Don’t believe it if someone tells you that there are no right or wrong answers with respect to your finances – there are. Making the right decisions with your money can make the difference between resting comfortably at night and worrying every day about your financial situation.
“Almost no one likes to pay taxes. But it seems that most people are mis-informed about just how high taxes are today,” states Dr. Tim Connor, President of Connor Wealth Management. Over 80% of those who took the Financial IQ Test believed that during the “good old days” of the Eisenhower administrations in the 1950s, taxes were lower than they are today. But the fact is that the top income tax rate in those days was 90% !!! The top federal bracket didn’t actually dip below 50% until the late 1980’s.
Today the top federal rate is 35%. Who knows where taxes are headed in the next few years, says Dr. Connor, but he says that for his own retirement, he is planning for a higher-than-today tax climate.”
We are experiencing one of the worst economic downturns in years. Unemployment in the double digits, stock market drops in the double digits, the number of home foreclosures is staggering, and everyone is confused as to what actions they should and should not take. The economic landscape has changed and has opened up all kinds of questions about things that used to seem so certain: Are your savings safe? Should your retirement fund be invested in the stock market? Will you be able to afford your child’s college tuition? How will you pay your bills if you’ve been laid off?
Financial decisions should be based on what economic beliefs you have about the past, the present, and the future. Will taxes go up or down? How high can they go? How high have they been? Will we experience inflation? How much? This test helps one to understand the past …..