"The Depression did not faze my father; he was a fighter.
" "My mother, a compassionate woman, fed several families in the neighborhood although my dad was always on the road.
I was taught to forget the bad things and concentrate on the good," said my good friend and client Sam.
Sam, a spry 90 years old, has had much good in his life including his spouse Pat, to whom he has been married to for almost 71 years.
Although he has said this to me many times over the last few years, he seems to lament the thought these days.
I am sure many of you have been overwhelmed by the chaos and turmoil that has been brought forth through the collapse of trustworthiness in some of our institutions and the loss of material wealth.
"Are we headed into a depression," was a recent headline and article in Investment News.
We may not be headed into a depression however; we are in probably one of the most fascinating and problem solving times in the history of our nation.
We are angry at our politicians, bankers, brokers and generally the over indulgence of those we held to be trustworthy and above the fray.
We did our job and invested our dollars into a basket of diversified assets including our homes only to see these overall assets shrink 30% or more.
We are all feeling a sense of loss.
Maybe the face of greed is finally surfacing and rearing its ugly head around the world.
We have seen the enemy and we will be watching.
But what does this all mean? Is there any good out there to hold our concentration? A lower standard of living We have all had a great ride for many years now and we have seen prosperity.
Who would have thought that everyone would have a cell phone and one much like in the comic Dick Tracy? We have entered a new phase and must be prepared to face the music as we watch what we spend and how we spend it.
We now have to pay down that ridiculous debt we incurred and go back to saving.
As we spend less, we will save more.
The days of using your home equity loan to manage and sustain your lifestyle has ended.
Lower Income and Higher Taxation We have heard the news that unemployment is rising, that those who have a job are losing certain benefits and many who are forced to liquidate assets at a huge discount to pay down debt.
We have also heard that we cannot sustain our state and local governments and all the entitlement programs without a bailout.
With that being said be prepared for higher taxation and lower overall income as we bail ourselves out.
With low interest rates, dividends being slashed by many great companies and banks, retirees will have less income.
Higher income earners will be keeping less with increased taxation.
Support your local charity since it will probably suffer.
Convenience is a luxury Although we may be living currently in a semi-deflationary environment where prices retreat as we have seen in energy, housing and autos, many of the core items we buy have not been going down.
This has in turn driven many to shop at discount retail food stores and outlets.
Many today do not want to pay full price when they can get the item for a better prices somewhere else.
Many in business have also turned to bartering and exchanging their services with others.
We will have to rebuild once again and have to trust financial institutions and advisors to plan ahead.
This will take some time and the faster trust is rebuilt the better decisions we will make for the future of our families.
We will just have to be more selective.
Also be prepared for the future of overall rising prices in the next two years in the form of inflation.
Be sure to get rid of what you really do not need you may have to become a do-it yourself consumer.
The Silver Lining "The owner of the Bank of Italy helped so many people during the depression.
" "He started a campaign so that kids could save and become customers for life and he was everywhere in the city.
" Sam remembers him fondly.
Many stories have been told about this man and how he started the Bank of Italy which today is known as the Bank of America.
He was a true pioneer who saw the best in people and invested in them and their companies.
Maybe we have been negligent in our own indulgence and not cared for those around us.
Maybe we should quit complaining about the cards we have drawn or the situation we have placed ourselves in.
We need to be thankful for what we have, build on it and concentrate on the positive.
We could choose to become a more positive role model.
We also need to take our head out of the sand and face the reality that there are many more years left before we leave this earth.
Communication is the key and depression is the downfall.
Don't get caught up in the media, the silver tongues of our politicians and the pundits and experts on the finance shows.
Do your own research before you hire someone to help you.
Be diligent and believe in America.
As a well known motivational speaker has always said, "To achieve success a plan must be made, sacrifices made and a price to be paid.
" Keep the faith and go forth and be a role model.
God knows we need more of them today! The opinion and views expressed in this article are that of the author and are for general information only.
They are not intended to provide specific advice and recommendations for any individual.