NEW YORK, Dec. 19, 2012 /PRNewswire/ — Zaim Hajdari, a New York City-based wealth manager, is offering advice to his clients amidst the confusion and anxiety surrounding the upcoming "fiscal cliff": The expiration of the Bush-era tax cuts and the end of the 2% reduction in payroll taxes.
For example, next year, the 33% and 35% tax rates are scheduled to increase to 36% and 39.6%, respectively.
When appropriate, Hajdari has been encouraging clients to sell highly appreciated stock before yearend. For some clients who have unrealized investment losses, he has been recommending they hold them into 2013 and sell then, to offset higher taxes on next year's return. Hajdari has explained to clients that if they harvest gains in 2012, it will give them a chance to rebalance their portfolios and rethink their asset allocation, depending on their long-term goals.
The current year is also a good time to exercise vested, in-the-money, nonqualified stock options.
For his high-net-worth clients, Hajdari has been emphasizing the change in the gift tax situation. He's been pointing out that 2012 has been a good year to make lifetime gifts to children and grandchildren. Currently, the lifetime gift tax exemption is $5,120,000 per individual in 2012. Amounts above these limits will be taxed at 35%. In 2013, however, the exemption amount is scheduled to drop to $1 million per person, with the potential top tax rate of 55% for amounts over this limit.
As for what may happen in the future—Hajdari is paying close attention and advising his clients to remain flexible. "Washington may act at the last minute and no matter what happens, professional advisors will be ready to help their clients take full advantage of the situation," he said. Hajdari said all current provisions could be rolled into the New Year, or some of them, or none of them. The importance of a professional advisor, he said, is that such an advisor can help clients adjust.
Also, although December 31 is cited as "zero hour" for changes, it's possible Washington won't act until January. It may even make any changes retroactive. So there's no reason to conclude that nothing will happen if December 31 comes and goes without an agreement, says Hajdari.
About The Hajdari Group
The Hajdari Group ( www.thehajdarigroup.com ) is an independent firm in New York City. President and founder Zaim Hajdari is a Chartered Retirement Planning Counselor with 18 years experience. Our advisors provide financial planning and investment management services to high-net-worth individuals and families. Other services include 401(k) rollover advice, retirement planning, college planning and estate planning.
Hajdari is also the Branch Manager offering securities through Raymond James Financial Services, Inc., member FINRA/ SIPC. Hajdari was formerly an investment manager with JPMorgan Chase where he oversaw over $3 billion in client assets.
Contact:
Alexis Kazarian, Office Manager
Email
212-883-4049
277 Park Ave. Suite: 410
New York, NY 10172