True Diversification, Balance, and Hard Work

This last month has been a whirlwind of emotions: excitement, anticipation, disappointment and relief. I hope you are healthy and happy, and like me, somewhat relieved to at least know what to plan for in the future again.  Since I try to not wax political, and to address the issues that result one way or the other, I will simply tell you 1) I’m glad the election is over, with its barrage of advertisements, constant noise, and negativity 2) I’m sad that entitlements and expensive propositions won the day and that taxes will be increasing significantly for all of us, and 3) As a country, we have a lot of challenging times ahead of us. Lest you think I have given up hope, I have not and am convinced that we must get to work and make sure that our elected officials know that we expect hard work, cooperation and results, now that the hoopla is over. The fiscal crisis is looming in the near horizon. I think there is a slim possibility that some actions might be proposed and taken to reduce its full impact that will hit us in 2013, but that most of the real decisions and work will take well into next year to complete. (This time they need to finally create a budget and address the issues for real, and not just apply short-term financial bandaids, postponing the hard decisions until the next crisis.)

Between now and the end of the year, I will post additional up-to-date summaries of financial and tax ideas for your digestion and benefit. Suffice it to say that those who are the “rich” amongst us will be paying heavily federally and more now for California income taxes. Not a happy comment, but true nevertheless. This means that effective tax planning and strategic retirement cash flow planning are more important than ever. Additionally, the market has already responded to this reality with a significant decline in values, losing over 3% of its value in two days after the elections. True diversification, balance and hard work are required to protect capital at this time. Always remember the simple saying, “this too shall pass” when times are tough, and bask in the good and happy times when you are privileged to have them. Life is a combination of peaks and valleys, and the secret is to be temperate, calm and learn to enjoy the journey regardless of the altitude!

There is a lot going on this time of year, not to mention the most important thing this month, which is Thanksgiving. When I start feeling a little down about the economy, taxes, politicians or market corrections, I simply give thanks and think about the most important things in life, which are family, friends, clients and all important relationships, good health, my belief in a Creator who has it all in hand, and hope for a better future. We are truly blessed to be here, in spite of the challenges we face. Living here still beats by a long ways anywhere else, in my humble opinion. I am very grateful for my clients' friendship, kindness, loyalty, trust, and business that allows me to keep serving and helping others with everything financial and retirement oriented.

This is a personal blog and is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal or financial planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer or financial professional.