Dealing With Uncertainty and Your Retirement
The times we live in are certainly exciting are they not?
The nightly news occasionally even says they are historic. So much is happening in the world, events in politics, world governments, budget news and, on it goes. Some of the points I want to talk about in this blog could even be over by the time you read this — amazing how fast our world is going.
Regardless of past press releases, I think the United States economy is still struggling, our National Debt is climbing, and immigration, and health care, are all a concern. Just consider the uncertainty over what effect our health care system and the effect past legislation could have on the small business owner, extra costs, and, a higher tax bill. How will our economy handle these changes?
Recently we were told that health care deductibles are going up along with taxation and the never-ending increase on our grocery bill. Those on a fixed income are certainly feeling the “Squeeze”, especially current and soon-to-be retirees. There’s the constant talk of “reforming” (translation: REDUCING) Social Security, and Medicare, So our seniors and Baby Boomers will be paying MORE, and getting LESS for everything! Senior day at the Super Market doesn’t help us that much.
Our National Debt continues to rise; the Federal Reserve and their 4-year program of issuing money and buying US Treasuries to keep the interest rate artificially low have to come to an end, what then?
Pray that the “world lenders’, never decide to cash in their US Treasury holdings. And, Washington seems to be clueless regarding how to fix these problems or provide leadership. Their solution only appears to be higher taxes. Has the US Congress ever had this low a level of approval? Higher taxes! The US citizen is faced with complicated options, how to survive and possibly thrive under our current tax obligations.
To our problems, add the world’s unrest and our country’s need to be its policeman. Uncertainty abounds, I hope I am not coming across as super negative. I know exactly how I can help the world from my small perch. I can take care of myself, and my family, and help my clients. While we are all forced to prepare for the worst, we still have in our power the ability to plan for the best. Plan for the worst.
The best is simple: stability within our lives. That stability begins with our finances and the ability to live in today’s complicated world. Hope for the best, and prepare for the worst. The worst in many cases is not having enough money to live at a sustainable standard of living. Get certain about the things you CAN control! Namely, your expenses and your retirement money!
How?
Make a plan. A budget just as a business would and know what you are spending and why.
Know and understand your income. Where does it come from? Is it GUARANTEED, or is it IF-come. IF-come is money that MIGHT, WOULD, COULD, SHOULD “come in” if the stars align. You need to know what money is guaranteed to come in, no matter what the market does, no matter what happens in the world. Guarantees include your pension, social security, annuities, etc.
Be honest and stop kidding yourself. Stop listening to anyone that tells you that promises are better than guarantees. Stop listening to anyone who claims that risk exposure is in your best interest. Stop listening to anyone willing to gamble with your retirement.
But, do start by making your retirement monies safe, guaranteed, secure, and stable. Next, make sure that your money never runs out, never runs dry-no matter how long you and your spouse live. Products exist for you to hand the responsibility of risk management to a risk-bearer who will put in place the guarantees needed.
