How Much Retirement Income Will You Really Need?

Many people underestimate lifestyle costs, medical expenses and inflation.

What is enough? What is not enough? If you’re considering retiring in the near future, you’ve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. This estimate is frequently repeated … but that doesn’t mean it is true for everyone. It may not be true for you.

You won’t learn how much retirement income you’ll need by reading this article. You’ll want to meet with a qualified retirement planner who can help you plan to estimate your lifestyle needs and short-term and long-term expenses.

That said, there are some factors which affect retirement income needs – and too often, they go unconsidered.

Health. Most of us will face a major health problem at some point in our lives – perhaps even multiple or chronic health problems. We don’t want to think about that reality. But if you’re a new retiree, think for a moment about the costs of prescription medicines, and recurring treatment for chronic ailments. These minor and major costs can really take a bite out of retirement income, even with a great health care plan. While generics have slowed the advance of prescription drug costs to about 1-2% a year recently,¹ one estimate found that a 65-year-old who retired in 2007 would need $215,000 to pay for overall retirement health care costs – up about 7.5% from 2006.²

Heredity. If you come from a family where people frequently live into their 80s and 90s, you may live as long or longer. Imagine retiring at 55 and living to 95 or 100. You would need 40-45 years of steady retirement income.

Portfolio. Many people retire with investment portfolios they haven’t reviewed in years, with asset allocations that may no longer be appropriate. New retirees sometimes carry too much risk in their portfolios, with the result being that the retirement income from their investments fluctuates wildly with the vagaries of the market. Other retirees are super-conservative investors: their portfolios are so risk-averse that they can’t earn enough to keep up with even moderate inflation, and over time, they find they have less and less purchasing power.

Spending habits. Do you only spend 70% of your salary? Probably not. If you’re like many Americans, you probably spend 90% or 95% of it. Will your spending habits change drastically once you retire? Again, probably not. Most people only change spending habits in response to economic necessity or in pursuit of new financial goals. People don’t want to “live on less” once they have had “more”.

Social Security (or lack thereof). In 2005, SSI represented 39% of a typical 65-year-old retiree’s income. But by 2030, Social Security may only replace 29% of that income, after deductions for Medicare premiums and income taxes. Since 1983, retirees earning more than $25,000 in SSI have had to pay income tax on a portion of their benefits.³ This is all presuming Social Security is still around in 2030.

So will you have enough? When it comes to retirement income, a casual assumption may prove to be woefully inaccurate. Meet with a qualified retirement planner while you are still working to discuss these factors and estimate how much you will really need.

 

 

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.

 

Citations.

¹ nytimes.com/2007/09/21/business/21generic.html?_r=1&oref=slogin

² marketwatch.com/news/story/health-care-costs-retirement-rise/story.aspx?guid=%7bEF2B6CDA-E176-4747-B528-76AC814051C5%7d&print=true&dist=printTop

³ money.cnn.com/2007/05/14/pf/retirement/nasi__report/index.htm

 

Weekly Economic Update, December 27, 2010

SPENDING & WAGES UP, SAVINGS RATE TICKS DOWN
Last week, the Commerce Department reported a 0.4% gain in personal spending and a 0.3% gain in personal incomes for November. The personal savings rate edged down 0.1% to 5.3% last month. In combination, those numbers hint at the possibility of stronger retail sales this holiday season – although durable goods orders fell 1.3% for November, much more than the 0.5% dip forecast by economists polled by Bloomberg News.^1,2

NEW & EXISTING HOME SALES IMPROVE
Existing home sales were up by 5.6% in November, according to the National Association of Realtors. One reason why: the median home price was $170,600 last month. Still, 2010 is on pace to be the poorest year for residential resales since 1997. At the current pace, 9.5 months worth of unsold inventory remains on the market. The Census Bureau reported a 5.5% improvement in new home purchases for November, with the sales pace down 21.2% from a year ago.^3,4

IS OIL MARCHING BACK TOWARD $100?
As crude prices topped $90 on the COMEX last week, the thought occurred to some analysts. Oil prices settled at $91.51 a barrel on Thursday, representing a 26-month high. The chairman of Libya’s national oil corporation told Reuters last week that “about $100 [per barrel] would be a fair price for the time being.”⁵

CONSUMER SENTIMENT EDGES UP
The final Reuters/University of Michigan consumer sentiment survey of 2010 came in at 74.6, slightly above November’s final 74.2 figure and slightly below the 74.8 mark that economists had anticipated.⁴

