Four Ways to Keep Client Portfolios Safe Amidst Congressional Debates

Congressional debates over healthcare will likely lead to volatile equity markets for the remainder of the year. Andy Friedman, a principal of The Washington Update, recommends several steps to protect their clients’ portfolios from falling out:

1. Encourage clients to take advantage of current gifting opportunities. The money will be put into a trust and advisors can hang onto assets even after their client passes away.

2. Discuss selling certain stocks and dissolving concentrated positions. Capital gains taxes are set to rise when Bush tax cuts expire. Advisors should consider putting clients’ assets into stable investments.

3. Consider investments that provide tax deferral and retirement income guarantees for retirement planning.

4. Provide reliable retirement income through variable annuities.

See Donna Mitchell, Guiding Clients Through Washington’s Healthcare, Budget Debates, Financial Advisor Magazine, May 22, 2012.  

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.