is burger king. so now there's a great connection for heinz and for kraft products to be in burger king and branded that well, but i do think we'll see cross promotion. mayonnaise and ketchup is called russian dressing. [laughter] >> see, that's what i'm talking about. you can marry kraft mac and cheese with something on the other side and make a brand-new -- >> yeah. i think there's a lot. if you take a look there's little overlap. there is with mayonnaise. with salad dressings and so on. but oscar meyer can really use new blood in it. yeah, so why not have you know, a string of ketchup right through an oscar meyer hotdog so when you bite into it, it's there. >> no thanks. give me something different. will we see more combinations in this group, or is this pretty much it at this point? >> well, i think what we'll see as

supermarkets are getting smaller and the center of the store is under pressure. i think we'll see these brands either be spun off or just eliminate. do we really need 25 different types of kraft macaroni and cheese. they need to be thinking outside the back. >> outside the macaroni and cheese box, that is. >> exactly. why not have fresh macaroni and cheese in the prepareds food market where people are shopping. >> i think you need to run this company. that's what i think. >> both of us. >> thank you for coming on. our money coach segment. viewers advice on retirement. cliff and patricia hope to retire in a couple of years. how do they know if they have enough money? we'll tell you. stay with us. ♪

♪ gerri: the big question about retirement. right? how much money do i need? have i safed saved enough? am i ready to retire? can i retire now? our next guest is four years away from their retirement. they have the same questions. joining me now chief financial officer patrick pearson and our couple cliff and patricia copper. thank you for coming on the show. great to have you here. you guys have had a very successful life by any measure. tell us what your question is. and what your situation is. >> well, i want to retire in four years two months, maybe two days. [laughter] but i'm not counting, so. >> that's pretty specific, my friend. >> so what should i be

doing at this point in my life? >> right. so let's talk about your finances. you have combined salaries of $118,000. assets of 1.4 million. a net worth of $766. debt and liabilities of $626,000. what is that debt from? (?) >> from rental houses. our own primary house. and we have one car. >> so this is mostly sort of investments you've made along the way that have a little drag to them. real estate. >> right. >> when i look at your monthly expenses, i want to show that full screen for a second. looks like you have that pretty well under control too. your total monthly expenses are under $5,000. is there any of those expenses like mortgage or anything else that will go away any time soon? >> i'll tell you i'll defer to my accountant who is sitting next to me.

[laughter] gerri: all right. patrick, to you what's your advice to you? they want to retire they're done they're ready to go. what do you say? can they? >> first of all, they've done a great job taking care of their children and helping them out while they were young. that's the time to help our children out. to help them get established when they need that help. but now with retirement looming, their situation, i think the first thing is to pay off their debt on their mortgages. $164,000 sitting at 0% cash in the bank. and they have a 30,000-dollar lot they just sold. their primary mortgage is $207,000. you apply that money to their primary mortgage and leave an emergency fund of $20000 in the bank, that will leave them a balance of $30,000. now, patricia is currently paying $700 a month extra towards principal on that mortgage. if she continues to do

that they'll be debt-free on their primary home in about two or three years. that's a big step in the right direction. >> all right. so you also say, and talk a little about they think they'll be good under social security that that they have everything they need. they don't have to worry. do you agree with that? >> i think they're underestimating that a little bit. they say they need $50,000 to live comfortably in retirement and that may be true -- >> 50,000 a year. >> 50,000 a year, yes. >> and is that okay? >> well, it may be okay four or five years from now. but what about ten 15, or 20 years from now? they have to keep in mind they need an inflation hedge. social security, gerri, yeah, it has an inflation hedge technically, but they raise medicaid part b with that so it's really awash. what they have to look

forward to enhance the income in retirement is cliff's ira and 401(k) balance. currently $220,000. cliff, are you contributing to that 401(k) currently? >> yes, i am. >> how much a year are you contributing, do you mind if i ask? >> 10% of my salary now. >> which is how much per year? >> which is about $10000. >> okay. so if you work another four years that's an additional $40,000 you'll have in your 401(k) and ira. if you get zero interest your social security income is $42,000 a year and your pension is $10,000 a year. that's 52,000. that's what you think you can live off. but the inflation hedge will come from your ira and 401(k) balance. if you get zero interest over the next four years, you'll have

$260,000 at least in that account. if you shift it over to income generating investments and follow the 4% cash flow rule, you can draw out an additional 11 or $12,000 from that account. now, you'll have 64,000 in retirement. gerri: okay. so i have to tell you, i think they've done really well. they have assets of 1.4 million. a net worth of 766,000. it's all about managing it now and doing the right way. it's not about scrambling to make sure you're going to be okay. but i have a quick question for you guys. which is, are you still giving money to your kids or no? >> yes. [laughter] gerri: i knew it. i knew it. parents are always doing that. all the money is going to the kids. thank you for coming on the show tonight. really appreciate you being here. thank you so much. >> thank you. >> thank you for having us. gerri: if you have a question or want to appear here with our money coach email me at

gerriwillis.com. contact me on facebook or twitter too. we lovee to hear from you. we'll be right back.

♪ >> a study finds distractions play a far greater role in car crashes involving teen drivers than previously thought. should states raise the legal driving age? we asked the question on gerriwillis.com. 35% of you said yes. 65% of you said, no, no, no. be sure to log on to gerriwillis.com for our online question every weekday. all those 16 year olds are happy. all things are coming to an end. we're getting closer to the end of an americana restaurant. one of the howard restaurants are still in business. the owner of ho joes says the final meal will be served -- at one point there were hundreds of them. now there are only two left. in maine and new york. that's it for tonight's

willis report. thanks for joining us. don't forget to dvr the show if you can't catch us live. "making money" with charles payne is coming up next. have a great night and we'll see you right here tomorrow. (?) ♪ >> i'm tom sullivan in for charles payne. the stock of the day, of course is krafts food group. huge deal with the heinz kraft 40 billion-dollar plus mega merger. the game of who will be next in the food industry to make meals of, well, this will be fun to figure all that. charles says it's healthy snack food giant baby formula behemoth johnson. the former trading under wwav as part of the clean eating craze, that is sweeping the globe and the ladder mjm.