STOCKS GAIN MORE THAN 1% FOR THE WEEK
The markets were closed on Christmas Eve, trading was light last week and there was little volatility affecting the major indexes. The Dow almost replicated the previous week’s advance, rising +0.71% across four days to 11,573.49 at the close Thursday. The NASDAQ gained +0.86% last week to close Thursday at 2,665.60. The S&P 500 advanced 1.03% for the week to finish at 1,256.77 Thursday.⁶

COMING THIS WEEK: As you might expect with the holidays, the schedule of economic releases is pretty slim. Tuesday, the October Case-Shiller home price index comes out, plus the Conference Board’s December report on consumer confidence. Thursday, we get the report on November pending home sales from the National Association of Realtors as well as the latest initial and continuing claims figures.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+10.98	+10.58	+1.27	+0.88
NASDAQ	+17.47	+17.45	+3.70	+0.59
S&P 500	+12.70	+12.15	-0.19	-0.38
REAL YIELD	12/23 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.08%	1.46%	2.07%	4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov – 12/24/10^6,7,8,9
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal 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 – the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. 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 assistance is needed, the reader is advised to engage the services of a competent professional.

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 – money.cnn.com/2010/12/23/news/economy/personal_income_spending/ [12/23/10]
2 – bloomberg.com/news/2010-12-23/u-s-stock-futures-maintain-losses-as-durable-goods-data-trails-estimates.html [12/23/10]
3 – chron.com/disp/story.mpl/ap/business/7350661.html [12/22/10]
4 – money.cnn.com/2010/12/23/markets/markets_newyork/ [12/23/10]
5 – cnbc.com/id/40785317/ [12/23/10]
6 – cnbc.com/id/40797201 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F23%2F09&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F23%2F09&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F23%2F09&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F23%2F05&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F23%2F05&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F23%2F05&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F22%2F00&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F22%2F00&x=0&y=0 [12/23/10]
7 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F22%2F00&x=0&y=0 [12/23/10]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/23/10]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [12/23/10]
9 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [7/12/00]

 

The Bush-Era Tax Cuts Live On

With the President’s signature, most of them will remain in place through 2012.

A holiday gift for taxpayers? After a 277-148 passage in the House and an 81-19 approval in the Senate, President Obama signed the 2010 Tax Relief Act into law on December 17, extending the Bush-era tax cuts.¹ Here is the impact of the new legislation:

Current federal income tax rates are preserved for everyone. The federal income tax brackets will remain at 10%, 15%, 25%, 28%, 33% and 35% for 2011 and 2012.²

Unemployment insurance extends for 13 more months. This is retroactive, so the federal extension of long-term jobless benefits applies from December 2010 through December 2011.²

A payroll tax holiday occurs in 2011. The payroll taxes that employees pay will drop from 6.2% to 4.2% next year. (There will be no payroll tax cut for employers in 2011, only employees.) As envisioned, this will result in a savings of about $1,000 next year for a wage earner bringing home $50,000. This replaces the Making Work Pay credit.^3,4,5

Estate taxes will be milder than at any time in the past 80 years. For 2011, the federal estate tax drops to 35%. The estate tax exemption rises all the way to $5 million. President Obama had earlier characterized these parameters as too generous, but he and Congressional Democrats ultimately accepted them.²

Tax breaks for middle-class and working-class families won’t sunset. As a result of the new law, the child credit, the child and dependent-care credit, the EITC, and a $2,500 tax credit for higher education expenses will all be around in 2011.^5,6

No marriage penalty. The new law wards off the comeback of the marriage penalty so that married couples may take a more generous standard deduction.⁶

Taxes on capital gains and dividends top out at 15%. Passage of the 2010 Tax Relief Act means rates will top out at 15% through 2012.⁷

Businesses may expense 100% of their investments in 2011. In fact, qualified investments made after September 8, 2010 and before January 1, 2012 are eligible for this bonus depreciation. In addition, 50% expensing will be available for qualified property placed in service during 2012, and so-called “long-lived” property and transportation property may be eligible for 100% expensing if it goes into service prior to 2013.⁷

The tax break for IRA gifts to charity returns. The IRA charitable rollover, as it was informally called, was much beloved by non-profits and IRA owners, but it went away in 2010. In basic terms, it allowed someone 70½ or older donate up to $100,000 in IRA assets annually to one or more qualified charities. This opportunity is back for 2011 – and the especially good news is that Congress included a special rule in the new tax bill allowing IRA gifts made in January 2011 to count for 2010.⁸

