Financial advisors have recently begun compiling and publishing their list of top predictions for 2017. If you are a member of this industry, or someone who benefits from receiving and following these financial advisors predictions, you’ll want to pay close attention.
Financial Advisors Predictions for the Year 2017
These are the forecasts for 2017 that much of the industry is prepared to endorse and closely follow. You should be aware of these predictions. You should also be prepared to act on the practical advice that they contain.
It May be Wise to Consider Pausing Your 401(k) Contributions
One of the areas in which a financial advisor may surprise you is when it comes to your latest round of 401(k) contributions. More than a few advisors are recommending that high-income clients, who have already given the maximum amount of contributions, should consider suspending them altogether throughout the first half of 2017.
While unorthodox at first glance, this may well prove to be a wise move. This is due to the expectation of major tax cuts which are thought to be forthcoming. Channeling your 401(k) pretax contributions into a taxable brokerage account or a Roth 401(k) might prove to be the wiser investment strategy.
You Will Need to Comply with the Department of Labor’s New Fiduciary Rule
One of the biggest developments for the year 2017 concerns the passage of the Department of Labor’s new fiduciary rule. This rule has been a long time in coming.
It is intended to help make sure that millions of American citizens who are saving for their retirement will be able to have access to investment advice that is truly in their best interest. The rule is especially harsh regarding any perceived corruption or “insider knowledge” on the part of financial advisors. As a result, members of this industry will be on their guard when it comes to complying fully with the Department’s newest ruling.
Knowing the Latest Predictions is a Matter of Being Prepared to Profit
The more you know about the latest predictions being made by financial advisors, the better position you are in to profit from them. These predictions concern you directly, so it’s an excellent idea to find research them carefully.
They will have a direct effect on the way that you invest your money in the coming year. This means you may have to adjust and rethink the way you handle your investments, as well as where and when you decide to do so.
The advice of your financial advisor will be key to staying fiscally healthy in 2017. Be sure to give them your full attention.