WOW...... WHERE DO I BEGIN????

OK... American Airlines files for Chapter 11 BK with $ 4 BILLION CASH in their check book. Nice, I should be so lucky to reorganize my debts with that tidy sum in my check book....I'm going to stop right now on that subject!!
2012 looks like another gut wrenching stomach churning year for the stock market. At least another year you have apprehension to open your quarterly IRA or 401K statement. Another year of losses, another year  of catch-up to make up for the value lost, another year you do nothing to get back on track, another year of oh well the market will eventually go back up, etc. etc. etc. I have an idea for a New Years resolution; forget about the usual resolutions, (ie) I am going to lose 25 pounds, I am going to stop smoking and really do something for yourself and your family. Make a resolution that you will NEVER lose another nickel in your retirement savings from this time forward. Make a resolution " I will NEVER play catch-up again with my money. I have several ideas on how to make this years resolutions a reality. Also for all you "big brains" out there that want to stay in the stock market and load up your portfolio with bonds one piece of advice; tread very carefully. You may have been dodging bullets up to the present time but the long term battle is far from over.
Let's talk about inflation. Not much new to say. Look for inflation to be around 3.5% this year and 2% in 2012. No problem, however another year of depressed interest rates means you make zip on your money market and CD accounts at your favorite bank and credit union. How would you like to earn 8-9% on your money next year tax free and not have to worry again about losing your principal? I have the answer. 
Look for the housing price decline to come to a halt mid 2012. Look for 3-6% housing price increases in 2013 and beyond. Modest but in reality not bad at all for homeowners.
I have a very busy December with seminars and  presentations so I may not have time to write in the blog in December so I want to wish everyone a Merry Christmas, Happy Holidays, and a VERY GOOD AND PROSPEROUS NEW YEAR. 

Anti Wall Street Sentiment

Is the simmering anti Wall Street sentiment just a moment or is it the birth of a movement? Well for now I think it is the former. The groups are loosely organized and have eschewed a formal political agenda but we all better fasten our seat belts!! With income gaps, underwater mortgages, a whole lot of grievances, and job prospects, the conditions are there for a lasting coalition. Look for the protests to grow and spread. It really looks as though next year is going to be a clash of cultures; Tea Party vs Occupy Wall Streeters. This is really about Washington not Wall Street, and I predict we will actually have a showdown of sorts as to the size and shape of Government. This whole movement is not about capitalism what's really going on is a clash over the haves and the have- nots. The ultimate success of the movement is to find a dance partner. Look for other liberal groups to emerge and look for unions to get involved.
The GOP is going to retreat with regards to increasing taxes. Their united stand against raising taxes is going to crumble. Look for some favorite deductions to get eliminated and believe me look for corporate taxes to get reduced!
We will have a rocky 2012 in the stock market and there will be more 401K and IRA pain to come with it.  The only way to fight these trends is with tax free financial vehicles. One of my favorite products for tax free accumulation is an Indexed Universal Life Policy. Just like annuities you participate on the upside and you will never lose any principal. How does 9% interest sound to you? Give me a call and we can talk.