What Does Our Runaway Federal Budget Mean to You?

What a difference a decade can make!  The chart below compares U.S. government spending in the year 2000 to spending in the year 2010:

Expenditure	Fiscal Year 2000	Fiscal Year 2010
Total Government Outlays	$1.8 Trillion	$3.4 Trillion
Medicare	$197 Billion	$451 Billion
Defense	$294 Billion	$693 Billion
Entitlements	$232 Billion	$558 Billion
Public Broadcasting	$300 Million	$420 Million

With this dramatic increase in spending, it’s no surprise that the U.S. government’s debt grew from less than $6 Trillion in 2000 to nearly $14 Trillion at the end of 2010.  Clearly, the government sees no reason to make sure that their “lifestyle” doesn’t exceed their income, as all responsible families must do.  Why is this important?  Isn’t it just politics?  Unfortunately, the answer to that question is a resounding, no. Politicians may be creating this budget crisis, but it’s the rest of us that are going to have to face the consequences.  Below are three real-world consequences that we can expect as a result of runaway government spending:

1)     Increased interest rates leading to inflation.  This one seems virtually certain; you can’t continue to print money and rack-up debt at our current rate without interest rates rising.  This will ultimately lead to inflation.  Unbridled inflation will completely devalue your retirement savings and investments.

2)     Social Security cuts. The government has taken money out of your paycheck your entire career—presumably to help you to create a secure retirement.  Unfortunately, runaway spending has plunged the viability of Medicare and Medicaid into doubt.  What will happen to your retirement plans if Medicare isn’t around to cover the majority of your medical costs?

3)     Increased taxation. Before long, the cost of paying interest on the federal debt alone will demand increased government revenue.  Unless spending is dramatically reduced, the government will require higher taxes just to keep it running.  How will higher tax rates affect your ability to save and invest?  How will higher tax rates impact the ability of your children and grandchildren to afford attending college or buying a home of their own?

The current political debate revolving around our budget will have an impact on all of us—and our children.  While you may feel confused, isolated and powerless, there is good news:  You don’t have to be victimized. Careful planning today can help you minimize your exposure to these risks, tomorrow.  Call Millie, today at (866) 998-7699 or email her at millie@thechuckoliverteam.com to set a time to address our trademarked program, The Personal Protected Pension Plan™.  Our proven, safe money solution can alleviate you, your family or your friends’ retirement concerns.  Let us provide you direction in one of the most overlooked areas of retirement planning.