Permanent Value

A Time of Transition

Bruce Doole
October 11th, 2010


When October comes around in even numbered years that means one thing… November elections are around the corner.  Exercising our duty as citizens to elect our representatives brings out the best in us and is one of the key freedoms we enjoy as Americans.   While this isn’t a presidential election with the increase in media coverage that goes with it, there is a lot on the line for how our country and economy are going to fare for the next few years.   It is a referendum on how the new administration is guiding our economy as well as the effectiveness Congress has had in allocating our hard-earned taxpayer dollars.   It is our job as your financial advisors to make sure we keep up on the law changes in the tax codes and financial system.   We can thus make recommendations that will save you money based on these changes so that you can put more of your money towards the goals that are most important to you.


These are the major new federal law changes that have taken place during the past few months and that will continue to phase in over the next couple of years.   We have gone into depth about healthcare in previous letters and the financial reforms that mainly affect large financial companies, so we will focus more on the tax law changes that will occur come January 1st.  The most notable change will come from the phase out of tax cuts from 2000, which are scheduled to expire in 2011.  This includes both income tax and estate tax (which this year is waived but will go up significantly in 2011).    So your question to us might be: “how do you stay up on all these changes and make the best recommendations for me?”  The answer is that we know how to identify the issues that need addressing and then we rely on tax, legal and healthcare experts to help us analyze your situation and make recommendations that best fit your financial situation.   We are the coordinator or financial quarterback to organize and direct what needs to be done.  You are the coach who helps set the strategy and then we make sure it gets done as efficiently and effectively as possible. 


As anyone who has watched a team sport knows, a game lasts only a few hours but the pre-planning that goes into it takes hours and days to construct.  After each game, there is a review to discuss what worked and what didn’t work so the gameplan for the next game can be adjusted accordingly.   That is why we feel financial reviews are so important.  You would never see a quarterback developing and reviewing a gameplan without significant input from the coach, and we don’t want to change your financial strategy without significant input from you on a regular basis.  It is very challenging to write and implement a tax-efficient, growth-oriented, risk-managed, long-term gameplan (aka financial plan).  It is especially difficult to make sure that it is implemented and followed consistently.  Thus having a qualified Certified Financial Planner™ is invaluable in helping you to implement a great gameplan that takes into account all contingencies.  It is especially important to update your plan at year-end since any last minute changes that need to be made can still affect what you save, pay, or get refunded in taxes in 2011.   Once January 1st comes around, however, we have to wait until 2012 to see the results.

Please set aside some time for a review with us before the year-end so we can help you have the best gameplan possible and that we can make sure you are doing what is best for you, no matter what is going on in our government, economy or our country.