Beachwood financial planner discusses the fiscal cliff and you

BEACHWOOD, Ohio - A local financial planner said the fiscal cliff, or slope, will mean less money in your paycheck, layoffs and could lead to a recession.

Fiscal cliff is the term used for what will happen when a series of tax cuts expires and taxes increase. At the same time, mandatory spending cuts are to be implemented.

"Every consumer will have less money to spend as well as there could be, especially within the federal government, layoffs," certified financial planner Matt Olver said. "And then if we're not spending as an economy, there may be more layoffs at corporations."

Olver, who is the senior vice president and wealth advisor at Spero-Smith in Beachwood, said it will be more of a fiscal slope than a cliff.

"We're not going to see dramatic economic impact day one, but it's going to be gradually felt over time," he said.

It would mean a tax increase of $3,289 a year for a couple earning $75,000 with two children under 13 years old, according to the Tax Policy Center.

Talks are underway in Washington to try to avoid the fiscal cliff, however Olver predicts that even with an agreement there will be some impact for most Americans. 

At the sledding hill in Brooklyn Thursday night, Clevelanders were hoping for the best.

"I'm hoping and praying," said Paul Hardwick of Middleburg Heights. "But whatever happens, you'll have to grin and bear it."

To find out how the possible tax increases could affect you, go to taxpolicycenter.org to run your own calculations.