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Empyrion Wealth Management CEO Kimberly Foss weighs in on the election, taxes and the markets.
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Set all right -- well whoever wins the presidential election my next guest is convinced.
That -- taxes are gonna go up and that we'll have a big impact on the markets as well.
Joining me now Kimberley -- -- -- -- and wealth management Kimberly thanks for joining us.
Okay let's talk about this this market right now down a hundred points is being kind of very thinly traded.
Somewhat volatile August although things are quite down recently what are you expecting as we head into September.
Yeah well I think that you know if we have a success and the republic and convention here and that we have to -- -- 43% chance that Romney well that will take it.
And if that happens I think that we're gonna CDs.
Bad tax is the -- -- not really fiscal.
Actually -- little -- slope.
I'm you know impact that and that's what's gonna impact the market any impact.
The and investors going forward with I don't think that the market -- and -- -- market -- I don't think that they are actually in breaking the date the impact on what these taxes are Gannett are going to.
A fact that the markets overall in January if if we didn't have.
A fiscal slope.
Hitting and what -- particular would be -- by that Kimberly.
I think that you're you're gonna see the high and high income wage earner is basically be hit by the dividends -- capital gains.
These are gonna be really impacted on the returns the portfolios.
As well as you -- got these ultra low interest rates so my clients are really really struggling.
To try and get back in come so that they can you know basically -- that is bad increasing in capacity increase in in in that gasoline costs as well.
You talk about the three -- -- solid investment principles one of those.
Yet you know -- -- try to do is protect the principal because as we say going forward volatility is being normal.
We've got -- -- Europe prices coming back they've come back from there.
They're vacations with a tan that's gonna be copying.
More volatility but -- those losses you hit your protector profit your protector principal.
Dad and then -- -- -- -- your income stream.
And -- profit after that.
And if we -- -- and we kind of were vigilant about that he had you you can survive through this Malays.
The low interest rate environment.
And then profit again because I do know that's.
That this is the best -- about.
Bad path to prosperity.
This kept capitalism engine that we have and -- we find something out -- this is where the average investor actually at 401K investor.
-- profit on markets as well as as a Warren Buffett.
So until we find something announced this isn't that the -- best craft prosperity.
And add the way that the clients are doing it now is really.
Taking matters in their own -- there were DC they're in their costs add internally at your own home by ten to 15%.
And -- -- -- three to 5% -- come off the dividends interest and -- a little bit gain in the port in the portfolios as well.
What are you particular avoiding right now on line.
Where avoiding long term obviously long term -- bonds because you.
You're an ultra low environment and we're looking at the ten year treasury at one half percent -- or wherever it is today.
Eat it here if you're investing for long term in your -- long term.
Bonds if it if interest rates go up by one or 2% you're looking at ten and -- -- -- 7% decrease in the principal.
So that would really hurt you and I do think inflation is just around -- are actually.
If that gas prices today going up by thirty cents.
I'm from a month ago and food prices are projected three to 5%.
An average person in in their home is 200 dollars for the grocery bill per person to get -- up for re talking about an increase of 500 dollar for groceries for next year.
Very very very quickly it -- right we like actually specifically.
-- ahead Google and craft and their best yacht and the great defense Kraft is great -- 3% dividend.
-- yes that's an -- right now with a -- hang out with the F patent pending ego but.
A year ago my -- -- to be in the volatility of the markets and mom we need to put more money in my rock Bere we've gotten the book is up 46% today and that viola.
Smart kid after -- market timing actually but happy to seven years old so.
-- day.
Is a whiz kid he's a genius all right Kimberly files like arms for joining us have them sent me some tips that we haven't been -- you particularly thank you.
