Yesterday, in an uprecedented use of Standard & Poor's outlook on America's fiscal health, degraded our government's overall fiscal health from 'stable' to negative, suggesting that failure to address the federal deficit could severely and detrimentally impact the government's credit rating.
Much like ignoring health symptomps indicating a cancerous anomaly, the ramifications of losing a triple-A rating of America's credit could, in a worst-case scenario cause default on its debt, which includes bills, notes, and bonds. At the least, a lower credit rating would drive up to higher interest rates from mortgages to car loans.
One of the solutions proposed under a bipartisan commission would
eliminate key tax breaks that we enjoy - including the child tax credit,
mortgage interest deductions and deductions claimed by employers who
provide health insurance. So, single parents will have a harder time,
our biggest tax shelter eliminated, and businesses will either close
their doors or would-be entrepreneurs who will provide jobs to a growing
unemployment rate will be discouraged to start a business.
Similar outlooks from the S&P prompted other countries, like the
UK to take the warning seriously and take measures to prevent that from
happening. The question remains, however, can both the Democrats and
Republicans set aside their political agenda to agree and act on a
While all of this is taking place around us, how many of you are
waiting to see what happens? How many others of you are becoming more
pro-active and taking matters into your own hands and relying less on
the government to safeguard your future and retirement?
In the book Missed Fortune 101,
author Douglas R. Andrew, addresses this, "What many Americans don't
realize is the government has given us the opportunity to take a certain
amount of control of our...assets. [When] we take responsibility for
our own financial well-being, our future retirement security, insuring
our own health care, or supporting charitable organizations that care
for the poor and needy, the government's need to intervene becomes
If you want to take responsibility for your own finances and want to
make a committment to safeguarding your future, give me a call at (312)
493-2054 or email me at email@example.com.
Tags: agenda, car loans, charitable organizations, credit, credit rating, financial well-being, fiscal, future retirement, health care, intervene, mortgages, responsibility, retirement security, S&P, safeguard, security, tax shelter, triple-A, worst-case scenario