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When Did Financial Freedom Become so Expensive
PART I did when the financial freedom become so expensive? Financial Freedom. Two words that sound great together but have so misleading meaning once a really.  In fact, the only time you get financial freedom for free from money found; winning, inheriting or find it under a mattress.  The financial freedom usually comes from a process in two stages.  First worked hard.  So if you get your money work hard enough, gives him a certain freedom. Freedom of  for what?  O freedom from what is the real demand, because there is a great difference between freedom from the obligations of your current lifestyle and groped to get better. The youngest of   A can say that the freedom to do what you want as the trip or proof of something new.  One person later in life may want the "for" some of those same things, but also financial obligations of freedom overnight.  My personal belief is that you are truly free when there is very little consideration for how you are creating a fund for your daily life and that life is full of things you enjoy.  then, freedom from the obligations and freedom for living life as you like. The financial freedom of  was the rally cry for every motivational speaker, the key selling Multilevel types and even on TV late at night that the promises that financial freedom is only a book away.   We 're now starting to see major financial institutions with dangerous action folders investment, all in the cause of financial freedom short-lived for individuals approaching or already in retirement.  this is happening so as to transfer the folder based on the income trend of development to a folder of short duration of fixed income with the majority of returns and emptying the lower right (aka that spends the nest egg). Emptying the good of  is extremely disturbing in a world where the average person is living longer in an economy that is boiling with inflation not reported.  Yes, I'm saying inflation is not reported because they also try to ignore the facts to get a good night ' "s; Inflation" of the United States; sleep so far on suspected 2.85% for 2007 and 4.1% in 2008. The reality that these numbers are much higher than is evident throughout the day normal.  you can not know that the Reagan and Clinton administrations have changed the way that the CPI (consumer price index) was calculated, thus giving the inflation numbers that are not history or reality on.  Dartmouth was the economist and adviser to many Fortune 500 companies, John Williams, the real inflation in some places rise to around 9.5% using the old calculation.  ago that sound about right when it takes the food and the heat into consideration that the current CPI calculation is not? The programs of fixed income   the last several years is almost null and without effect with this kind of inflation if designed to live on the average length and also plan on enjoying retirement or even on maintaining your current lifestyle.  to help paint the picture, let 's say you have a nest egg of $ 1 million of dollars (realization that I am directing this to our community investment since the 2006 census of the United States puts the average income in the United States less than $ 50,000 a year, producing the average egg lot smaller).  If you had that million by one of the folders of fixed income like Lehman Brothers and Citigroup that have made the media together about 6.6% during the last 10 years, and were investigating about $ 66,000 a year.  Take a federal tax rate of 25% and a low income tax rate of the condition of 3% and now you have only $ 47520. If you take to bring inflation to 9.5% this sheet you with $ 43,480.  $ 3623 a month as financial freedom rings before living with gas costs more than $ 4 a gallon, the rising cost of the food and the excessive cost of health care?  Please note that in most, with some investing large funds with fixed income is the fees managers, taking some of your free financial freedom.  also don 't ask the uncertain future of Social Security to help out. Examining the social security healthcare costs alone, in fidelity 2007 has assessed that on average 27% of a couple 'allowances for Social s health and will continue to grow annually at about 7%.  during 16-18 years, health is foreseen to take about 50% of social security allowances.  Remember, these are the guys who are selling financial freedom to average 6.6% return.  I wonder if the urge to live longer than James Dean? (Please note, the conservative method was adopted on the above calculations because they could discuss with inflation 9.5%, not only is the income dall'uovo nest dollar $ 1 million that is devalued, but also the $ 1 million principal)  with everything that continuous change in the overall returns will continue to be undermined and unpredictable, not to mention the effects of currency fluctuations. The strategies of fixed income  seem to change to try and deal with this, but cringe at what those returns look for the end to 2008 because many of these strategies depend on the financial markets and are also influenced by the Fed 's quagmire rate reductions.  in short, our current methods for assessment of income needed for financial freedom is not sufficient enough to sustain our current lifestyle, let alone generate the financial freedom well into retirement.  Remember, the answer would be easy to reduce the nest egg and that usually is part of the strategy, but so far beyond isn 't anyone who can tell me what I'm going to need because they can' t tell me How long I'm going to live.  This is not even taking into account that many of us would like to leave our children more than what we came into this world with.  have faith, there is an answer and the answer is that passive income is what truly makes them free. The big problem is that we need much more than we did before.  sometimes I wish I could be a man of the mountain and remove my family to a remote location and live off the land and avoid the boredom of the world.  Unfortunately, that, my love for ambition and the conversation would throw my family out of the mountain even before I was bored to breakage.  well as convince the income to put freedom back into our lives?  my esteemed readers will have to wait until the second part released in coming weeks.
Dominic Mazzone
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