Paul Sullivan, in his Wealth Matters column this week, talks to wealthy investors about how they are dealing with the uncertainty about whether federal taxes will increase next year. Specifically, he looks at the 3.8 percent surtax on investment income that is in President Obama's health care legislation.
One strategy, several wealthy people said, is to use the prospect of increased taxes to look at all long-held investments and sell any with big gains before the end of the year.
That advice could apply to not-so-wealthy investors, as well, who may have let their attention stray to other matters as the markets recovered from the financial crisis. With a few months still remaining in 2012, there is still time to re-examine holdings and avoid any surprises that Congress may come up with in 2013.
What is your strategy in dealing with possible tax increases? Have you made any changes in your investments? Or do you be lieve that the tax cuts from George W. Bush's years will continue in effect?
