The Affordable Health Care for America Act

What does it mean for now, for later … and for you?

March 23, 2010, President Obama signed historic health care legislation into law following a year-long struggle with congress to follow through on what was a pivotal piece of his administration’s domestic policy agenda.

“I am signing this bill for all the leaders who took up this cause through the generations,” said the President, “from Teddy Roosevelt to Franklin Roosevelt, from Harry Truman to Lyndon Johnson …”

But what does it mean? What Obama signed may not include all the provisions and changes you think it does. Many alterations have been made along the way and, at this point, many Americans are unsure of exactly what the AHCA Act entails.

What changes are slated for 2010? The “immediate” changes include extending the length of time a child can remain on his/her parents’ plan – through age 26 (ending on the child’s 27^th birthday).¹ Also, children can no longer be denied coverage due to pre-existing conditions, and policies can no longer be rescinded by insurers when a person becomes ill (unless fraud or misrepresentation is proven).³

What changes are slated for the future? Some of the most sweeping reforms won’t take effect for a few years. The “biggie” that has everyone buzzing involves required health care insurance. Beginning in 2014, Americans (except those with religious objections, inmates and Native Americans) will be required to have health insurance coverage … or face an annual penalty.³

And what about taxes? The other “biggie” getting buzz involves a new tax which starts in 2013 – a 3.8% tax on investment income for individuals earning more than $200,000 and households earning more than $250,000.⁶

Where can you get more information? The white house has provided a website. You can visit whitehouse.gov/healthreform to find out how the Act will impact you.

Is it settled? Nope. Amendments to the bill have already been proposed, and Attorney Generals from 14 states have filed a lawsuit claiming the new bill is unconstitutional.⁴ Justice Department spokesman Charles Miller, however, is “confident that this statute is constitutional”. ⁵






These are the views of Peter Montoya Inc., not Statler Financial Services, Inc., and should not be construed as investment advice. Statler Financial Services, Inc. does not gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. http://www.petermontoya.com, http://www.montoyaregistry.com, http://www.marketinglibrary.net

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations

1 – cnn.com/2010/POLITICS/03/23/health.care.timeline/index.html?hpt=T1 [3/23/10]

2 – prescriptions.blogs.nytimes.com/2010/03/24/the-public-option-resurfaces [3/24/10]

3 – csmonitor.com/USA/Politics/2010/0319/Health-care-reform-bill-101-Who-must-buy-insurance [3/19/10]

4 – rttnews.com/Content/PoliticalNews.aspx?Id=1250155&SM=1 [3/24/10]

5 – nevadaappeal.com/article/20100324/NEWS/100329823/1070&ParentProfile=1058 [3/24/10]

6 – usatoday.com/money/perfi/taxes/2010-03-24-investtax24_ST_N.htm

Weekly Economic Update for the Week of March 29, 2010

Reforms become law. President Obama signed his long-envisioned health care reforms into law on March 23, and he will sign the amendments to the bill into law on March 30. Most of the major changes will take effect in 2014, when health insurance will become compulsory for nearly all Americans. New taxes will help fund the reforms. The Congressional Budget Office estimates that the modifications will cut the federal deficit by $118 billion by 2020.^1,2,3

Home sales still underwhelming. Existing home sales dipped 0.6% for February while new home sales slipped 2.2% to another all-time low (although data only goes back to 1964). Any positives in the new Commerce Department report? Yes. The median sale price of new homes was about 5% above where it was a year ago.⁴

A gain in durable goods orders. The 0.5% rise in February was accompanied by news that durable goods inventories increased by 0.3%, the best such gain since December 2008.⁵

USDI surges north. When the U.S. Dollar Index is up 1.10% for the week (and 4.82% for the month), what happens with gold and oil? Well, gold and oil prices respectively fell 0.30% and 1.20% last week, with crude futures at exactly $80.00 per barrel at Friday’s close on the NYMEX.⁶

S&P 500 climbs 5.62% in 4 weeks. Stocks had another fine week from March 22-26, with the NASDAQ advancing 0.87%, the Dow 1.01% and the S&P 500 0.58% as part of a great 4-week run.⁷

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+4.05	+36.92	+0.78	-0.16
NASDAQ	+5.55	+50.92	+4.06	-5.17
S&P 500	+4.62	+40.07	-0.08	-2.34
Real Yield	3/26	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.62%	1.30%	1.90%	4.34%

(Source: CNBC.com, BigCharts.com, ustreas.gov, bls.gov, 3/26/10)^8,9,10

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc., and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. http://www.montoyaregistry.com http://www.petermontoya.com

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.

