‘Tis the season, right?  After about a month of indulgence, without a doubt, there were countless resolutions made as the New Year began a few days ago.  Resolutions such as losing weight, quitting smoking, spending time with family, working/studying harder, etc. are made and broken in a short period of time for many.  New Year’s Resolutions begin with the best of intentions and are created through a healthy outlook in one’s life and a desire to change.  The process is fairly basic and motivating; learn from your past and change for a better future.

Unfortunately, if success was that easy, resolutions wouldn’t be broken as quickly or often as politician’s promises during their campaigns.   Nor would one be repeatedly setting the same goals year after year after year.  The real question is why are so few successful and the majority unsuccessful in their desires?

I really think if you change your thinking/approach the probability of success is greatly enhanced.  I consistently preach to my kids that the definition of insanity is “doing the same thing over and over again and expecting different results.”  Think systems, for example which diets are most successful?  Programs such as Weight Watchers, Jenny Craig, etc. have greater lasting results over one’s resolve to eat less and/or more healthy.  The same goes with all other resolutions.  Although in this post I’m referring specifically to finances, I believe this mindset can be applied universally to any situation.

To begin, I believe one must have a strong desire and motivation to be at a better place, for both now and in the future.  You must be committed and willing to change for a chance of success.  Remember the definition of insanity?  Those who succeed are unwilling to quit; they don’t allow things to get in the way or have apathy in what they must do.  We all have the desire to be better; that’s what motivates us to make resolutions.  However, what most lack is a plan, specifically designed to help achieve their goals.

I believe that planning must begin with a discussion of your mission, vision, and values.  What and why are you trying to accomplish each specific task?  This discovery of yourself (and spouse) should lead to clarity.  Clarity in what you want, but most importantly, why you want it.  Knowing what you want, and why, can put you in a place much farther than ever imaginable.  Goal setting can now begin, for both short and long-term time frames.  Everything else is fairly academic.

Change is hard, and I understand your reluctance, but imagine where you will be in 10, 20 years without change?  Is that where you want to be?  If not, its time for some change.  You deserve credit for recognizing the need for change but this is just the beginning, you need to constantly remind yourself of your mission, vision, values, and goals and be prepared to adapt your finances accordingly in order to not only realize your dreams, but make them your reality.

Bay of Funday

For just a moment, waters come to strange calm in the Bay of Fundy; 100 billion tons of seawater pauses before gently reversing flow. In six hours and 13 minutes tourists will walk the sea floor some 50 feet below the spot where sea kayakers paddled. These are the highest tides in the world, best experienced at Hopewell Cape on Canada’s east coast.

This ocean bay between Nova Scotia, New Brunswick, and Maine has one of the world’s most dynamic and dramatic coastlines and attracts millions of migrating shorebirds. Nutrient-rich waters are pantry and nursery for 12 species of whales and whale-watching tops options for interactions with nature. The geological landscape of awe-inspiring rock cliffs, tide-sculpted towers of sandstone, marsh plateaus, and beaches make this one huge natural destination that’s easy to access and enjoy.

Read more:  http://www.frommers.com/micro/2011/top-destinations-2012/bay-of-fundy-nova-scotia.html#ixzz1hsOlrFa5

Curacao

Curacao is not your quintessential Caribbean island. Sure, it has curvaceous white beaches, cerulean seas, and a coral reef brimming with exotically hued marine life. But Curacao offers even more, with one of the region’s most cosmopolitan cultures and a standout capital in Willemstad, a child’s paint box of giddy Caribbean colors and gabled colonial architecture.

Celebrating its first year of independence after the dismantling of the Netherland Antilles in 2010, Curacao still has the feel of “Holland in the Tropics,” with the flavors of both Europe and the West Indies on bold display. Take a trolley train tour along the pastel-hued streets of Willemstad. The city’s restored historic center reflects the island’s past as a global trading powerhouse, and its World Heritage Site architecture is a melting pot of European colonial styles. The Jewish congregation in the Mikve Israel-Emanuel Synagogue is the oldest in the New World, dating from 1651. A beloved city landmark, the pedestrian Queen Emma Pontoon Bridge straddles St. Anna Bay and is motorized to open and allow boats to pass through the channel. Colorful lights dotting the bridge’s elegant metal hoops brighten the Willemstad cityscape at night.

