Understanding Negotiating Strategies & Tariffs, Trade War & Interest Rates & Funds Upon Retirement

The US negotiating strategy when it comes to tariffs started as a valid game theory strategy to achieve fairer terms of trade with our trading partners. However, the current policy seems to have deviated from the optimal strategy into a territory where the optimal strategy for our trading partner is to continue to escalate tariffs in retaliation to the US policy of competition, rather than cooperation. Taken to its logical end this could lead to tariff rates so high that they don’t just raise prices but effectively put a ban on foreign imports.

The recent increase in US bond yields may be a signal that US trading partners are selling US government bonds in response to the trade war. This could lead to a scenario where the US economy enters a recession due to supply chain disruptions, while at the same time interest rates increase rather than decrease as they do in recessions, making it more challenging for the economy to return to growth.

Target date retirement funds are sold as an easy retirement accumulation vehicle that takes very little thought or monitoring. However, while these funds can be somewhat effective during the retirement accumulation phase,their generic asset allocations often are not a good fit for savers or retirees who do not fit the cookie cutter assumptions that were used in creating the target date funds.

Plus, a look at the Planned Solutions Incorporated Office Bulletin Board -

It is important to remember that investment strategies involve altering investment risk in different market environments to preserve capital during difficult markets. For example, the trend following risk management model used by Planned Solutions is an investment strategy designed to reduce risk when the market enters a negative trend to preserve capital and have proceeds available to buy at more attractive prices should the market decline continue.

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Please seek the advice of a qualified financial planner before taking any action Chase Armer's book- Financial Planning Insights is now available at: ⁠⁠⁠https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠

⁠Intro 00:00

Negotiating Strategies and Tariffs 01:07

Trade War and Interest Rates 13:01

Target Date Funds Upon Retirement 20:35

Bulletin Board 27:17

Planned Solutions, Inc.