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What does going over the fical cliff mean for you?

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    How can you prepare?

  • Duration 4:12
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So what could going over the fiscal -- -- for you and for your investments joining us now as a husband and wife team of financial advisors a highly respected team I should say Rick element.

A founder -- of I -- -- founder of Evelyn financial's financial services and the author of rescue your money.

And also joining us now is Gmail and author of the other side of your money welcome to you both.

Lot of people are really really scared about this fiscal cliff and what it means for their investment what should people be concerned about for the -- at the end of the year well.

And a few rare cases people might have an opportunity to do some transactions to pay capital gains taxes this year which are lower than -- going to be next -- but we're discovering an analysis of our own clients that's pretty uncommon most people are better off doing literally nothing.

As long as your accounts diversified and you've got a long term time horizon.

It's really better off to just sit and wait and this too shall pass but is is that what.

American business is doing.

Might have been making all kinds of structural changes to their their tax liabilities for the -- and a if it's businesses confused -- rather -- right now there's no question about it because they don't know what the direction -- of the tax law or or economic policy on Capitol Hill.

And so they are reacting by sitting on their hands big businesses paying dividends early oracle just paid a big dividend to get into the 2012 -- but other businesses are stopping are indeed there are not building new factories and hiring more workers and -- growing and expanding and that's.

Preventing the economy from growing better which is why we -- also terribly frustrated over -- Impasse on Capitol Hill on what we desperately want them to fix so -- in that context what should people do to calm their nerves before -- -- the year well they need to read the other side of money that's happened okay.

The other side of money is a book that I've put together it's -- culmination of ten years of articles that I've been writing for our newsletter.

And it just talks about how to find happy.

And money is a tool that we need to use but it doesn't make us happy and so the book talks about that finding happy.

It's really fascinating how people to -- financial advisors because they come to -- -- the chief financial goals but -- emphasis is so clearly on.

There's more to life than money and having a lot of money doesn't necessarily make you happy -- -- genes.

Pure excellence is in the area of helping people understand how to really.

Achieve what matters the most in life.

There are prepared to this wonderful series last week and we -- a portion of it this morning and them work more on line.

About that that the threat that that the debt poses to this country and in particularly.

The interest on the debt.

And if interest rates rise up even marginally the impact on this is huge and it will affect virtually everybody from.

People want to buy a car people want to buy a house and help businesses and invest.

What what would you do and what do you -- your -- people in light of of this threat of rising interest rates which may hit us.

Take advantage of today's low interest rates right now -- -- -- bar where this is a wonderful time to lock in a thirty year mortgage.

This is an incredibly low interest -- will probably never see this again -- our lifetime so let's take advantage of that right now.

If you're a saver on the other hand rising interest rates will be good news because the interest rate -- your bank account your CDs your Muni bonds will go up so.

Savers have been punished by these terribly low interest rates that they are actually looking forward to a rise -- rates.

And you about the risk of inflation with all of the quantitative easing that we've seen from the -- rules are a lot of people really.

Afraid of inflation in part perhaps hyperinflation I'm -- that question terrorist.

-- and a resolution of -- focus is really on how do you deal with the issues of the fear and anxiety that people feel as a result of the threat of rising interest rates the fiscal cliff and so on my perspective as a financial advisor is stay long term focus maintain a highly diversified portfolio.

Stay focused on your goals and that'll help you get there genes talent isn't helping people.

Deal with the issues associated with the the fears and anxieties and the over scheduling our lives that as we try to do all those issues.

Well thank you both very much had great advice and that I'll pick up that book because I can usually -- myself a and I think that Rick and gene element -- for.

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