Read more:  http://www.frommers.com/micro/2011/top-destinations-2012/curacao.html#ixzz1hsP4J0ch

Kahalei Beach, Kauai

Hollywood could not have designed a more perfect beach: Nestled along the romantic North Shore of Kauai, Hanalei Bay is a two-mile-long half-moon of golden sand with a dramatic backdrop of craggy volcanic cliffs laced with thousand-foot waterfalls.

The clear turquoise waters sport vibrant coral reefs, where rainbow-colored fish swarm and snorkelers and divers are in heaven. During the summer months, the waters in Hanalei Bay relax with the sunny weather and become so placid the entire bay resembles a giant swimming pool, where swimmers, fishermen, canoe paddlers, and kayakers flock. In the winter, large oceanic waves churn up the waters into sets of big waves, drawing board surfers and windsurfers to the thundering breakers.

Read more: http://www.frommers.com/micro/2011/top-destinations-2012/top-beach-destination-hanalei-beach-kauai.html#ixzz1hsPTbwAi

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

By:  Barry Craft

Yoga has become quite a popular exercise for people of all ages, but especially for the seniors. Yoga exercise for elderly people can help reverse the aging process and provide a wide range of positive benefits even if practiced on a moderate basis. There are many styles of yoga ranging in degree of difficulty. However, the basic moves and positions can be utilized by any age group. It is all about how you approach your exercise program that makes the difference. Since everyone is unique, it is always advisable to see your doctor before beginning any type of exercise program.

Yoga can provide positive health benefits for anyone but can be especially helpful for those more mature adults. The three main areas of development would be balance, stretching, and strength. Balancing exercises strengthen leg muscles and help to prevent falling. Every year in the U.S. there are tens of thousands of patients admitted for broken hips and usually some type of fall is the reason for the bone fractures. Balancing exercises can also help you avoid disabilities that may result from falling.

Read full article HERE

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

As you plan for or are already enjoying retirement, it is important that you take the time to reconnect with your inner adolescent. So take a moment to free your inhibitions and take a stroll down memory lane to a location that will certainly provide you with great times and satisfaction in every bite.

Located no more than two blocks from Pasadena City College, Dog Haus embodies the good old American spirit with a twist of German ingenuity that you will notice is its ever popular menu that includes mouth watering combinations of flavor with a fine selection of German and California Craft beer, select wine and cocktails, and a environment that will keep you coming back for seconds.

So break free from routine and head over to Dog Haus, where they will send you back to the Wonder Years and make you forget all too quickly you were even retired.

If there’s one lesson to learn from the history of investing, it is that the market does not always go up.  If you believe that to be true, then why would you invest as if it only goes up?  In other words, investors implement buy and hold strategies more than any other, why?  The graph, just below, shows the historical rise and fall of S& P 500 Composite.  The blue segment of the line shows rising markets (Bull Markets) and the red line depicts falling markets (Bear Markets).  Please note, these blue and red periods are generally prolonged periods of time, it is not unusual for a market (both Bull and Bear) to last 15+ years.

As the year comes to a close it is important to not only layout a strong financial plan for 2012, which may result in substantial tax breaks. More often than not, we are too concerned with looking too far ahead that we sometimes miss practical, simple, solutions that rest right before our eyes. So, take the time to organize and formulate a plan of action for 2012 but also see that you close out 2011 on top.   

What are year-end investment decisions?

Year-end investment decisions may sometimes result in substantial tax savings. Tax planning may allow you to control the timing and method by which you report your income and claim your deductions and credits. The basic strategy for year-end planning is both to time your income so that it will be taxed at a lower rate, and to time your deductible expenses so that they may be claimed in years when you are in a higher tax bracket. In terms of investment planning, investing in capital assets may increase your ability to time the recognition of some of your income and may help you to take advantage of tax rates that are lower than the ordinary income tax rates. You have the flexibility to control when you recognize the income or loss on many types of investment assets. In most cases, you determine when to sell your capital assets. In some cases, however, shifting potential capital gain income to other taxpayers through gifting may be an appropriate strategy.

