Two thousand fourteen was a difficult and turbulent year nationally and across the globe. But how do people feel locally, where they live and work? What are the investment and financial implications for the individual planning for 2015?

Two thousand fourteen was a difficult and turbulent year nationally and across the globe. But how do people feel locally, where they live and work? What are the investment and financial implications for the individual planning for 2015?

Recall the headlines: Ebola fears; ISIS and graphic beheadings; brutal fighting in Syria, Iraq, Libya; Putin seizing Crimea and threatening Ukraine; protests over police shootings; racial divisions; challenges on our southern border; airline tragedies. Big news is unsettling, but people are motivated positively or negatively more by what’s happening in their household, their community, schools, and workplace.

Tip O’Neal, Speaker of the U.S. House of Representatives 1977-1987, is credited with the saying, “All politics is local.” It’s personal issues, local concerns that the individual voter cares about, not so much big and intangible ideas. Voters make decisions based on how issues hitting them personally are addressed. People care but for most, Ebola, Crimea, Syria, and even Ferguson, MO, are faraway issues. The reality, for many people things are getting better at ground level.

A Rasmussen poll dated 12/31/14 indicated optimism. We finished 2014 with consumer and investor confidence indexes near highs, reflected in consumer holiday spending. The Rasmussen Employment Index hit a 6-year high in November, with 50% of working Americans anticipating a raise in 2015. Homeowners are more confident with significant numbers seeing higher values over the next one to five years. Some prognosticators look at a “wealth index” which includes measures of employment, home values, personal income, and stock values. All four components showed upward trends in 2014, bolstering confidence looking forward.

But per Rasmussen, only 27% of voters think our country is headed in the right direction. With the turnover in Congress hopes are that dissatisfaction will spur progress in tax reform, pro-growth initiatives to expand job prospects and middle class incomes, immigration reform that is humane while dealing with burdens on local schools and welfare costs, and relief from burdensome regulations and costs that depress entrepreneurial activity and the growth of small business.

The Wall Street Journal on 1/3/15 detailed thinking of some members of their CEO Council. One chief executive noted that “momentum , even a little, fuels momentum.” Another saw innovation thriving and innovators winning, reminding us that “creative destruction” will continue as a force that must be monitored by sharp-eyed money managers. Both manufacturers and those in the service sector see healthy increases in revenue for 2015. Relative to stock values, more volatility is expected, affirming that equity investing must be part of a broader investment planning and financial planning strategy. Wall Street will not be an “escalator to heaven.”

Retirees and those who anticipate retirement in the next few years must have a comprehensive investment policy that includes a “paycheck fund.” This is a safe money account that can provide cash flows while more volatile asset classes like stocks can be left alone during down periods. Bonds can play a role, but one must understand strategies designed to cope with rising interest rates. Sitting unaware in a bond mutual fund could be hazardous to your wealth.

Dividends and covered call option writing can add to income. Certain types of alternative investments can provide cash flows and inflation hedges. Bargains are appearing in the energy sector for those willing to capitalize on uncertainty. Annuities are both hyped and panned and investors must take the time to educate themselves on pros, cons, and alternatives. Free chicken dinners are fine, but sales sizzle is not a substitute for due diligence.

Wealth building and preservation is a focus, but wealth is also lost due to tax-inefficiency and poor or no estate planning. When is the last time you reviewed your tax strategies or your living and testamentary estate plan? Insurance audits often reveal ticking time bombs, policies that will blow up or beneficiary designations out of sync with goals and objectives.

All in all, a positive outlook from both a macro- and micro-level, but no time to be on autopilot when it comes to career development, planning for a secure and meaningful retirement (“restylement”), business succession and continuity plans, financial independence, and a happy and healthy 2015. Cheers!

Lewis Walker is President of Walker Capital Management, LLC. Certain advisory services offered through The Strategic Financial Alliance, Inc. (SFA). Lewis Walker is a registered representative of SFA which is otherwise unaffiliated with Walker Capital Management, LLC. lewisw@theinvestmentcoach.com