An AMT patch, of course. Congress decided it might as well take care of that. It passed an AMT (Alternative Minimum Tax) fix as part of the 2010 Tax Relief Act, thereby exempting about 20 million middle-income households from a potential $3,900 average leap in federal income taxes.⁶

What’s the price tag of all this short-term tax relief? It is sizable. The federal deficit is projected to increase by about $858 billion over the next two years as a consequence.⁵

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal advice. Statler Financial Services, Inc., not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If assistance or further information is needed, the reader is advised to engage the services of a competent professional.

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 – edition.cnn.com/2010/POLITICS/12/17/tax.deal/ [12/17/10]

2 – online.wsj.com/article/SB10001424052748703296604576005430598327972.html [12/7/10]

3 – npr.org/2010/12/10/131969824/some-worry-payroll-tax-cut-threatens-social-security [12/10/10]

4 – businessweek.com/news/2010-12-10/u-s-tax-vote-may-be-too-late-to-cut-payroll-levy.html [12/10/10]

5 –startribune.com/politics/112046564.html? [12/16/10]

6 –businessweek.com/ap/financialnews/D9K5IEN81.htm [12/17/10]

7 –tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf [12/16/10]

8 – online.wsj.com/article/SB10001424052748703395904576025610771041244.html [12/17/10]

9 – montoyaregistry.com/Financial-Market.aspx?financial-market=roth-ira-rules-and-regulations&category=1 [12/18/10]

 

 

Weekly Economic Update, December 20, 2010

OBAMA SIGNS TAX DEAL INTO LAW
President Obama signed the 2010 Tax Relief Act into law on December 17 after overwhelming passage in the House and Senate. The Bush-era tax cuts are thereby extended. Through 2012, the federal income tax tops out at 35% and taxes on dividends and capital gains top out at 15%. Next year, the estate tax returns at 35% with a $5 million dollar exemption, effectively permitting couples to pass estates as large as $10 million to heirs; tax-free charitable IRA donations also come back in 2011. Employee payroll taxes will drop from 6.2% to 4.2% next year.^1,2,3,4,5

A POSITIVE SIGNAL FOR THE FUTURE
The Conference Board’s leading economic indicators index (designed to be a gauge of economic momentum or lack thereof) jumped by 1.1% in November – the biggest gain in eight months. This follows a revised 0.4% advance in the index for October.⁶

PRODUCER PRICES OUTPACE CONSUMER PRICES
Consumer prices inched up 0.1% in November according to the Labor Department’s Consumer Price Index. The core CPI rose 0.1%. The Producer Price Index, on the other hand, rose by 0.8% last month. Consensus polls of economists at Briefing.com had projected a 0.2% rise in the CPI and a 0.5% gain in wholesale prices.⁷

HOUSING STARTS TURN NORTH
They improved for the first time in three months. The Commerce Department said November’s housing starts were up 3.9% from October levels. The 555,000 annual pace topped the 559,000 consensus projected in a Bloomberg News survey.⁸

STOCKS ADVANCE
It was a pretty quiet week on Wall Street, and major index performance across the five trading days was as follows: Dow, +0.72% to 11,491.91; S&P 500, +0.28% to 1,243.91; NASDAQ, +0.21% to 2,642.97. As of Friday, the DJIA had traded within a range of 100 points for six straight market days – that hadn’t occurred since January 2006. All three indices ended the week at +10% or better for 2010.⁹

COMING NEXT WEEK: No notable releases on Monday or Tuesday. Wednesday, we have the latest existing home sales figures and the final estimate of 3Q GDP. Thursday, we get data on consumer spending and durable goods orders for November, new home sales figures for November, the final University of Michigan consumer sentiment survey for December, and the latest initial and continuing claims numbers. That’s it for the week.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+10.20	+11.48	+1.13	+0.80
NASDAQ	+16.47	+21.23	+3.47	+0.07
S&P 500	+11.55	+13.49	-0.37	-0.60
REAL YIELD	12/17 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.05%	1.28%	2.11%	4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov – 12/17/10^9,10,11,12
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal 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. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. 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 assistance is needed, the reader is advised to engage the services of a competent professional.

