Thursday, April 9, 2009

Changes that are coming our way.

We are in for one heck of a ride in the next few years as our new economy starts to unveil its effects on business' and investors. The new government is already pushing itself into controlling more of the market mechanics and stretching their reach for more control 0f more industries and segments of the economy. The congress is currently looking to control not only what an individual or company can provide as retirement vehicles but also the allocation of those investments making a 401k now a 401f (federal retirement plan). They are right now restructuring target date funds to become the default investment in retirement plans.( your 401k again being controlled by the same people who created this mess! )
The forced TARP and TALF are now being offered to insurance companies and manufacturers affected by the recession and or exposure to the toxic assets with the provisions that the government is now in charge of that company whether it is public or private.
And the Fed rolls on:
They have just quietly passed regulations increasing the costs of Medicare Advantage which will raise the premiums next year (2010) on a group of Medicare recipients who CANNOT afford to pay it. ( the average household income for Medicare Advantage plan members is approx. $12K per year) The average premium has gone up for these plans every year and they are now projecting a 50 to 80% increase for 2010.
The socialized medicine brigade loves this because it creates more of the opportunity for their argument that we need to get rid of the best medical care on the planet. Just make sure that you are under 40 for ANY major life threatening health condition otherwise if your that 65 or 70 year old with cancer or heart disease it is not financially prudent to cure you, you cannot pay enough taxes before you die to reimburse the expense of your care!

The stimulus seems to be only stimulating more resentment and outrage at congress creating the largest financial deficit in the history of the world.!
We are going to spend in ONE year what all of the entire world's past generation's have spent in history, including the fighting of TWO WORLD WARS!
Who do you think is really going to pay for all of this when the check comes just the rich? The new taxes being created right now are going to bury ALL OF US not just the 6 figure income crowd!
Do you work for a small company and when it gets hit with the taxes will you still have a job?
Are you ready to pay for these taxes being passed to all of us through consumerism?
Are you ready for the price of everything that you buy to go up to pay the tax increases?
You need to have a plan for your financial security that is tax effective, tax deferred or tax free with health care primary to secure your retirement! (unplanned catastrophic health care costs destroy 1 out of 2 retirement portfolios)
You need to0 be multi-diversified with many asset classes working for you to hedge against risk of all kinds. (fixed, variable, precious metals, annuities, cash value insurance, collectibles, property and a plan for distributing these funds for income)
You need to be liquid (6 months household operating costs in savings that is immediately available)
You need to get on a budget and stay on it! (PAY YOURSELF FIRST create a savings plan)
Reduce your expensive debt or better yet eliminate it. (if you are only making 5% on your money and your debt is 7% you'll get a better return by paying off the debt)
Preserve what you have. (don't take unnecessary risk because you think you will make a killing, the only killing will be to your finances, your house is not an ATM!)

I am here to help call or go to my websites for additional information,

Keith

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Financial Services Professional specializing in health care risk mitigation and multi-layered retirment income planning.

Blood of Our ForeFathers

Blood of Our ForeFathers