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LOUISVILLE, Ky. (WDRB) -- So what does the fiscal cliff deal mean for you?
A local financial expert broke down the impact for the average American.
The good news is a recession was avoided, but everyone will notice a difference in their pay. Basically your check will shrink by about two percent.
Mark Lamkin with Lamkin Wealth Management says it means someone making $30,000 a year will lose $50 a month. Someone making $100,000 a year will lose $200 per month.
This begins immediately, so you'll likely notice it on the next paycheck.
Another positive under this new deal: unemployment benefits will be extended for a year.
Last week we noticed the stock markets reacting to the lack of a deal and today stocks rallied following news of an agreement.
Lamkin says you should still be smart with investing.
"It is what we call a relief rally," Lamkin said. "People are relieved that we've got the first step done, but you are still going to have volatility this year. This is not a time to go all in with your 401K or with your investments. This did not fix things overnight, but it certainly did set the stage for good markets. You shouldn't pull everything out and go to cash right now."
Lamkin says it's best to take a balanced approach with your current investments until the markets are more stable.
This is just the beginning of what may be a year of long negotiations, as Congress still has to tackle the debt ceiling and the budget.