We’re Not Mushrooms: (Part 1)

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The upcoming election is arguably one of the most important in our lifetime.   It will set a course for this country that not only affects us, but our children and our children’s children.  It is a true clash of ideologies and the differences couldn’t be more profound.   So why is it so difficult to get a clear picture of those differences?   It is because we are being treated like mushrooms. (If you are not familiar with the term…ask an older friend).  It pains me so to think that our country’s future may be decided on “likeability” rather than “substance and truth”.

During the 25 years I spent in the financial industry, which by the way I am writing a not so flattering book, I tried to understand what motivates a client or prospect.  You would think that such insights would have given me an advantage….Right?   However, what I found was somewhat startling.  With advent of the computer trading, the Internet, cable news, etc. the information that became available to people increased dramatically in quantity but not necessarily in quality.  Bottom line was that many people quickly reached the point of “information and misinformation” overload and stopped seeking truth.  Consequently they withdrew from trying to get answers and many became victims of confusion, lies and misrepresentations by the “likeable” people who peddled them.  I see much the same phenomena in this election cycle.  People are so inundated with 24/7 news that many withdraw from trying to separate fact from fiction and facades from substance.

In my current position as a blogger, and owner of a small consulting concern, I have a bit more control on where I spend my time.  Probably more so than many hard working Americans.  Consequently during a good part of my day I take time to listen, to watch, to read, to investigate and compare media coverage of this current election cycle.  What I see is pathetic!  What is going on is one of the greatest shams pulled on both the suspecting (cynical) and unsuspecting (naïve).  Often I step away in disgust because I know that what I am watching many times is slanted, manipulated and controlled to keep us in the dark and to feed us Bull S**t while avoiding the real issues.  The important and relevant information is being disguised in irrelevant information and pushed upon the American public in such volume that the unsuspecting public reverts to selecting their favorite newscaster, media personality, and talk shows when formulating their own opinions.   Really?   Come on America you are smarter that that!

As I was writing this piece this morning, I was trying to decide on a format to present my position and appeal to the common sense of all Americans.   However in trying to articulate my position I don’t want to contribute to that which I despise….irrelevance and distractions.    So I would like to present a few observations today that I hope will uncover what I believe is a concerted effort in the “dumbing” of America.    Let me give you a few examples to illustrate what I mean by contrasting leadership styles in the House and Senate.   Today I will highlight Nancy Pelosi (D-CA), Harry Reid (D-NV) and Mitch McConnell (R-KY).

We, the American people, had little or no voice in the construction and/or passage of Obama care.   The bill was passed at a time when one party controlled the House, the Senate and the Executive branches of government.   We were told by the Speaker of the House Nancy Pelosi (D-CA) that “we had to pass the health care bill so that we can find out what is in it”.    Well Nancy, now we are finding “what is in it” and it only confirms what most Americans feared.   That is; if you give any political party absolute power without public input and oversight you are asking for trouble.  Here is a case in point.  The most recent “surprise” is that the costs of health care insurance premiums are up 50% in 2011.  When he ran for president in 2008, Mr. Obama promised he would lower health insurance premiums for families by $2,500 in his first term. But earlier this month, the Kaiser Family Foundation released its annual Employer Health Benefits Survey showing that average family health insurance premiums have gone up by more than $2,500 ($2,730 to be exact), not down. Then, this week, the Health Care Cost Institute released its annual Health Care Cost and Utilization Report showing that, after briefly slowing down due to the recession in 2009 and 2010, overall health care spending rose 4.6 percent last year, far outpacing both inflation and wages.  That is only the tip of the iceberg.   Sorry Nancy you get an “F” in leadership.

