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Biden’s Tax Proposals Spur Anxiety; FAs Tell Clients to Calm Down

Financial Advisor IQ’s Josh Azar writes, “President Joe Biden’s tax proposals have been a frequent topic of conversation among advisors and their clients. The lack of clarity around what a final bill may look like is a major source of anxiety for many clients, according to advisors.”

In an interview for the article, Chuck Cooper III, CFP® Wealth Advisor and Managing Partner of StrongBox Wealth is quoted to say, “For me, at least, the level of unknown is the highest I can recall in my 25+ years in the financial advice business.

“We have clients who are wanting to sell their business within the next three to four years, and they’re considering — hopefully not in haste — really accelerating their plans.”

Full Article Here

StrongBox Wealth believes any proposed tax law changes are worth closely monitoring as legislation progresses through Congress.  Understanding that ultimate enacted law will likely differ from current proposals also means that preemptively acting on well designed estate plans, portfolio allocation, and business succession plans could prove detrimental.

Will the step up in basis at death remain for beneficiaries?  Will the estate and gift tax exemption levels be reduced?  Will individual itemized and qualified business income deductions be phased out for high income earners?  Will Social Security payroll tax on income earned over $400,000 be increased?  Will tax rates on long-term capital gains and qualified dividends increase for filers over certain thresholds?  Answers to these and many more questions are still unknown.  In the interim, we will continue initiating strategic conversations with our clients and their tax and legal counsel to ensure financial plans evolve to address the impact of eventual legislation.

For comprehensive advice on your personal situation, we encourage you to reach out and schedule a private consultation with us.

Chuck Cooper III, CFP®

Wealth Advisor, Managing Partner

StrongBox Wealth