I keep on reading that our country is headed toward a “Fiscal Cliff.”
What’s THAT all about?
Bloomberg’s Richard Rubin had an excellent story recently on what Congress will or won’t do regarding the ”fiscal cliff” we’re all facing come next year. That’s when income tax rates, the estate tax, payroll tax, taxes on dividends and capital gains, and other levies are all scheduled to rise, unless Congress acts.
Bottom line: Don’t expect any action from Washington until after the November election. However, if you have money you want to gift to your children or grandchildren tax-free, this is a terrific opportunity to do so because the limits until Dec. 31 are $10 million for a couple.
That’s very likely to go down next year. It’s not a bad idea to revisit some tax planning to see if any income or capital gains should be accelerated into this year.
Here’s a link to the full story: http://www.bloomberg.com/news/2012-06-18/fiscal-cliff-road-paved-by-those-who-took-u-s-to-brink.html
After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler
It’s the perfect time to spend a few hours and evaluate the family budget and monthly expenses. This week on MSN, they published a helpful list of 29 ways we waste cash in our everyday routines.
I read the list and realized I could “refine” my habits and evaluate our cable bill, cell phone bill and the hefty amount of unused minutes piling up, pulling cash from ATMs, and lack of planning for big purchases (the disorganized part). The changes I want to make aren’t extravagant, but small “refining” points that can make a bigger impact overall and enhance the long term financial plan we’ve set for ourselves.
Can you make a few “refinements” in your life? What would they be? Also, don’t forget to check out the Edmunds Premium Fuel required vs. Premium Fuel recommended list MSN references in the article, you may find something out you didn’t know.
But nothing was coming to me, and so I decided to shelve it for awhile, and do something to stir my creative juices. I grabbed my camera, and headed into Seattle to meander around the streets, hoping to capture a little energy from that rainy city. As luck would have it, after a week of constant rain, and another one on the docket, the rain stayed away, at least for a couple of hours. Picking up where Julie left off on her blog this week, I decided to head to you know where . . .
Pike Place Market
- Some scenes along the way
Here is a musical trio playing outside the first Starbucks coffeehouse, with a line of patrons out the door, waiting to get a cup of their favorite blend . . .
After ignoring Wall Street, let’s get on with our life one blog at a time … by Julie Klingler
Summer has officially arrived and with that comes our local farmers market. Fresh fruits and vegetables, farm fresh eggs, and a few local catering trucks selling babaganoosh and pulled pork sandwiches can make a true event out of any weeknight dinner.
It’s time to get out and experience your local cuisine. Find out where your farmers do their best work and what their true specialty is.
Besides saving money, you can find some pretty healthy options and peace of mind as you discover where your food is coming from. Enjoy the season, get outdoors, and experience your next meal made by the local farmer.
On Thursday I glanced at a newsstand headline blaring something like, “Spain’s Bonds Sink Stocks.”
It reminded me of a similar headline I caught about fourteen years ago proclaiming “Russian Economy Sinks Stocks.”
I remember that specific headline, because I included it in the preface of the first edition of my book, The Coffeehouse Investor.
If it isn’t Russia, it’s Spain, and if it isn’t Spain, ten years down the road it will be some other country that sinks the stock market like Mexico, or Japan, or maybe even the United States.
Who knows.
Who cares.
It is hard to ignore the financial crisis of individual countries, especially when these same countries seem to have a significant impact on our domestic markets, and ultimately, our portfolios
Whenever I start feeling a little antsy about the financial and economic affairs of individual countries around the world, and how it might affect my portfolio, I practice a little bit of “Thought Control.”
In this instance, I force myself to repeat the words, “Ten Years Out.”
“Ten Years Out” means I am (almost) certain that ten years from now the stock market is going to be significantly higher than it is today. My goal is NOT to try to navigate the monthly or quarterly swings in the market. It is to capture the returns generated by the market over the next ten years. The only way I am going to accomplish that is by staying invested for the duration of the ten years with the dollars I have allocated to the stock market.
Foreign stocks might in fact present a decent investment right now.
No, not over the next month, but ten years out.
How do YOU stay committed to your asset allocation amid the wild stock market swings?