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 – edition.cnn.com/2010/POLITICS/12/17/tax.deal/ [12/17/10]

2 – online.wsj.com/article/SB10001424052748703296604576005430598327972.html [12/7/10]

3 –tax.cchgroup.com/downloads/files/pdfs/legislation/bush-taxcuts.pdf [12/16/10]

4 – businessweek.com/ap/financialnews/D9K5IEN81.htm [12/17/10]

5 – npr.org/2010/12/10/131969824/some-worry-payroll-tax-cut-threatens-social-security [12/17/10]

6 – bloomberg.com/news/2010-12-17/u-s-leading-indicators-index-gains-most-in-eight-months-in-recovery-sign.html [12/17/10]

7 – thestreet.com/story/10947594/1/inflation-remains-subdued-in-november.html [12/15/10]

8 – bloomberg.com/news/2010-12-16/u-s-futures-fluctuate-starbucks-bank-of-america-climb-freeport-slides.html [12/16/10]

9 – cnbc.com/id/40722779 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F17%2F09&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F17%2F09&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F17%2F09&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F16%2F05&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F16%2F05&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F16%2F05&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F18%2F00&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F18%2F00&x=0&y=0 [12/17/10]

10 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F18%2F00&x=0&y=0 [12/17/10]

11 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/17/10]

11 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/17/10]

12 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [7/12/00]

13 – montoyaregistry.com/Financial-Market.aspx?financial-market=8-retirement-tips&category=3 [12/18/10]

A Compromise

The President agrees to preserve the Bush-era tax cuts for all, surprising his party.

Many expected a deal – but not necessarily this one. Political and economic analysts widely believed that President Obama and Republican leaders would reach a compromise on the Bush-era tax cuts. Many felt a deal would be struck early in December. Yet few forecast how agreeable the President would be.

The Bush-era tax cuts would be extended for the wealthy. Under the bipartisan plan, the EGTRRA and JGTRRA tax cuts would be extended through 2012 for all taxpayers. At a White House press conference Tuesday, the President simply categorized it as “a good deal for the American people.”^1,2

In the eyes of some Democrats, it is just a sellout. Sen. Mary Landrieu (D-LA) termed the deal “unconscionable.” House Minority Leader Nancy Pelosi (D-CA) offered more or less the same view: “Republicans have held the middle class hostage for provisions that benefit only the wealthiest 3%, do not create jobs and add tens of billions of dollars to the deficit.” Rep. Jim McDermott (D-WA) referred to the compromise as “the President’s Gettysburg.” (At least he didn’t mention Waterloo.) Sen. Bernie Sanders (I-VT) called the deal “an absolute disaster and an insult to the vast majority of the American people” and said he would attempt a filibuster.^3,4

Tuesday, President Obama noted that he would fight to repeal these tax breaks in 2012, emphasizing that the preservation of the cuts will be temporary.² (Of course, the EGTRRA cuts were considered “temporary” nine years ago.)

The deal could give us the lowest estate taxes since 1931. The fine points of this bipartisan accord haven’t been hammered out yet, but here is what we know about it so far. Under the agreement,

• The 10%, 15%, 25%, 28%, 33% and 35 % marginal tax rates created by EGTRRA in 2001 would be preserved through 2012.
• A one-year, 2% cut in payroll taxes would make up for the expiration of the Making Work Pay credit. The Obama administration says this move will cost $120 billion with no impact on Social Security.
• The estate tax would be set at 35% with a $5 million exemption.
• Long-term jobless benefits would be extended through the end of 2011, at a cost of about $56 billion according to the White House.
• Businesses would be able to expense 100% of their investments in 2011 (retroactive to September 2010).
• The present R&D tax credit and other business-incentive credits would be extended through 2012.

The non-partisan Congressional Research Service figures that maintaining the Bush-era tax cuts through 2012 would cost America $314.9 billion.^1,2

Essentially, a trade was made. President Obama allowed the EGTRRA and JGTRRA cuts to live on for the wealthy in exchange for some of what he wanted – an extension of unemployment insurance and a payroll tax reduction.

Will partisan sparring stop the deal in its tracks? The accord is less acceptable to Democrats than the recent House bill introduced by Rep. Sander Levin (D-MI) and the Middle Class Tax Cut Act of 2010 introduced by Sen. Max Baucus (D-MT), which was defeated on December 5. Some Congressional Democrats are regarding the agreement the way a child regards spinach: not very palatable, but somewhat acceptable. Others are ready to fight it tooth and nail.

