A Chilling Disparity

Happy Valentines everyone!!!

Weather plays a big part in the enjoyment we receive from our sailing experience on any given day. It also impacts our pre departure navigational choices given wind, tide, temperature, etc.

All the weather factors will contribute to that masterfully contemplated and loving plotted course on the navigational chart.

As we carefully and lovingly plot our own pre departure financial journey, we must also look to the weather. Many of our hopes and dreams are waiting for us and depend on our successful navigation.

Interest rates act like a weather condition. If interest rates are falling (like they have been since 1982 until late 2008 / early 2009), it is like we have calm waters and the wind at our backs.

Now that we are sailing into rising interest rates, we will no longer have the winds at our backs nor extended periods of mild weather.

“It is like we have sailed into a change of seasons.”

Our financial world has four seasons. The difference being that each season is about 20 – 25 years long and an entire year takes about 80 years to complete, roughly the length of one life time.

Our captain believes that financially we have just left “Fall” and are sailing into “Winter”.

Having had a chance to talk to some of the passengers over the weekend, it appears that many believe financially we are in the middle of summer with many beautiful days ahead.

This is a chilling disparity.