Debt burdens are relative. For example, a $58k college debt will feel doable to a doctor making $100k+ per year and overwhelming to a lower wage employee. A degree should not cost more than your future earning power will sustain.
Our country’s debt and deficit is difficult to understand in the abstract. Translating it to the numbers on each taxpayer’s credit card can help us see how our country’s spendthrift ways have debilitated economic productivity.
The Obama administration has been claiming that failure to raise the debt ceiling would be the end of the world. We are all tired of failed apocalyptic predictions. Perhaps all that will end is politics as usual.
To solve the deficit reduction riddle, Obama reportedly is embracing an idea that purports to raise tax revenue without a tax hike and claims to cut Social Security outlays without cutting benefits. Better check your wallet.
At 4.0% inflation, cash will lose 82.88% of its value over 45 years. Such loss of value can ruin a retirement plan more so than any market returns. Your long term investments need to appreciate well over inflation. The best method to do that is to stay mostly invested in stocks.
In this podcast, I discuss my recent article “Account Funding Priorities for 2022” and describe a savings waterfall for 2022. The idea is when new money flows your way, which one of these buckets is it going to land in?