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Tuesday, September 22, 2009

I had meetings this morning with people that are living in a financial fairy tale!

Are You Living a Financial Fairy Tale?

Once upon a time, there lived a red-blooded American who was taught to study, work hard and save money in order to succeed. Assured that health, wealth and happiness would soon follow he set out to earn his way in the world with a blushing bride and bouncing baby by his side.

On the path to progress he found it increasingly more difficult to accommodate the ever changing workforce but thanks to modern machinery, his blushing bride was able to join him in the work force while leaving the baby with relatives. Their combined income was sufficient to take an annual vacation, send junior to summer camp and still have enough remaining for a few luxuries now and then.

But alas, all was not well in the land of the red, white and blue. Each year taxes took more of the combined household income while the cost of living continued to rise. The “tax free” date moved from March to April and eventually to the end of May before the average American began to earn money that would not go toward paying taxes. The husband and wife worked harder than ever as they were forced to become more productive and do the job that used to take two or even three workers. Left to his own, Junior skipped school, didn’t do his homework and routinely got into trouble. The once happy household was left tired, tense and terrified of their financial future….but why? Simple. They failed to understand the changes taking place in the world around them.

Find out if you are living a financial fairy tale or truly understand the economic reality surrounding you and your family with these simple questions:

1. Do you have more than one source of income that is not based upon working for a living?

2. Are you financially dependent upon two or more people in the household earning an income in order to pay your basic bills and set aside funds for investing?

3. Do you regularly sit down and calculate the tax consequences of working over-time, accepting a promotion or other “wage increase”.

4. Are you properly positioned for defensive economic earnings should the government increase taxation or withholding on benefits like health insurance, 401k or other long term investments?

5. Do you regularly calculate the cost of inflation five, ten and even twenty years into the future when establishing your savings and investment goals?

6. Are you hedged against liability, lawsuits and the threat of loss for both your personal and private investments?

7. Do you understand the “need for speed” when it comes to investing in tough times? Remember, the time value of money changes...make sure your investment methodology does too.
Short sales can help you achieve financial self-sufficiency without working yourself into an early grave. It’s one of the last remaining avenues available to average Americans searching for sensible investments in uncertain times.

1 comment:

  1. The answer for most people is: "Hell no!"

    Also, people used to depend upon their jobs to take care of them; a gold watch and retirement, etc.
    My Dad and HIS Dad had 2-3 jobs in their working careers. I've had 4 jobs in that many years. We are now all on our own.

    Don't even get me started on Social Security...