Mark your calendars. December 31, 2012 is right around the corner and it may be a day you never forget (assuming we’re all still here after the Mayan end of the world predicted date of December 21, 2012).
Why this date?
Because it is the scheduled date that the Bush tax cuts are set to expire.
Could there be a last minute reprieve by President Obama similar to what happened in 2010? Maybe. But if that provision expires in December, there will be a HUGE tax increase for dividend income in 2013. Dividend investors could see their taxes jump from 15% to 39.6%.
A large tax increase such as this would likely scare many large investors away causing stock prices to plummet as the “smart money” would dump their dividend stocks and look for greener pastures elsewhere.
If you are one the the hundreds of thousands of middle class investors holding on to these so called “safe” investments, you will be stuck holding onto your stock as it drops 25% or more.
Could the price come back? Possibly, but it could take years or decades.
So the big question is, “Is there a place to put my hard earned money that will earn me a decent return without the risk and volatility of the stock market?”
One of the primary reasons I founded Ropay Asset Investors is to give investors the option to break free of the “Russian Roulette” of the stock market and provide an investment vehicle that preserves capital and provides decent returns.
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