Or will opposition soften? At last week’s meeting of the White House deficit commission, Honeywell CEO David Cote made a striking remark on the process of compromise: “We can’t let the perfect be the enemy of the good.”

Here in December, Congress might want to abide by his advice – especially after President Obama’s remark that “a long political fight that carried over into next year might have been good politics, but it would be a bad deal for the economy and it would be a bad deal for the American people.”²

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal advice. Statler Financial Services, Inc is not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If assistance or further information is needed, the reader is advised to engage the services of a competent professional.

Citations

1 – online.wsj.com/article/SB10001424052748703296604576005430598327972.html [12/7/10]

2 – bloomberg.com/news/2010-12-07/obama-says-tax-compromise-will-spare-middle-class-americans-rate-increase.html [12/7/10]

3 – seattletimes.nwsource.com/html/politicsnorthwest/2013616523_mcdermott.html [12/7/10]

4 – content.usatoday.com/communities/onpolitics/post/2010/12/obama-democrats-tax-cuts-reaction-/1 [12/7/10]

5 – http://www.montoyaregistry.com/Financial-Market.aspx?financial-market=the-balancing-act-weathering-the-burden-of-sudden-wealth&category=22 [12/7/10]

 

 

Weekly Economic Update, December 13, 2010

CAPITOL HILL COMPROMISE MEETS FLAK
House Democrats chanted “just say no” prior to a symbolic vote Thursday against the tax deal worked out between the White House and Republicans – a deal some Democrats see as a sellout. The accord would preserve the Bush-era income tax cuts for two more years, restore the estate tax at 35% with a $5 million exemption, cut payroll taxes by 2% for 2011 and extend unemployment insurance through the end of next year. Late last week, an addition was made to the agreement – an extension of incentives for wind and solar energy developers through the end of 2011.^1,2

OIL & GOLD FALL … GASOLINE PRICES RISE
Gold lost $21.10 last week to close at $1,384.30 per ounce Friday on the COMEX, while oil lost $1.40 across five days to conclude the week at $87.79 a barrel on the NYMEX. Retail gasoline prices just climbed to levels unseen since 2008 – last week, they were 35 cents higher than a year ago with a gallon of regular unleaded averaging $2.98 nationally. Industry analysts think pump prices will soon decline.^3,4

CONSUMER POLL SIGNALS HOLIDAY OPTIMISM
The preliminary December Reuters/University of Michigan consumer sentiment survey is in, and the result is upbeat – a reading of 74.2, a 2.6% improvement from the last index reading. This is the best number since May, and it beat the median estimate of 72.5 from economists surveyed by Bloomberg News.⁵

WHOLESALE STOCKPILES INCREASE ALMOST 2%
The 1.9% October gain topped the 0.9% increase forecast by economists in a Bloomberg News poll. In another sign that economy has picked up steam, the Census Bureau said year-over-year inventory levels have improved by 9.9%.⁶

ANOTHER WEEK … ANOTHER TWO-YEAR HIGH
At Friday’s closing bell, the S&P 500 stood at a fresh two-year peak of 1,240.40 after a 1.28% weekly gain. The blue chips also moved north: the DJIA rose 0.25% last week to settle at 11,410.32 Friday. The tech-heavy NASDAQ advanced 1.78% across five market days, closing at 2,637.54 at week’s end. Have you noticed the year that the Russell 2000 is having? As of Friday’s close, it was +24.22% YTD.⁷

COMING NEXT WEEK: Tuesday, we have the latest PPI, retail sales and business inventories figures plus an FOMC rate decision. Wednesday, the November CPI will be released, and the November report on industrial production. Thursday, we find out about November housing starts and get figures on initial and continuing claims. Friday, the Conference Board issues its November leading indicators index.

 

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+9.42	+9.65	+1.17	+0.64
NASDAQ	+16.23	+20.39	+3.37	-1.25
S&P 500	+11.24	+12.52	-0.30	-1.01
REAL YIELD	12/10 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	1.16%	1.40%	2.18%	4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov – 12/10/10^7,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal 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. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. 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 assistance is needed, the reader is advised to engage the services of a competent professional.

