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Well the presidential election is behind us but the fiscal fiscal -- rather is facing us at the end of the year -- better learn how to pronounce it to concede is coming it looks like it's a good time though.
To look ahead to your financial future.
And today you -- to help you decide whether or not you need to change any of your investments especially if you're saving for your retirement.
Patricia Powell is founder and CEO of Powell financial group.
And Patricia at any age it doesn't matter if you have fifty dollar say you want to save.
So what do we need to do right now because we're in the last quarter of the year.
-- slick moves I'll quit the I don't think they've just quickness I think -- longer term longer term moves if you think that the fiscal cliff will affect markets and I'm certainly.
In that camp.
You wanna rethink a lot about how -- investing whether it being your 401K.
Or your regular accounts they're both going to be be affected.
I think people should concede I think people should actually think about as though they're going into the next recession and that's the advice for giving in my office.
To the extent for instance that you have equities in your portfolio and I think most people should have at least instead of having growth stocks I think they should have value stocks.
Growth stocks tend to do the worst they tend to go down about 50% more than the overall market in -- a in a market decline.
The NEC and any seriousness so.
We think that -- going to be holding up much much better if we do go off the fiscal cliff or for going into injury session.
I think you have to look at your fixed income people have -- been attempted and they succumb to the temptation of stretching for yield.
They've gone out there and they bought junk bonds than they thought longer term bonds because they can't get any return on the short end of the curve.
And while that would normally at least -- the longer end of the curve would be normally good advice going into recession.
With Ben Bernanke's patent penchant for keeping interest rates -- almost at zero I don't think that's a good idea at this point and we would argue vehemently against having.
Poor quality or junking your portfolio we would argue to have -- mediated short term bonds but to have good quality west RB corporate whether the government where they've.
And be overseas.
-- that's interesting -- to look overseas at rates that might be a little more than here and you have to watch those carefully because if they do fluctuate -- that every called you have to make another move.
But it seems like a lot of people are saying it's all about capital gains and then higher tax rates that will look at -- we are paid capital gains by companies.
The costs of the fiscal -- So should you look at what you have an ask your broker if you expect a capital gain on a particular equity that I have bank let's and we made money on it.
Let's not be a pig about let's get out of it right now pay the lower tax rate and we can we buy it.
Down the road if we think I'm -- I think everyone needs to do to to look at their portfolios seriously it's very different this year.
You're absolutely right most years we we -- tax loss selling at the end of the year getting rid of the clunkers and putting.
And taking those losses.
This tier I think you might wanna consider taking some of your game tonight I think you said it very well let's not be -- -- about it take your games.
Pay the 15% -- long term capital gain presuming that applies to applies to you.
And particularly if we are going off the fiscal -- you won't mind having a little extra cash on the side you might buy them back a lot cheaper.
If we do go off the Clinton market doing a little I'm looking at the big board a little better today before a lot of selloff going on in it and it's been a tough week with big volume them.
Not he has told people maybe they should consider some taking some gains thanks so much for thanks for having me -- John.
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