Skip to main content

Fiscal Cliff Resolution Summary

We hope that you had a safe and wonderful holiday season and wish you and your family a HAPPY NEW YEAR in 2013!!!

We have been closely following the changes our government is advocating to avert the so called "fiscal cliff" and how it will affect our client's financial plans in the future.  While there are many details still to be hammered out and communicated, here is a summary of what we know now, based on the agreement currently on the table:

Congress skidded to a halt with the front tires hanging over the fiscal cliff, with the House last night joining the Senate in passing Taxpayer Relief Act.  Initially, the stock markets have shown gains, however, we believe that this excitement will evaporate, because the buildup does not include raising the debt ceiling or longer-term budget cuts.

Republicans and Democrats are hardening their positions ahead of the upcoming battle over the debt ceiling, which the government hit on Monday but which the Taxpayer Relief Act didn't address. The sides also face a fight over $110B of automatic spending cuts that were delayed for two months. To buy it a couple of months regarding the ceiling, the Treasury is taking special measures.

The fiscal-cliff deal increases taxes on household incomes of over $450K to 39.6%, as well as taxes on capital gains, dividends and inheritances. The hope is to raise $600 billion in new revenue over 10 years. The payroll tax cut is allowed to lapse, so the employee portion of the Social Security tax will return to 6.2% from 4.2%. All in all, overall taxes will increase for over 75% of households in 2013, says the Tax Policy Center.

The Taxpayer Relief Act will add almost $4 trillion to the deficit over the next ten years, the Congressional Budget Office has calculated, citing the codification of the Bush-era tax cuts for most Americans. Meanwhile, the deal will probably ensure that the U.S. avoids recession but it will also help cut economic growth, economists have forecast.

As expected, the Act extends some farm support schemes for a year and averts the "dairy cliff" by ending fears that the price of milk could double - the measures prevent the revival until September of a decades' old subsidy that would have forced the USDA to buy up milk at prices way above what farmers are receiving now.

There will no doubt be much discussion and dissection of the Fiscal Cliff resolution in the media in the coming weeks.  We hope you’ll feel free to call us with any questions you may have about how the plan affects you.

White House Financial & Settlement Consulting helps families live easier and less stressful lives through the proper management of their financial resources.  We do this by acting as our clients’ trusted advisor providing a personal touch customized to the client’s needs!  Please visit our web site at  or contact us directly for more information!

White House Financial & Settlement Consulting, LLC


114 South Main Street· Suite 300 · Chelsea, Michigan 48118 · Phone: (734) 433-1670 · Fax: (734) 433-1671

Securities offered through Sigma Financial Corporation. Member FINRA/SIPC

Sigma Planning Corporation, A Registered Investment Advisor

CAUTION: electronic mail sent through the Internet is not secure and could be intercepted by a third party. For your protection, avoid sending identifying information, such as account, Social Security, or card numbers to us or others. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. Please be aware that we do not provide tax or legal advice, and that the information set forth herein was obtained from sources which we believe reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities.

Popular posts from this blog

COVID will not stop us providing unique settlement solutions using structured settlement annuities!

I hope that you are doing well! We just FINALLY completed the settlement of a case for a minor (age 17) that we were initially engaged by our plaintiff attorney client in February 2021, to provide structured settlement annuity quotes! Although the claimant was very close to the age of majority the key to the case was not giving him all of the settlement proceeds, which was over $120,000, at age 18. Having been in this business for over 20 years I cannot tell you the number of sad cases we have witnessed where the young claimant receives their settlement proceeds at age 18 only to blow through all the funds before anyone can blink and make bad decisions with the proceeds! This case involved two liability insurance carriers Liberty Mutual and Member Select. We coordinated multiple rounds of document revisions and had to have a separate set of different documents for each insurance carrier. In addition, one of the carriers would not fund the annuity until we had a fully executed court ord

Using a structured settlement annuity pre-suit

 We recently were engaged by the Guardian Ad Litem (GAL) in the case of an 11 year old boy who was struck by a care while riding his bike.  The father of the boy settled the case directly with the liability auto insurance carrier pre-suit and the GAL contacted us to ensure that the boy's settlement funds were handled appropriately. The case settled for a total of $65,000 and $59,000 was being allocated to the structured settlement annuity for the boy as follows: $5,000 paid immediately upon settlement $10,000 at age 18 $20,000 at age 21 $25,000 at age 25 $35,718 at age 30 this is total benefits of $95,718! The annuity was placed with a large life insurance company rated A+ by the A.M. Best rating agency and provided the family and GAL with the peace of mind that the young man would not receive the entire amount at age 18. In addition, due to the use of the structured settlement annuity, all of the interest gained during the payout period ($31,718 to be exact) is INCOME TAX FREE!  T

9/17/2023 Weekly Market Performance

  Here is our research department's Weekly Market Performance analysis.  If you have questions or need anything else please contact me at (734) 272-4322 or  U.S. and International Equities Markets Mixed The major markets ended mixed this week as the utilities and consumer discretionary sectors led while information technology lagged following Apple’s challenges in China.  Developed international equities posted solid gains this week as European stocks have witnessed their largest gain in six months after the European Central Bank (ECB) signaled an end to its hawkish monetary policy. Next Wednesday, the Federal Reserve meets concerning monetary policy and interest rates.  We believe the Federal Reserve should highlight underlying improvements within the inflation dynamic. In addition, we believe the Fed will not likely declare victory but will probably highlight the risks to growth and inflation are getting into balance. According to the AAII Sentiment