According to Morgan Stanley’s Investor Insights (October, 2012), “If the Bush tax cuts expire at the end of 2012 as scheduled, most taxpayers will face some combination of higher tax rates on their incomes, dividends and capital gains in 2013. In addition, high earners also will pay an additional 3.8% tax on their investment income and a 0.9% higher Medicare tax as legislated by the Patient Protection and Affordable Care Act (better known as “ObamaCare”).”
With political pressures affecting the economy, investors should be watching carefully and be even more vigilant in reviewing and adjusting their asset allocation and overall portfolio strategy.
Here are ten strategies to help navigate the uncertain landscape as outlined in the Morgan Stanley Investor Insights report:
Todd Hauer is a Financial Advisor for Morgan Stanley Wealth Management in Denver, Colorado. The information contained in this article is not a solicitation to purchase or sell investments. Any information presented is general in nature and not intended to provide individually tailored investment advice. Financial Advisors do not provide tax or legal advice. The strategies and/or investments referenced may not be suitable for all investors as the appropriateness of a particular investment or strategy will depend on an investor's individual circumstances and objectives. Investing involves risks and there is always the potential of losing money when you invest. Past performance is no guarantee of future results. The views expressed herein are those of the author and may not necessarily reflect the views of Morgan Stanley Smith Barney LLC, Member SIPC, or its affiliates.