Diversified Asset Management, Inc. – 2021 3rd Quarter Newsletter
Two Observations That May Make Higher Taxes Easier To Bear
For the first time since the administration of President Ronald Reagan, federal government tax policy is changing significantly. Tax cuts were in vogue for nearly four decades, but President Joseph Biden is planning on implementing higher federal taxes on corporations as well as high-income and high net-worth individuals in 2021.
As Congress debates the Biden administration's proposal for a massive increase in federal infrastructure spending, which would require an increase in taxes and government borrowing, here are two key observations made by independent economist, Fritz Meyer.
Your Financial Psychology Under Current Conditions
Are you a risk taker? Will you follow through on a long-term plan? Or maybe your natural tendencies make you prone to spend impulsively and let short-term emotions control your budget and investing decisions. These are financial personality traits that behavioral economics helps you identify and manage.
The psychological dimension of financial planning is part of the knowledge learned from the burgeoning social science of behavioral economics, a field recognized for its contribution in helping to improve society through knowledge in 2002 with the award of a Nobel Prize in Economics to Daniel Kahneman, and again in 2017 with the Economics Prize awarded to Richard Thaler.
An Important Investment Idea To Remember In 2021
Just before the beginning of every year, 10 top Wall Street investment strategists are asked by Barron's, the century-old financial magazine, to predict which industry sectors will outperform and underperform the Standard & Poor's 500 stock index for the year ahead.
Making A Financial Transition? Answer These Five Questions
To say current financial economic conditions are unprecedented understates things: The United States, the world's largest economy, by far, is transitioning economically from a once in a hundred- year public health crisis. Americans are also experiencing personal financial transitions, magnified by valleys and spikes in the economy as it recovers from the Coronavirus crisis. The economy is in transition and causing difficult personal financial transitions
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Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is registered as an investment adviser with the U.S. Securities and Exchange Commission (“SEC”) with its primary place of business in the state of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. References to registration with the SEC do not imply any endorsement or approval of the qualifications of the firm, nor do they imply that the firm’s representatives have attained a particular level of skill or training. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.
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