Central Oregonian

Good decisions don’t depend on the news

Teresa Tooley

January 07, 2013

Financial Advisor for Edward Jones, Pat Lenahan, forwarded me an interesting email from Investment Strategist Kate Warne in regards to the importance of looking beyond the drama in Washington, and making good financial decisions.

With the recent activity by Congress and the fact that they waited until the 11th hour to address various tax increases and spending cuts regarding the fiscal cliff, I decided to include the information below that was forwarded to me.

At the Edge of the Cliff: As expected, Congress has waited until the last possible moment to address the various tax increases and spending cuts that make up the fiscal cliff. The stock market and most investors ignored Washington’s inaction during much of December, but stocks fell over the past week due to rising fears that Congress might actually fail to agree to reach even a minimal agreement. And stocks are likely to continue to drop short term until some agreement is reached.

Keep in mind that the fiscal cliff is not a market cliff or an economic cliff. It’s a sharp reduction in the federal deficit. But there is no agreement about how to reduce the deficit long term. So whatever happens with the fiscal cliff, the debates about taxes and spending will continue, especially since the country will reach the federal debt ceiling again shortly.

Good Decisions Don’t Depend on the News: Fortunately, you don’t need to know exactly what Congress will do to make good financial decisions. Keep these three actions in mind:

• Prepare for higher taxes. Almost everyone thinks taxes will rise, so prepare to pay more in taxes. That may mean you need to invest more and spend less, too.

•Stay invested. If you’ve invested appropriately, stay invested while politicians noisily sort out the difficulties they’ve created. It may be difficult to do, but remember you don’t control what happens in Washington. You can control your preparation and your responses, and you may even be able to find opportunities.

• Focus on diversification and quality. If you own a well-diversified portfolio with quality investments that are taxed in a variety of ways, you are well-positioned despite all the uncertainty.

Life After the Cliff: Remember there will be life after the fiscal cliff and the debt ceiling. Your financial needs and goals extend far beyond the next few months. Your investment decisions also need to look beyond the drama in Washington. A well-diversified portfolio of quality investments is designed sturdily to survive fiscal cliffs and other unexpected mishaps, helping you stay on the road to your financial goals despite the bumps along the way.

For more information and advice on your personal investments, contact your financial advisor.

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“What's Brewing?” will be held on Wednesday, Jan. 9, at 7 a.m., at Meadow Lakes Restaurant. This week’s speaker will be Rep. Mike McLane, who will be giving a preview of the priorities and expectations of the 2013 Oregon legislative session. Breakfast is available for purchase.

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The Holiday Partnership has announced that this year, they delivered more than 800 food boxes, helping approximately 2,500 people in our community have a happy holiday.

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On Jan. 15, at noon, Author Katherine Weaver, a resident of Madras, will be at the Women's Connection-Prineville Golf Course, 320 N.E. Hogan Lane. She will be available for a book signing with her inspirational book, “Seeing God in the Simple Things.”

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St. Charles Hospice (formerly Pioneer Memorial Hospice) needs compassionate volunteers who can serve as companions to patients and their families in Crook and Wheeler counties. They might provide short periods of respite, run errands, stack wood, put a puzzle together, or simply visit. Please pick up an application at the Hospice office by Jan. 11, or call Kay Kludt at 541-323-2568 for more information. Training will begin on Jan. 14.

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“Detoxification, the Best Medicine,” will be presented by Dr. Coby Hanes on Thursday, Jan. 10, at 5:30 p.m., at 446 N.W. Third St. Learn how the environment and diet can wreak havoc on your health, and learn more about meal planning, acid/alkaline balancing, the biggest sources of toxins, and heavy metals, and foods that can make you fat. For more information, call 541-447-7230.

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Central Oregon Community College is offering classes in Prineville to Crook County business owners at a reduced rate at the Small Business Development Center located at the COCC Crook County Open Campus, 510 S.E. Lynn Blvd. Three classes are being offered at this time — How to Start a Business, Boost Your Business, and Impacting Your Profits. For more information, call 541-383-7290.

This column was written by the Central Oregonian’s general manager Teresa Tooley. If you have something that you would like to have included in the Central Oregonian’s business briefs, e-mail it to business@centraloregonian.com