Maybe its time for us to look at the problem as an opportunity and to capitalize on the uncertainty that’s inherent and that’s probably never going away.
-D. Scott Bloom, CFP
CERTIFIED FINANCIAL PLANNER™
 Here’s what you can do about the “Fiscal Cliff”:
Nothing. You are powerless in the hysteria of the so-called “Fiscal Cliff”, the media’s catchphrase du jour ever so reminiscent of Y2K, H1N1, Avian, SARS, etc, etc. So what will happen when we go off the cliff on January 1? Nothing, absolutely nothing is going to happen except Rose Parade, football and guacamole. Conversely, we have already paid growth penalties in the form of uncertainty and frozen capital; the markets are discounted accordingly. In 2013 we will see economic hindrance passed downward to the end user, call these affects “trickle-down taxes” and they are on top of any other tax consequences being erroneously touted as economic stimulus by the current admin. What you CAN do, however, is prevent your own fiscal cliff (ditch, ledge or curb). You do this by learning from an inefficient and non-cooperative government. Heed the lessons of basic accounting: cash inflows must exceed cash outflows. Run your household and business like a going concern and manage it sensibly. Make spending cuts on things you can do without and fight like the dickens to capitalize on any and all tax strategies you can justify. Getting caught up in the nuances of “Fiscal Cliff” or any other fear of the day is a waste of time. But recognizing that the “cliff” is just like Y2K and SARS (ie: nothing perilous is going to happen to you) is helpful for our collective piece of mind this Holiday season. You are the kings and queens of your own kingdoms. Act accordingly. -D. Scott Bloom, CFP CERTIFIED FINANCIAL PLANNER™ LPL FINANCIAL Member FINRA/SIPC The opinions voiced in this material are for general information purposes only and not intended to provide specific investment advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.  Americans (and Brits) can’t stop talking about America’s “problems”. The key problems I see American’s having today are a short term vision backed by a short term memory.
“Be fearful when others are greedy, and be greedy when others are fearful.” - Warren Buffet, New York Times October 16, 2008 Many people will ignore this wise man's credo in favor of hysteria and hype. Conditions like these are what give us the incentive to take chances on a new business and/or make investments. I can't tell you how far we are from the "bottom" or if we’ve even hit it yet. What I can tell is that we are not at the “top” and it’s that “spread” (ie: the difference between full strength and where we are today) that is equal to the relative opportunity. Contact me to explore this wisdom in practical terms. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor before investing. All performance referenced is historical and is no guarantee of future results. Securities offered through LPL Financial, Member FINRA/ SIPC  I view the economic recovery, the capital markets and our long term investment strategies as a marathon, or in racing terms, “a long-distance endurance race” So, when I see this economic recovery (growth) slowing I am encouraged by this for our long term goal. When things like manufacturing, employment and over-all economic growth slow (but not go in reverse-ie decline), it’s like backing off the throttle to save the engine and preserve the equipment for our true long term goal. How realistic would it be if we had all green lights and full speed, full throttle reading on all economic fronts? That would concern me a great deal. Think of a runner in a marathon. If the runner is sprinting all the way through the first quarter or third of the race, you know what happens next right? It may seem very silly to some, but let’s think of the tortoise and the hare. Can we really apply this “knowledge” to our long term goals? Many people would rather see the very strongest real estate, employment and manufacturing growth possible. But lets ask ourselves how sustainable that would be? Contact me to discuss this further. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor before investing. All performance referenced is historical and is no guarantee of future results. Securities offered through LPL Financial, Member FINRA/ SIPC |
D. Scott Bloom, CFP®
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