So, You’ve Heard The Bad News, Eh?

By Arianna Capital

By now, you have most likely read about dollar inflation, potential Medicare/Medicaid cuts, social security lost for future generations, declining government services, or an increase in taxes. Sounds dismal doesn’t it? Yet, this should not affect the way you invest or the positive hope that you have about the future.

First, you must understand that all of the previous problems are caused by, not solely but mainly, a single factor – the present value of the government’s liabilities minus its assets at approximately 120 trillion dollars. Yikes, and thank God for the present yet seemingly declining reserve currency status.

Second, it is important to understand that this should not change the way you invest. It does mean that you should factor some of these problems into your financial plan, however, but your portfolio should remain relatively the same – assuming you have a diversified portfolio of low cost index funds invested in equities and bonds that is. Now the rest of what your portfolio should look like and why is quite technical. I recommend giving us a call so we can see if your portfolio is right for you.

Third, sure it sounds bad, but find one instance where doom and gloom ever helped anyone. Doom and gloom generally only serves to motivate the bravest or most fearful to action. But, in general the attitude only slows us down. So the situation is bad, but being doomy and gloomy only makes it worse. Instead, have hope – look for solutions – there are plenty!