WHERE DO WE GO FROM HERE?
As the year 2015 slowly picks up steam to make it out of here before being replaced by 2016, it is time to take a quick look back and a long look forward to
see how we can live through the next decades without disaster. I state a quick look back instead of a long look because of two things: the damage that has been done and our inability to do anything about it. The problem we cannot do anything about, or so it seems, is the insane borrowing by the government from investors, other nations and of course my favorite, the social security fund. We have made borrowing a national sport seeing how many projects we can have that need borrowed money and increasing the borrowing each and every year.
The second reason to keep the look back short is that “We the People” cannot do anything about it. We are told time and again that if we don’t shape up our social security will be cut by the politicians. We paid it in all our working life and the government “borrowed it, starting with Lyndon Johnson’s Presidency and carried on by each and every President since then. Just to point out the ridiculousness of this, the elected officials get a private pension, not Social Security, and a private medical plan, not Medicare or Obama Care. Why?
We are less than one year away from our next national election and all the politicians fall basically in two groups: Spend more and it will all work out or spend less, cut taxes and it will all work out. Both plans will work out but NEITHER will stop the deficit from going up or help pay off the old $18-$!9.
Trillion Dollar Debt.(This number doesn’t include the unfounded government
pensions which makes the aforementioned number seem reasonable).
We as a Nation are broke and the blame for it is us. Why us? Because the vast
majority of people, young and old don’t believe they can make a difference so they
have surrender to those who are stealing not only their money, but their future.
I find it easy to say everybody in Washington gets the proverbial free lunch and worse than that is we are being charged for the full course free dinner.
Your only choice for a secure future is to pay off your house as quickly as possible. You will not experience financial problems as your residence will be paid for and what ever additional money you make will keep your standard of living steady and you and yours will survive.
The following rules will help you “stay in the game” financially.
1. If you refinance always shorten the amortization so you are
not paying the additional interest you would be charged if you
started over on the same amortization you currently have.
2. Do not pull cash out to pay current debts unless the interest rate
on the current debts are much higher than your home mortgage.
3. If you can refinance to a shorter amortization this will pay off your
mortgage even quicker.
4. Keep in mind you will be eligible for a reverse mortgage at the age
of 62. If your house is free and clear or have a mortgage that is low
enough you might be able to refinance to a reverse mortgage and never
make another mortgage payment until you move or are carried out of
your house for the last time.
5. Make sure you have the right amount of insurance on your house and
yourself so that an unexpected occurrence can ruin your retirement plan.
6. Maintain your house and property as if your life and happiness depends
upon it. It does!
7. Pay attention to politics and politicians and do not be afraid to let them
know what is on your mind.
Set yourself up for the future and you will be better off than 99% of the populus.