What impact will the election results have on your wallet?
On November 6, American voters decided that President Obama will remain in office, Democrats control the Senate and Republicans control the House. Here's how you should respond:
- Meet with your accountant. Ask your tax adviser how to plan a year-end tax strategy that helps you avoid penalties. While Congresses' future decisions are unknown, many tax professionals are taking pro-active steps to avoid certain projected consequences that politicians discussed during their campaigns, such as higher rates for people and S-Corp or LLC businesses that earn more than $250,000 per year. Talk to your tax adviser about how you should proceed with your year-end tax planning. Your tax situation is personal, and it's based on your family, income and investments.
- Bet on lower interest rates being here to stay, at least for awhile, according to the NBC's Today Money. Bet on higher interest rates down the pipeline, several years from now.
- The healthcare reform bill will likely not be repealed. Keep this in mind when choosing health insurance. You don't need to pay extra for a preventative check-up rider, for example, since the healthcare reforms entitle people to one preventative checkup per year.