Freedom Financial helps retirees face up to what lies ahead economically in 2023 & beyond.

Freedom Financial offers Revenue Sourcing to help retirees prepare for todays unique economic environment.

The Federal Reserve has painted itself into the proverbial corner regarding its economic policy, leaving room for two basic choices in 2023, both bad. For people approaching retirement with considerable assets in their 401k, IRA, or savings account and wishing to maintain a stress-free lifestyle in retirement, it is critically important to understand these two outcomes. Even more, they need to be familiar with the unique investing climates that will emerge in each case. Freedom Financial details how the Federal Reserve got here and the two available choices that retirees must face in 2023 and beyond.

Since the 2008 financial crisis, the Federal Reserve began reducing interest rates until they reached zero to try and save the economy from collapsing by expanding the money supply through cheap loans and business investment. Predictably, this didn’t work as intended, so the Federal Reserve introduced a new ‘temporary’ program called quantitative easing. This had the Fed printing new currency out of thin air, at which point the program got out of control, becoming the government and central bank’s favorite new tool to prop up the economy. All this created an illusion of prosperity known as the everything bubble by artificially inflating stocks and housing prices during the pandemic.

Over 40% of all money ever printed in US history occurred over a 24-month period. The reality is these easy money policies supported by the Fed over the last 14 years have only masked the growing symptoms of excess debt, which has risen to more than 300 trillion dollars since the 2008 financial crisis. Herein lies a new problem, inflation, a phenomenon created by massive currency creation has destroyed the US dollar’s purchasing power and negatively affects every American’s lifestyle.

Option One for 2023: Deflation

In 2021 and 2022, inflation raged, which led the Federal Reserve to begin increasing interest rates in a bid to decrease inflation to its target rate of 2%. At the same time, the Fed started tightening it’s balance sheet and slowed the printing presses. The Fed’s first option for 2023 is to continue down this same path of raising interest rates to further tame inflation; however, this will result in an economic slowdown in 2023. A devastating downturn will lead to increased loan defaults across sectors, culminating in deflation.

Freedom Financial explains that deflation can get ugly since it decreases asset values for stocks, bonds, and homes. If the Fed upholds its current policy, deflation will inevitably occur and lower stock prices and home values.

Option Two for 2023: Inflation

The second option for the Fed is to reverse course and revert to easy money policies. This would stimulate and potentially temporarily save the economy by re-inflating the bubble. The reduced interest rates would encourage borrowing, and the Fed could once again engage in quantitative easing or currency creation from thin air. This would further feed inflation and possibly create stagflation.

How can retirees protect their financial independence?

With two unfavorable options available, inflation followed by deflation, retirees are staring at a desperate situation that threatens the financial future they have worked for all their lives. Freedom Financial has designed a Revenue Sourcing planning process to help retirees prepare for what lies ahead economically and in the investing markets.  Freedom Financial is committed to helping retirees protect their financial independence and achieve a comfortable, stress free retirement during these unprecedented times. 

For more information on the Revenue Sourcing planning process, visit Freedom Financial.

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Company Name: Freedom Financial
Contact Person: Darrin Worthington
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Phone: 720-459-1680
Country: United States