Long-Term Solutions

The bipartisan National Commission on Fiscal Responsibility and Reform has recently released some suggestions about how to reduce the massive federal budget deficit in the United States. One area that is being addressed is Social Security. In order to avoid massive reductions in benefits in the year 2037 (coincidentally the year I turn 65), the commission has recommended taxing more earnings, adjusting the benefit formula and indexing the retirement age, among other things. Although I don't want to debate the political merits of the various proposals at this point, I do feel that addressing significant problems with the federal budget with sustainable long-term solutions is exactly what our government should be doing. Although the outcome is yet to be determined, it is encouraging to see solutions being proposed.

I feel that my role as a financial planner is also to provide long-term solutions. My professional responsibilities can be compared to a doctor focused on health and prevention. I recommend that my clients have a financial "check-up" at least once a year. At these meetings I "prescribe" adjustments that will keep my clients' financial lives "healthy" and avoid "diseases" that might develop if financial "health" is not maintained. As it is in many areas of life, focusing on long-term solutions as opposed to short-term "band-aids" is the key to keeping our households and our nation on a "healthy" path.