The Financial Planning Blog
Your go-to financial planning and wealth management resource, whether you're just getting started or well on your way to a financially secure future.
The Sequester-Where and how soon might the cuts be made? As there was no last-minute agreement between Congress and the White House to postpone federal budget cuts scheduled to take effect March 1, the ax now falls. Unless a bipartisan effort somehow undoes them, assorted federal government agencies will have their budgets reduced by $85 billion between now and October 1, as the initial step in a planned $1.2 trillion deficit trimming over the next ten years. (The belt-tightening could have been more severe: without January’s fiscal cliff deal, it would have been $109 billion.)1,2
Investors continued to add money to equities, resulting in 11 consecutive weeks of positive increases, the longest run in nine years. The financial markets are off to a good start this year. Although it’s easy to get caught up in the positive momentum of increasing values in the markets, we recommend exercising caution. We believe the financial markets have gone a little too far, too fast and may be positioned for a modest pullback. In the short term this would be neither unexpected nor unhealthy. In addition, we’re approaching self-imposed Congressional deadlines that create uncertainty.
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