Peak Oil – the maximum sustainable rate of global oil production – happened in 2012. That’s one of the main conclusions of a new report, Fossil and Nuclear Fuels – The Supply Outlook, released in March 2013 by the Energy Watch Group (EWG). This event will have profound long-term implications for how advisors should manage clients’ portfolios, and how clients should plan their future expenses.
A clear awareness of a client’s resources is essential before developing a forward-looking strategy. Our national conversation around energy has become one of anticipated abundance, despite many who express concerns about limits. Yet all advisors have worked with people who seem prosperous, only to discover that they are living beyond their means. When financial advisors begin working with clients, one of the first tasks is creating an honest balance sheet. We must understand a client’s resources before developing a forward-looking strategy. That understanding is what EWG attempts to provide for America and the whole world in this report.
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