YOM HA’ATZMAUT: YOUR FINANCIAL FUTURE IN THE ERA OF LOST ECONOMIC INDEPENDENCE
As originally appeared in The Jerusalem Post on April 24, 2020.
“When the people fear the government there is tyranny, when the government fears the people there is liberty.” -Thomas Jefferson
I’m not sure about the first part of Jefferson’s quote though my hunch is that we are close to being there, but it sure seems that the latter part of the quote is absent currently in Israel. Before I start to go a bit negative, it’s important to be thankful for all that has been accomplished in these 72 years against insurmountable odds, as we prepare to celebrate Israeli Independence Day. A pre-Corona thriving economy, the only democracy in the middle-east and general feel-good happiness as to the quality of life is certainly something to be proud of. But what worries me the most, is the loss of individual freedom that we have been experiencing. I understand the seriousness of Coronavirus, but the response from the Health Ministry will lead to an overall larger loss of life. Stress-related health issues and suicides are among the issues that inevitably will appear as the economy tanks. It’s been 2 months and we rarely hear a dissenting view on what to do. Isn’t that a problem? Not to mention that the same talking heads that are trotted out each night have been wrong regularly. To those who believe that the measures are working and that even 1 lost life justifies the lockdown, I respectfully disagree. Here is how you can be discharging student loans and not get into a bankruptcy kind of situation.
Again I understand the seriousness of the virus, but as stated by a team of accident attorneys at Bengal Law, there is a certain amount of death that society accepts and while all death is tragic, we don’t close down the economy for it. No one has suggested banning driving, but on average annually, more than twice the amount of people are killed in car accidents in Israel than have passed away so far from the coronavirus. Got involved in a car accident? Why not try here? Visit a site like https://www.pacificattorneygroup.com/auto-accidents/ to speak with a car accident lawyer for any accident-related claim.
Another episode which points exactly how out of tune, or how un-fearful our government is of its people, is the outcome of the unity government negotiations. In a period where individuals have been required to sacrifice, we will be treated to one of the most bloated coalitions in the world. We are being asked to cut back, and many can’t make their rent payments, and we get 36 ministers and 15 deputies, and an official residence for the “alternate prime minister”!
The juxtaposition of the coalition agreement with the viral video of the Falafel store owner crying as he can’t open his business and is suffering total economic collapse should not be lost on anyone.
Politicians who appear to be addicted to spending, are in heaven. We will see handouts to sectors and special interest groups, with complete disregard of how to pay for them, in the name of saving the economy from bankruptcy. With most forgetting that’s it’s the government that helped create the situation in the first place. You can also find chapter 13 bankruptcy attorneys help to help you out with financial issues.
As I often write, it’s clearer now more than ever, that it’s incumbent on each and every one of us to take care of our own future. Don’t rely on the government for your financial independence. You need to take care of your own financial future. No one else will do it for you.
Here are some tips that can help you become financially independent.
Just do it
Take control of your own pension. If you are going to take control of your retirement savings, you need to create a disciplined approach to your savings. First of all, it’s important to sit down and do a budget. By doing this you can get a clear picture of how much money is coming in versus how much money is going out for expenses. The next step is to speak with a professional financial advisor. They will be able to do a long-term financial plan for you and help determine how much needs to be saved, monthly/annually, at what rate of interest, in order to help you make up that shortfall.
For example, if you invest $15,000 at the age of 25, and add $2,000 a year with a return of 5.5%, at 65 you will have over $413,000.
Starting immediately is of utmost importance.
Get out of debt
There is nothing more antithetical to financial success than having lots of debt. Instead of plowing money into savings, tremendous amounts of money and energy are used keeping lots of balls in the air, to make sure that no interest payment is missed to avoid default and bankruptcy. By consulting the lawyers for debt defense in North Carolina, your financial problems can be sorted out at the initial stage of deficiency itself. Obviously, if you don’t have the money to pay off the initial loan, you won’t have money to pay off successive loans, and it becomes like a black hole. You just get sucked in, and it becomes more and more difficult to escape.
How do you get out of debt? As personal finance guru, Dave Ramsey said, “The math seems to lean more toward paying the highest interest debts first, but what I have learned is that personal finance is 20% head knowledge and 80% behavior. You need some quick wins in order to stay pumped enough to get out of debt completely. When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.”
The government isn’t the answer. Take control of your own financial future.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
The information contained in this article reflects the opinion of the author and not necessarily the opinion of Portfolio Resources Group, Inc. or its affiliates.
Aaron Katsman is author of the book Retirement GPS: How to Navigate Your Way to A Secure Financial Future with Global Investing (McGraw-Hill), and is a licensed financial professional both in the United States and Israel, and helps people who open investment accounts in the United States. Securities are offered through Portfolio Resources Group, Inc. (www.prginc.net). Member FINRA, SIPC, MSRB, FSI. For more information, call (02) 624-0995 visit www.aaronkatsman.com or email aaron@lighthousecapital.co.il.
