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678 Partners Consumer Finances Blog


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Network Sommelier continues the theme of examining the economy and the state of consumer finances by looking at consumer household debt, consumer savings, assets and liabilities. Until home values stabilize, unfunded pension liabilities are paid and consumers pay back their credit card debt, the US has some way to go(a few years).

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678 Partners Consumer Finances Blog

  1. 1. Consumer Finances Amir Homayoun Rafizadeh the “Network Sommelier” How to reduce income tax's How to reduce estate tax liability Items not covered by Your current advisor
  2. 2. Consumer Balance Sheet <ul><li>A lot of mortgage (credit card and other) debt </li></ul><ul><li>Lots of unfunded pension liabilities </li></ul><ul><li>Home values could drop further </li></ul><ul><li>Need to make the balance sheet healthy again and maintain frequent check ups </li></ul>
  3. 3. Personal Savings Rate <ul><li>Savings rate growing in the right direction but obviously not enough </li></ul><ul><li>A long way to go before reaching the high rate of 70’s and 80’s savings rate </li></ul><ul><li>We have to make savings a regular habit </li></ul>
  4. 4. Household Debt <ul><li>Personal income is currently flat </li></ul><ul><li>More people are saving (or are trying to save) </li></ul><ul><li>More debt is being paid off </li></ul><ul><li>Household debt service ratio is already reaching 2002 levels (also notice where it was back in 80-84 and also 92-94) </li></ul>
  5. 5. New Face of US Economy <ul><li>More people are being forced to save </li></ul><ul><li>We can’t continue to live beyond our means and keep spending </li></ul><ul><li>Budget saving and increase in revenue programs are required simultaneously </li></ul><ul><li>Very tough choices ahead (to get fiscal and monetary discipline back)! </li></ul>