1 nytimes.com/2010/03/23/health/policy/23health.html?ref=us [3/23/10]

2 voices.washingtonpost.com/44/2010/03/obama-to-sign-health-care-fixe.html?wprss=44 [3/26/10]

3 cnn.com/2010/POLITICS/03/21/health.care.main/?hpt=Sbin [3/21/10]

4 foxbusiness.com/story/markets/industries/industrials/february-new-home-sales–annual-rate/ [3/24/10]

5 reuters.com/article/idUSN239670720100324?type=marketsNews [3/24/10]

6 cnbc.com/id/36057788/page/2/ [3/26/10]

7 blogs.wsj.com/marketbeat/2010/03/26/data-points-us-markets-221/ [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F26%2F09&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F25%2F05&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]

8 bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=3%2F27%2F00&x=0&y=0 [3/26/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/26/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/26/10]

10 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Does the IRS Owe You Money?

Where were you on the night of April 15, 2007?

If you didn’t collect your refund for the 2006 tax year, time is running out to claim it!

$1.3 Billion Dollars.

That’s the amount of unclaimed refund money the IRS is holding in their account. From the original filing deadline, each taxpayer has a window of just three years to claim refunds they are owed. Miss the window, and that’s it … no money.

Why is so much money sitting there?

According to the IRS, unclaimed refunds are fairly commonplace. Generally this is due to individuals simply not filing in a given year because they don’t owe taxes. But of course, by not filing, they can’t get any refund due either. In 2006 the number of individuals who decided, for some reason, not to file their taxes was over 1.4 million.

What could you do with $604¹?

That’s the median outstanding refund amount, according to IRS estimates. The most unclaimed refunds come from the state of California, where almost 160,000 taxpayers did not file their 2006 returns. Texas and Florida are next in line, with over 100,000 unfiled returns in each of those states

How about an additional $30 or $60 on top of that?

Based on the number of exemptions filed on 2006 tax returns, most taxpayers received $30 or up to $60, thanks to the repealed Telephone Excise Tax Refund. For some who did not file, that money, too, is sitting in an IRS account waiting for them. The only way to get that money is to file a 2006 return.

If you didn’t file your 2006 return, you have until April 15, 2010.

If the IRS owes you a refund on your 2006 return, you only have until April 15, 2010 to claim it. Otherwise, that money goes to Uncle Sam. You might want to double-check your 2007 and 2008 returns as well (though, you have a little more time on those). To file a return for a previous year, visit http://www.irs.gov and download the appropriate documents from their index of forms from past years.

These are the views of Peter Montoya, Inc., not Statler Financial Services, Inc., and should not be construed as investment advice. Statler Financial Services, Inc. does not give tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

1 – cnn.com/2010/LIVING/03/09/old.tax.refunds/index.html?section=cnn_latest [3/10/10]



Weekly Economic Update for the Week of March 22, 2010

Inflation? What inflation? Inflationary pressures remain weak in this subdued recovery. The Consumer Price Index was flat in February; core CPI rose 0.1%. CPI only advanced 2.1% over the last 12 months of data. Core CPI rose 1.3% in that period, the smallest year-over-year gain in six years. The Federal Reserve forecasts core CPI advancing 1.2% for all of 2010.^1,2

PPI drops in February. Producer prices decreased by 0.6% last month after a 1.4% rise in January; core PPI advanced 0.1%. Industrial production managed to rise 0.1% even with February’s rough weather.^2,3

Tiny LEI gain. Another 0.1% advance here: the Conference Board’s Leading Economic Index was positive for the eleventh straight month in February.⁴