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 – online.wsj.com/article/SB10001424052748703296604576005430598327972.html [12/7/10]

2 – washingtonpost.com/wp-dyn/content/article/2010/12/09/AR2010120906439_pf.html [12/9/10]

3 – blogs.wsj.com/marketbeat/2010/12/10/data-points-energy-metals-419/ [12/10/10]

4 – nytimes.com/2010/12/11/business/energy-environment/11oil.html [12/11/10]

5 – bloomberg.com/news/2010-12-10/u-s-consumer-sentiment-rises-more-than-forecast-to-74-2-in-michigan-index.html [12/21/10]

6 – dailyfinance.com/story/wholesale-inventory-reflects-increasing-business-confidence/19753360/ [12/9/10]

7 – cnbc.com/id/40610084 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F10%2F09&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F10%2F09&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F10%2F09&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F9%2F05&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F9%2F05&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F9%2F05&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F11%2F00&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F11%2F00&x=0&y=0 [12/10/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F11%2F00&x=0&y=0 [12/10/10]

9 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [12/10/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/10/10]

10 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [7/12/00]

How Much Retirement Income Will You Really Need?

Many people underestimate lifestyle costs, medical expenses and inflation.

What is enough? What is not enough? If you’re considering retiring in the near future, you’ve probably heard or read that you need about 70% of your end salary to live comfortably in retirement. This estimate is frequently repeated … but that doesn’t mean it is true for everyone. It may not be true for you.

You won’t learn how much retirement income you’ll need by reading this article. You’ll want to meet with a qualified retirement planner who can help you plan to estimate your lifestyle needs and short-term and long-term expenses.

That said, there are some factors which affect retirement income needs – and too often, they go unconsidered.

Health. Most of us will face a major health problem at some point in our lives – perhaps even multiple or chronic health problems. We don’t want to think about that reality. But if you’re a new retiree, think for a moment about the costs of prescription medicines, and recurring treatment for chronic ailments. These minor and major costs can really take a bite out of retirement income, even with a great health care plan. While generics have slowed the advance of prescription drug costs to about 1-2% a year recently,¹ one estimate found that a 65-year-old who retired in 2007 would need $215,000 to pay for overall retirement health care costs – up about 7.5% from 2006.²

Heredity. If you come from a family where people frequently live into their 80s and 90s, you may live as long or longer. Imagine retiring at 55 and living to 95 or 100. You would need 40-45 years of steady retirement income.

Portfolio. Many people retire with investment portfolios they haven’t reviewed in years, with asset allocations that may no longer be appropriate. New retirees sometimes carry too much risk in their portfolios, with the result being that the retirement income from their investments fluctuates wildly with the vagaries of the market. Other retirees are super-conservative investors: their portfolios are so risk-averse that they can’t earn enough to keep up with even moderate inflation, and over time, they find they have less and less purchasing power.

Spending habits. Do you only spend 70% of your salary? Probably not. If you’re like many Americans, you probably spend 90% or 95% of it. Will your spending habits change drastically once you retire? Again, probably not. Most people only change spending habits in response to economic necessity or in pursuit of new financial goals. People don’t want to “live on less” once they have had “more”.

Social Security (or lack thereof). In 2005, SSI represented 39% of a typical 65-year-old retiree’s income. But by 2030, Social Security may only replace 29% of that income, after deductions for Medicare premiums and income taxes. Since 1983, retirees earning more than $25,000 in SSI have had to pay income tax on a portion of their benefits.³ This is all presuming Social Security is still around in 2030.

So will you have enough? When it comes to retirement income, a casual assumption may prove to be woefully inaccurate. Meet with a qualified retirement planner while you are still working to discuss these factors and estimate how much you will really need.

 

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.

 

Citations.

¹ nytimes.com/2007/09/21/business/21generic.html?_r=1&oref=slogin

² marketwatch.com/news/story/health-care-costs-retirement-rise/story.aspx?guid=%7bEF2B6CDA-E176-4747-B528-76AC814051C5%7d&print=true&dist=printTop

³ money.cnn.com/2007/05/14/pf/retirement/nasi__report/index.htm

 

 

Weekly Economic Update, December 6, 2010

JOBLESS RATE INCREASES BY 0.2%
Unemployment hit 9.8% last month. The latest Bureau of Labor Statistics report said the economy only created 39,000 new jobs in November; economists expected three times that. After all, ADP reported 93,000 new positions in the private sector last Wednesday, and the revised government estimate for October showed the economy adding 172,000 jobs in that month. Labor Department figures indicate that the unemployed and underemployed now make up around 17% of the population.^1,2

