While many of us are enjoying significant gains in investment portfolios, partly due to tax reform law, there is more to the story. Sadly, is seems, that once again a decision was made to create a positive short-term impact with little to no regard for the long-term impact,
The Congressional Budget Office estimates the income tax cuts will boost the current federal deficit by $1.5 trillion over the next ten years. The current national debt already tops $20 trillion. It is 74% of the nation’s gross domestic product (GDP)!
The 2018 federal budget includes interest payments on the debt of $332 billion! Now add into the mix that the new federal reserve chair, Jerome Rhoads, has already stated there will probably be three interest rate increases in 2018 and the $332 billion escalated even higher.
Think about this legislation in terms of the financial future for our children/grandchildren/loved ones under the age of 50. Couple this with the uncertainty of Social Security, the ever-increasing cost in health care and higher education; it seems we are creating a future financial tsunami.
I believe that the combination of the worldwide stock performance along with new legislation which increases debt provides an opportunity for many of us to consider doing something for those we love most in the world.
Would those of us who were fortunate to be invested in equities in 2017 think about creating some financial security for others? Would we be willing to share a small piece of our abundance to create a brighter and more secure future for others?
If this is something you would like to know more about, please contact me. Let’s share a conversation in which we create new meaning and purpose for some of your money as we celebrate new-found abundance.
(The source for this information is the editorial opinion in the January 8-12, 2018 issue of Investment News.)
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®