BY
warreN S. HerScH
Surprise provisions of the
Budget Control Act could
leave advisors scrambling
for quick fixes for their
clients’ portfolios
ADVISORS MUS T BE READ Y to make adjustments to clients’ retirement portfolios quickly, depending on the recommendations of a new Super Committee called
for under the Budget Control Act of 2011.
So warned Robert Keebler, who spoke
during the first of two general sessions of
the Society of Financial Service Professionals’ inaugural “Clinic for Advanced Professionals.” The two-day event was held on
August 16-17 at a Marriot hotel adjoining
Philadelphia International Airport.
“When we get to November 23—when
the Super Committee unveils its proposals
for further reducing the budget deficit—
you’ll want to block out time to review the
committee’s recommendations because
they will likely affect your clients,” said
Keebler, a partner at Keebler Associates,
Green Bay, Wis. The scary part, Keebler
noted, is that some of the committee’s
recommendations could be implemented
as early as January 1, 2012.
“That means you will have just 38 days
to develop pivot points based on three un-
known variables: the 2012 elections, Con-
gressional action to reign in the nation’s
deficit, and the direction of the economy,”
Keebler said. “You will all have to work
very quickly to come up with solutions.”
To that end, said Keebler, advisors must
be able to “work at the intersection between
finance and tax.” That is, they must develop
strategies that will minimize the tax bite
for high net worth clients during both the
wealth accumulation and retirement in-
come distribution phases of a financial plan.
