Time to rethink everything including your personal financial plan.

According to family legend, my grandparents did not lose money in the stock market crash, they did not lose their farm land, however, they did lose all the money they had in the local bank.  That was not uncommon during the Great Depression.  During the first ten months of the 1930, there were 744 bank failures.  For the entire decade, about 9,000 banks failed.  It was a primary reason for the formation of FDIC.  Today, bank depositors take FDIC Insurance for granted, but it was important legislation that came out of the 1930s.  

In fact, as part of the New Deal in the first few years of Franklin Roosevelt's Presidency, there was a variety legislation enacted to to help recover from the Depression.  Following are a few:  

• WPA which employed thousands and to build roads, bridges, parks, airports and various buildings.
• CCC which was to conserve natural resources and provide jobs.  In addition to planting over 3 billion trees, the CCC built roads, bridges, trails and shelters in over 800 parks.  Much of the outdoors we enjoy today came from the CCC.
• The SEC was developed to regulate the securities trade protecting investors from illegal activities, fraud and requiring financial disclosure and transparency from companies.  
• SSA was established in 1935 to provide a minimal retirement income for workers 65 and older.
  • Note:  I purposely just used the acronyms for these programs.  If you do not recognize, I would suggest "googling" them and then look for independent academic sources of information. 

Regarding the stock market, many would be surprised to learn that after the crash of 1929, the market continued to decline another -61% from 1930-1932.  However, the stock market recovered and actually gained about 200% from 1933-1936.  It declined in 1937 and then increased again in 1938 and was flat  in 1939.  Overall, for the decade there was a very slight gain compared to the decade of 2000-2009 when there was a decline of -10%.

The Great Depression was devastating for thousands of families.  Many, like my grandparents, lost their money they had in banks.  Others lost farms and businesses.  The Great Depression also inspired a new way of looking at things and the development of federal programs to both protect and provide opportunity Americans. 

Today we are in a new normal and I would suggest we need to rethink everything on a National and social basis.  Everything you believe should be up for thoughtful and intelligent discussion using independent academic sources of information as a basis for the conversation.  
  
On a personal basis, I would suggest everyone review their long term planning with qualified independent financial planner.  In doing so, it is important to understand the difference between a financial advisor and an independent financial planner who is a Certified Financial Planner® [CFP®] and fee-only.  

This link has some financial planning questions you should be asking yourself.  

I may be wrong, but I suspect there is  a whole lot change coming between tomorrow and the 10-20 years. Talking with an independent qualified financial planning professional may cost you a few dollars today, but may also increase your financial security for years to come.  

*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets.