Friday, June 21, 2013
As summer begins, I find myself in the fortunate position of having already completed two of my three financial goals for 2013. My mortgage balance is now below $40K, and my accrued yearly pension (payable at age 57) now exceeds $18,000. Unfortunately, I also find that my pension plan is in the process of being terminated. This means I will no longer accrue any additional money, and depending on the financial factors used in the structuring of the payout, the result may be more or less favorable than expected.
I expect the markets to experience rough sailing during the second half of 2013. Valuations in all asset classes are stretched, and there are huge structural imbalances in our global financial system. These problems are lurking in areas where most people are not looking, so there is the potential for nasty surprises. Nonetheless, I shall endeavor to continue to make rational decisions based upon a long term perspective.
But for now, it is time for both relaxation and contemplation via a much needed vacation.