Snow stalls housing starts. They fell 5.9% last month, according to the Commerce Department. Yet February housing starts and building permits were respectively 0.2% and 11.3% above year-ago levels.⁵

Oil drops, gold gains. Oil futures fell 0.69% across last week to close at $80.68 a barrel on the NYMEX Friday. Gold, however, gained $5.90 last week; even with a $20.00 drop Friday, it ended the five-day stretch at $1,107.40.⁶

Eight-day win streak for the Dow. That streak – the longest since August – helped the index rise 1.10% across last week to 10,741.98. Looking at the other two marquee indices, the S&P 500 gained 0.86% last week while the NASDAQ rose 0.29%.⁷

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+3.01	+45.15	+0.21	+0.06
NASDAQ	+4.64	+60.06	+3.65	-4.85
S&P 500	+4.02	+47.94	-0.50	-2.04
Real Yield	3/19	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.50%	1.31%	1.77%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/19/10)^7,8,9,10

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc., and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.

1 marketwatch.com/story/story/print?guid=A37FB003-34F9-41A5-83B4-823778033C51 [3/18/10]

2 businessweek.com/news/2010-03-17/producer-prices-in-u-s-dropped-more-than-forecast-update1-.html [3/17/10]

3 marketwatch.com/story/us-feb-industrial-output-up-01-despite-snow-2010-03-15?reflink=MW_news_stmp [3/15/10]

4 dailyfinance.com/story/leading-economic-indicators-rose-again-in-february/19404951/ [3/18/10]

5 latimesblogs.latimes.com/money_co/2010/03/housing-starts-fell-5-point-9-percent-in-february.html [3/19/10]

6 blogs.wsj.com/marketbeat/2010/03/19/data-points-energy-metals-244/ [3/19/10]

7 cnbc.com/id/35952832 [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=DJIA [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=DJIA [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=DJIA [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=COMP [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=COMP [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=COMP [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F19%2F09&mode=add&symb=SPX [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F18%2F05&mode=add&symb=SPX [3/19/10]

8 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F20%2F00&mode=add&symb=SPX [3/19/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/19/10]

9 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/19/10]

10 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Breaking the Surface

Four tips for recovering from unemployment.

Any period of unemployment is fraught with stress – both personal and financial. While landing that formerly-elusive new job can be a relief, it is only the first step on the road to recovery from unemployment. This transition time is akin to breaking the surface after being underwater for several minutes. It’s a relief to be breathing again and feel the sun on your face, but it’s no time to relax. You must start swimming right away to get back to a healthy financial shore.

Here are four steps you can take to help make sure your recent unemployment doesn’t cast a long shadow across your future financial health.

Continue to live lean. More likely than not, you weren’t buying $4 coffees while unemployed. Five star restaurants were out too. Hamburger may have replaced steak. You may want to continue to follow that pattern. We tend to grow into our incomes, our budgets bloating along with our salaries. Fighting that urge will help with the rest of the steps to unemployment recovery.

Protect yourself ASAP. The longer your unemployment lasts the more important basic survival becomes. Someone who is unemployed may let life insurance, disability insurance or health insurance policies lapse as they try to keep current on the mortgage, pay utilities and put groceries in the pantry. Sometime during the first few days of your employment you should enroll in whatever benefits you need that your company offers. If the new firm does not offer the coverage you need, make an appointment with an insurance professional and use part of your first paycheck to protect you and your family. Remember, the income from your new job won’t benefit anyone if a catastrophic illness, disability or death suddenly takes it away.

Develop a plan to pay down your debts. When you have a job, debts are a nuisance. When you don’t have a job, they may become a threat to your future financial well-being. While it’s normal to hope that you never have to go through unemployment again, you must start preparing for the possibility.

If you are behind on your mortgage, call your lender to let them know of your new job and to work with them on a plan to catch up on your payments. If they are unwilling to work with you, consider using a Federal resource such as those offered by the U.S. Housing and Urban Development Administration.

While there are fewer similar programs for car loans, calling your lender and trying to develop a plan for a loan you’re behind on should be your first step.

