6 Ways To Help Clients Avoid the Fiscal Cliff
These days, it seems like all the media can talk about is whether or not Republicans and Democrats in Washington can come to an agreement over the so-called fiscal cliff. But what exactly is it?
The term refers to tax increases and government spending cuts of up to $500 billion, set to roll in starting January 2013. Specifically, Bush-era tax rate reductions are set expire, average worker take-home pay will most likely also be affected, and about 28 million taxpayers in the middle to upper tax income bracket would have to pay an alternative minimum tax.
In terms of government spending, $26 billion would be cut from the emergency unemployment-compensation program, $11 billion would be cut from Medicare payments to doctors, and a $65 billion cut across the board for most federal programs.
With this in mind, what can advisors do to protect clients in these next uncertain weeks and months?
Here are 6 ways advisors can help their clients avoid the looming fiscal cliff.