~ Republicans better beware
Written by Keith Springer 10.4.13
As I sit here at 30,000 feet, on my way to San Diego for the Ed Slott Retirement Conference, I can’t help but wonder how our political process has become such a mess. Maybe I’m being naive, but I do not remember a time when our politicians placed being a loyal American so low on the priority list; below party affiliation, getting re-elected, raising money, getting a free buffet, not returning library books…and the list goes on.
The current crises has me particularly worried. Since when is it OK to only enact the laws you personally agree with? Regardless of which side you are on Obamacare, and I am not taking sides, it is the law that was passed by congress under the constitution. Clearly this makes for a dangerous precedent.
We the people are being held hostage. Almost every day we hear from Jack Lew, our Treasury Secretary, warning us that the government will be officially broke, that the bills for what the US government has already spent, will go unpaid.
How have the Republicans responded? By having an official US senator read Dr. Seuss’ Green Eggs and Ham, into the Congressional Record. Anybody see a disconnect?
The Democrats know that time is on their side and are astutely playing their hand accordingly. They know that the last time the Republicans closed the government, they took a big hit in the next elections.
Even more interesting is that the Democrats know that they are winning the demographics battle. As you know from my book Facing Goliath – How to Triumph in the Dangerous Market Ahead, I love the study of demographics because from it you can accurately forecast and predict economics, the stock market, and politics.
You see, every year the democrats pick up 3 million new voters through no effort of their own. Some 2 million young voters turn 21 every year, and 80% of these vote Democratic, if they show up to vote of course. Additionally, another 1 million newly naturalized legal immigrants join the voter rolls each year. Practically all of these new voters back Obama, and they DO show up, since citizenship is such a hard fought prize.
This means Democrats will gain a substantial percentage of 12 million votes nationally by 2016. Unfortunately, even though this information is public record, the Republicans continue to shoot themselves in the foot. While the Democratic Party is moving toward the middle, the Republicans are moving further to the right.
Please understand that I am not taking political sides here, nor do I wish to piss off 1/2 of my readers, clients, and friends. I am a neutral investor. I just want my clients to make money no matter which silly party is in control.
The bottom line here is that all the childish theatrics in Washington are simply nothing more than irrelevant headlines, and will prove to be little more than a speed bump for investors.
The real test will be when the Fed ends the stimulus, inflation roars back, and when our aging population stops working all together and they demand the entitlements that were promised to them all their life.
You don’t need to run for the hills and avoid risk altogether! You simply need to manage risk properly and ensure that your finances are properly aligned with your retirement goals and dreams. Make sure that your portfolio is getting the best returns with the least risk possible, that you have a retirement income stream for life properly set, that Social Security is taken at the proper time, and that elder care is part of the planning so most or all of your nest egg is not destroyed by catastrophic illness.
If your adviser is just talking to you about your investments, you are missing the boat, and guess who pays the price? You do!
…… and that’s where we can help. To learn more about our comprehensive financial planning approach, our powerful proprietary Investment Management Strategy and/or get a free second opinion on your portfolio, simply reply to this email, or give me a call for a no-cost no-obligation consultation today at (916) 925-8900.