Fiscal Cliff Deal Doesn’t Quell Financial Advisors’ Clients ConcernsPosted by in Blog on January 10, 2013
While the stock market did recently rise after Washington politicians made a fiscal cliff deal, financial advisors tell OnWallStreet.com that there are still some big concerns about taxes and government spending, and clients are a little “frustrated” right now.
Seth Kaplan, who is a vice president with Baird’s, says “I work with a lot of business owners and a lot them are just kind of feeling like that government keeps getting deeper and deeper in their back pocket.” He also said that there are “still a lot of questions and/or unknowns for how the ultimate fiscal cliff issue will settle out.” Tim Steffen of Baird’s said some fear that there could be some additional tax increases in the future.
Ken Meyers of Baird notes that those couples making $450,000 a year or more and singles making over $400,000 a year now face 39.6% federal taxes. He says that such high-income clients are going to delay hiring for their companies and may slow down spending due to the issue.
Kaplan said that his own clients are “frustrated” not by having to pay more taxes per se, but that they “don’t think this is will make a difference to address fundamental issues,” due to government spending still increasing. Steffen noted that additional tax increases are “clearly on the President’s agenda.”
In all, Kaplan says that despite the fiscal cliff deal, “I still get this feeling from a lot of my clients that people are still waiting for the other shoe to drop.”
Written by Lisa Swan