How do you use the capital gains tax to lower your taxes?

Capital gains and losses are accorded special tax treatment. Currently, the top long-term capital gains tax rate is 15 percent (for most types of assets), while the top ordinary income tax rate is 35 percent–that’s a difference of 20 percent. As a consequence, by converting some of your ordinary income to long-term capital gain income, it may be possible for you to reduce your federal income tax liability.

Caution: Under the Jobs and Growth Tax Relief Reconciliation Act of 2003, the Tax Increase Prevention and Reconciliation Act of 2005, and the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, long-term capital gains tax rates are 15 percent for taxpayers in tax brackets higher than 15 percent, and zero percent (in 2008-2012) for taxpayers in the 15 percent or 10 percent tax brackets. Prior to May 6, 2003, long-term capital gains tax rates were 20 percent and 10 percent, respectively. Beginning in 2013, long-term capital gains tax rates will revert back to these pre-2003 Tax Act levels.

Timing your capital gain recognition

Careful timing of when you sell capital assets may help you to reduce your federal income tax liability. For example, if it’s late in the year and you want to sell a capital asset, you can wait until January to sell it so that you realize your capital gain or loss next year (assuming that you have a calendar tax year). This strategy is particularly useful if you are in a higher marginal tax bracket in the current year and expect to be in a lower one in the following year. Timing can also be important because capital gain income increases your adjusted gross income (AGI). Itemized deductions and personal exemptions may be phased out or decreased if your AGI in a given year exceeds a specified threshold.

Plan your year-end capital gain and loss status

Planning the time when you recognize capital losses may also be important. If you expect to recognize a capital gain this year, you should review your portfolio for possible capital losses that can be used to offset the gains. If you have any capital loss carryforwards, you should review your portfolio for capital gain opportunities to make use of such carryforwards. In general, net capital losses are deductible dollar-for-dollar against net capital gains. Excess losses are allowed to offset up to $3,000 ($1,500 for individuals filing married filing separate tax returns) of ordinary income per year. Losses over and above the limit may be carried forward indefinitely.

The following strategies may be appropriate:

• Sell capital gain property before the end of the year if you have already realized capital losses for the year that exceed the sum of any capital gains you have realized plus $3,000 ($1,500 for individuals filing married filing separate tax returns).
• If you have gains for the year that exceed your losses, sell property with built-in losses to offset the excess gains.
• If your other allowable deductions for the year exceed your income, you should, to the extent possible, avoid realizing any further capital losses for the year.
• If you’ve held a capital asset for close to 12 months and want to sell it, wait awhile (if possible). You can take advantage of the lower long-term capital gains rates if you hold the asset for over 12 months before selling it. 

How do you select investments to control income?

You can select investments likely to produce ordinary income such as interest, or income that is taxed at reduced rates (certain qualifying dividends or long-term capital gains). You can also select investments likely to produce ordinary or capital losses. You can control when your investment earnings are taxed, bearing in mind that income distributions are generally not taxed until you receive them (assuming that you use the cash method of accounting). By knowing the tax rules, you can lower your taxes.

What about shifting income?

It may be possible to shift potential capital gains to other taxpayers through gifts. If you are in a 25 percent or higher individual marginal tax bracket, the zero percent long-term capital gains tax rate (in 2008 through 2012) for those in the 10 or 15 percent bracket may provide an incentive for you to transfer appreciated assets to relatives in those lower tax brackets.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

Resources: Broadridge Forefield, “Year-End Investment Decisions”

There’s plenty to worry about in the world, what’s 5 more?  I’m not saying one should have a Pollyannaish attitude about the world, economy or stock market.  But, life goes on and investments will continue rise and fall and in some years with substantially greater volatility.  What matters is the strategy you have deployed and how it handles those events.  I’ve said it many times, but the Buy and Hold strategy and other purely offensive strategies will not work in secular bear markets.  Those strategies will work, all the way up to the crash.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

Five Things Investors Have to Worry About in 2012

By: Patti Domm
CNBC Executive News Editor

Investors can blame Europe for choking off stock market gains in 2011, but there’s a growing list of geopolitical flashpoints lurking in 2012—and any one of them could pose a risk to stocks.

