"People ask me all the time, what does the future look like? What should I be worried about from a financial standpoint?"
It’s one of the most frequent—and important—questions I hear as a Certified Financial Planner. Whether it’s from a young family looking to secure their future, a retiree trying to make the most of a lifetime of savings, or a mid-career professional wondering what’s next, the sentiment is the same: we want to feel prepared, even when we know the future is uncertain.
The good news? You can plan for uncertainty. But doing so means being willing to face two major realities I believe every generation—especially the one coming of age now—will need to confront head-on:
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Higher Taxes
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Reduced Government Services
These aren’t speculative fears. These are likely truths baked into the fiscal DNA of our country today—and they carry enormous implications for your financial planning tomorrow.
Humility in the Face of the Unknown
The world is full of black swan events—9/11, the COVID-19 pandemic, the end of the Cold War. Each of these moments sent massive ripples through the economy, culture, and the way we interact with money. Trying to predict the next one? It’s a fool’s errand. But preparing for the consequences of the unknown? That’s smart financial planning.
It starts with humility. We build plans not with a sense of certainty, but with empathy—for you, for your goals, and for the unpredictability of life. Whether it's a career pivot, an unexpected layoff, or an economic downturn, our planning philosophy is to create adaptive, resilient strategies—ones that work even if the road ahead changes.
The Unsustainable Debt Dilemma
Let’s get real. The U.S. has been running a serious tab for decades.
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First, to win the Cold War.
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Then, to bail out the 2008 financial crisis.
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And again, to keep the economy alive during COVID.
Now, we’re waking up to a hangover we can’t sleep off: an unsustainable national debt.
Similar developed nations—many with worse demographic outlooks and slower growth—have already hit walls trying to finance ballooning entitlement programs. Historically, nations have resolved debt crises one of three ways: they inflate the debt away, impose fiscal austerity, or raise taxes.
None of these are pain-free. But if you read thinkers like Niall Ferguson or Ray Dalio, you’ll see the writing on the wall: the bill always comes due.
Reality Check #1: Higher Taxes Are Coming
The tax landscape is likely to change—drastically. Where will new tax revenue come from? I'm not sure. There are a lot of possibilities. It could be:
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Tariffs (a stealth consumption tax)
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Wealth taxes
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New Taxes on financial transactions
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Elimination of tax-deferred rollovers and loopholes
- Reduction or elimination of tax deductions and credits
In other words, expect the unexpected.
And the truth is, even the most efficient tax code updates can’t completely close the gap. Many of today’s tax advantages are likely to erode over the next decade. If you're not planning with this in mind, your future retirement could be less secure than it looks on paper.
Reality Check #2: Fewer Government Services
Social Security. Medicare. Medicaid. Veterans benefits. The defense budget. These programs together make up nearly 80 cents of every dollar in federal spending.
They are also politically untouchable—or so we thought.
Behind the scenes, discussions are underway to reduce, revise, or reform these pillars. While total elimination is highly unlikely (nobody’s cutting Social Security checks to zero), what is likely are:
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Delayed full retirement ages
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Reduced cost-of-living adjustments
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Higher premiums or co-pays for Medicare
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Income-based benefit phaseouts
For baby boomers who entered the system when it was flush, this might not mean much. But for Gen X, Millennials, and Gen Z? These changes could rewrite the rules of retirement. The result: a gap between what people expect to receive and what they'll actually get.
Mixed Signals in Washington
Right now, we’re watching an odd political standoff unfold:
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The President signals a desire to raise taxes and cut up to a trillion dollars in federal spending. Using tariffs and budget cuts via the Department of Government Efficiency (DOGE).
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Meanwhile, Congress appears poised to pass massive tax cuts, betting (perhaps wishfully) that these will unleash economic growth and boost tax revenues in the long term.
So which is it? Higher taxes or lower taxes?
The truth is, both could happen, just at different times and in different ways. But if you want to future-proof your finances, you can’t rely on short term political guesswork. You need to model both scenarios—and prepare for each.
How We Help You Prepare
At Sterling Edge Financial, we believe that good financial planning isn’t just about predicting the future or future returns—it’s about resilience.
We help our clients:
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Model scenarios for reduced Social Security and Medicare
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Forecast tax burden changes under future legislation
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Stress-test retirement plans under strong and weak market cycles and/or conservative benefit and tax assumptions
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Create asset buckets for the unknowns like—career pivots, relocations, or economic shocks
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Visualize outcomes in a way that goes far beyond what any robo-advisor or brokerage platform can deliver
Planning for a world of higher taxes and fewer government services isn’t about doom and gloom—it’s about owning your future. It’s about building confidence in the face of uncertainty.
The Bottom Line
You have more control over your financial future than you think—but only if you're willing to look reality in the face.
It’s not enough to hope that taxes stay low or that Social Security will always be there. You need a plan that works whether those things happen or not. That’s what we do. And we do it with heart, with clarity, and with a deep understanding of what’s at stake.
If you’re ready to model these possibilities, understand your risks, and build a plan that stands the test of time, let’s talk. We’re here to help you navigate the future—no matter what it holds.
Kit Lancaster, CFP®
Founder & Financial Planner
Sterling Edge Financial
kit@sterlingedgefinancial.com
This content is being provided for informational purposes only and should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Diversification and asset allocation strategies do not assure profit or protect against loss. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
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