Wednesday, April 17, 2013

Can “U” Handle The “Truth?” Avoid Placing Your Head in the Sand

The title of this blog says a lot. I have had several readers of my blog indicate recently that:

1) They believe I am being too negative in many of my posts.

2) Some have indicated that they are going to quit reading my blog because it is making them depressed.

I just returned from a trip to my home state of Indiana, having had dinner with some relatives. When asked for my feelings about the future, I shared my serious concerns regarding the significant headwinds our country is in and will be facing. I could tell from their response that they had hoped for a more positive outlook.

Look at it this way, when you go to the doctor, are you looking for the truth about your health, or are you looking for the truth to be sidestepped?

I implore all readers of this blog and clients of WFG and our mutual fund to face the reality of the reduced growth economy we are facing and not avoid the topic by choosing to “mentally check out.” Your wealth is as important as your health. If you have a heath condition, treat it. If you have a “wealth condition,” treat it as well by seeking advice as to what you can do to adjust to you current state of financial affairs.


Only by standing against the prevailing winds – selectively, but resolutely – can an investor prosper over time. Such a strategy may underperform during markets that are rising based upon the momentum of the herd vs. fundamental valuations.

Acting like an ostrich with your head in the sand is a very dangerous approach to addressing your finances and life in general.

To view my blog in its original glory and formatting, visit my official blog.

Thursday, April 4, 2013

My blog has moved!

We're relaunching our blog...and it's moved! 
For the latest updates from me and the rest of the Wade Financial Group team, visit us at

Thursday, January 3, 2013

Dividend Stocks Solid Choice Short and Long Term, Regardless of Tax Rates

  • Dividend-based investment strategies should produce superior total returns on a multi-year basis, given tepid global economic growth and moderate price appreciation.
  • That said, the outlook for dividends varies markedly across countries and sectors, and some seemingly appealing dividend opportunities break down upon closer scrutiny. 
  • Some of the sectors we currently favor include consumer staples, health care and energy, given reliability and growth prospects.

“Fiscal Cliff” Tax Hikes Avoided For Many

A summary of the legislation passed by Congress and sent to the President for his signature is as follows:
  1. The 2012 rates for Taxable incomes below $450,000 ($400,000 if single) have been permanently extended.  The top bracket was 35% over $388,350 (married).  It will now be $388,350 - $450,000.  Over $450,000 will be 39.6%
  2. The capital gain and qualified dividend rate will remain 15% for taxable incomes below $450,000 ($400,000 if single) and will increase to 20% for taxable incomes above $450,000.
  3. The Alternative Minimum Tax rate will permanently adjust the income exemption levels for inflation.
  4. Itemized deductions will be limited to 3% of adjusted gross income above specified thresholds beginning at $300,000 ($250,000 is single) but not more than 80 percent.  
  5. The estate tax exemption level of $5,120,000 has been permanently extended and will be indexed to inflation for future years.  The current estate tax rate of 35% is increased to 40%.
  6. The scheduled 27% cut in reimbursement for Medicare services is extended for one year.
  7. The extended benefits for long-term unemployed are extended for one year.
  8. The dreaded automatic and blunt spending cuts to defense and non defense programs have been extended for two months.  The cuts, if left in place, would have reduced spending by $110B.
  9. Several other miscellaneous credits including Child tax credit and Earned income tax credit were extended for 5 years.

Monday, December 31, 2012

The Fiscal Cliff......Maybe?

Based upon what is being leaked to the press tonight, there may be a deal that curtails many of the potential tax increases. This could prove positive for 2013.  That said, there is little, if any good news on addressing the longer term problems of the U.S. economy.