How about Senator Harry Reid (D-NV) the Senate Majority leader?   The Senate is required by law (unless the law is ignored) to present and pass a budget every year.   So why has Senator Reid blocked every attempt, even by his own party, to let those that we have elected have open debate and discussion that address issues central to the vitality of our nation?  He has stonewalled every attempt to pass a budget for over 3 years!  This is unprecedented, unforgivable, unconscionable and yes un-American.  This illustrates how out of control the power struggle in Washington has become when one man can be such an obstructionist.   Last I checked this is not a Monarchy King Reid.    Here is the irony.  Senator Reid is quick to criticize any House proposal, and any discussion on the Senate floor, yet he fails to present one of his own.  How are Americans to debate, decide and choose what is best for our country when the only plan being offered is being held as a political hostage?  Where is the leadership Senator Reid?   You are certainly my nomination for the poster child (albeit an old child) for term limits.

I would love to leave Senator Reid and move on to my next point but this touches the heart of an issue that seems to be lost in rhetoric and not covered in main street media.   That issue: separation of church and state.    In his continued character attacks on Mitt Romney I believe the Senator has crossed the line.  Senator Reid claims that Mitt Romney has “sullied” his Mormon religion thereby making religion an issue in state matters.   Here is the definition of “sullied” from the Encarta Dictionary.   “Spoil.  To spoil or detract from something, especially somebody’s reputation, that has previously been pure and honorable, or become spoiled or tarnished”.     Senator Reid, are you suggesting that his relationship with his religion should be considered in this presidential campaign?   Wow!  A Senate Leader so desperate to win at all costs has just obliterated the line between the separation of church and state.  Senator Reid, if you view yourself as a good Mormon and you believe what you say, I suggest that you handle it directly with the Mormon leadership where it should be handled.  Do I hear applause from the ACLU?  I saw this type of attack used one other time in my life, although I was too young to vote (21 was the voting age).   Thank God, and I do give Him thanks, that the American people saw through the demagoguery and elected a president that I came to truly admire.  That person was John Fitzgerald Kennedy, a democrat and yes….the first Catholic president.  Do you remember the statement that he made that set our country back on the path to greatness?   “Ask not what your country can do for you, but what you can do for your country”.   With his vision, tenacity and leadership, and the perspective of less government and more American hard work and ingenuity, we put a man on the moon in a decade.  Senator Reid that is leadership!

What about the other side of the Senate aisle?   This is how the Senate Minority leader, Mitch McConnell (R-KY), breaks down the issues in a speech on the Senate floor on September 20, 2012.

 

“I understand there’s an election going on in a few months. But I’d like to remind my colleagues on the other side that we’ve also got a job to do around here. I mean, we’ve got multiple crisis-level issues to deal with. And yet Democrats don’t want to do a thing.  Never before has a President and a Senate done so little to confront challenges so great.  We’ve got a $16 trillion debt. Democrats haven’t bothered to pass a budget in three years. Every single American will get hit with a massive tax hike in three months if we don’t act to prevent it.  Democrats are saying we shouldn’t do anything about it — just go off the cliff.  Just see what happens. The Defense budget is about to suffer automatic cuts that the President’s own Defense Secretary has described as ‘devastating’.  Democrats can’t be bothered to figure out a way to avoid them. The Middle East is in turmoil; we remain at war in Afghanistan and with Al Qaeda and Senate Democrats haven’t even bothered to pass a Defense Authorization bill.  Gas prices have more than doubled over the past four years. Democrats have responded by conspiring with the President to make sure a domestic pipeline didn’t get built.  Just let the debt grow. Let taxes go up. Let the defense cuts stand. Let gas prices get higher and higher. Don’t pass a budget. Don’t pass any spending bills. Don’t do anything that involves making tough choices. Just sit around and kill time in the hopes that the voters will focus on the other guys instead.

Look: Our constituents didn’t send us here to watch the clock or to offer running commentary on the floor. They sent us here to make a difference.  We’ve got jobs to do. It’s about time we did them.  In these very challenging times, Americans deserve leadership. Never before have a President and a Senate Majority Party done so little when our challenges have been so great. There’s no excuse for it.”

