The proverbial “fiscal cliff” may have created unsettling visual images of the U.S. falling to our doom, but the tax law uncertainty is nothing compared to the looming debt ceiling crisis, warns local registered representative of NEXT Financial Group Inc., Paul Doyle.
MELVILLE, NY— (February 5, 2013)—The proverbial “fiscal cliff” may have created unsettling visual images of the U.S. falling to our doom, but the tax law uncertainty is nothing compared to the looming debt ceiling crisis, warns local registered representative of NEXT Financial Group Inc., Paul Doyle.
“With political gridlock, a looming debt ceiling and the potential negative effect it can have on the financial markets, investors, especially those close to retirement, need to take a proactive approach immediately to help protect their investments against market volatility,” said Doyle.
The New York Times reported in a recent article that on Dec. 31, 2012, the United States government officially hit its authorized borrowing limit, also known as the debt ceiling, of about $16.4 trillion. Unless the debt ceiling is raised, the U.S. will run out of cash sometime between Feb. 15 and the middle of March.
American economist, Alan Blinder, was quoted in a recent CNBC article detailing how exceeding the debt ceiling could be more fatal to the economy than the fiscal cliff.
He said, “At current rates of spending and taxation, federal receipts cover less than 74 percent of federal outlays. So if the government hits the debt ceiling at full speed, total outlays—which includes everything from Social Security benefits to soldiers’ pay to interest on the national debt—will have to be trimmed by more than 26 percent immediately. That amounts to more than 6 percent of GDP, far more than the fiscal cliff avoided.”
Other financial analysts are also anticipating a significant impact on the economy, financial markets, government Social Security and military personnel checks. Some reports are indicating a depression on the horizon if the debt ceiling is not addressed before deadline.
“Investors and retirees need to understand that there are many options available to build a solid portfolio that give them access to their money and option to make adjustments during uncertain times like we are facing today,” said Doyle. “I am confident and willing to help everyone in Long Island build a portfolio to help navigate their retirement through these extremely uncertain times.”
For more information, please visit www.InvestLongIsland.com. Securities offered through NEXT Financial Group Inc. Member FINRA/SIPC. NEXT Financial Group Inc. 150 Broadhollow Road Penthouse 3, Melville, NY. 631-351-8618. Neither NEXT Financial Group Inc. nor its representatives provide tax advice. Before taking any action, consult with your tax professional.
NEXT Financial Group, Inc.
150 Broadhollow Road Penthouse 3, Melville, NY