There have been many conversations, articles, podcasts, tv shows, etc. all focused on the destruction of the United States economy. As one may expect, much of it is being fueled with fear, anxiety and "apocalyptic scenarios". Some is actually helpful when it is being written by knowledgable and capable authors but much of the aforementioned content is not. Rather than become panic-stricken and shoving your dollars into a mattress hoping to survive the "zombies from space" or complete anarchy, may I suggest a more balanced (dare I say "sane") approach?
Except for the billionaire class, most people do not live on a seemingly endless amount of money. There are usually budgets. Expenses, assets, inflation, interest rates, savings, and many other things are part of creating this blueprint of what any individual or family is actually living on day to day, month to month. This may or may not be static as some have jobs that pay a salary and benefits are included along with 401K or pension options. Others have just salaries, no benefits. Others have hourly pay. Some have gig work. And that is just the employment side. Then you consider: will you inherit money, what do you own presently, what do you owe others, what will you need in the future, etc. So, rather than just listing all the parts of an actual household budget, let me share with you how, and why, it fits into a plan.
As you are figuring up costs and income, it's really easy to get very short-sighted. This is especially true when things are tight and it's more about how to get through the next 3-6 months versus an overall plan for a major purchase or retirement. Mind you, despite the name, we work with both types of people: close to retirement (within 10-15 years) and not even thinking about it yet (all those 15+years out).
Along the way, we have learned a lot about what actually keeps people up at night. In our experience, for the "under 50" crowd, the worries most center around affordability, job instability, and the lack of any sort of retirement safety nets even existing when the time comes for them to finally retire (which some doubt may ever happen for them). They are far more affected by the AI push and are concerned whether jobs will even continue to be available. It's a bit overwhelming but they know they need to start early and start somewhere to make sure they have some sort of financial stability in their futures. The focus is on compounding and time value of money.
Our 50 and over clients are also concerned about affordability but the primary worry we hear is: "will we outlive our money". Again, this is a common and very reasonable issue as many are living longer than was ever predicted on actuarial charts as retirement systems were being created. Plus, there is the daunting fear that the few "safety nets" (aka social security, medicare) that were paid into for a lifetime will become defunct,or decidedly lessened, at the exact time that this population of people will need it the most.
Add to this the fact that your parents financial planning is not going to be the same as yours. Your parents financial plan or planner may not be the best fit either, as a general observation. What had once been "tried and true" advice from former generations is no longer serving the younger generations now nearing retirement or even the ones that have entered retirement in the past 10 years. Things have changed, often dramatically.
So, what is the solution? Plan.
Don't wake up in the middle of the night panicking about what you may or may not have, what your account currently is "making" in the markets, etc. A plan can give you a structure and foundation to work from so it doesn't feel like you are just starting from chaos and stress every day. A plan can be a long term methodical underpinning to a better chance of being where you want to be, when you expect to be there. A plan can make the difference between "I think we will be ok, based on my calculations" to "I know we have a solid foundation in place and it has built-in safeguards for the future".
There are options you may not have heard of, or considered. There are things you can be doing that can really help you get ahead on the economic stress we are all encountering so even if times are tough you aren't just grasping at the next day's news hoping for the best. No one should work their entire lives only to find out that nothing is left to provide for them as they age.
If we can be part of that solution for you, please let us know. I personally got into this part of the business because it is where my passion lies. I focus on people who really want to be able to see a future that is more solid than the one currently being offered to anyone in scare tactics or legacy corporations counting on their standard operation methods to be the only options.
There is a plan for you. You just need someone to help you create it.