Think of Change as the Constant -
Not the Variable...
Looking ahead, consider the following:
- The financial crisis greatly underscored the fact that economic and market forecasts are not as reliable as we would like them to be. What planning principles that are based on accommodating change can the individual look to that will compensate for this shortfall in reliability?
- How many times is it desirable or feasible in the span of a normal lifetime to rebuild life-accumulated core financial assets once you have experienced sizable losses during volatile periods in the financial markets? And how does age factor into this picture?
- What is a comprehensive alternative that will eliminate direct exposure to the uncertainties of the financial markets and provide for the safe and secure growth of the core financial assets that you depend on for such things as making a down payment on a home, paying for future college tuition or maintaining your lifestyle in retirement?
- Do your core financial assets have enough available liquidity to manage and preserve fixed core assets like your home if confronted with an unexpected life event that would interrupt regular income and your ability to support and maintain those assets for an extended period of time?
- What the government spends, we pay for in taxes. Given the historical, far-reaching spending plans now underway, would it not be advisable to plan as if today you are in the lowest tax rate environment you will see for the rest of your life?
- With the purchasing power of your money being eroded every single day through the effects of inflation, your money is worth more now than it will ever be. An important factor that drives inflation is the amount of money supply being made available to the economy by the government. Given the bailout approach of infusing massive sums into the economy, are you prepared for higher rates of inflation in the future?
- In the war for control waged daily on Wall Street and elsewhere between the short-term, grab-and-run mindset of the trader/speculator versus the long-term, plant-and-grow perspective of the investor, who do you think is winning?
- How can individuals who are not traders/speculators by nature step out of the fog of this conflict and establish a financial structure based on a reliable foundation that will protect and preserve the core assets necessary to support all stages of their lives?
