STAYING
FOCUSED
Explaining to
your clients the
urgency that
retirement entails
RETIREMENT
PREPARATION
Discussing
healthcare costs
with your clients
is critical
RESEARCH
RESULTS
IRI-Cogent
Research
findings on the
Annuity Industry
A3
A5
A6
iSSue 6 volume 4
december 2012
Diversifying Your Retirement Portfolio
to Meet Future Tax Risks
When it comes to taxes—and Con- gress’s tax policy plans—everything is on the table. The Bush tax cuts are
set to expire; capital gains are set to increase.
The implementation of the Patient Protection
and Affordable Care Act (PPACA) will bring
with it its own tax component. More radical
tax reform is on the horizon and tax breaks
such as the home mortgage interest deduction
could disappear. Though seemingly unthinkable, and certainly self-destructive in terms of
assuring the retirement security of Americans,
the tax-deferred buildup of 401(k) plans and
retirement products is on the chopping block.
Even charitable giving could be eliminated.
— Eric Henderson
Senior Vice President
of Life Insurance and
Annuities Solutions,
Nationwide Financial
“I think the main message is that
consumers need to get in and
talk to their advisor and have a
conversation about tax planning
and how taxes can impact
their portfolio.”
As Congress attempts to address the fiscal
cliff, there are many different scenarios of
what might happen. Perhaps the biggest problem facing advisors and investors right now,
when it comes to planning for future taxes, is
one of uncertainty.
“I think the main message is that consum-
ers need to get in and talk to their advisor and
have a conversation about tax planning and
how taxes can impact their portfolio,” said
Eric Henderson, Senior Vice President of
Life Insurance and Annuities Solutions for
Nationwide Financial. As Henderson noted,
when confronted with so much risk and un-
certainty, the most important investment
strategy is diversification. In terms of taxes
specifically, this means allocating a portfolio
to assets that are taxable now, taxable later,
or may never be taxed at all, such as certain
trusts or life insurance.
continued on page A2
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