Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 Page 61 Page 62 Page 63 Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 Page 81 Page 82 Page 83 Page 84 Page 85 Page 86 Page 87 Page 88 Page 89 Page 90 Page 91 Page 92 Page 93 Page 94 Page 95 Page 96 Page 97 Page 98 Page 99 Page 1008 Do you receive income from assets subject to counterparty risk such as annuities and pension funds – what would you do if the policies failed or benefits were cut? Have you checked the ratings and credit standing of annuity and insurance providers? Have you checked the fiscal and financial health of the municipal and state governments for which you are liable as a taxpayer and a property owner? On the expense side, are you at risk of higher state and local taxes? One colleague recently told me of a home in his area that had lost approximately 50% of its appraised value as a result of rising property taxes in recent years. As municipalities seek to raise funds from enforcement actions – parking tickets, speeding tickets, and civil money penalties – have you thought about what you need to do to enjoy good relations with your local enforcement and government officials so that misunder- standings are unlikely? We have a great Solari Report “Know Your Sheriff” – it’s good advice. Make sure that you maintain complete legal, tax, and financial records and attend to important compliance requirements. Finally, do you have a rainy day fund in case there is a sudden or abrupt change in your income or expenses? Bottom line: Now is a time to increase your situational financial awareness to under- stand and to do some “what-if planning” regarding counterparty risk and direct and indirect liabilities that are not normally on your radar. Start to learn how the money works around you. You are in the midst of a dynamic financial ecosystem. As change accelerates you will see rising numbers of risks and opportunities. DECENTRALIZATION For quite awhile, government resources and regulation have been used to centralize in ways extremely uneconomic. If economic logic prevails (and sometimes it does not), decen- tralization of numerous tasks and responsibilities is in order. Consider possible scenarios in which decentralization makes sense. Keep an eye out for opportunities for you, your family, and your business. Bottom line: Opportunities for you and for local businesses can be found by dig- ging into the government money and resource flows in your county and being clever about re-engineering those flows in ways that increase the pie and the positive return on investment to you and yours as well as local, state and/or national taxpayers. For people new to digesting this much local financial data, the search can require patience and hard work. However, the opportunities are there for those who persist. See “Open Letter to My Congresswoman.” at solari.com The Solari Report 2016 Annual Wrap Up / Introduction