PIMCO’s Bill Gross is mad as hell about money and ain’t gonna keep his no more. He wants the wealthy to pay more taxes and support other efforts to improve our country’s future.
Plus, he’s putting his money where his mouth is and has one-upped fellow billionaires Bill Gates, Warren Buffett and Carl Icahn by committing to give away not half but all of his fortune to charity.
Rising income inequality clearly has become an issue that policymakers, politicians and the wealthy are trying to come to grips with — along with, of course, those at the other end of the economic spectrum, as well as the shrinking middle class.
How can advisors respond?
On the practical side, a shrinking level of income for the 99% means that social programs are likely to expand and not shrink in the future. This, naturally, could lead to rising taxes and perhaps cutbacks in Social Security or other programs for the wealthiest Americans.
Some clients who may have assumed they’d have enough for retirement could benefit from a careful review of their nest eggs. In particular, an examination of what assumptions regarding taxes and social benefits went into their financial plans should be in order.
And what about the philanthropic side of your clients’ plans?
This is an area where advisors can prove very helpful and resourceful.