So as I sit here in our lovely Farmington office, I realize the perilous times that are in front of us and the huge decisions that our clients have in front of them.
Let’s take a peek under the covers.
Frank and Linda Walsh are married with 3 children ages 2, 5, 7. Household income is $80,000 for Frank and $60,000 for Linda. Frank and Linda are in their early 30’s, and their debts are every American's debts.
| Balance | Interest Rate | |
| Home Mortgage | $250,000 | 4% (25 years left on a 30) |
| Credit Card 1 | $ 9,000 | 22.90% |
| Credit Card 2 | $ 4,000 | 18% |
| Student Loan (Frank) | $ 20,000 | 5.90% |
| Student Loan (Linda) | $ 40,000 | 5.90% |
| Car Loan (Frank) | $ 12,000 | 2.60% |
| Car Loan (Linda) | $ 22,000 | 5.50% |
***Total Debt= $357,000
For assets they have either 401K or 457 plans.
| Balance | Adding Yearly | |
| Frank | $123,000 | $9,000 |
| Linda | $ 71,000 | $6,000 |
| Savings | $ 25,000 | $1,000 |
They do not have wills or any type of financial plan. What they have is:
- Negative cash flow
- Plenty of debt
- No way out of the mess
Sort of like the debt the USA is carrying.
Our government’s response has been to double down and to print more money, thus increasing the National Debt. We already see the effect of some of the policies.
- Price of lumber rising
- Price of gas rising
- Price of food rising
- Price of automobiles rising
- Price of real estate rising
Our old friend inflation is going to visit and the USA is in a bad spot!
So are Frank and Linda, but they can make some changes in their planning and do the right things to remove this debt and save for the future.
If you’re not 100% sure your retirement is going to be what you hope for, call us now!
Without spending any more money than you are currently spending, we can have you out of debt in 9 years or less!
There’s hope for the Frank and Linda Walsh’s of the world.
Until next time,
Edward Mazur Jr.