Experts: Plan now ahead of fiscal cliff

AUSTIN (KXAN) - Time is ticking for Congress and President Obama to work out a deal regarding the impending "fiscal cliff.” Two key points are pushing economists to warn of another recession - higher taxes for everyone and a dramatic cut in government spending.

Check out our interactive feature: How the fiscal cliff affects you.

On Friday, the U.S. Senate convened to work on a deal, as the President and other top leaders met at the White House to hash out possible solutions. On Sunday, the U.S. House will hold a rare end-of-the-year meeting regarding the issue.

Regardless, things are going to change financially for a lot of people. The top concerns among many Texans are higher taxes and dramatic changes to government programs like Social Security, Medicare and Medicaid.

Financial experts with Austin-based Richard Slaughter & Associates have been fielding calls all week from clients.

"We're not going to continue with our country's current tax rates the way they are right now, because it's simply not sustainable for our country's fiscal future going forward,” said the firm’s vice president, Darby Armont

The biggest tips Armont is giving out:

• Consider withholding more taxes on your paycheck. If taxes go up in the next year, it will mean you will not have to pay as much when you file.
• If your stocks were on the rise and you were considering selling in the next year, do it now before taxes go up.
• For people with the traditional IRA or 401K, make more contributions to those retirement plans. Higher taxes will mean more valuable deductions if you make that move.

Economists are already seeing the effect of just the worry over the fiscal cliff. Stocks opened lower Friday. And the Consumer Confidence Index - which measures the nation's economy - dropped this week.