Many of the measures were slated to take effect at the start
of the new year, but with congressional deliberations continuing and no
guarantee on how long it could take for final passage -- or on the bill passing
at all -- it’s nearly impossible to predict what will ultimately end up proving
operative from Jan. 1, 2022.
Even lawmakers themselves aren’t sure whether they will make
the bill retroactive to the start of 2022, or change the effective dates to
apply only from the date of passage.
Senate Finance Committee Chairman Ron Wyden said he’s been
talking with tax professionals who have concerns about the timing of the bill.
“When we have something to say, we will say it,” he said.
“We still have work to do, and I’m very much aware.”
Working Guidance
Advisers are telling their clients to make decisions based
on the current tax code. After suggesting, earlier in the year, potentially
selling assets before higher taxes kicked in, many now say to only make those
moves if it’s part of a long-term strategy and not to base decisions on what
Congress may or may not do.
Strategies of a Wealth Manager
The wealth manager starts by developing a plan that will
maintain and increase a client’s wealth based on their financial situation,
goals, and risk tolerance.
Importantly, each part of a client’s financial picture,
whether it is tax planning or wills and estates, are coordinated together to
protect the wealth of the client. This may coincide with financial projections
and retirement planning.
After the original plan is developed, the manager meets
regularly with clients to update goals, review, and rebalance the financial
portfolio. At the same time, they may investigate whether additional services
are needed, with the ultimate goal being to remain in the client’s service
throughout their lifetime.