Market guru Laszlo Birinyi said there already is a long list of “known unknowns” coming in 2012, and many of them involve elections in places like France, Mexico, India and Russia.

Of course, the U.S. presidential election is also on the horizon in November, and there was plenty of domestic political squabbling that swamped the market this past year.

Read Full Story Here

This is a perfect example as to why I recommend investors set aside 6 to 12 months of expenses in liquid accounts.  Unexpected emergencies happen and it’s far better to have savings set aside for that rainy day than needing to liquidate assets in uncertain times.  I think the real question is how long can Congress continue to extend Unemployment Benefits?  The total number of unemployed citizens in the United States stands at 13.3 million, as of November 2011.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

A $45 billion cost to cutting unemployment benefits

Besides the extension of the payroll-tax cut, the inaction by Congress also means extended unemployment benefits will begin to be cut off starting in the first week of January. If not remedied early by lawmakers, that will result in a big hit to consumer spending and U.S. economic growth for the year, economists at RBS Securities said.

The government estimated that 2.15 million people would exhaust their benefits by mid-February if the Federal emergency unemployment compensation programs were not extended, according to RBS.

In that case, it will mean roughly $27 billion less money in the hands of Americans – who generally spend those dollars quickly because they are unemployed — by the end of the first quarter.

Read Full Story Here

By: Allen G Yee

There was an interesting article on The Bleacher Report on Ray Lewis (@raylewis52com) of the Baltimore Ravens.  The report raised a question whether Ray should retire or not.  The focus of the article was based solely on Ray Lewis’ football abilities and his impact on the game.  I’m not here to debate the “football” aspects of retirement but rather the financial.

I speak to potential retirees on a daily basis and after twenty years of experience I can say almost without exception the overriding question these folks ask is whether they’ve accumulated enough assets to sustain their desired lifestyle until mortality.  Of course the finances of a professional athlete is substantially different than the average American who in all likely worked over 30 years and has a substantially more modest lifestyle. Athletes have a short professional career where they earn a substantial amount of income in a short period of time.  Unfortunately, many spend as if that level of income will continue well past their careers.  Luckily for Ray he’s had a long productive career playing middle-linebacker and can in all likelihood continue to have a huge impact on the game.  Nonetheless, should he retire?

From a clinical financial perspective it will depend if he’s at financial independence.  I define that as the date of having enough savings and investments augmented by inflows (income from working, businesses, rentals, pension, etc) to sustain his family’s finances until mortality.  This is an exercise that not enough people do and I would venture to say even fewer professional athletes actually spend time and effort evaluating.  In short review your finances; create a financial inventory (balance sheet), next examine your outflows and inflows (expenses to income), in other words determine where is income coming from and how long do you reasonable expect for it to continue and more importantly where does your hard earned money go?  Next, examine your investment personality; do you have an appetite for risk?  What do you expect in results?

These questions and many more need to be discussed before you deploy your money.  Once that’s complete, sufficient time should be spent examining your overriding objectives, such as your vision, values and goals.  Aside from having enough income for life, what else is important to you?  These are the issues and building blocks of a retirement strategy/plan that can carry you through retirement.

So what about Ray Lewis?  In my opinion it depends on his health, passion for the game and current finances.  He signed a seven-year contract in 2009 and in professional sports where careers are extremely short; Ray has the opportunity to be under contract for another 4 years.  While it’s unlikely for him to play that position at age 40, another season or two is certainly conceivable. One of the best things he can do is create a strategy after analyzing his current situation as discussed above, which undoubtedly will shed light on that question.

*PLEASE NOTE: The information above being provided is strictly as a courtesy. When you link to any of the sites provided here, you are leaving this site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to. Registered Representatives Offering securities Offered Through First Allied Securities, Inc. Registered Broker-Dealer Member FINRA, SIPC. Allen Yee, CEA, RFC, CA Insurance License #0747874

Resources: Bleacher Report: Ray Lewis: Should the Original Raven Consider Retirement? (http://bleacherreport.com/articles/989059-ray-lewis-should-the-original-raven-consider-retirement)