The Chileans are perplexed with us. On a recent visit to Santiago, Chile, I was talking with a colleague who said, “You were the ones that taught us about the free markets, and now here you are abandoning those principles and moving toward socialism.”

He has a point. I get the growing sense that we are witnessing the transition of our economy from a “market economy” to a “political economy.”

While I’ve been pleased with President Obama’s cabinet selections to date, his January 9 speech at George Mason University was unsettling. Continue Reading at FinancialAwakenings.com»

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to heaven, we were all going direct the other way - in short, the period was … like the present period.”

This is how A Tale of Two Cities begins, and it is how I began yesterday’s inaugural session of Open Mic.

(Please go to www.edwardjacobson.com for more on Open Mic, and a Jan-Feb schedule)

Yesterday’s launch was wonderful! About 25 people called in, from as far away as South Africa and Italy. We shared perspectives on what’s working to help us regain our balance so we may better serve our clients, and the pain of serving retirees who have seen their assets plummet and who may not be able to “get a job as a greeter at Wal-Mart.”

The next Open Mic: Tuesday, January 20 @ 11:00 eastern (8:00 am pacific). The call-in info: 1 219 509 8322, pass code is 202779#.

Feel free to email me with questions and comments, and to pass along this invitation to others.
Thanks!

Ed

Happy New Year, to everyone! And here’s hoping 2009 is less turbulent than the preceding year.

“May you live in interesting times” is said to be a Chinese curse. I wonder: are the current times interesting enough for you and for your clients yet?

In my many contacts with KI-affiliated financial life planners and others, since things started to implode back in September, I’ve been deeply impressed (but not surprised) with how members of community have responded, both technically and in personally guiding clients through the shoals and rapids. I commend all of you for your commitment, compassion, creativity, and competence. Read the rest of this entry »

I’ve done a lot of pioneering work in the field of uniting traditional financial planning with psychology. I am convinced that ten or twenty years from now, the best financial planning firms will offer an integrated service consisting of traditional financial planning, financial coaching, and financial therapy.

Right now, that is a pipe dream. Very few universities or colleges offer degrees where there is exposure to both disciplines. Click here to read more on FinancialAwakenings.com…

Rick’s advice on giving up on credit cards was picked up by the Associated Press in an article that talks about retirement resolutions for 2009. Read the entire article by clicking here.

Financial New Year’s resolutions are a common phenomenon this time of year—especially for anyone who overdid the holiday spending and who knows the new year is going to bring a new batch of credit card bills. Probably one of the most common financial resolutions is: “I’m going to make a budget and stick to it.”

In light of the current economy, making a fresh financial start is likely to be a wise move. Here are my suggestions for five financial New Year’s resolutions to help you manage well in the coming year: Continue Reading at FinancialAwakenings.com»

By Rick Kahler, CFP®

With all the chaos and uncertainty in the economy, this year is a perfect time to celebrate Christmas in the manner of Ebenezer Scrooge.

If you’re superficially familiar with Dickens’s A Christmas Carol, you might first assume that I’m suggesting you celebrate Christmas like a cold-hearted skinflint. After all, Ebenezer Scrooge is probably the most famous miser in literary history. With the current economic uncertainty, following his example of spending little or nothing might seem like a wise move in uncertain financial times.

What I’d like to recommend, however, is to celebrate Christmas in the way Scrooge did after the visits of the three Spirits transformed him. Continue Reading on FinancialAwakenings.com»

By Martin Siesta, CFP®

Advice that I have been giving clients has little to do with products. Here is an example of what we advised:

•    Money and credit will get scarce - get out of debt or reduce debt if you can
•    Reduce your expenses structurally - look at your cars - look at all the outgoings
•    There may be no real return on conventional investments and it will take years for the adjustment to work its way
•    Social security may not be a sure thing - think more about how you are going to spend your “Golden years”
•    Invest in sure things such as reducing your use of energy.  Remember,  investments in cutting your oil use give you a cash tax free return Read the rest of this entry »

This time of year, family budgets are already strained by holiday giving, travel, and entertaining. The last thing anyone needs is an extra bill for the furnace going out, a big car repair, or an expensive trip to the emergency room. Payments like these are common budget-busters. They come under the category we usually think of as “unforeseen,” “one-time,” or “unexpected” expenses. We tend to be surprised by them. I hear clients say things like, “These are the expenses I feel are out of my control.” Continue Reading »