All too often during unemployment, credit cards may be used to get by when cash is low. While your interest rates may have been low when you initially signed up for the card, new legislation has caused a spike in credit card rates.¹ Rates of 20% – 30% are not uncommon as banks react to new rules. Paying down these balances should also be a primary goal.

Remember to start paying yourself. Whether you call it a rainy day fund, a nest egg or emergency cash, slowly, paycheck by paycheck, begin paying yourself a fraction of your salary. Some experts will argue that a family should keep six months to one year’s worth of expenses in the bank for unexpected events such as a blown car engine, the roof caving in, or another round of unemployment.¹ For many families, that may feel like an insurmountable sum. But as the old joke goes “How do you eat an elephant?” The answer: “One bite at a time”. Paying yourself has to be done paycheck-to-paycheck, little by little.

These are the views of Peter Montoya, Inc., not Statler Financials Services Inc., and should not be construed as investment advice. Statler Financial Services, Inc. does not give tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

1. http://www.marketwatch.com/story/credit-cards-gouge-consumers-ahead-of-new-law-2009-11-06 [11/10/09]

Weekly Economic Update for the Week of March 15, 2010

Good news at the cash register. Commerce Department data showed retail purchases up by 0.3% in February despite all the snow, sleet and rain, and 3.9% above where they were a year earlier. Most retail sales sectors had month-over-month increases.1

Signs of rising demand. Business sales increased by 0.6% in January (business inventories were flat). January 2010 business sales were 6.8% better than a year before. Other Commerce Department data shows wholesale sales jumping by 1.3% in January and wholesale stockpiles decreasing by 0.2%.2,3

Consumer confidence wavers. The preliminary Reuters/University of Michigan consumer sentiment survey is in for March. The index reads 72.5, down from a final 73.6 in February. However, things have improved notably from March 2009 when the gauge stood at 57.3.4

Gold & oil retreat. Gold had its poorest week since mid-January as prices dipped 2.93% last week to settle at $1,101.50 Friday on the COMEX. Oil fared better, losing just 0.32% across five days. Oil futures were $81.24 a barrel at Friday’s NYMEX close.5

Nice gains on Wall Street. Stocks pulled off weekly gains during a stretch of five trading days with only mild volatility. The DJIA advanced 0.55% last week, while the S&P 500 rose 0.99% and the NASDAQ gained 1.78%. The S&P 500 closed Friday at a 17-month high: 1,149.98.6

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+1.89	+48.18	-0.28	+0.68
NASDAQ	+4.34	+66.02	+3.19	-5.18
S&P 500	+3.13	+53.18	-0.83	-1.69
Real Yield	3/12	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.45%	1.88%	1.82%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/12/10)6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be
invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc. and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 marketwatch.com/story/retail-sales-shake-off-the-snows-of-feb-2010-03-12 [3/12/10]
2 dailyfinance.com/story/business-inventories-flat-in-january/19396378/ [3/12/10]
3 businessweek.com/news/2010-03-10/wholesale-inventories-in-u-s-fell-0-2-in-january-update1-.html [3/10/10]
4 abcnews.go.com/Business/wireStory?id=10083589 [3/12/10]
5 blogs.wsj.com/marketbeat/2010/03/12/data-points-energy-metals-239/ [3/12/10]
6 cnbc.com/id/35840993 [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=DJIA [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=COMP [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F12%2F09&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F11%2F05&mode=add&symb=SPX [3/12/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F13%2F00&mode=add&symb=SPX [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/12/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/12/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

The Jobs Bill

How effectively could it address America’s unemployment rate?

How about a tax break for companies that hire? A new jobs bill introduced by Sen. Majority Leader Harry Reid (D-NV) proposes major tax incentives for hiring businesses. If the bill becomes law, will these incentives make a dent in the unemployment rate? Or will they matter little? Not everyone is optimistic.

On February 24, the $15 billion job creation measure passed 70-28 in the Senate and headed for the House of Representatives.¹ Just what is in this Senate bill?