Excuse me folks but what the heck is wrong with Senator McConnell’s position?  Now doesn’t that really outline what concerns us as Americans?   It speaks directly to the issues!   No fluff, no personality attacks, just the facts.   Okay maybe a party attack but isn’t it deserved?  I admire any politician of any party who admits and acknowledges “They sent us here to make a difference.  We’ve got jobs to do. It is about time we did them”.    The speech did not receive much coverage from Main Street media because supporting dialogue, cooperation and reconciliation does not fit their agenda.   I guess I am becoming a bit cynical about what I see but it just supports my assertion that we are being treated like mushrooms.  Remember, an informed society has the best chance in shaping its own destiny.     

 

So what is my point in bringing you today’s blog?  I hope that it illustrates the fundamental differences of our country’s leaders, and that Main Street media fails to at the very least “contrast the differences”.     I don’t believe that I stand alone and I do believe that we should again take up JFK’s challenge: “Ask not what the country can do for you, but what you (we) can do for our country”

The presidential debates start next week.  Your vote will count more than ever this November. Do yourself and our country a favor by watching and listening to the candidates.   Don’t cast your vote based on truncated and biased news reports and talk shows.  America you are smarter than that.   If you don’t want to be treated like a mushroom….don‘t act like one!

Step Back, Listen, Validate or Challenge

Look for Part 2 to be released in the near future.  You may want to revisit my blog of June 15, 2012 titled Fragmentation by Design.

Immigration: The 24 Million Elephants in the Room

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Let’s start with the obvious.   No matter what society/government calls them; undocumented workers, illegals, or more disparaging labels, we are talking about are human beings.   Some may ask how we got to a point where over 24 million people could reside within our borders without proper documentation.  It is not easy to follow the path with its convoluted twists and turns that brought us to this point.  However some roots can be easily traced to a time when the first immigration laws were established and those who found ways to exploit them.  So establishing fault is futile and unproductive in resolving the issue; rest assured there is plenty of blame to go around.  Today we are dealing with an archaic immigration system, politicians who would rather use segments of our society as political pawns, employers who exploit an undocumented labor pool, drug and human smuggling cartels who totally disregard human life over profit, a current administration who fights for the right to do nothing instead of helping States protect their borders, and a federal government who won’t enforce laws already on the books.  That leaves states/cities to enact laws out of self-preservation or self-interest.  Two examples are Arizona’s SB1070 and California’s sanctuary cities.  Nationally, it recently allowed a president to issue an executive order offering false hope which does not lead meaningful reform.  It allows a Senate Leader to block even discussing a gaping hole in our tax code regarding payments to undocumented citizens that will cost US taxpayers an estimated $8.4 billion in 2012. This inaction pits the tax payer vs. the non-tax payer for political self-interest while ignoring the real issues that would unite us not divide us.  None of what I have said probably comes as a surprise to anyone.   The sad thing is that our nation of “we the people” seems to have been pushed politically to adopt the words expect for in the constitution.  I am not going to argue the intent of our founding fathers but only give my observation of where I think we are today.

Besides stating the obvious outlined above, I want to suggest a starting point for resolving the immigration issue.    As simple and as broad approach as I will present, I expect to get a lot of pushback from the aforementioned special interest groups.    So as I start let’s not forget two important points.   This is about people and they are already here.   In many cases they are neighbors, friends, relatives, co-workers, church members and others who share many of the same values that have made this country great.   How they got here is really immaterial at this point.

Here are the seven points of my plan.

