Economic Chaos 2008:
- DON’T PANIC Panicing can only make the situation worse. The financial markets work because we have faith in them. If the public loses faith, they can collapse. (more)
- HOW DID THIS HAPPEN It’s complicated, but democrats and republicans, citizens and institutions, lenders and borrowers all contributed to the chaos. (more)
- WHAT IF MY BANK FAILS Banks fail all the time. They are generally bought out by other banks. Your money is as safe as it can be as long as you have no more than $100k in any one bank. (more)
- WHAT INVESTMENTS ARE INSURED Money Market Accounts held by FDIC insured banks are insured up to $100k, as are checking, savings, now accounts and CDs. Money Market Accounts held by brokerage firms, Stocks, Bonds and Mutual Funds are not insured. (more)
- IS THERE A WAY TO PROTECT MY RETIREMENT FUNDS Yes, there are ways to help protect your retirement funds. (more)
- WHAT ABOUT MY LINE OF CREDIT If you have a line of credit, it may well dry up in the short run. Banks are reevaluating Lines of Credit. You might consider taking the money and putting it in a different bank if you anticipate a need for the money. (more)
- SHOULD I PAY OFF MY MORTGAGE If the mortgage is on your residence, paying it off often makes sense. If it is on an investment property, you might want to stay liquid. (more)
- WILL I EVER BE ABLE TO RETIRE Most of us will work at least part time until we are about 75. If your current position is not conducive to that, it may be time to consider options. (more)
- WHAT WILL HAPPEN TO SOCIAL SECURITY We have 2 options…pay more social security tax or delay benefits to say, 72 or 75. This is economic reality (more)
- WHAT ABOUT MEDICARE Medicare costs are skyrocketing. Most seniors cannot afford health insurance. We will most likely need to increase Medicare taxes. (more)
- HOW WILL THIS IMPACT MY FINANCIAL SECURITY Diversity has and will continue to be the key to long term security. Downsizing will likely be the trend. (more)
- WHAT ABOUT MY INSURANCE Now is a good time to review your insurances and your entire financial plan to make sure it still takes care of your needs. And, to make sure your insurance companies are still financially secure. (more)
- WHAT ABOUT RENTAL PROPERTY Real Estate has traditionally been a good long term investment. There are lots of good deals right now. It might be worth considering. (more)
- WHAT ABOUT REVERSE MORTGAGES Reverse mortgages can sometimes be a good thing, but proceed with extreme caution and be aware of the downsides. (more)
- WHAT ABOUT FORMING A TRUST It is generally a good idea to put your assets in a trust for estate tax planning purposes. (more)
- WHAT ABOUT FORMING AN LLC OR CORPORATION It is generally a good idea to put real estate or business holdings in an LLC or corporation. (more)
- SHOULD I DECLARE BANKRUPTCY If you cannot pay your bills, bankruptcy could be an option. There are other options you will want to consider first. (more)
- WHO CAN YOU TRUST If you have doubts about any of your financial advisors, please call for referrals. We have found some really good people to work with. (more)