Financial Planning Blog
Will it spread?
I was talking to a married couple at one of our recent seminars. They were nearing retirement. In today's world, they might be considered financially comfortable, but not wealthy.
They were concerned. They wanted to do "everything right" to avoid slipping out of the comfortable zone. Perhaps you do too.
In Hank Brock's book, Dominoes of Destruction, he identified 14 potentially devastating economic problems facing Americans. He suggested that if one problem reached a tipping point, its fall could lead to the collapse of the next—just like dominoes.
Was this a birthday to celebrate?
Did you celebrate the 100th birthday of the U.S. income tax last Friday? In case you missed it, here is a letter to the income tax. Remember, that despite all the hubbub about the debt ceiling and default, taxes are still being withheld from our pay. According to this article on CNBC, federal revenues might be as much as $4.9 trillion in 2014 ($408 billion a month). Annually, that is the equivalent of $15,610 for every man, woman, and child in America.
Every time that Hank Brock speaks at a seminar, he says these words:
“It is better to prepare than predict.
When you predict, you are either right or wrong.
When you prepare, you are right, regardless.”
As I read my email and scanned the news sites, this morning, many things seem to be happening that were not predicted (by many), but are definitely worth being prepared for.
Update (9/16/2013): So much for the Nikkei News report. If Summers was Obama's first choice, it no longer matters as Summers has removed himself from consideration for the position as Fed chairman. Now what?
A Reuters article (Obama to nominate Summers as Fed chief: Nikkei) relied upon Japan’s Nikkei newspaper’s unnamed sources to announce that Lawrence Summers would be President Obama’s nominee for chairman of the Federal Reserve Board.
… will the flames go higher?
Over the years, I have often heard people say, “If you can’t stand the heat, get out of the kitchen.”
For those not familiar with the expression, it is basically telling people that they assumed a position known to have lots of pressure. Thus, they shouldn’t complain about their stress (or if they are going to constantly complain, they should quit their position!). But, what if you can’t get out of the kitchen?
If you are like me, it comes as no surprise that the U.S. Dollar is losing value in world currency markets. The massive federal debt, relentless printing of money, and increasing awareness of unfunded municipal pensions are taking their toll.
More Indicator Confusion
Today’s been full of economic statistics. In my previous post (Making Financial Decisions Difficult), I addressed the conflicting predictions of the economic and market experts. Today, there are conflicting statistics.
First the good news …
Conflicting Infomation; Differing Forecasts
I was scanning the financial and economic news, today, and could not help but notice how “unhelpful” news sites are at guiding us toward any sort of financial strategy. The reality is that none of us has time to read every article, so we scan for items of interest. I share the results of some of my scanning.
…may be different than what’s good for Detroit
Remember the famous quote that “What’s good for General Motors is good for America?” Remember who said it? It’s almost on the tip of your tongue, right? Was it a president? Was it a GM CEO?
Let me put an end to the suspense. Nobody said it.