Defense and Debt: Will You Lose?

Here’s a startling fact: the U.S. now spends more on interest payments for its national debt than it does on national defense. While it may seem distant from your day-to-day concerns, this imbalance could have direct effects on how much income you get to keep, while working and especially during retirement.

As the government spends more on servicing its debt, it will likely look for new revenue streams—often in the form of higher taxes and reduced benefits. For retirees, this could mean less money in your pocket when you need it most. There’s also the risk of inflation, which could devalue your savings, making it harder to maintain your lifestyle.

So, how might you defend against this scenario?

• Review your retirement plan. Will you be too reliant on fixed-income investments that would not keep up with debt-driven inflation?
• Plan for taxes. With potential tax hikes on the horizon–even beyond the sunsetting Tax Cuts and Jobs Act at the end of next year–it’s crucial to work with your financial advisor on strategies that reduce your tax burden in retirement.
• Plan for the long haul. Dignity-driven income should be the cornerstone of your retirement strategy. It’s not just about having enough money—it’s about having the right kind of money that lasts.
• Exercise your power while you have it. Update your retirement and estate plans now before rising taxes, lower estate tax exemption limits and inflation bite harder.

Waiting to see how the national debt plays out is not a strategy.?

Now is the best time to refinance your retirement income. Delay shortens your window of opportunity and favors the IRS.

Let’s take action together—schedule a quick phone call today to explore how you can safeguard your retirement from these uncertainties. Don't wait until it's too late. You’ve worked too hard to let taxes and inflation take the wheel.