My Mom used to ask me, “If all your friends jumped off a cliff, would you do it too?” Of course, that was generally during my teenage years when I thought some rule or restriction wasn’t fair because “all my friends get to …”
Who knew that saying could become the basis for many of my business and financial decisions? There is a value in swimming upstream.
Buy when others are selling. Sell when others are buying. I bet you’ve heard that before, but have you practiced it? I find myself panicking a little when I hear the “sky is falling” predictions for the economy. But then I remember, a down market is a GREAT thing for someone who can manage their finances. (Secret is having good understanding of all things financial and enough self-control to manage what you have).
Panic when others are greedy. Get greedy when others are panicking. This is a Warren Buffet saying that was never more true than right now. Foreclosures are at an all-time high, plus new state laws are restricting how the public can take advantages of the preforeclosure and foreclosure market. That means that banks will soon be sitting on a lot of REO (real estate owned). The banks will have the properties, and even better, the ability to finance them. Are you ready for the REO market that is getting ready to explode?
Average advice gets you average results. That one is mine. I’m always very skeptical of “conventional” wisdom. Ten years ago, people were terrified of the IRS. I was out preaching then that you should make the IRS your partner. They were actively promoting that they were now the kinder, gentler IRS. And the number and theme of the audits proved it. Well, everybody else has caught up and now they’re saying to not be afraid of the IRS. And, guess what, the IRS is getting tough, tough, tough again. Four years ago, the new Commissioner told us that the “days of the kinder, gentler IRS are over.” He’s been replaced by an even tougher acting Commissioner.
Pay attention folks! We’re in for a bumpy ride. Get your records in order, keep in touch with TaxLoopholes – we’ll steer you through the troubled times ahead.