The advice of this War Chest Blog is to do everything you can to build a defensive level of wealth and recognize the increasingly bitter economic, political and legal (constitutional) war going on around us. Working class people are really, really pissed off. Their distrust of our institutions (corporations, unions, political parties, special interest groups and government) is exploding.
The angriest and most pessimistic people in America used to be called the Middle Class (middle aged/not rich/not poor). But the Great Recession destroyed that demographic. Now, there are just three classes: The elite wealthy, the mass affluent and the mass poor (which includes all those ticked off working people with no savings). The growing mistrust and anger has resulted in a revolt in both political parties, especially with the Republicans and Donald Trump.
The impact on you (my Mass Affluent flock of clients, friends and family) is a potential threat to financial security. The tax, legal and economic environments are metamorphosing. As Mario Loyola put it in a 1/21/16 NRO article: “Working class people feel they’re getting screwed from every direction; corporations, lazy people on welfare, criminals who have learned to play the victim, illegal immigrants, foreign governments, and of course politicians.” David Frum’s article The Great Republican Revolt in the Jan/Feb 2016 issue of The Atlantic documents the recent fracturing of the GOP along class lines. The public’s trust of Government is now at an astoundingly historic low:
It’s a cause of concern. However, if you’re lucky and have been virtuously responsible – saved for college/retirement, built an emergency fund and are able to stay in the Mass Affluent demographic ($100,000 to $1 million in financial assets)….you’re going to be just fine. Hunker down, execute your legal documents, make sure your fully insured and protect the wealth your fortunate to have by locking it down securely in your Estate Planning War Chest.