  1.  Open a 9 -12 month “window” during which all undocumented/falsely documented citizens would have the opportunity to apply for U.S. citizenship.   During this period no person applying for citizenship would be subject to deportation.
  2. Anyone applying for citizenship must surrender all “false” identification including social security cards, birth certificates, driver’s licenses, etc.  The government will issue temporary identification cards, with an expiration date that coincides with the conclusion of this program.  This ID will also serve as a driver’s license, if one was surrendered, provided one can show proof of insurance.
  3.  The U.S. Immigration Agency will conduct the normal background investigation applying the normal standards to determine eligibility.  The only exception is that the method used to enter the country will not be considered.  Hint: They are already here!
  4. Obviously not everyone will/should be eligible to obtain citizenship.  No applicant who has committed a felony, or has been indicted on a felony, will be considered for citizenship under this proposal.   Other crimes/convictions must be reconciled at the state level before citizenship is granted.   The time to process and grant citizenship to eligible applicants should follow established Immigration guidelines.
  5. Immigration quotas and ethnic origin will not be considered during this process.   Did I mention…… They are already here.
  6. After the application “window” closes employers will be held responsible for verifying that their employees are U.S. Citizens, or are in the process of obtaining U.S. Citizenship, under this program.   Employers violating this requirement will be prosecuted to the fullest extent of the law.
  7. During this time we must demand that government establish policies and create an environment where law enforcement at the federal, state and local levels work together in the area of immigration and border protection,  not only for the sake of our citizens, but for the sake of those sworn to protect and serve.  They should never be placed in harm’s way by political gamesmanship or egos.  Does the name Brian Terry come to mind?

Let me try to address some of the questions that will come up in a Q & A format.

Q.  Won’t this just legitimize unlawful entry?

A.  We should have done something to address that issue 24 million people ago.  At this point none of the aforementioned special interest groups have any incentive to adopt a broad approach.   The last attempt to address this problem in a meaningful way came under the Bush administration, and was voted down on a bi-partisan vote.

Q.  Won’t this put undo strain on our immigration system?

A.   We processed more than 20 million people through Ellis Island between 1892 and 1924.   Surely we are capable of processing 24 million with the technology and resources we have today.    Additionally, we should take this time to review all policies and procedures of the immigration administration in order to modernize the agency to combat fraud and abuse.

Q.  What if a person’s true identity cannot be verified?

A.  We’ve been able to address this issue many times in the past.  Examples: The Great European Immigration; the Vietnamese, Laos and Cambodian Exodus; the Cuban Refugees crisis and for countless others who sought political asylum.

Q.  Won’t undocumented citizens displace U.S. Citizens seeking employment?

A.  Did I mention they are already here?  They are either occupying jobs or seeking jobs like documented citizens.   The only hope for all of our citizens seeking jobs, and pursuing the American dream, is that our elected officials adopt policies that encourage free enterprise instead of free handouts.  In a political environment that stimulates economic growth, there comes opportunity; with opportunity comes employment, and for all those willing to work comes a renewed sense of accomplishment, value and dignity.

Q.  Won’t the implementation cost be prohibitive?

A.   My perspective is that billions of dollars are wasted on failed immigration policies inhibited by a federal government unwilling to give up its political leverage and address the immigration issues.  This causes undue burden on all of our resources at the federal, state and local levels.

Q.  How do we collect back taxes?

A.   Undocumented citizens have paid taxes and supported our economy for years and in some respects will never receive the same benefits of legal U.S. Citizens. Did they pay a fair share?  I have no idea but consider this: In checking with the social security administration I found that just because a person has been paying into the system, using an illegally obtained number, retrieving the benefit at retirement is very difficult because of the additional documentation required.  Consequently much of the contributions of undocumented citizens goes unclaimed and becomes part of the “pool” of money that pays the rest of us.   Also, though not as apparent as a 1040 form, one only has to visit any Target, Wal-Mart, Walgreen or most any other store and you’ll likely see sales taxes being paid and collected from arguably any number of undocumented citizens.   What I see is an opportunity to increase our tax base.   Even if only a part of those 24 million would be subject to federal and state taxes that is a plus.   For you math majors…. would you rather have 100% of nothing or 25% of something?

Q.  Won’t there be a dramatic increase of illegal entries into the U.S. during the nine – twelve month grace period?

A.  I am sure it will be attempted and that is why tighter border surveillance/security would be necessary.   During this time maybe we can get the federal government to work with the states (novel idea) to focus on border security.  Oh that’s what homeland security is supposed to do anyway.  Hello!!!   However, even if the number that entered the U.S. illegally during this period skyrocketed by 24,000 people (which I do not believe is possible) that would only represent an increase of 1% percent to those already here.

