Reality, we are all uncomfortable, some need an advisor to perhaps, hold their hand. Perhaps, for some someone besides themselves to blame.
Things are far from what they used to be. Pensions are far more rare than they used to be. That forces people to fund their own retirement. At one time, not that long ago you could build a treasury bond ladder. Treasuries would pay the rate of inflation plus 2%.
That 2% would cover the taxes. On treasuries you pay fed tax but not state or local tax. Today the ten year treasury is paying less than 3%.
Our current economic reality. The CPI is now roughly 8%. You pay that with after tax money. On top of that the stock market has lost roughly 14% in the past six months.
This year year to date is the first year the market has been down in roughly 15.
Hindsight is always 20/20. Woulda, shoulda, coulda, mighta. With the CPI at 8% and you need to pay that with after tax money, in CASH you are losing roughly 12%.
Where to hide-BEATS ME. Some may wish to look at TIPS. They dare not say so but they are a clear indication that our government plans on continuing to fuel inflation.
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