Dec 15, 2017 3 min read

This is the time of year that many people assess how their financial choices performed in 2017. It has been a boom year in the stock market. There have been about 65 new highs achieved this year. For the most part, there has been very little volatility. It could be risky to believe that the market will continue to perform this well in 2018.

This year’s market results have been mostly the honeymoon effect. Investors were encouraged by hope of changes in Washington. There has been less regulation, which many businesses like. There was hope that there would be infrastructure improvements and a new healthcare bill. Neither of these have not been achieved. The current heathcare program is not working, and is imploding on its own. So far nothing better has been passed.

Congress is trying to complete changes to the tax code this week. There have not been major changes for 30 years. While some things have been leaked, most of the details are unknown. The results will probably be somewhere in the middle from the two extremes we are hearing. Raising personal exemptions will help many lower and middle class tax payers. Most people do not itemize so they do not deduct interest and charitable contributions.

U.S. corporate business taxes were the highest in the world. Both parties knew something needed to be done. Supposedly, many loopholes were closed. The fact that business cuts are permanent and personal cuts expire in 10 years should not be a concern. It has already been stated that the intent is to make personal cuts permanent. Some of these steps are the games that are played to get a bill passed.

Many economists believe the market will slow down considerably. Mutual funds giant Vanguard has said the risk of a correction is up substantially. If your broker is telling you things will keep booming, beware. There should be a lot of concern about new cryptocurrencies like Bitcoin. Most people do not understand them, including me.

However, I recently read someone telling people you could fund a full retirement for a $100 investment. Even though he was trying to sell a book to teach his secrets, how would anyone believable this? The value of Bitcoin has surged by unbelieve amounts sometimes overnight. Some people with great financial knowledge call this a Ponzi scheme while others say they can do nothing but keep soaring. This could become a bubble that brings down the market like mortgage serialization did in 2008.

The way to acquire financial resources is by paying yourself first. This means put away savings before you start to pay your bills. You do this with a 401(k). Be sure to contribute at least as much as any match your employer gives you. This is free money, yet billions of dollars go unclaimed every year. Control your spending and make reasonable investments that match your risk tolerance.

Be realistic by making adjustments based on your age. If you are young and the market corrects, it is on sale. If you are retired or close to being so, it can have a negative effect on your retirement. Be realistic; do not go hunting for unicorns.