The big perk: the “Hire Now” tax cut. If the bill becomes law, a business that hires someone who has worked less than 40 hours in the previous 60 days could skip paying its share of the new hire’s Social Security tax for the rest of 2010. That’s 6.25% of the employee’s salary. Companies could realize a payroll tax savings of up to $6,622 per new hire. (In case you are wondering, the federal government would reimburse the SSA for the lost taxes.) ^2,3,4

If the new employee lasted 52 weeks on the job, the business would get a $1,000 tax credit on its 2011 federal return.³

The other perks. The Section 179 deduction limit for small business capital purchases was raised to $250,000 for 2009, and this bill would keep the limit at $250,000 for the 2010 tax year. The “Build America” bond program would be extended and expanded – that’s the program created to help state and local governments raise funds for infrastructure projects. The current federal subsidy for state highway spending would also be extended.^1,2

The fine print. Any private-sector employer, any non-profit organization and any public-sector college or university would qualify for the “Hire Now” tax break. While a business that owes no tax could not get the $1,000 new-hire tax credit for 2011, it would be allowed to carry that credit forward to the future. There would be no limit on the amount of new employees a business could hire en route to claiming the credit.⁸

Is this really going to make a difference? Well, Sen. Reid believes that the bill could create and save as many as 1 million jobs. Analysts feel that may be stretching it. Economic Policy Institute economist Heidi Shierholz thinks the measure could result in “tens of thousands of jobs, but it is absolutely nowhere near big enough” to reduce the unemployment rate.³

Under the bill, a “new” hire does not have to be an additional employee. It can also be a worker replacing someone who quit or was fired.³ So service sector businesses with high turnover might get some major tax breaks. There might be a lot of hiring among such companies, but not a lot of net job creation.

Is another bill just ahead? According to The Atlantic, Sen. Reid plans to introduce a second jobs bill with much greater scope. This proposed (and almost certainly more expensive) legislation would extend jobless benefits and COBRA for millions, as well as numerous tax credits and programs scheduled to sunset. State Medicaid funding would be extended and Medicare physician payments would be updated through this bill as well. While The Atlantic says it has copies of the bill, Sen. Reid’s office has not yet confirmed its contents. The Senator has mentioned rolling out multiple bills in the next few weeks to address the country’s unemployment problem.



These are the views of Peter Montoya Inc., not Statler Financial Services, Inc., and should not be construed as investment advice. Statler Financial Services does not give tax or legal advice.  All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 marketwatch.com/story/senate-sends-15-billion-jobs-bill-to-house-2010-02-24 [2/24/10]
4 boston.com/business/personalfinance/managingyourmoney/archives/2010/02/tax_incentives.html [2/24/10]
2 sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/02/24/BU3H1C6M8V.DTL [2/24/10]
4 online.wsj.com/article/SB20001424052748704240004575085410014175900.html [2/24/10]
5 politics.theatlantic.com/2010/02/the_next_jobs_bill.php [10/25/10]

Weekly Economic Update for the Week of March 8, 2010

9.7% and holding. The Labor Department reported only 36,000 net job losses last month, so the jobless rate was flat for February. Economists had widely assumed the unemployment rate would inch upward due to winter weather affecting construction and retail industries.¹

Major boost in factory orders. They rose 1.7% in January, according to Commerce Department data. This is the best number in four months and follows a 1.5% advance for December.²

Pending home sales sink. What does the 7.6% fall for January indicate? It would seem to signal that the extended tax credits have become less magnetic to buyers. Let’s hope sales hold up this spring as the Fed ceases its purchases of mortgage-linked securities.³

Gold, copper, oil go higher. Copper prices rose 4.10% last week to $0.134/lb. Gold gained $16.50 last week (1.48%) to settle at $1,134.80 an ounce Friday. Crude futures rose $1.84 last week (2.31%) to $81.50 per barrel on the NYMEX at Friday’s close.⁴

March of the bulls? Wall Street was buoyed by the unchanged jobless rate on Friday, and the Dow climbed 122.06 to cap off its 2.33% weekly gain. The S&P 500 did even better: a 3.10% rise on the week to 1,138.70 at the closing bell on Friday. The NASDAQ? It advanced 3.94% on the week to 2,326.56.⁵

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	+1.32	+60.23	-0.68	+0.19
NASDAQ	+2.52	+79.01	+2.47	-5.26
S&P 500	+2.12	+66.83	-1.37	-1.82
Real Yield	3/5	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.48%	1.98%	1.65%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 3/5/10)^5,6,7,8

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc., and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.

