Dear Towerpoint,

A decade ago this month one of the biggest financial failures in history occurred, when Lehman Brothers collapsedputting a stamp on the 2007-2008 global financial crisis, which many economists believe to have been the worst since the Great Depression.

As virtually all Americans are aware, the root cause of the '07-'08 crisis was the housing bubble. Yet today, ten years later, the U.S. economy is humming along, and we are in the throes of the second longest economic expansion in history:

SOURCE     Note: Data in chart is through 4.30.2018 - current U.S. expansion is now 112 months long.

Typically, and importantly, economic expansions do not die of old age - Australia's economy has been growing for a world record 26 years - something specific usually kills them. While many economists feel our current expansion is aging "gracefully," economic problems can creep up quickly, begging the question: What could bring about the end of our current period of economic growth?

U.S. student debt, which has more than doubled since the '07-'08 financial crisis, is currently $1.5 trillion. Some believe that fast-growing pockets of debt like this could present a potential economic problem area:

While it is debatable whether the U.S. student debt market could spark a new financial crisis (the student loan market is much smaller than the mortgage market, and the main student loan lender is the federal government, meaning that a surge of defaults would barely touch the banking system), in our opinion what is not debatable is the importance of being disciplined enough to prepare a plan for dealing with the next economic and market downturn, not if, but when, it occurs. At Towerpoint Wealth, we recognize and respect the fact that we cannot direct the wind, but fortunately, we embrace the fact that we always have the ability to work with our clients to adjust the sails, independent of economic, political, or market conditions.

The winds of the 24/7 news cycle have also blown strongly over the past two weeks, which once again has been in high gear:

Specific to our more local news, we encourage you to follow Towerpoint Wealth on Facebook by clicking HERE, as our page continues to be very active with entertaining and educational posts, information, and photos.

Lastly, we encourage you to take three or four minutes to review the curated content found below, highlighted by:

  • Towerpoint Wealth's sponsorship of the Sierra Sacramento Valley Medical Society's Joy of Medicine summit at Arden Hills Club & Spa
  • A few expert guests joined us for our most recent Investment Committee meeting
  • Possible changes being proposed to Individual Retirement Account (IRA) rules

The world remains a complicated place, and we encourage you to call (916-405-9140), email (, or Tweet (@twrpointwealth) with any concerns, questions, or needs you have. We continue to be here for you, and look forward to connecting with, helping, and being a direct, fully independent, and no-strings-attached expert financial resource for each of you.

- Joseph and the Towerpoint Wealth team

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