Q. Why now?

A. Why not?

I could go on and on asking and answering my own questions but I don’t find that real productive and I am getting tired talking to myself.  However, let me share my perspective of the big picture and the perceived benefits.   Let’s agree, at least in hindsight, that many times we have failed to address the social issues of our times with compassion, understanding and timeliness.   Let’s accept the fact that what brought our ancestors to this country and characterizes the American Dream of “life, liberty and the pursuit of happiness” still exists.  It’s not just an idea but a very compelling model, albeit under attack, that draws many who seek the opportunity that we enjoy as citizens of this great country.  We can’t fault those who pursue the same opportunity but we can make the means of achieving it more humane.  What we also can and should do, is revamp and modernize the immigration system to curtail abuses, identify fraud and remove politics.

PROS:

  • We eliminate or significantly reduce the political, financial, illegal advantages of the groups previously mentioned in the first paragraph, while at the same time reaffirm the value of human life and dignity.
  • We free up our local, state and federal law enforcement agencies to spend more of their time and resources to work together and focus on the real criminal elements in our society.
  • We take away political leverage and many of the arguments which have precluded us from addressing the issues of voter and tax fraud.  We will ask politely, but demand if necessary, that both issues are addressed with the help of millions of new voices.
  • We address a huge social issue with compassion for a very large segment of our society.  Some will call this amnesty.  Ok.  Regardless, these are human beings and did I mention….they live here.
  • States will be able to get an accurate census to better assess the financial impact of taxes and expenditures for budgeting.   It allows the states to petition the federal government with verifiable numbers when applying for federal aid/assistance.
  • Our new “citizens” can become part of the solution in clearing up the criminal elements/activities in our cities and towns by identifying drop houses, gang/drug activity, and other criminal activities without the worry of being deported themselves.  Does “block watch” sound familiar?
  • The federal government would have fewer excuses to use when it refuses states’ request for help in securing our borders.
  • Where driver’s licenses are surrendered the person would need to show or obtain insurance to obtain a driving endorsement on their application.   Result:  fewer uninsured motorist on our streets and highways.
  • Hopefully we would find fewer victims left to die in our deserts and along our borders as a result of being exploited by human traffickers or drug cartels.    This is a point that seems to be missed by an administration bent on obtaining political points.  I first observed that attitude of disregard for human life during my service overseas while serving in the military for this country.  I am repulsed to see it is tolerated in mine.
  • Etc. and Etc.

 

CONS:

  • Those who would benefit by ignoring the immigration issue.

 

I am not so naïve as to think that what I have presented in such simple terms could be implemented with the same simplicity.   That is not the government way.   It is a seed that I plant in the form of an idea.  A thought, or idea, that has probably crossed the minds of many Americans.   However, every movement for change starts one person’s willingness to present the big picture and offer a solution starting in the simplest terms.   Next the idea needs to be embraced by those who believe in it and are willing to get involved and work toward the common goal.  In this case, the goal is addressing the immigration issue and the time is NOW.   I am only one voice that has followed many others.  Maybe this time is the time to strip away the politics and bring meaningful attention to resolving the issue of “The 24 Million Elephants in the Room”.  Maybe it is this voice that touches the heart of the American people to act on what we know is the right thing to do.    If we take up this issue and succeed we will be able to say that we addressed and resolved one of the greatest social issues of our time.   It may be a hard road but we as a people must be willing to take on the tough issues and exhibit the same determination and resolve that has made this country great

It is time to say to our politicians “get on board or step aside, this train is leaving the station”.  Our next stop ….. Immigration reform!

Step Back, Think, Validate or Challenge.

Publishers’ Note:   My personal priorities in order of importance are:

#1 Job Growth/Deficit Reduction (Economy)
#2 Foreign Policy   (Diplomacy backed by a strong US Military)
#3 Immigration Reform
#4 Energy Independence

I will try to post and respond to any objective comments/questions/criticisms to this post provided they are substantive and not just personal attacks.

