Bill Tatro

Do we ever accept responsibility for our own actions?  It would seem in today’s society, the answer is no. 

When I was a kid, we used to play ball in the backyard, that’s football, basketball, and baseball. 

The first two sports, football and basketball, created no problems, but baseball could be an issue when you pulled a pitch down the left field line. 

Mr. Scott’s house was in the way, more specifically, his second floor picture window.  One particular day, my hit and the window happened to collide, and it wasn’t very good for the window. 

My dad heard the noise as we kids scattered.  He marched me over to see Mr. Scott, to both apologize and tell him how I alone would pay for the window. 

It was a long process of payback and punishment. 

However, I learned it was my fault, and my responsibility.  I couldn’t put the blame someplace else. 

Today, that attitude seems to be passé. 

For years, we’ve learned through financial planning to consider withdrawing for retirement from your assets at a 5% to 6% rate. 

At this level, historically, things should be okay.  Unfortunately, given Mr. Bernanke’s artificially contrived low interest rates, a 5% to 6% rate seems difficult when all your money is sitting in a CD, savings account, or money market. 

However, there seems to be a large majority of people that will not adjust their rate of withdrawal in order to account for the reality of short-tem interest rates. 

They want the liquidity and safety that a savings account provides, but refuse to accept the low interest-rate reality. 

When other alternatives, such as guarantees and investments non-correlated to the market are suggested to meet those cash demands, these same people find excuses not to participate. 

Regrettably, many people continue to withdraw and spend at a rate not able to be achieved. 

So, what happens?  It’s simple. 

They erode their principal, and ultimately run out of money. 

When asked during this withdrawal period to cut back on spending, the usual response is akin to the temper tantrum of a young child:

“But, I waaaaaant it, it’s my money!”  Or, “I’ll deal with it later.” 

Finally, the classic, “I have to maintain my lifestyle.” 

Most people, when confronted with erosion of capital, are stunned and want to blame society, the bankers, the broker, or even their spouse, but never themselves. 

Bill Tatro

Along with his 40-years of dedication in the financial services industry, Bill is the President and CEO of GPSforLife, has recently authored a highly successful book entitled 44th: A Presidential Conspiracy, publishes his dynamic monthly financial newsletter MacroProfit, and faithfully continues his third decade on the radio with It’s All About Money, which can be heard weekdays on Money Radio in Phoenix and in podcast form on his website (and on smartphone apps) published at weekdays at 5pm Eastern. Bill can be reached via email at and on Twitter @tatroshow.