You can’t miss it. There seems to be a new headline about it every day . . . the fiscal cliff. There’s certainly plenty of hand-wringing going on in Washington about all the bad things that will happen if we “go over” the fiscal cliff so I’m not going to pontificate on any other potential negative outcomes.
Instead, let’s focus on the positive. Here I’m going to go over three things you can do to help reduce the impact from the fiscal cliff.
- Review all taxable investments (e.g. non-retirement accounts, trusts, LPs, real estate, etc.), consult with your advisor about potentially harvesting large gains in 2012.
- Be ready to consult with your estate planning attorney to review your estate plan as soon the government finalize the aspects of the estate tax law. (If you work with a wealth advisor or financial planner they may be able to give you guidance in this area as well.)
- Ensure your investment strategies have risk controls in place to help reduce your risks from extreme market volatility.
Here’s hoping for a quick and comprehensive solution for a nation’s fiscal cliff. In the meantime, a little bit of planning can sure make a big difference.
Investing involves risk including the potential loss of principal. No strategy or product can assure success or protect against loss.
Investment Advice offered through Shepherd Wealth Group, a registered investment adviser doing business as Shepherd Wealth & Retirement.