Current economic and stock and bond market uncertainties bring to the forefront the need to plan your income and savings for retirement. There are several recent economic issues that you should pay attention to, as recently, the Congressional Budget Office (CBO) published its Budget and Economic Outlook. The projections incorporate the surge in inflation and legislative, economic, administrative, and technical changes.
The CBO projects that the U.S. debt will continue rising to record levels. By the fiscal year 2032, the projection is for the debt to be at a record 110% of the U.S. Gross Domestic Product. You can visit the U.S. debt clock website to see the continued ‘spinning’ of the numbers. High debt can have adverse and potentially dangerous consequences, including the slowing of wage and income growth, an increase in federal interest payments, affecting the ability to respond to recessions and emergencies, and raising the risk of a fiscal crisis.
The CBO also projects the U.S. deficit will total $15.7 trillion over the next ten years. This represents the difference in the revenue brought in by the government and the expenses paid. Obviously, expenses exceeding revenue are not beneficial. No healthy company, individual, or family would be able to survive over time with such a large gap.
The CBO’s latest budget projections are not ideal for our country. With debt and deficit spending expected to continue growing substantially, the outlook is not positive. However, that does not mean your financial situation cannot be healthy. You can take control of your savings and retirement income planning.
The first step is to generate a plan. Analyze your current situation and explore opportunities now that can be beneficial for you and your family in the years ahead. Your plan should account for the economic issues addressed above plus the retirement risks of longevity, market performances, timing or sequence of returns, income withdrawal rates, inflation, taxes, and health care issues.
Contact me to start your planning. Whether you are saving and climbing up the mountain, approaching the top of the mountain and trying to determine what your retirement income will be, or descending the mountain for a planned long retirement, we can help you. Our process is designed to enlighten you about your financial life and options and keep you on track with fluid and dynamic strategic planning. We do this through financial planning with our proprietary Playbook Pro Method. We strive to provide you with the confidence and clarity for your overall financial and retirement income plan.
As always, you can listen to my radio show every Saturday morning or catch recordings of prior episodes on our website. Contact me to get your individualized Playbook started.