Will The Fiscal Cliff Cause Me To Experience Higher Taxes?
Lawmakers have been concerned about the “fiscal cliff” for months now. With each day we get closer and closer to January 1, where income tax, capital gains, and dividends will all of a sudden be taxed at a much higher tax rate. As a result, many are speculating what the impact will be on the economy, the stock market and on individual investors. With the new imposing tax laws, the average American will see an increase on their taxes by about $3500 per year! I don’t know about you, but there are very few people out there who would say they have an extra$3500 just sitting around to throw at Uncle Sam! Additionally, for those who have wisely invested their hard earned money in the stock market and other investments they will take a major hit as capital gains and dividends are some of the heaviest taxed items.
Make Decisions Now Regarding Your Portfolio To Reduce Your Tax Exposure
If you are thinking about making some changes to your portfolio to reduce your exposure to the new taxes, now is the time to do so! Your redhawk advisor may have many suggestions for you in how you can best manage what you have to maximize your profit, while reducing your exposure to higher taxes. One specific idea is to manage your capital gains. If you have a stock or an investment that has performed very well it may be time to sell it! If you can lock in your biggest winners now, you will be able to pay the December 2012 tax rates, rather than the January 2013 tax rates. The difference from one month to a next can be worth thousands and thousands to your porfolio. Another option is to consider purchasing a Roth IRA. Roth IRA’s are taxed at today’s tax rate. So whatever you put into you IRA would be taxed at Dec. 2012 tax rate. Also, when you choose to withdraw your money in the future it will have already been taxed, and will not be exposed to the higher taxes.
Stop Worrying About The Fiscal Cliff And Take Control Over Your Finances
If the fiscal cliff has you concerned, today is the day to be proactive about your financial future. Take the time to find a Redhawk advisor near you who can guide you through the different taxes, the risks, and exposure of your investments to help you determine the best course of action for your portfolio.