This year is shaping up to be an astounding one. We will go to the polls to elect a president. Whoever wins, the American people will still face a multitude of financial dilemmas.
The world's other major economies are facing enormous stress as well. The European Union may not survive the year. China will start to deal with inflation, demographics and the severe poverty of its people. Japan will begin its third "Lost Decade."
We must ask our clients these questions to help them make financial decisions:
- Will the world's stock markets be safe or perilous?
- Will we have deflation, inflation or both?
- How will higher taxes impact your investments?
- Will lower benefits mean that you will have a lower standard of living?
- Will you outlive your income?
When we ask clients these questions, it is important to have information available to help guide the discussion and to help them formulate an informed answer. I understand that it is difficult to keep up with the 24-hour news cycle. But it is vital for several reasons.
First, to make beneficial financial recommendations, we must use our ability to take information and data and turn it into knowledge and wisdom.
Second, to operate at our highest levels as financial professionals, we must be confident that our information is current and broadly sourced.
Here are some websites you can use as the foundation of your knowledge and wisdom. They will become valuable assets to your practice.
The U.S. Debt Clock: www.usdebtclock.org
Abundant information concerning financial numbers important to our nation. It even shows what those numbers will be in 2015 without change.
Institute for Truth in Accounting: www.truthinaccounting.org
More emphasis on state finances, and hundreds of articles about all fiscal issues.
Congressional Budget Office: www.cbo.gov
Provides statistical analysis of bills sent to Congress.
U.S. Government Accountability Office: www.gao.gov
Measures impact of legislation after enactment. Recent audits show deficits are higher than declared by administrations. A current audit of the Federal Reserve uncovered trillions, not billions, were loaned to banks, companies and countries in 2008.
