At some point, everyone’s made a decision with the best intentions, only to have things go differently than they planned. Because nobody can predict how the markets will behave, investments can sometimes fall into this category.
We believe individuals should create a financial strategy that’s designed to help them work toward their financial objectives, but at the same time speak to their values, and reflect their risk tolerance and timeline for retirement.
With that being said, we live in a world economy where an economic or political blip on the other side of the globe can impact our financial situation. This can make it difficult for money managers, business leaders and politicians to agree on decisions that will lead to the most positive impact for the greatest number of people.
Inevitably, it seems, someone is left out or disadvantaged. In some other instances, the whole effort is undermined, and the only takeaway are the lessons learned from the shortcomings. For example, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act comprised more than 2,300 pages of comprehensive reform proposals to help safeguard America’s financial system.
However, now six years down the road, much of the law is still not implemented. As of July 2015, only 63 percent of rules had been finalized, while about 20 percent had missed deadlines, the majority of which concern derivatives and mortgage reforms.
One lesson here is that sometimes trying to do too much results in too little. We might do well to create overarching goals but carve out shorter-term and more easily achievable solutions.
Interested in reading more? Here are some articles that may be of interest to you:
[CLICK HERE to read the article, “U.S. Economy Grew at Tepid 1.1% Pace in Spring,” from The Globe and Mail. Aug. 14, 2016.]
[CLICK HERE to read the article, “Five Years After Dood-Frank: Unintended Consequences and Room for Improvement,” from Wharton Public Policy. December 2015.]
Raymond C. Lantz, Jr. is the president and founder of USA Wealth Group, Inc. Ray has many years of experience advising clients in retirement and sophisticated tax planning strategies, multi-family and commercial real estate projects, and legacy planning. Ray is a graduate of Clark University, holds a law degree from Boston College, and a master of laws in taxation from Boston University. You can hear him every Sunday on Money Wise with Ray Lantz on WBSM 1420AM or on the Radio Pup app.