1 washingtonpost.com/wp-dyn/content/article/2010/03/05/AR2010030500571.html [3/5/10]

2 latimesblogs.latimes.com/money_co/2010/03/new-factory-orders-up-17-in-january-largest-increase-since-september.html [3/4/10]

3 businessweek.com/news/2010-03-04/u-s-economy-pending-sales-of-existing-homes-unexpectedly-drop.html [3/4/10]

4 blogs.wsj.com/marketbeat/2010/03/05/data-points-energy-metals-236/ [3/5/10]

5 cnbc.com/id/35729112 [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=DJIA [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=DJIA [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F6%2F00&mode=add&symb=DJIA [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=COMP [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=COMP [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F00&mode=add&symb=COMP [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F5%2F09&mode=add&symb=SPX [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F05&mode=add&symb=SPX [3/5/10]

6 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=3%2F4%2F00&mode=add&symb=SPX [3/5/10]

7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [3/5/10]

7 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [3/5/10]

8 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]

Stata Medigap Update

New changes are taking effect. New policies may have lower premiums.

Lower premiums ahead? Back in 2005, Congress voted to make major changes to Medigap plans effective June 1, 2010. While these changes are a bother, they could indirectly result in reduced premiums for these policies.

As the “modernized” Medigap plans sold after June 1 will have some differences from previous plans, insurers will be allowed to reset rates. Competition may drive premiums lower.

Please note: we’re talking about new Medigap policies that will be sold after June 1. If you already have a Medigap policy or buy one before June 1, these new changes won’t affect your plan, and you don’t need to replace your existing plan unless you feel the need.

Just to clarify things further, Medigap plans are Medicare supplement plans, not Medicare Advantage plans.

The changes in brief. In June, three Medigap plans are going away, another is being modified, and two new plans are being introduced. Also, a new benefit will be included in all plans.

• Plan E, Plan H, Plan I and Plan J will no longer be sold beginning June 1. (If you have one of these plans, you can continue to renew it as long as you keep paying premiums.)¹
• Two new lower-cost options will be available: Plan M and Plan N. Both come with some unique cost-sharing.
  • Plan M looks like Plan D with a couple of alterations. It covers just 50% of Medicare’s Part A deductible; 100% of Part B co-insurance is covered, plus skilled nursing facility care and emergency care in foreign countries.²
  • Plan N also resembles Plan D, but there are differences. Plan N will pay the full Part A deductible, but it asks you for co-payments of up to $20 for each covered healthcare provider office visit (including specialists) and up to $50 for each covered emergency room visit (you don’t pay that $50 if you end up being admitted to a hospital).²
• Plans D and G will not come with preventative care and at-home recovery benefits after June 1, 2010. After June 1, Plan G coverage of Part B excess charges will be raised from 80% to 100%.²
• A hospice care benefit will be added to basic benefits of Plans A-G.¹

How easy would it be to switch to a lower-premium plan? If you’re going to celebrate your 65th birthday in the next few months, you can enroll in a Medicare supplement plan now and switch to a lower-premium plan in June, as you’ll be in the six-month open enrollment period. If you are older than 65, of course, you’ll have to go through underwriting to switch to a lower-premium plan – but if you’re healthy, making the switch to a cheaper plan may not be difficult at all.

Could you save on prescription drugs as well? If you find yourself hard-pressed to pay for prescription drugs, see if you qualify for Medicare’s new Extra Help program, which is worth an average of about $3,900 a year to Medicare recipients.³

As of January 1, 2010, Medicare no longer counts money contributed by others to pay your household expenses as income. It also no longer counts your life insurance policy as an income resource. This means that more people can qualify for prescription drug savings.

