LUFKIN, TX (KTRE) - Many people are wondering if it is a good idea to continue investing in the stock market, and with concerns for investment safety, the uncertainty of congress' fiscal cliff is daunting.
"All of these things create uncertainty and unknown for in my world, the individual investors I work with, as far as whether to continue to hold a stock they may have a gain or time to sell," "Chris Moss, the vice president Advanced Financial Group, said. "Whatever the case may be, it's just the unknown of the so-called fiscal cliff that contains lots of concern for folks right now."
Congress has until the first of the year to decide what they want to do with the fiscal cliff. If they decide to pass it, people will face higher personal income taxes and higher tax rates on dividend income and capital gains.
Brent Cheatam, a financial advisor, said this is actually a good thing.
"If they pass the tax, keep the tax cuts for those who make less than $250,000 a year, it's going to be good news for the folks who have investments with us because it will keep them from paying a different tax rate," Cheatham said.
The uncertainty of our financial future is still a major concern for most people, and some are even putting their money in certificate of bank deposits.
"People go running to safety when there is an unknown out there," Moss said. "However, when those folks are shopping those CD rates right now, we're essentially being penalized for wanting safety and protection through guaranteeing some sort of protection through FDIC."
Cheatam said the best option for investors right now is to plan out a financial portfolio with an advisor.
"We can look at how their investments are performing now," Cheatam said. "Also, we can re-balance their account to make sure we are staying balance to where we are right now."