THE DEVASTATING IMPACT ON YOUR FINANCIAL SUCCESS
What you know today will determine where you will be financially five to ten years from now. The products available to you in the financial world will not make you smarter simply by purchasing them. Success can be achieved only when you understand how these products will impact your future. Will these products solve the problems of taxes, risks, inflation, penalties and the value of the dollar, or simply compound the same problems in the future? The challenge is to avoid as many future problems as you can.
The flaw in traditional thinking is the belief that simply purchasing a financial product assures some type of success. But, products over a period of time, do
not adjust with trends and shifts in the economy. The question is who or what will impact the trends and shifts in the economy? Who or what will have a direct impact on the problems you face in the future? The government.
It is the government that will determine your future financial success. The government controls the elements of the economy that will determine the success of the financial products you purchase. The government’s actions will determine future taxes in your life. It is the government who controls elements of inflation and the money they spend and the debt they accumulate. It is the government that controls the penalties and regulations on industries and the financial marketplace, which could create substantial risk to individual investors. It is the government’s actions that ultimately depreciate the value of the dollar, worldwide. No product can solve these problems. Without having some knowledge of economic trends and shifts, buying financial products could be an aimless shot in the dark.
Let’s measure the impact the government has on the problems you want to avoid and how these problems will limit your financial success and growth in the future. The government has selected the option of continuing to feed the problems they face in the future. Their solution is to simply throw more money at the problem, your money. The government’s problem is that they need mo-re revenue (taxes) from a declining workforce, and aging population and citizens that have an inability to save and invest for their futures. The government has direct control over the problems you face so it is fair to say that your financial future is connected to the financial success of the government.
The real success of any financial product will be directly affected by the challenges that the government faces. The unsolved mysteries of the Federal Government will impact government spending, debt and the ability to collect the taxes needed to pay for these challenges. The government’s only source of revenue is to collect taxes and print more money. Both of their solutions will create problems for you. Taxes on investments, savings, property and purchases, will reduce your spendable income. Simply printing more money could create inflation, increase the price of the goods you buy and decrease the value of your hard-earned money. To compensate for these government solutions you may have to reduce your standard of living.
THE COST OF NOT SOLVING THE PROBLEM
No problem can be solved by blaming another person. The cure for cancer will not be found if researchers simply blame each other for not achieving results. Spending more money on research, without finding a cure, does not solve the problem.
The reason the Titanic sunk was not the fault of the iceberg. It was the course and the speed of the ship that particular evening. Everyone knew that icebergs in the Atlantic were not uncommon. But the tragic results of that night go all the way back to how the ship was designed and built and that the captain and crew were not prepared for a crisis of that magnitude.
There are reasons why personal financial challenges will continue to haunt the average American. Finding a cure for financial ailments will be difficult without understanding the root cause of the disease.