A good friend and client recently gave me some feedback about my newsletters. He felt it was a bit partisan and might turn off certain readers. I think this observation is very fair.
So I'd like to use this as an opportunity to be very clear about politics and where I stand. It is difficult if not impossible to avoid some politics when discussing financial policy. Some policy is political by definition, even if it's cloaked in non-partisan names or concepts.
That said, let me be crystal clear about politics. Neither political party is providing solutions our financial problems! I am hard on the Biden administration, I was critical of the fully Republican government when Trump was president, and I'm confident that if the Republicans are running the show next time, I'll be disagreeing with them too!
I hope I am wrong because I love my country and I want us to prosper. But our problems are catastrophic and they're worsening. I'll be charitable and assume good intentions by all, but my financial philosophy, at least in this particular era is this:
The government is not the solution, it is the problem. Both parties have put us on an unsustainable path when it comes to entitlements. Both have printed money we don't have and have left our children and grandchildren with the dire consequences. Both have sold out to lobbyists and put their own interests ahead of the greater good.
However, the Government isn't the only problem. Wall Street and banks also operate with utter self interest and perverse incentives. The managers of public companies are driven by short-term timelines that affect their executive bonuses, such as quarterly earnings reports and stock prices, not the long-term impact of those decisions on your retirement! They offer 0.1% interest for a savings account but charge 25% credit card interest. They brought us derivatives, collateralized debt obligations, and in short, problems!
How about health care? We spend more money on health care than any other nation in the world but have nowhere near the best care. By the way, in an effort to be bipartisan, the Bush Administration monumentally sold out to the health care industry by enacting the debt-multiplying Prescription Drug Plan.
What is the takeaway? It's that we - and I - should not get carried away with politics. We can't count on Democrats or Republicans to help us financially, we have to take care of ourselves!
The question is, how will you create a financial strategy where you are going to be OK no matter what party is in office, no matter what interest rates are, no matter what happens in the stock market, no matter how volatile the times? Isn't that what we should be focusing on?
That will be the subject of an upcoming newsletter.
Let’s Not Make This Political! – June 2022 (Pdf Download)
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Thank you for your time and for taking control of your financial future!
Sincerely,
Sam Arieff
Arieff Consulting
(904) 478-0102
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Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.