By Edward Leone Jr. CFP RFC MBA DMD
Contact Information: 303-478-6793 edleonedds@gmail.com
The presidential campaign coverage is becoming quite entertaining and somewhat disappointing at the same time. We are seeing much infighting among candidates in both parties and less and less discussion on issues and proposed solutions. My concerns have alway been with long-term trends in the economy. Over the past ten years, Federal Government tax revenue has increased by 50% while the national debt has doubled. One must ask how and why? How much longer can this trend go on? What needs to happen to fix this? How does all of this effect the business climate and the well-being of US and Global populations along with their ability to provide for and take care of their own needs?
We are in a period due to the need to file tax returns in this month where hacking and fraud can be a problem. Phone calls and e-mails from those who claim to be representing government on such issues as tax returns should be ignored. The IRS communicates issues of concern regarding tax matters by US mail.
As the first quarter of 2016 concludes, US economic conditions are looking up. Equity market performance in January and February generated much concern among investors, but the March performance looked a little better. Job growth, wages, consumer spending, manufacturing and export activity are showing slight improvement along with the corporate profit picture. The US economy is growing, but at a very very slow pace. The Federal Reserve Bank has put a hold pattern on interest rate increases since there are concerns over the status in the global economy with many other central banks employing QE strategies to stimulate economic growth. What a drag!
A recent study performed by Radnor, Penn.-based Hartford Funds, says that Americans are worried about going broke during retirement years and having to depend on children and other family for survival. It appears that 40% of those in the age group of 35-55 express such concerns. It is a concern that parents are not discussing retirement planning with their children and there are many concerns over quality of life and strategic living arrangements in the event of incapacitation and economic disadvantage. It is never too early to begin planning. Keep in mind that it is not possible to identify and plan for every contingency that might occur as the future unfolds and particularly well into the future. This is what family is about–helping and caring for each other in times of need! Looking back to the years following world War II, employers needed workers and offered significant fringe benefit packages which included health insurance, pensions and other benefits. Due to global competition, many employers have come to a status where they can no longer provide such generous benefits and remain competitive in global markets. Pension developement has become more the responsibility of the individual with the use of 401K and IRA plans. Knowing how much to save for retirement is a great challenge since you cannot know for sure how long you will be in retirement, what expenses are likely to be depending on age and level of activities and what unexpected events may occur. Consultation with a financial planning professional is a great way to develop a plan which will provide a road map into the future to deal with the above listed issues as reasonably as possible. None of us has a crystal ball to tell exactly what the future holds, but ignoring a planning strategy can be a big mistake for retiring individuals and family members!
For The Record:
DJIA 17,576.96
S&P 500 2,057.6
NASDAQ 4,850.69
Suggested Reading: “The Alchemists” By Neil Irwin
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