The Debt Ceiling Debate: More Evidence That Traditional Investments Can’t Be Trusted

Recently, as the politicians in congress were deadlock with one another and with the President over raising our debt ceiling, one thing became clear; the financial stability of our country is in question; not only here, but around the world as well.  And while our leaders were eventually able to agree on a strategy that prevented a catastrophic default, there may now be less time for many investors and those saving for retirement.  Why?  Because it is clear that traditional investments are more volatile than ever.  Here is what we have learned from the debt ceiling debate:

1)     The federal government is currently pursuing an unsustainable course. We simply cannot spend more than we take in, year after year.  At some point in the near future, unless things change, the government will be unable to meet all of its obligations.  There’s a danger that retirees may not receive the social security benefits they are expecting.  Our government, if it doesn’t reform its finances, faces the very real risk of becoming unsustainable.  Do you think it is wise to depend on the government for your retirement?

2)     Interest rates will spike in the future. Considering how much debt our nation is currently piling up, it is a virtual certainty that interest rates will rise and inflation will follow.  Inflation is a silent monster that eats away at your investments—unless you are protected!  Increases in the cost of living have the potential to destroy your purchasing power and wipe out years of saving and investing.

3)     The stock market is tied to a financially unstable U.S. government. Failure to meet government obligations could lead to a catastrophic stock market disaster.  But a larger observation can be made here and that is how closely the financial workings of the government are interrelated the performance of the markets.  Considering the questionable decisions and the enormous debt piled up, do you really want to be dependent on the government to manage its finances properly?

Unfortunately, we cannot rely on our government to live within its means.  Though individual households are forced to operate on a budget, the government believes that it has no such restrictions.

Ever since the stock market crash of 2008, we have been presented with a variety of warnings that the old model of investing was no longer relevant.  Many retirees and investors had their 401k’s and other investments devastated.  Today, we are facing rising interest rates, the threat of inflation and the very real possibility that the U.S. government will be unable to meet its financial obligations.  Traditional investments offer limited protection against taxes and inflation and they are subject to dramatically increased volatility.

Don’t risk your hard-earned money through outdated investment models.  Contact our Millie, our Client Concierge today at (866) 998-7699 or email her at millie@thechuckoliverteam.com for information on how you can meet with one of our Wealth Strategists to see if our Personal Protected Pension Plan™ is right for you.  We will help you plan for a safe, secure retirement that protects your principal from ever being lost.  This is a retirement program where the distributions are tax free.

We hear from people every week that believe the market will lose value and yet they are still putting their money into traditional investments where it is exposed to market losses and higher taxes.  Take action on you true feelings!  Hope is not a sound investment strategy.  Don’t wait until it is too late!