Finally, We Have Certainty

It has been a long hard brutal election with spin, attacks and demonizing on all sides.  This approach in choosing our leaders have done nothing to solve the problems, it only caused more confusion, turmoil and chaos.  I am very happy this silly season is over and we now have certainty.

This is not a debate about the choice that was made in the election, as they say “the people have spoken.”  We now have a “New Normal,” we need to understand it and devise our own personal and business plans to meet our goals and aspirations.

If I look up the word “Certainty” in Webster’s dictionary this is what it says:

Cer´tain`ty

1. The quality, state, or condition, of being certain
2. A fact or truth unquestionable established
3. Clearness; freedom from ambiguity; lucidity

We need to know the direction we are on as a Country, State and Rochester Hills.  From this understanding of the path we can all make our personal and business plans to secure our future.  Depending on your personal desires combined with your age and plan for retirement many will choose different paths.  Some will choose a course to survive; others will formulate a plan to thrive.  This will be based on their own personal decisions and appetite for risk.

To understand the “New Normal” we need to look at what is certainly going to happen.  I choose to look at the National, State and City levels and what they are going to do that affects both my personal and business finances.  Once I understand what is certainly going to happen I can formulate a personal plan for me.  I expect most people and businesses are doing this.  As they all move in their chosen paths we will see the combined effect it will have on the economy.

United States of America

We have elected President Obama who has a plan for his second term.  Based on his plan we can be certain of the following actions:

• Taxes will go up on $200,000 / $250,000 income earners.  These are double income families, executives in corporations, investors, small business owners and many professionals (doctors, lawyers, CPAs, etc.).
• Capital Gains taxes will go up from 15% to 30%.  This is stock investments, venture capital, angel capital, personal investors and 401Ks.
• Obamacare will be implemented.  This is certain, but the details are not certain.  It will impact everyone; we just do not know exactly what the impact will be.
• The 3 houses of government will be in the same deadlock we have experienced in the past years and big things will not get done.
• We will continue deficit spending and continue to grow the total national debt.
• The entitlement programs will continue to be unsustainable and further grow our debt.
• More governmental regulations will continue to be designed and implemented to control our personal and business actions.

The State of Michigan

We have elected the same mix of leaders and will not see a major change in direction.  We rejected the constitutional amendments for many special issues.  We rejected the Emergency Manager proposal and allowed the State to decide on a new bridge.

• We continue to move in the direction to make us more competitive with other States to attract new businesses; we are not at the top of that list.
• The cities in financial peril will find it difficult to get money from the State to continue and their spending, there only choice will be bankruptcy.
• We will have a new bridge to Canada.
• We will eliminate the property tax on businesses for equipment investments.

The City of Rochester Hills

We have been recognized for a great budget format and presentation that has been passed by the City Council.  In the August primary vote we passed a 2.5 mill increase that can be implemented immediately at the direction of the city.  In the November election we passed movement of money that was saved to be spent elsewhere.

• The city roads are in bad shape and we do not have the money in the budget to fix them.
• We have no plan in the budget when the State eliminates the property tax on businesses for equipment investments.
• We are almost out of reserve money for RCS with an unsustainable budget going forward.
• Almost every departmental budget was passed with a vote of 100%.

Now is the time when the opinions are formed.  We will all have an opinion on the effects of each of these certainties and how they will impact our personal and business budgets.  If you are not a business owner you will still feel the effects based on your employers decisions to survive and/or thrive.

I am 57 years old and have a short runway to retirement, the decisions I make right now will impact me in the very near future.  I am developing my personal and business plans and in many cases I am already taking action.

I am asking for an adult conversation on this subject and ideas on people’s different plans:

• What certainties did I miss in my lists?
• How will these certainties impact your workplace and/or business?
• How will these certainties impact your personal plan?