Voters will choose a President on November 6th, and whether it is Governor Mitt Romney or President Barack Obama in the White House in January, there will be an impact on your bottom line.
Telemus Capital Partners breaks down what each candidate is proposing and how you can maximize your investments.
PRESIDENT BARACK OBAMA
Inflation is a debtors friend, you can pay back today's borrowing with increasingly worthless dollars. Consider refinancing your mortgage, car and student loans at today's low rates.
If you can shift income from 2013 into 2012 do it. For those people who turned 70 ½ in 2012 - think about taking your distribution in 2012 even though you don't have to do it until the first quarter in 2013.
Lock-in Gains Now
The capital gain and dividend tax rates are probably going to be higher. The market might be poised for a slight correction so we would look to take some profits before the end of the year. Sell some of your winners today.
GOVERNOR MITT ROMNEY
Secure Health Insurance
Without Obamacare self insurance especially for pre-existing illness will cost more. Look for opportunities to lock into plans before rates go higher. Try to find long term care policies that are affordable. They are quickly becoming very expensive.
Hold Off On Retirement
If you can wait a few more years until you retire you will probably have lower income taxes which means more of what you earn can go towards savings for retirement. Even though we might have lower taxes now we still will probably face higher taxes in some form down the road to pay down debt so it makes sense to try to accumulate more while you are still able to work.
Delay Gains and Income to 2013
A Romney win would benefit someone who can delay taking income this year and push it to 2013 with lower income taxes and dividend taxes. The market also is expected to rally which would allow investors to delay sales and push their realized gains out to the following tax year.