Required Distributions

There is an exception in the tax code for 2009 only that is not widely advertised. Congress has granted a wave for required minimum distributions from IRAs for this year only.

I think the word is not being circulated because it sounds like a break for evil rich people who have $ in IRAs.

My dad paid his accountant to figure his minimum required withdrawal each fall. That's right. He paid him for the appointment even if only over the phone. If Dad didn't need the $, the CPA would "sell" Dad a mutual fund. I say sell because the man made over 5% commission on each sale.

Dad died two years ago and I rolled my portion of his IRA into an inherited IRA. I am required to take out distributions each year based on my life expectancy. Except for this year.

My dad would have enjoyed getting to leave his $ in and not having to pay taxes on it. Yes, it's the taxable event and the huge penalties if the minimum is not withdrawn that is the governments gift to those rich old people.

An aside: Dad's CPA filed for bankruptcy last month. Not enough old people needing those fall appointments to take out IRA $ and pay him to invest it in a load mutual fund?

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23%

The latest report is that 23% (over one in five, closer to one in four) mortgages are larger than the property is worth! The term is being under water. Owing more than the value.

That is astounding. Those homeowners have lost any $ they put down or equity they had grown in their American dream.

A friend of a friend closed and moved into a house near Labor Day. They have not sold their other house and have lowered the price two times in the last six months. They are making two house payments a month. Ouch.

They have decided to refinance the new house. Already? It's just an effort to lower that payment. The bank is rolling the costs of another title search etc. into the new loan. They are short sighted but then I'm not making two house payments.

If you are one of the 4 in 5 or 3 in 4 that is not under water, remember to be thankful for that tomorrow.

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Pizza Parlors

There are 2 well established pizza parlors on the west side of town. They compete with each other through coupons and promotionals like free drinks. They each have loyal customers but most people these days check for deals.

There is a new pizza parlor that just opened about 2 blocks from one and 3 blocks from the other established businesses. You might think same old same old but not with this one.

The new proprietor is in the business of getting pizzas onto everyone's plate. Profit is not important. He wants people to pay for their meals but according to what they can afford. He wants to make the quality of pies that the other places do but his only goal is to provide pizzas.

What do you think will happen to the two original parlors? Will they compete and compete and come up with a lower priced pizza? They can't really compete with someone who provides meals at slashed prices without concern for profits.

I watched several senators interviewed this week on Fox News. The senators who are pushing this health insurance change were degrading the fat cat insurance companies and calling for change. With the government run health option, it will bring about necessary competition.

Will the original pizza parlors compete and survive? Doubtfully. It may be a long a painful death but they can not compete with someone who has no concern for the bottom line.

Please remember, insurance companies work with a less than 3% margin of profit. The government will spend and spend and spend with little regulation and no concern for OUR bottom line.

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Expensive Jobs

The report is out. The stimulus has created or saved jobs!

In Illinois, 6 non-existent Congressional districts received $6.5 million which created 25 jobs.

So, places that don't exist received big $ and saved jobs somewhere.

A little math. Those 25 jobs cost You & I over a quarter million each. That's over $250,000 each job.

Is anyone watching? Does anyone out there understand that it is not working. We knew it wouldn't work. It didn't work to get us out of the Big Depression.

Who is watching Big Brother while he's taking care of us?

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Acceptable Insurance

HR 3962 has some teeth. If we don't have "acceptable" health insurance for ourselves and our children, there are some serious criminal costs.

Aside, this bill also defines a child as up to age 27! So, even if your kid is out on his own, if he does not have "acceptable" health covereage, it falls on the parents to pay the cost.

The criminal costs under Section 7203 state a fee of $25,000.

Section 7201 states the price for willful behavior not carrying "acceptable" health insurance. That cost is up to $250,000 and up to 5 years in prison.

What I am struggling to understand is the government's definition of "acceptable."

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Elite

There are over 200 millionaires in the House of Representatives. That's a large portion.

Are we being governed by the elite?

Easy for them to "know what's best for the rest."

Easy for them to insist that we all need health coverage. Easy for them to decide who gets medical treatment and how much a doctor's skills are worth.

