Barring action by Congress, $7 trillion worth of spending cuts and tax increases are set to go into effect on New Year’s Day. Among the important changes, the so-called Bush tax cuts that have been in effect since the early 2000s are set to expire, automatically raising income tax rates, capital gains rates, and the qualified dividend rate for all taxpayers. A new Medicare surtax on high-income households is also set to kick in under health reform.
In anticipation of these expiring tax breaks and new taxes going into effect, Janus has prepared a detailed adviser guide called “Preparing Your Clients for A World of Higher Taxes.” Designed by the firm’s retirement and tax experts, the guide includes a summary of the potential tax changes along with ten specific strategies advisers will want to discuss with their clients.
The information included in the program is geared toward helping investors lessen the impact of higher taxes and potentially improving their overall financial situation by taking action.
“While it’s possible, maybe even likely, some kind of compromise will be reached in Washington, no one knows at all what it will look like,” says Matt Sommer, Vice President and Director, Retirement Strategy Group for Janus Capital. “The earlier advisers and clients start to think through the possibilities, the more prepared they will be at year end if action is required.”
Denver-based Janus Capital has presented the information to hundreds of financial advisers attending invitation-only conferences over the last few months. Based on their feedback, Sommer says these investment professionals believe their biggest challenge right now is dealing with next year’s tax uncertainty.
“It’s not likely that any sort of clarity around the pending tax changes will come until Thanksgiving,”
Financial advisers can receive a copy of “Preparing Your Clients for A World of Higher Taxes” by calling 1-877-33JANUS (52687) or visiting www.janus.com/
About Janus Capital Group Inc.
Janus Capital Group Inc. (JCG) is a global investment firm offering strategies from three individual investment boutiques: Janus Capital Management LLC, INTECH Investment Management LLC, and Perkins Investment Management LLC. Each manager employs a research- intensive approach that is distinct within its respective asset class. This approach enables the firm to provide style-specific expertise across an array of strategies, including growth, value and mathematical equities, fixed income, and alternatives through one common distribution platform. At the end of June 2012, JCG managed $152.0 billion in assets for shareholders, clients, and institutions around the globe. Based in Denver, JCG also has offices in London, Milan, Munich, Paris, Singapore, Hong Kong, Tokyo, and Melbourne.
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