A Man and His Word

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Some of you may be too young to remember a time when “your word was your bond”.   I won’t tell you that those times were easier, or harder, than the times we are now experiencing.   What I can say is that at one time we placed a very high value on a person’s word.    Whether upheld or broken there was reward and consequences associated with a man’s words.  It is sad to think we have “evolved” to a point where the word is simply a mechanism to garner support for one’s own purpose, position or gain.   Even sadder is that we as a nation don’t stand up and demand accountability once associated with a person’s word.   I believe part of the problem is a disconnect between what someone says and the barrage of media interpretation that follows.   For example, in politics, if a candidate speaks in the morning by mid-day the media has already added its own interpretation.   Sadly, depending how it plays in the polls the candidate may or may not issue a correction even if it contradicts what they originally said.   Most media “experts” pass their interpretation on as fact and shoves it down the throat of an American audience.   Is it any wonder that American’s are confused, disgusted or fed up with what they see in the media?   There is an ongoing debate calling segments of our society “disenfranchised”.     Let me suggest that the real word is “disengaged”.   Many Americans, including myself, are angry as we look at what is going on in Washington but we cannot rollover and play dead.   You snooze you lose.   It has to stop….let’s get reengaged.   Let’s start with the one area that regardless of our race, color or creed we can agree on.  Let’s reaffirm that a person’s word is, and should be judged as, the essence of their character.   It is not some piece of malleable crap to be, molded, modified, taken lightly or spoken without consequence.  We Americans are smart enough to know that regardless of the shape, height or color, crap still stinks!   

Here is my suggestion for a beginning.  Let’s let our elected officials, and candidates, know that we will hold them accountable for their words both past and future.   Be fair and let them all speak, listen to their opinions, contrast what they say with what you know, ask your questions and determine how you will reward their answers with your vote this fall.  Turn off attack ads unless you are willing to take the time to investigate the merits of such indictments.  Let’s claim our right as American Citizens to reestablish the importance of the vote through the value we place on a person’s word.    

I am going do my part in removing the media bias to some very fundamental promises made by our current president.    In his own words:

 

Transparency and Open Government

Memorandum for the Heads of Executive Departments and Agencies

SUBJECT:      Transparency and Open Government

My Administration is committed to creating an unprecedented level of openness in Government.  We will work together to ensure the public trust and establish a system of transparency, public participation, and collaboration. Openness will strengthen our democracy and promote efficiency and effectiveness in Government.

Government should be transparent.  Transparency promotes accountability and provides information for citizens about what their Government is doing.  Information maintained by the Federal Government is a national asset. My Administration will take appropriate action, consistent with law and policy, to disclose information rapidly in forms that the public can readily find and use. Executive departments and agencies should harness new technologies to put information about their operations and decisions online and readily available to the public. Executive departments and agencies should also solicit public feedback to identify information of greatest use to the public.

Government should be participatory. Public engagement enhances the Government’s effectiveness and improves the quality of its decisions. Knowledge is widely dispersed in society, and public officials benefit from having access to that dispersed knowledge. Executive departments and agencies should offer Americans increased opportunities to participate in policymaking and to provide their Government with the benefits of their collective expertise and information. Executive departments and agencies should also solicit public input on how we can increase and improve opportunities for public participation in Government.

Government should be collaborative.  Collaboration actively engages Americans in the work of their Government. Executive departments and agencies should use innovative tools, methods, and systems to cooperate among themselves, across all levels of Government, and with nonprofit organizations, businesses, and individuals in the private sector.  Executive departments and agencies should solicit public feedback to assess and improve their level of collaboration and to identify new opportunities for cooperation.

I direct the Chief Technology Officer, in coordination with the Director of the Office of Management and Budget (OMB) and the Administrator of General Services, to coordinate the development by appropriate executive departments and agencies, within 120 days, of recommendations for an Open Government Directive, to be issued by the Director of OMB, that instructs executive departments and agencies to take specific actions implementing the principles set forth in this memorandum. The independent agencies should comply with the Open Government Directive.

