Retirement Income Preservation      
 

We have seen wild fluctuation in the financial markets and all indications are that income tax rates have to eventually increase.  Current economics issues are dictating a rise in tax rates to pay for the spending that are being done to boost the US economy. 

 

This is causing more than a few people to question just how far their retirement dollars will go in the future.

 

 

 

Projected Public Debt Vs US GDP

The Congressional Budget Office (CBO) expects that budget deficits in the U.S. for the period 2010-2019 would amount to USD 7.1 trillion. This enormous projected deficit would lead to an increase in debt held by the public from 40.8% of the GDP in 2008 to 67.8% of the GDP in 2019.

 

More analysis shows that it will take more revenue to service these debt in the near future. 

Projected Public Debt Interest Payment ($Billions)

 

 

 

 

How do we interpret this information and relate it our own future personal income:

In order to service these debts, the government need more revenue and of course the main source of any government revenue is taxes.

 
 
Understanding the Economics of our future income ....
 
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Two third (2/3) of the US economy is built on a "Consumption Driven Model" (that is, we do not export as we need to we import and consume.)

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Without significant spending the economy grinds to stall.  (Recession / Depression)

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Consumer confidence in the economy is low so we save instead of spending.  (Good for some bad for the economy.  Companies goods and services not being purchased so the company lay-off workers.  Less people to spend so more job cut.)

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Government has no choice, has to spend to boost economy.  Borrow more money.  (Very likely raise taxes to service these debts.)

 

 
Strategists at New Leaf Financial, LLC understand the dynamics of the economy and how it can possible affect your future income.  We create personalized strategies so that future tax liabilities are minimized and/or possible eliminated from certain source of income.  We do not believe in creating plans for you so that you are dependent on us for future businesses.  We believe in molding sophisticated and knowledgeable clients so that you are equipped to make sound financial decisions for your family.
 
According to the US Census Bureau, people are living longer and current indicators are showing that more and more people are outliving their retirement dollars.  We will create strategies so that you will not outlived future income.