The Fiscal Cliff

Written by Joe Pitzl, CFP® | 18 December 2012

Perhaps the Mayans were right. Or perhaps they were only off by about 9 days. As we inch our way forward toward the so-called Fiscal Cliff, the talking heads are making us wonder if this is what the Mayans meant all along. News outlets are reporting that 7 out of 10 Americans are extremely worried about the fiscal cliff, while less than 1 in 5 actually know what it means. David Letterman even chimed in the other day stating that even he, too, would join in the discussion...if only he knew what it means.

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Taking Over an Aging Parent's Finances

Written by Joe Pitzl, CFP® | 19 November 2012

As is the case with most difficult situations involving people we love, the planning element of taking over an older relative’s finances is best done in happier times, when both sides are healthy and in a sound state of mind. And like all forms of financial planning, any planning is better than no planning at all.

No one really wants to have these conversations - particularly during happy times - because they project images of a lifestyle or situation that we all hope to avoid. However, the short-term pain of having these conversations well in advance alleviates a great deal of pain, suffering, guessing and arguing if a life-changing event intervenes first.

Once afflicted with an illness, or frustrated with the loss of mobility and freedom, an older relative may be unable to understand questions or express their wishes in proper detail. If there is no plan, family conflict often arises as members argue over responsibilities (or completely avoid them) without knowing what the older relative would really want.

It is critically important to understand is that these conversations should go far beyond the money. In fact, in many cases, while managing the financial affairs is important, it really isn’t about the money at all. These conversations must include discussion about maintaining their independence to the extent it can be, who makes decisions (financial, health, etc.) for them in the event they are unable to, and basic preferences for the way an individual wants to live. With the rising number of single Americans (due to death of a spouse, divorce, or never being married) these conversations will become increasingly complicated as they may ultimately include children, step-children, nieces, nephews, or friends.

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IFS Featured in Star Tribune

Written by Joe Pitzl, CFP® | 05 November 2012

This article originally appeared in the Minneapolis Star Tribune on November 5, 2012: http://bit.ly/PRsDOe

Separating Fear from Uncertainty

We are in the midst of the most hated stock market rally in history. Nearly every bit of news we've heard and every detail we've read over the past four years would seem to suggest this rally would be impossible. It has occurred in the face of high unemployment, a declining dollar, low consumer confidence, huge deficits, wars, political unrest here and abroad, nuclear disasters, a poor housing market and more.

While financial markets continue to advance, investors continue to wait for the proverbial ''other shoe'' to drop.

Our minds are incredibly powerful things that can make us believe almost anything. We rarely process facts by themselves. Rather, we consider them as part of a bigger story. This is why we cling so tightly to facts that support the story we want to tell and reject those that don't fit.

Our brains conceptualize things most effectively through stories. Through a process of visualization and rationalization, we are able to use information to create patterns. This is the very mechanism that allows us to "get lost" in a great novel and bring the story to life.

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Hurricane Sandy Update

Written by Joe Pitzl, CFP® | 29 October 2012

(Photo by NASA via Getty Images)

As you are all aware by now, Hurricane Sandy is currently threatening the East Coast of the United States and will directly impact the lives of tens of millions of Americans over the next several days and will indirectly impact the rest of us.

Reports continue to get worse by the moment as this storm collides with a winter storm entering the area from the west, a high pressure system entering the area from the north, and will be further fueled by the high tides of a full moon. This combination of factors is projected to stall the storm over the area for the next several days. Our thoughts and prayers will be with those of you in the storm’s path, as well as any friends and family members in harm’s way.

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