This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by a party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

This memorandum shall be published in the Federal Register.

BARACK OBAMA

(Source:  http://www.whitehouse.gov/the_press_office/TransparencyandOpenGovernment)

 

Ok you decide.  How true has the President been to his word?   Step back, think, validate or challenge.

Personally I believe that there is not an American alive who wouldn’t embrace the promises outlined in these words.    The promises presented here are without media bias, what do you think?   Both Presidential candidates have called this election a critical juncture in our nation’s history.   I couldn’t agree more.             

On a final note, notice the second to last sentence of the presidential statement above.   Do you recognize it?   It is a disclaimer.

Fear & Greed: A Wall Street Story

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During times like these when investor fatigue, disillusionment and market uncertainty seems to be at an all-time high it is time to step back, think, validate or challenge.  Our starting point is a frank observation about your own vulnerability. There are two factors that drive markets: Fear and Greed.  The stronger the market moves in either direction and the longer the duration of the move the more prevalent is our fear or greed. Emotions then become a big part of how you will act or react in your decision process.  Unless you recognize and control your emotions, you run the risk of becoming vulnerable to those that know how to manipulate those emotions. I refer to this technique as pushing your hot buttons.

Have you noticed that in bull markets that there is no shortage of those who promise to help you achieve great returns?  They are pushing your greed button.  Then there are markets like we have experienced over the past few years that has brought out the emotion of fear.  That emotion usually makes us more vulnerable as fear lays you open to those who find ways to persuade you that what they have to sell will protect you.  Here is an example in the form of a commercial.  “I saw the crash of 2008 coming and I protected my clients and they did not lose money”.  Translation: I sell annuities and some of what I said is true.  Fear can also place you in a position of inaction when steps can and should be taken to protect your assets but you are not sure who to trust. Many times over the years I have heard “we are happy with our advisor” which in many cases translates into “we are holding hands hoping to get through this market decline together because they don’t know what to do either.”  You may find that waiting for markets that are more conducive to the skills of those who are better at selling than advising is a costly proposition.

So how can you help protect yourself from becoming a victim of your own emotions as it applies to your finances?  A starting point is accepting that a changing world requires a willingness to be aware of and evaluate those changes periodically.  A major change over the past few years has been the introduction of technology based financial planning/tracking tools.  The best tools currently available are robust and dynamic, easily modified to incorporate life changes and have risk control as the centerpiece of its platform.   To those of you that are skeptical and ask if there is really anything out there that is that unique, the answer is an emphatic yes.   The caveat is that like any leading edge technology, at the beginning public awareness and skilled practitioners are both in short supply. Candidly speaking this approach doesn’t fit the stock traders’ business model of buying or selling as each action must first be considered for its fit in the overall plan. This has the effect of removing the emotion from the decision and mitigates the use of hot buttons.

My experience has shown that most investors take too much risk and thereby reduce the probability of reaching their financial goals. The sad thing is that most consultants are clueless when it comes to quantifying risk in the portfolios they manage. Go ahead and ask them to explain risk (standard deviation) in terms you would understand and how much risk you are assuming in your portfolio.   Remember 10 questions in an asset allocation model, placing you in the categories of conservative, moderate or aggressive, does not measure risk.  So your question might be, “If tools exist which individualize financial plans and mitigate risk why I am not being introduced to such an approach by my consultant or firm?”  Simple, there is no incentive for firms to be proactive in this area. It is all about their bottom line not yours.  Additionally, my experience has shown that when it comes to incorporating advances in technology most consultants will not spend the time to even evaluate how it may benefit the client. Why?  The answer is that if it takes time and effort to learn, doesn’t produce immediate financial reward, doesn’t fit the model of the consultants practice, it is unlikely to get much attention. Would you be surprised to know that one of the major Wall Street firms has made this type of software available to its consultants since December 2008?  The result seems to be one of the best kept secrets in town.  I say, shame on the firms who have this technology but fail to be proactive and inform their clients. To those few consultants who offer this service I applaud you.

