What is important to you?

Another day, another manufactured crisis by our elected officials in Washington. The markets were on edge, as well as all of America to see if we would re-open the government and if we would default on our debt. Businesses, world leaders, and economists were so concerned about the damage to the world economy should America default on its debt. But, once again, at the eleventh hour, our elected officials got a deal done. Hurray! The markets rejoiced, for now. We may have to go through this again as they just moved the deadline about three months down the road.

I don't normally discuss politics, but I get angry when the politicians create fear in the markets that ultimately affects my clients and me. This is a good lesson about the market's ebbs and flows. Episodes like these are unpleasant. However, they're also a fixture of markets, which have routinely absorbed and shaken off potential and real shocks like these in the past. (As a practical matter, it's very hard to deftly time market moves-i.e., selling and buying in anticipation of various short-term events or certain conditions.) Furthermore, my job is to help my clients avoid the confusion, and to help stay disciplined when events like this cause fear or greed in the markets.

So as this latest drama in Washington unfolded I was determined to stay focused on the things that were important to me. Like my family, my friends, my clients, my health, and my business, just to name a few. I have a written list of the things that are important to me and try to read it every day. If I focus on those things, it helps me serve my clients better and be a better person.

Thanksgiving Day is fast approaching and you may be spending time with family, watching football, shopping, or sleeping from the effects of eating too much food. You will have many chances to reflect on things, and I pose this question, what is really important to you?

HAPPY THANKSGIVING!

Sincerely, 

William "Bill" Cummings, CPA
Cummings Financial Organization 

Charitable Giving: Smart from the Heart 

Americans are a generous people. In fact, it is estimated that Americans give around $300 billion to charity. 

This time of year is often one full of gratitude, and also a tremendous need from non-profits and charities. You may have causes that you want to support with donations. Here are 3 tips for giving smart, from the heart:

1. Ask the hard questions.  Just like any wise investor does extensive research and consideration among options, a wise giver must also consider where he wants his money to go. Which causes, organizations, and amounts to donate are tough questions...but important ones.    
2. Give where it counts. Some large, established organizations like universities and hospitals have endowments and funds to keep them going, while small local charities like homeless shelters struggle to keep their doors open. Giving to smaller charities with bigger needs may increase the impact of your dollar.  
3. Volunteer where you donate. The greatest volunteer satisfaction may come from a combination of both time and money. Volunteering gives you a chance to see your dollars at work, and the rewards may outweigh simply writing a check!

No matter what your age or income, when you choose to give you will get more in return. The IRS has specific rules and guidelines for charitable contributions. Before taking any specific action, be sure to consult with your tax professional.

Click here to see the online story.

Social Security has been a fact of retirement life ever since it was established in 1935. We all think we know how it works, but how much do you really know? Here are a few things that might surprise you.

1. The Social Security trust fund is huge. At $2.52 trillion at the end of 2011, it exceeds the gross domestic product (GDP) of every country in the world except the five largest: the U.S., China, India, Japan, and Germany.

2. Most workers are eligible for Social Security benefits, but not all. For example, until 1984, federal government employees were part of the Civil Service Retirement System and were not covered by Social Security.

3. You don't have to work long to be eligible. If you were born in 1929 or later, you need to work for 10 or more years to be eligible for benefits.

For more social security facts, click here.