SECOND POLL GAUGES CONFIDENCE AT 5-MONTH HIGH
The Conference Board’s consumer confidence index rose to 54.1 for November, reaching a peak unseen since June (which is exactly what happened last week with the University of Michigan’s consumer poll). Sub-indices measuring employment expectations and income expectations also improved.³

SOME GOOD NEWS FROM THE REAL ESTATE SECTOR
Pending home sales increased by 10.4% in October, according to the National Association of Realtors. This would seem to suggest better numbers for existing home sales in November. NAR’s pending home sales index is now back at the level it was before the appearance of the federal home buyer tax credit.⁴

ISM INDEXES BOTH AT 55 OR BETTER
The closely-watched manufacturing and non-manufacturing sector surveys from the Institute for Supply Management show moderate growth. The manufacturing index declined to 56.6 from October’s 56.9 mark; the service sector index improved from 54.3 in October to 55.0 in November. The manufacturing index showed a 7.7% slump in production for November; the service sector index showed 4.0% gains in export orders and inventories.⁵

DECEMBER GETS OFF TO A BULLISH START
In the first three days of December, the S&P 500 gained 3.74% as Black Friday sales numbers and reassurance from the European Central Bank aided Wall Street. Gold closed at a record $1406.20 an ounce Friday. For the week, the big three U.S. indices performed as follows: DJIA, +2.62% to 11,382.09; S&P 500, +2.97% to 1,224.71; NASDAQ, +2.24% to 2,591.46 (its highest close in 35 months).^6,7

COMING NEXT WEEK: It is a light week in terms of major economic releases. Wednesday, we get initial and continuing jobless claims data and learn about October wholesale inventories. Thursday, we have the University of Michigan’s first consumer sentiment survey for December.

% CHANGE	Y-T-D	1-YR CHG	5-YR AVG	10-YR AVG
DJIA	+9.12	+9.80	+0.93	+0.78
NASDAQ	+14.20	+19.25	+2.80	-0.93
S&P 500	+9.81	+11.35	-0.64	-0.76
REAL YIELD	12/3 RATE	1 YR AGO	5 YRS AGO	10 YRS AGO
10 YR TIPS	0.86%	1.24%	2.16%	4.03%

Source: cnbc.com, bigcharts.com, ustreas.gov, bls.gov -12/3/10^6,8,9,10
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly.
These returns do not include dividends.

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal 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. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. 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 assistance is needed, the reader is advised to engage the services of a competent professional.

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 – forbes.com/2010/12/03/markets-briefing-open-jobs-equities-unemployment.html [12/3/10]

2 – ocregister.com/articles/rate-278642-november-time.html [12/3/10]

3 – bloomberg.com/news/2010-11-30/stocks-in-u-s-pare-retreat-after-consumer-confidence-report-tops-estimate.html [11/30/10]

4 – online.wsj.com/article/SB10001424052748703377504575650470810345484.html [12/3/10]

5 – ism.ws/ISMReport/nonmfgROB.cfm [12/3/10]

6 – cnbc.com/id/40496761 [12/3/10]

7 – money.cnn.com/2010/12/03/markets/markets_newyork/index.htm [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F3%2F09&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F3%2F09&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F3%2F09&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F2%2F05&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F2%2F05&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F2%2F05&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=DJIA&close_date=12%2F4%2F00&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=COMP&close_date=12%2F4%2F00&x=0&y=0 [12/3/10]

8 – bigcharts.marketwatch.com/historical/default.asp?detect=1&symbol=SPX&close_date=12%2F4%2F00&x=0&y=0 [12/3/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml [12/3/10]

9 – ustreas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield_historical.shtml [12/3/10]

10 – treasurydirect.gov/instit/annceresult/press/preanre/2000/ofm11200.pdf [7/12/00]

 

The Implications if the Bush-Era Tax Cuts Expire

Congress should vote to extend them … but what if it doesn’t?

As 2010 draws to a close, Congress will likely act to extend the Bush-era tax cuts into 2011 or beyond. However, this is the same Congress that has done nothing about the estate tax for a year. So let’s play “what if” for a moment. What if we witness an “epic fail” on Capitol Hill and the EGTRRA and JGTRRA cuts disappear?

How would the middle-class tax burden increase? Deloitte Tax LLP (a tax advisory firm) and CCH (a tax software and publishing firm) ran some numbers and came up with some model scenarios. They aren’t pretty.

