Where Does All The Money Go?

When I think about who becomes an EWS client it’s quite a mix.  Most, but not all are married or were married with children.  They include but are not limited to doctors, dentists, lawyers, mechanics, teachers, therapists, state and federal government workers, business owners, real estate agents, sales people, traders, investigators, HR professionals, engineers, CPAs, retirees. Some are socialists.  Many are either liberal or conservative; Independents, Democrats and Republicans.  But for as varied as they are, there’s a consistent theme.  They all want to make educated decisions about their money.  They want to protect and grow it.  They want to quit working someday and enjoy the fruits of their labor.  Whether they have a pensions, social security or both, they want to count on those income streams for a portion of their future financial security.

Therefore, no matter who you are, this fundamental truth prevails:  LOSSES HURT YOU MORE THAN GAINS HELP YOU.  Take a look at this:

If you experience a 10% loss, it "only" takes an 11% gain to "break even". But, if your losses are much larger, it can takes years just to break even. See what I mean below:

  • a 15% loss requires an 18% gain 
  • a 20% loss requires a 25% gain
  • a 50% loss requires a 100% gain

I am constantly amazed at just how much unnecessary risk people are taking in their portfolios. So when the next correction comes, and it will come, ask yourself if you are ready for it. Ask yourself, and your fiduciary asset manager or financial planner if you are positioned correctly.  If you don't have a fiduciary, guess what?  Ask us. 

Don't get caught waiting 5, 7, 10 years or more just trying to get back to even. . .  especially if you are 5 to 10 years away from retiring. In retirement, your focus needs to be on controlling, mitigating and eliminating risk where ever possible. . . . Let’s talk about how to do it.

Then There's Taxes

If you’ve spent any time with me at all you’ve seen this historical tax bracket chart. I placed the line at the 58.43% average so you could see what your IRA may look like if we do see this average tax bracket in our lifetimes.  Keep in mind, this chart only shows the top tax brackets and you may not be in the top.

If less than 50% of all Americans are paying taxes, it certainly seems fair to assume taxes are going higher.  If that happens, I mean when that happens, your lifestyle will shrink. It has to.

And if you look at the chart below, you can see why Social Security benefits were recently reduced and why cost of living adjustments can no longer be counted on ... even though your cost of living is increasing, even if the government says it’s not.

Where Does All The Money Go?


So, if any of this concerns you and you'd like to understand how it may impact your personal wealth solution, give us a call at 708-771-7777 to schedule your complimentary Discover Session.