In economic textbooks, the term 'fiat currency' is loosely defined as 'faith-based currency.
The U.S. dollar is today a fiat currency, meaning that it has no physical backing such as gold or silver. Critics argue that this is a weakness. Fiat, however, sees this as an example of the importance of trust, and even faith, for economic relationships to exist. When a parent gives a child a dollar for school, it is a vote of confidence and faith.
When an individual invests a dollar, they do so because they have faith that the underlying business will succeed. Without some amount of faith in each other, economic relationships both on a large and small scale cannot exist.
Trust is the bedrock of the work at Fiat Wealth Management.
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800 climbers each year attempt to climb the tallest mountain in the world, Mount Everest. Many succeed in doing and that is measured by reaching the top of the mountain. But what most people don’t realize is that descending the mountain is much more treacherous than ascending the mountain. More climbers have perished on the way down the mountain than on the way up, in other words, those who perished on the descent of the mountain did “climb” Mount Everest.
Most when climbing anything in life often don’t plan for the way down. Think of yourself as a child climbing a tree, you were so excited to reach the top, but then that moment was interrupted by the thought of “How am I going to get down?” At Fiat Wealth Management, we use this climbing analogy to explain Accumulation of Assets vs. Distribution of Assets. In other words, climbing the mountain of life is accumulation, reaching the top is retirement, the celebration! You’ve made it!
But not many consider the fact of......... well now how to get safely down? I would argue that the descent (retirement) is more dangerous than the ascent (accumulation). The decent plan or event the path you take is much different than the ascent. There are many more pitfalls or tripwires down the mountain than on the way up! You’ve accomplished what most right now are dreaming of, don’t let the descent get in your way of a successful retirement...... instead set yourself up for success in retirement.
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Fiat Wealth Management, LLC is registered as an investment advisor with the SEC and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the advisor has achieved a specific level of skill or ability. The firm is not engaged in the practice of law or accounting.