Easy for the elite to rule the masses.

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They Lied

No surprise that they lied. We have been promised by many voices in government that the health reform bill will not contain $ for abortions or coverage for illegal individuals. Plus, if we like our insurance we can keep it.

Last night $ for abortions was removed which made the difference. The House passed the monster bill 220 to 215 with one turn coat Republican from New Orleans who claims the removable of abortion funding made all the difference to him.

If it wasn't in the bill, how could it be removed?

Is this a hard question to ask? Why are these people not questioned?

So far from what I've learned of this bill, Bob and I will not be able to keep our insurance covereage without paying a "fine" on our tax return. Of course, we could opt out of that NEW TAX and spend up to 5 years in jail. What the heck is going on?

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Unemployment

Unemployment hit over 10% last month. It hasn't been this high since 1983.

Reagan was president in 1982. Except for his messages of hope and strength, those days would have been even darker. Interest rates were over 10% as well.

There are 2 things our administration needs to do to get us out of this mess, two things Reagan did.

He lowered taxes across the board. Lowered taxes incentivize businesses of all sizes.

He did not clamp down on interest rates. These days the Fed is keeping the rates at zero. That doesn't seem to be helping much. I realize the fear is run away inflation but that's bound to happen anyway with the devaluation of our dollar.

We need to be more concerned for our dollar. We can not continue to print and spend. Our dollar is nearly on par with Canada's. It's falling around the world.

When will our government wake up? Or will they? They seem hell bent on passing another boondoggle of a spending bill.

God help us.

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Qualify for Tax Gift

There will be an extension of the first time home buyers into 2010 which is an election year.

But also, homeowners who have lived in their current home for five of the last 8 years can claim $6,500 tax credit! There are income limits, up to $125,000 for singles and $225,000 for couples.

I have to ask. How will this help the economy? I mean, other than put tax $ back into the wallets of many Americans.

Interesting.

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Wall Fell

The Berlin Wall came down 20 years ago. How time flies. Twenty years. I can still hear Reagan's call for its demise.

Skipping the celebration of the 20th anniversary of the Berlin Wall is a bad choice by President Obama. Our man child leader will not attend the party.

Big mistake. I wonder if it's not tit for tat.

In July 2008 Chancellor Angela Merkel objected to Obama speaking at the Brandenburg Gate. She denied him the back drop of choice. Pay back?

Tit for tat. Our boy president leaves the U.S. out of the celebration of the fall of the Iron Curtain and the division of an ally. How dare he.

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Unhealthy

Definition of health economy:

• Reduce the growth of government spending.
• Reduce income and capital gains marginal tax rates.
• Reduce government regulation of the economy.
• Control the money supply to reduce inflation.

Government spending is out of control!

Taxes rates will be allowed to reset higher!

Government seeking more ways to regulate industries!

Government printing $ 24/7!

God help us.

Forum

I love this forum. It's my opinion or things I have found to share. Over the last 2 years it has become more political but then the financial world has become political and I see the government interfering more and more.

I read that a bank near our Dunkin Donuts was closed (Park National). It was taken by the Feds, changed hands, and will open on Monday under a new name. I think it was acquired by another bank.

Are these deals done in the dark? Is there a list of healthy banks that are forced to take the next bad bank? Are these toxic assets or a group of assets that next owner can sell off, divide, or use?

Uncle Sam can't keep his hands off things. I know there needs to be regulations. There are regulations in air flight, food processors, construction, banking, insurance and the like. But Uncle Sam is now running car makers (into the ground) and banks (what to lend, for how much, to whom) and is focusing on the media.

The next to be "helped out" by the government will be newspapers followed by radio and the internet. Stay focused. Watch. Obama doesn't like Fox. He will soon be controlling newsprint. It's only a hop from there to all news media.

Fox will die or conform. Will we realize it?

Radio. Who will be the first to go? Rush? Sean? Beck? Levin? Silenced forever.

They will call it diversity. Nothing diverse about silencing any voice you don't like, criticism squelched. The free market be damned. It's not fair or diverse.

We will watch together. What can we do?

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