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Honored Advisor
Posts: 11,091
Registered: ‎05-13-2010

Re: I am not looking down on you

Part of this analysis of debt comfort/aversion is similar to investment assessments, which are typically given to evaluate your risk tolerance. 

Part of it can be age - as figured in years between now and retirement.  In general, risk exposure is purposely reduced as you approach the downturn in earning that usually accompanies traditional retiree patterns. 

Another piece can be the flux of the times you are making decisions in...how stable is the economy, what are tax picture considerationsor income and estates?

Start with the last first: What is the estate tax picture going forward, and will the Congress retroactively enact one over 2010?  Who knows?  So, how do you plan? 

Many of us have decided that retirement is not going to be as predictable as we once may have thought..  Although, I've always said we'd probably work in some ways until we drop, that was more by choice than it feels like it is these days.    I heard a news report the other day to the effect that there are for the first time more seniors in the workforce than there are teens.   That speaks to a perception - and probably to a reality  -  that not as many are comfortable living on their retirement nesteggs. 

Some have mentioned the eighties, and we did see so much suffering in that era; but, with interest rates in the lowest range in thirty years, it's hard to make a direct comparison to that time, really. 

The only clear indicators I can find are from looking at California and other very socially-liberal states and cities.  The vast majority of complelely insolvent cities and those with highest unemployment are in such locations, from what I am reading. 

Anyone with half a brain then must see that we cannto spend our way out of this mess we are presently in...and we cannot contiunue hte pretense that everyoen is entitled to certain things that are, by natural definition, luxuries.  We need to refuse the unfunded mandates from Washington, and our state houses. 

I just heard Mr/ Obama touting the new law to cut off payments in the wrong amounts, to the wrong people and to dead people....what the H took so long to figure THIS one out?  And, why did it take a NEW law to curtail these payments???

I love my country, but my confidence in it is so low right now, I am hesitant to buy an extra book of stamps at the post office this week, much less go out on a shaky limb to build a business that is under fire every minute of every day.