What can you expect from this new technology and why speak out to incorporate it? It promotes meaningful client/consultant dialogue, the plans are designed to be client specific, goal tracking is measurable, and it holds the consultant accountable to a higher standard for their knowledge and advice.  The most important element of this approach is that risk management becomes the guiding factor and not performance.  Put the control where it belongs; in your hands.  After all, how many times have you been told by your consultant “remember is it your decision”?   It is time to stop the use of Fear and Greed tactics.

It is apparent that to effect change it is going to have to be a consumer driven effort. What next?  Step back, think, and validate or challenge what has been said.   Ask your consultant if their firm has planning/tracking software available.  If the answer is yes maybe the next question should be; why aren’t we using it? Don’t let them play down the importance of a tool that levels the playing field.  Do independent research. Be prepared, stay informed. Begin by looking at a program called Money Guide Pro.  www.moneyguidepro.com/.  You might even want to give them a call to see if your Wall Street firm is using this software under a different name.  Hint: it probably is.  Finally, never forget that the person sitting across from you is a salesperson first and certainly understands Fear & Greed.

(Note: most firms provide this type of software free to the consultant; however they allow the consultant to charge a fee for the plan. Don’t pay for something that you deserve.  If you need to, remind them that you are paying the bills by being a client of the firm.)

Fragmentation by Design?

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There are many issues facing our country and each issue carries varying degrees of significance to each citizen.   It appears that the White House has been able to take these issues, personalize them for a given audience, and acknowledge them in a way that suggests a level of concern and compassion.    There is probably not a day goes by that President Obama isn’t meeting with groups where he speaks on topics specific to the audience rather than the broader issues that are facing our nation.   Examples include speaking to students about loans, to women about contraception or corporate roadblocks, to labor about job creation/protection, to elderly about entitlement programs, to veterans about ending the war, to Latinos about immigration and so on and so forth.   Taken on their own merit every one of these issues is important.  However, the point is not how we feel about a particular issue affecting various segments of our society we know how it feels.   We live it daily.   So is there real empathy and compassion on the part of the President for those in the audience; I would like to believe there is.  Or is this a superficial approach where the real underlying motive is to appeal to the parts?  Remember in mathematics the equation; the sum of the parts equals the whole?   In politics is the hope that appealing to the parts equals re-election?   Is this fragmentation by design?

Let’s step back and think.   We can all agree that each segment of our society has important issues that affect them personally and us as a nation.  In order to become a great nation again every one of these issues need to be taken seriously and addressed over time.    Unfortunately many Americans are frustrated by government infighting while so many issues affecting our lives go unresolved.  It appears that our faith in “hope and change”, as fragile as it was, has been shattered with the reality that the system in place to fix problems is itself broken.  It is a system where ownership of a problem is someone else’s responsibility.  It is a system in which our elected representatives couldn’t even agree on the time of day if they were standing in front of Big Ben.   So is it any wonder that when the President of the United States acknowledges issues, that are important to us personally, that a normal knee-jerk reaction is “wow someone can at least identify that there is a problem”?   Not so fast.   Though identifying the problem is the first step, it’s the easy one.  It, however, gives me no confidence that identifying an issue will result in change if there is no solution offered to at least debate.    A credible approach to problem solving is identification of the issues, prioritization based on importance, bipartisan debate on solutions, and finally implementation for change.   However this approach to problem solving requires strong leadership.   Mr. President that is why we elected you and that is what you promised.   I for one am disappointed as I feel that we are on the great ship USS America with a captain who knows how to align deck chairs but is afraid to take the helm.  It is a little late to tell us that your only experience in a boat was at the amusement park.   My advice Mr. President, standup, be decisive, lead with conviction but for the sake of our nation lead!  If you do, many will get behind you as our gain would be yours.   If the challenge is too great, or you don’t have the skill set, please step aside and exit gracefully this fall for the sake of this nation.  Hint: Start with the economy.