According to the Deloitte projections, a typical family of four earning $50,000 would see its tax bill jump by about $2,900 in 2011. CCH estimates that the average married couple with two kids would suffer a $2,143 income tax increase. As for single taxpayers, Deloitte figures than a single filer earning $50,000 in 2011 would pay about $1,100 more to the IRS if the cuts expire.¹

These projections clearly show why the Obama administration favors preserving the cuts for the middle class, even in light of the staggering federal deficit.

If the Bush-era tax cuts sunset, the “marriage penalty” will return in 2011 with the shrinking of the 15% tax bracket. The child tax credit will also be cut in half from $1,000 to $500. These two factors alone would account for much of the above tax increases.¹

Don’t panic just yet, because the average tax rate for a middle-class family is really much lower. As the Wall Street Journal noted earlier this year, a middle-income family usually ends up paying less than 10% of its gross income in federal income tax after deductions and exemptions according to the IRS.²

What would happen for the wealthy? The 33% and 35% tax brackets would rise to 36% and 39.6% next year if taxes reset to Clinton-era levels. This would affect only about 4% of taxpayers – notably, the ones most influential in job creation.^2,3

An analysis from the Joint Committee on Taxation finds that taxpayers with gross incomes above $1 million would get an average tax cut of about $6,300 in 2011 should the Bush-era cuts expire. That is peanuts compared to the $100,000 average tax cut the JCT says they would get if the Bush-era cuts were extended. As for taxpayers whose gross incomes fall between $500,000 and $1 million, they would get an average tax cut of about $6,700 in 2011 without the EGTRRA/JGTRRA extension, compared to about $17,500 with the Bush-era tax cuts in place.^2,3

Capital gains rates would go up. Investors in the 10% and 15% brackets don’t have to pay taxes on long-term capital gains in 2010, but a 10% capital gains tax would return for them in 2011. The rest of us would see capital gains taxes rise from 15% to 20%.⁴

So would estate tax rates. If the Bush-era tax cuts aren’t preserved, estate tax rates will go back to 2001 levels – that means a 55% tax on individual estates greater than $1 million ($2 million for married couples). The non-profit Tax Policy Center estimates that if the exemption drops to $1 million next year, it will force seven times as many estates to file estate tax returns in 2011 as in 2009. The TPC figures that 44,000 estates will pay tax next year if we go back to the 2001 limits, compared to just 5,500 in 2009.⁵

You might see a temporary tax hike – even if lawmakers act in time. The IRS finalizes its withholding tables for the coming tax year in November of the current year. This gives employers enough lead time to integrate the information into paycheck withholding systems.

Well, guess what: November is almost over and the IRS still has no answer from Congress on income taxes. So the IRS could direct employers to increase paycheck deductions starting on January 1, as the withholding tables must be based on the present tax law which states that the EGTRRA and JGTRRA cuts will vanish in 2011.¹

You may want to adjust your withholding on that first paycheck or two of 2011. If an EGTRRA and JGTRRA extension is approved in December, your paychecks may be smaller until new withholding tables are implemented. Congress should have known better: with consumer spending so fragile, this was not a good time to take a bite out of after-tax income.^1,6

 

This material was prepared by Peter Montoya Inc., and does not necessarily represent the views of Statler Financial Services, Inc. This information should not be construed as investment, tax or legal advice. Statler Financial Services, Inc., is not engaged in rendering legal, accounting or other professional services. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. If assistance or further information is needed, the reader is advised to engage the services of a competent professional.

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 – bankrate.com/finance/taxes/how-expiring-bush-tax-cuts-will-affect-you-3.aspx [10/18/10]

1 – bankrate.com/finance/taxes/how-expiring-bush-tax-cuts-will-affect-you-4.aspx [10/18/10]

1 – bankrate.com/finance/taxes/how-expiring-bush-tax-cuts-will-affect-you-5.aspx [10/18/10]

1 – bankrate.com/finance/taxes/how-expiring-bush-tax-cuts-will-affect-you-7.aspx [10/18/10]

2 – nytimes.com/2010/08/11/us/politics/11tax.html [8/10/10]

3 – online.wsj.com/article/SB10001424052748703977004575393483572603148.html [7/28/10]

4 – bankrate.com/finance/money-guides/no-taxes-due-for-some-investors-1.aspx [1/16/09]

5 – nytimes.com/2010/11/13/your-money/taxes/13wealth.html [11/12/10]

6 – businessweek.com/news/2010-09-17/paychecks-could-be-whacked-if-u-s-tax-vote-slips.html [9/17/10]