“You have about 3 years to prepare.” — Ray Dalio
In a recent video, billionaire investor and Bridgewater founder Ray Dalio warned that the U.S. is on a dangerous fiscal path—one that could lead not just to a recession, but to the breakdown of the entire monetary order.
📉 According to Dalio:
- The U.S. deficit now sits at 7.2% of GDP.
- To stabilize, it must drop to around 3%.
- Without this shift, we’re looking at a supply-demand breakdown for U.S. debt—a signal for rising interest rates, inflation, and a potential crisis of confidence in the dollar.
He’s not alone in sounding the alarm. A recent Penn Wharton study concluded that if the U.S. doesn’t course-correct by 2040, no mix of tax increases or spending cuts will be enough to prevent a financial collapse.
The implications?
🇺🇸 America may need historic infusions of capital—on par with or exceeding the Great Depression—to avoid collapse.
📈 Tax rates could surge. During WWII, the top marginal tax rate hit 94%. In the 1970s, it hovered around 89%. We may see echoes of that past if spending continues unchecked.
💼 If most of your retirement savings are in 401(k)s or IRAs, you’re on the hook. These are tax-deferred accounts—not tax-free.
You don’t control the tax rate at withdrawal. Washington does.
But here’s the good news…
We’re still in a window of historically low tax rates, likely to extend through 2025, and possibly another 8 years if current proposals go through.
That makes now the time to explore smart strategies:
- Diversifying into tax-free vehicles
- Reducing your future tax exposure
- Creating a retirement plan that thrives even if taxes double
As Dalio says, “If you understand history, you understand the future.”
The warnings are clear. The writing is on the wall. Now is the time to act—not out of fear, but out of foresight.
🧭 If you’re unsure where to begin or want to understand what the wealthy are already doing to reposition, take a look at Kai-Zen—a powerful leveraged strategy that helps high-income earners and business owners grow tax-advantaged wealth while protecting their families.
Let’s future-proof your plan—before tax rates rise.
Jim Barlow, MS, The Alchemist of Leverage
OakTree Strategic Leverage -Smarter Leverage. Greater Outcomes.
A Legacy Business- sharing wisdom, helping others, staying sharp.
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