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The State Of Retirement

Which Door Will You Take?

When I first started working with retirees back in 1999, I never thought that I would see this day. What day is that? The day that retirement no longer looks like, well retirement. I would be flat out not being honest with you if I told you I saw this coming. I do, however, remember when it first came to me. I was sharing with my graduate students during a lecture about eight years ago. We were going over the Gross Domestic Product, aka "GDP," and how it's constructed. In short, the GDP is a measurement of your economy's cash register. (more complicated than this, but work with me) The intricate details of how the GDP is put together are beyond the scope of this document, but It only has four components. Those four components are Government Spending, Business Investment, Net Exports, and Personal Consumption. Vital measurements from all four essentially give you our country's GDP. To keep things simple for the state of our retirement, we will only concentrate on one of the four. That portion is called "Personal Consumption."

Personal Consumption, surprisingly, is how we got here. What I share with you next will change your life and outlook on retirement, so here we go. Personal Consumption is the US economy. It is the most significant driver in the GDP formula. If we, the united states, do not consume goods and services, then essentially, the economy is in trouble. There are many other factors, but for the most part, this holds in the macro scheme of things.

Providing investment advice, in stocks, bonds, mutual funds, or real estate for my clients over the last 20 years, I had started to discover a startling trend.  My new retirement clients were beginning to look different, as they were almost unrecognizable. It started in the previous ten years. The more retirement plans I began to put together over at, the more I discovered that we, as a nation had developed a debt problem. This trend has unfortunately developed the new state of retirement.

The new state of retirement looks different, and if not acknowledge by pre-retirees could spell disaster. Let's start with the apparent debt problem that the United States has. Not only does our United States Treasury have a 22 trillion dollar debt problem, but we, the people, have this same appetite. No one is to blame with an economy that has grown astronomically for the last ten years straight. If you thought that social security was going to be short before, wait until we have to fund another war at about a 2 trillion dollar clip.  You have smartphones that track your every store visit and have inherently created and actively monitor your purchasing behavior. Personal Consumption has single handily carried the united states economy over the last ten years.

Find out what happens when you combine a retirement planning company along with a debt management company to create three separate "My Retirement Exit" doors to change the state of retirement for middle-class America.  


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