Europe’s energy crisis

I contribute regular columns to my local paper, the Northwest Herald. For my latest piece, I decided to address the energy crisis plaguing many European countries. Citing the shale boom that has restored energy confidence in the US, I discuss why Europe has not shared that same fate.

The green energy trend hit Europe hard, but it has yet to deliver “reliable and competitive” energy. Additionally, as shale becomes cheaper and more abundant in the US, Europe is not yet taping into any of its shale reserves, due to solar and wind power solutions requiring attention.

Read the entire piece through the following link and check back to the blog soon to see what we are covering next - http://www.nwherald.com/2013/10/22/europe-has-an-energy-problem/aotnorn/.

Forbes coverage: The pros and cons of investing in your employer’s stock

Making headlines earlier this month, Google’s stock price increased to $1,000 per share, boosting the investment portfolios of nearly 46,000 employee shareholders. While the uptick was great news for these employees, financial advisors are usually cautious when it comes to holding too much company stock.

Published on October 22, Forbes reporter Maggie McGrath highlights the company stock holding issue and includes Mike Piershale in her column. For investors who want to put some of their wealth into company stock, Piershale suggests analyzing the long-term performance of the business. If it truly is a “good” company, he advises to not put more than 10 percent of their portfolio into that equity.

He also recommends taking advantage of NUA, which provides a tax deferral opportunity when investors take distributions from company-owned stock appreciations. To read the full article and learn more about company stock holdings, click here.

Mike Piershale on “Mike in a Minute:” Tackling inheritance issues

In our most recent “Mike in the Minute” segment, Mike explains why financial advisers are essential during inheritance cases.

Mike explains the dangers of young heirs receiving a large sum of money and not knowing how to invest it. In the video, Mike suggests heirs hire a qualified financial adviser to help them make responsible financial decisions. For example, heirs benefit from establishing a retirement plan, because these accounts provide specific tax advantages for them.


What would you like to hear Mike explain in under a minute? Leave it in a comment and you might just see it as a segment on our YouTube channel.

Risk matters

It’s no secret that the last few years have been economically uncertain. The markets have been volatile, and while we still work to make our clients money, we have evolved our strategy to meet the ever-changing environment. We now aim to both advance and protect our clients’ assets.

One of the most powerful aspects of our Advance and Protect strategy that is normally invisible until the market drops is the fact that the rates of return are risk adjusted.

The goal of a risk-adjusted return is to reduce risk as much as possible in achieving any level of return.

Mike Piershale on “Mike in a Minute:” Explaining NUA

In today’s “Mike in a Minute," Mike clarifies what net unrealized appreciation is and discusses the significant tax savings associated with this strategy.

Press play below to hear Mike explains how NUA can serve as a powerful tax shelter when investors pull distributions from company-owned stock:


Find more “Mike in a Minute” segments on his YouTube channel.

What the government shutdown means for you

For the first time in 17 years, the United States government is in a shutdown after the House and Senate failed to reach an agreement over the stipulations and scope of Obamacare. No one is sure how long the partial shutdown is estimated to last, but we are already beginning to see the repercussions as hundreds of thousands of government workers go on furlough indefinitely. So what does this mean for the rest of us?

In a recent article for DailyWorth.com, John Piershale weighed in on the immediate and pertinent consequences of the shutdown. He discussed nonessential services that have been stopped (either entirely or partially) including: national parks, museums, the Chemical Safety and Hazard Investigation Board, the Treasury Department, the Small Business Administration, and even some services to the blind. He also offered how the shutdown could impact mortgage approvals, considering that the Federal Housing Administration backs almost 30 percent of mortgage loans.

Lastly, Piershale emphasized the potential consequences a shutdown could have on fourth quarter economic numbers. “A few days probably wouldn’t make much difference, while a month, which is unlikely, would have a measurable affect on fourth quarter GDP,” he said.

To read the full article by contributor Nancy Mann Jackson, follow the link below:“How will the government shutdown affect you?”

The tax consequences of supporting boomerang children

Parents often believe that once their children have graduated from college, their heavy financial responsibilities will ease. But, don’t count on it! The new generation of college graduates has been dubbed the “boomerang generation,” meaning they return back home after leaving the nest or still require financial support.  Others struggle to support themselves with entry-level positions and still turn to the bank of mom and dad for assistance.

In a recent article for US News & World Report, Mike Piershale weighed in on the tax implications for parents whose adult children move back home. While parents might see large sums of financial support in the form of paying for rent a responsibility to their children, the IRS might see it as a gift. Mike offered that, "The IRS doesn't worry about the kid moving back to their old room and eating meals at their home…But if you had a parent that was giving really serious money to their kids for whatever reason, they're going to be interested in that."

The following link will take you to the full article written by contributor Susan Johnston – “The Tax Implications of Supporting Adult Children.”

Mike Piershale on “Mike in a Minute:” Pre-retiree concerns

Today’s “Mike in a Minute” speaks to those looking to start making retirement plans. In this segment, Mike breaks down some common obstacles that pre-retirees face, such as paying down college tuition debt and other strenuous financial obligations. He explains that with a cash flow analysis, all sources of income are included to determine if the individual can retire at a reasonable age. Here more below:


Be sure to check back to this space for more "Mike in a Minute” segments.