Local Financial Advisor Has Advice After Fiscal Cliff Vote
With the vote now in on the Fiscal Cliff, a local financial advisor tells us that everyone will see a change in your paycheck. The Payroll Tax had been delayed for the past two years. Now, your next paycheck will see the change.
"If you make thirty-five thousand dollars and you are paid every two weeks, you will see your paycheck drop by twenty-seven dollars," says Phillip Bell, Vice President of Financial Planning Resources Inc.
That is twenty-seven dollars per paycheck which means, that's about seven hundred dollars a year. Bell says there is one thing you shouldn't do when trying to find money in your budget.
"Don't cut your 401k to make the room because life has a way of just adjusting and somehow we all figure it out and get by but five, ten, twenty or thirty years from now those small savings into your 401k make a huge difference. So, don't go there to make room in the budget. Make room in the Starbucks budget," says Bell.
Bell says that a final decision on what the taxes will look like is good for the business community and the investment community because now everyone can plan.He also says that you need to be patient with your investments because it will still be a choppy movement. There are three things he suggests you can do now.
"Over weight the stock side of their 401k. Refinance your house if you have not done that already, "says Bell, "Make sure you keep your cash cushion flush keep plenty of cash on hand."