Navigating Financial Waters Navigating Financial Waters (By Mitch Mortensen) Recently, I had the opportunity to float part of the Colorado river. Seeing the canyon from the river’s perspective, allowed me to witness beautiful sights not visible from above. While admiring the beauty, I couldn’t help but think about the dangers that lurk within those magnificent canyon walls. Most dangers seem obvious, such as rushing water, huge rapids, and jagged canyon walls. But, other dangers remain unseen such as under currents, whirlpools, extreme temperatures, and submerged boulders. Each year, over twenty thousand people make it through the canyon safely with the help of the right equipment and expert guides that know where the hidden dangers are and how to avoid them. Similar to floating the Colorado, the financial world carries a variety of risks and pitfalls. Some of them are obvious, but like the river, many remain hidden. Inflation: Inflation in the US historically floats between 2% and 3% per year on average. That means that our dollar loses 2% to 3% of its value each year, as the cost of the goods we buy goes up. Many Americans don’t realize the danger of the loss of buying power of their hard earned dollar, and are content with no or very low interest rates that don’t even keep up with inflation. The cash beneath the mattress, may not be safe after all. Outliving Your Money: This may seem silly at first, but due to advances in health care, medicine, and healthier lifestyles, it is becoming increasingly common for retirees to live decades longer than they expect to and if they don’t plan accordingly, could run out of money. Unsuitable Investments: There are many factors that determine which investments you should have. Variables such as your age, health, and income needs should all be considered. Even a portfolio that is too conservative can prevent you from achieving your retirement goals. These factors continually change and what worked well yesterday, isn’t necessarily suitable for you today. Mitch is an investment advisor for Heaton Financial, PC. Contact Mitch to schedule a FREE financial risk analysis 435-272-4362 This article was published in the Senior Sampler of Saint George on October 14, 2016. Click Here for a link to the actual article.