Remember when gas was 35-cents a gallon? You could fill a 10-gallon tank for $3.50! I know; I did – it was a small hatch-back. Heck, I even remember when Coca-Cola was 5-cents I think Grant was President, I forget – now it’s a buck something; talk about losing purchasing power.
When Reagan was president, a first-class postage stamp was 8-cents! The lesson is simple and as unchanging as a politician’s desire to get reelected: Every year everything will cost a little more than it did the year before because our money is worth less and therefore purchases less.
I once saw a 1955 LIFE magazine featuring a full-page ad from a big insurance company with the headline: “How To Retire in 30 Years n $500 a Month for Life!” But, $500 wouldn’t have bought much even in 1985.
Wealth cannot be measured by how many pictures of presidents we have in our wallets; but by what those pictures of presidents will actually buy.
There was a time not long ago when $2,000 a month was a good income; now it’s poverty level. I could go on, but you get the picture.
Unfortunately, too many of us (like sheep) chase the investment fad of the day, whether it’s flipping real estate or hoarding gold, silver, or anything else. I like seafood; but, it’s never the only thing on my plate. A balanced diet, in moderation, works day in and day out, regardless of the fads others chase.
It’s NOT “where” do you PUT your money “right now”. It’s HOW do you ARRANGE assets to plan for your FOREVER!
If you haven’t talked with a CERTIFIED FINANCIAL PLANNER® lately, it might be your next best move.
Jim
RESOURCES:
IFG Report: The Hidden Risk No One Talks About (registration required)
A Financial Conversation Checklist (does not require registration)
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Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER® professional and An Accredited Investment Fiduciary® in his 21st year of private practice as Founding Principal of The Independent Financial Group, a fee-only registered investment advisor with clients located in New York, Florida, and California. He is also licensed for insurance as an independent agent under California license 0C00742. IFG helps specializes in crafting wealth design strategies around life goals by using a proven planning process coupled with a cost-conscious objective and non-conflicted risk management philosophy.
The Independent Financial Group does not provide legal or tax advice and nothing contained herein should be construed as securities or investment advice, nor an opinion regarding the appropriateness of any investment to the individual reader. The general information provided should not be acted upon without obtaining specific legal, tax, and investment advice from an appropriate licensed professional.
