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Edelman Financial Services CEO Ric Edelman on the impact of the fiscal cliff deal on taxpayers.
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Right before the ball dropped.
Are right now the Inkster and the fiscal -- deal -- got a look at the new rules for you when your money -- we were just talking about joining me now with expert advice.
-- settlement CEO of settlement financial services Rick welcome back to the show always good to have you here.
Except -- talking about the tax increases.
And I want to show what they look like here.
If you earn fifty to 75000 -- talk about middle class you're paying an additional 822 dollars here.
-- you telling your clients about this when he telling them to deal in that in the face of these big tax increases.
Grin and Barrett.
It's it's really frustrating -- because of not only the fact that there -- tax increases but they came.
With such little warning.
When we got notification of the tax increase is literally on the first day of the year.
Which means there was no opportunity for tax planning there was no way to make adjustments for what might be coming months down the road that's the preference is the congress passes a law in the summer time and we have six months.
To engage in financial planning this is why you were -- about the -- website.
I think everybody is commemorating for the first time ever with the -- us.
Nobody knows what to make of this we haven't analyzed it and figured it out -- -- message to clients is.
We need to sit back we need to do some research here we need to analyse how is this going to affect us do we need to change your tax withholding at work.
In one direction or another do we need to front load 41 K contributions do we need to Alter some of our behavior such as child care.
Or long term care expenses or more -- to.
-- we are you telling of homework to do you don't have the answer the question.
No.
And it's frustrating because my clients are paying me to answer these kinds of questions of the financial planner.
My job is to help them plan for the future we just got notification of a 2013 tax bill on January 123 team.
That's unconscionable it's absurd it's had a -- -- -- -- the congress in just a point.
-- to our viewers you're a Smart financial advisor.
You're one of the biggest financial advisors in the country it's likely we're talking to some guy doesn't know what -- talking about we're tight end it's about to someone who's very fresh -- frustrated with the way Washington works.
And it's not just think -- Jackson's estate tax capital gains dividend tax it's across the -- here with home you have to change your withholding.
And the world is inside out and upside down how long is it gonna take you to come up with a specific advice for everyone in your client.
We think we're gonna do a pretty quickly but there's one thing that's a little concerning for -- right now Jerry and thank you -- those accolades.
Barron's -- -- the number one advisor in the country three times -- -- I think I'm pretty good at this stuff and that's why we're so frustrated.
At our infancy at the moment and it gets worse because we all know that what congress did a couple of days ago.
Was nothing more than punt for another six weeks and it's the new congress that is going to have an awful lot to say about this which means we would expect.
More tax changes to come possibly retro.
Active to January 1 -- -- congress doesn't.
Like well -- totally act -- OK my blood is boiling.
Do you have anything quick here to say about -- changes for people.
Who are planning for retirement right now maybe something we've overlooked we try to cover everything but they're so many changes it's hard to.
Here's the best piece of news are you can now contribute more to your 401K than you were able to last year that's one piece of good news day.
And -- things -- dicier and more uncertain and all that nonsense the fundamentals of the economy are still strong as Steve Forbes was describing a moment ago.
The outlook for America remains bright and therefore we should take full advantage of -- with our investments don't confuse this nonsense and Washington -- negativity for your investment strategy.
Now the economy and Capitol Hill two different things Rick thanks for coming on tonight it's always great to see you.
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