July 2008 – Volume 1 Issue 4

Today's newsletter focuses on a personal limitation of mine (those who know me well would say one of many) and how it impacted my judgment. It's a feel-good story of triumph against all odds, with adversity staring me straight in the eye. Well, not really but there is a point in this piece. Anyway, I hope you enjoy the Newsletter as I continue to bare my soul.

Best regards,

Brian Greenberg, CPA, CCPS
President
Brian Greenberg & Assocs

The stock market has not been a place of joyous time of late. The volatility (meaning prices have been declining on too many days) has certainly been unsettling. The response of holding your nose and hoping for the best is being tested. This month's newsletter discusses a better alternative.

I am not at all mechanically inclined. In fact, when I was tested in high school if the term mechanically challenged had been in vogue it would have applied to me. I scored 35 (out of 100 in case you were wondering) and 20 for spatial (3D) relations. I achieve a sense of self worth when I change a light bulb. If my family had to rely on me to make a living with my hands, we would have been homeless long ago. However despite my condition, there are certain basic steps I should and can do when a mechanical problem arises.

Cars and their care are a major source of angst for me. A number of years ago, I was going away for the weekend, departing from work. That morning I went to the gas station to fill up the tank and have the gas station attendant check the oil. Do gas stations still check the oil anymore? Or should we be thrilled when we find a station selling gas less than $4 gallon? Anyway, I was proud that I knew that checking the oil level was important.

That night after leaving my office to begin my trip, I entered car hell — my car would not start; it would try but then fail to turn over, over and over this occurred. What made this all the more frustrating, this was in the middle of the summer with 100 degree heat and a shore destination awaiting us. Fortunately we were traveling with another couple but, these mechanical problems added three hours onto our departure time.

I arranged to have the car towed to the Subaru dealer expecting some major engine overhaul was needed. On Monday morning I was pleasantly surprised when they called to tell me that my damages would be $4.95. Why so cheap? Well, when the gas station attendant checked my oil, he neglected to put the oil cap back. The lack of an oil cap caused the engine not to start. While, I was quite happy that my damages were so minimal, I soon became annoyed at myself for not lifting the hood of the car. Now I wouldn't have known what I was looking at, but even I in my limited capacity would have noticed that the cap was missing.

So what does this have to do with stock market volatility and investment review? Recent stock market gyrations have a lot to do with soaring oil prices, slumping housing market and tighter lending standards. If your investments were primarily in financial and housing companies you would be in a lot of pain today. If however you had invested in energy, limited exposure to housing and financial, then it's quite possible you are feeling less pain. But you won't know unless you lift the hood.

Is your money at more risk than you would be comfortable with? Are you diversified (all investment eggs NOT in the finance basket stock category?). In 2000, many investors thought they had spread risk only to find that many mutual fund managers had changed the managing style of their fund and ran to technology stocks just before they tanked.

You don't have to be a stock expert to lift the hood to determine the level of risk in your investments. Fortunately today, there are many qualified financial advisors who can check under your hood to see if you have spread the risk. Just as I have no clue as to how a car operates, a limited understanding of investments should not prevent you from performing basic maintenance.

Lift that hood — check to see how diversified (risky) your investments are.

You can do it yourself or find a qualified financial advisor to do so.

Brian Greenberg and Associates is a Marlton, NJ CPA firm providing tax and financial planning services. We specialize in helping small business owners retire on their own terms. Follow this link for more on how we can help you.

Brian C. Greenberg & Assocs
1 Eves Drive, Suite 111
Marlton, NJ 08053
856-596-7800

website: www.greenbergcpa.com
email: brian@greenbergcpa.com

Brian Greenberg is Registered Representative of and Securities and Investment Advisory Services Offered Through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, Member NASD/SIPC.