Basically, a married couple living together qualifies for Extra Help if it has less than $25,010 in resources (savings and investments) and less than $21,855 in annual income. For individuals, the limits are $12,510 in resources and $16,245 in annual income. However, you still may qualify even if you have earnings from work.³

These are the views of Peter Montoya Inc., not Statler Financial Services, Inc., and should not be construed as investment advice. Statler Financial Services does not give tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations.
1 cahealthadvocates.org/news/insurance/2009/faq.html#2 [11/16/09]
2 mainstreet.com/article/family/family-health/medigap-changes-could-affect-you [10/15/09]
3 ssa.gov/pubs/10525.html [10/09]
4 ssa.gov/pubs/10525.html [10/09]

Weekly Economic Update for the Week of March 1, 2010

Stocks log best month since November. The S&P 500 rose 2.85% last month even with worries over Greece, China and the U.S. housing and job markets. The S&P had its best February in 12 years.^1,2

4Q GDP revised to 5.9%. That tops the initial 5.7% estimate from the Commerce Department. It means 4Q 2009 was the strongest quarter since 3Q 2003.³

Home sales in deep freeze. The January numbers were very poor: -7.2% for residential resales, -11.2% for new homes. However, existing home sales were 11.5% above where they had been a year before.⁴

Case-Shiller index: home prices rising. The widely watched 20-city home price index posted its seventh straight monthly gain in December. Prices increased in 15 of the index’s 20 metro areas.⁵

Durable goods orders up 3.0%. The January figure from the Commerce Department was hugely positive. Yet with transportation orders factored out, durable goods orders were down 0.6%.⁵

Less confidence last month? The February Conference Board index of consumer confidence fell to 46.0 from 55.9 in January. The index’s assessment of current conditions was the lowest since 1983.⁶

Soft week but strong month. The major U.S. indexes lost from 0.25% (NASDAQ) to 0.74% (Dow) last week. Monthly gains were quite strong: DJIA, +2.56%; NASDAQ, +4.23%; S&P 500, +2.85%.¹

% Change	Y-T-D	1-Yr Chg	5-Yr Avg	10-Yr Avg
DJIA	-0.99	+43.76	-0.95	+0.47
NASDAQ	-1.36	+60.86	+1.67	-5.12
S&P 500	-0.95	+46.71	-1.76	-1.72
Real Yield	2/26	1 Yr Ago	5 Yrs Ago	10 Yrs Ago
10YrTIPS	1.48%	2.02%	1.64%	4.34%

(Source: CNBC.com, CNNMoney.com, ustreas.gov, bls.gov, 2/26/10)^1,7,8,9

Indices are unmanaged, do not incur fees or expenses, and cannot be

invested into directly. These returns do not include dividends.

___________________________________________________________________

These views are those of Peter Montoya Inc., and not Statler Financial Services, Inc., and should not be construed as investment advice. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is not possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx^®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world’s largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. The market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Statler Financial Services, Inc. is registered as an investment adviser with the state of Florida. The presence of this Web site on the Internet shall in no direct or indirect way to be construed or interpreted to suggest Statler Financial Services, Inc. is soliciting to sell advisory services or offering to sell advisory services to residents of any other state other than the state of Florida.

Citations

1 cnbc.com/id/35601889 [2/26/10]
2 cnbc.com/id/35607823 [2/26/10]
3 online.wsj.com/article/SB10001424052748704625004575089030822996718.html?mod=WSJ_hpp_LEFTWhatsNewsCollection [2/26/10]
4 latimesblogs.latimes.com/money_co/2010/02/sales-of-existing-homes-fall-72-in-january.html [2/26/10]
5 sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/02/23/financial/f112032S90.DTL [2/23/10]
6 smartmoney.com/investing/economy/the-other-consumer-confidence-index/ [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=DJIA [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=COMP [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F26%2F09&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F05&mode=add&symb=SPX [2/26/10]
7 money.cnn.com/quote/historical/historical.html?pg=hi&close_date=2%2F25%2F00&mode=add&symb=SPX [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [2/26/10]
8 ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [2/26/10]
9 treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [1/12/00]