The Economy and The Market


We repeat last week’s analysis of the current state of the economy and the stock market in case you missed last week’s analysis.  In summary, we continue to believe the U.S. and Global economies are slowly improving.  We also believe the recent stock market decline is a market correction.  This is a normal occurrence within a bull market.  Most investors should continue to hold their current positions.  However, we remain watchful and wary of any unexpected development which could derail this fragile economy and stock market.  If any such development occurs, we intend to communicate with you as soon as possible.  Click here for more information about corrections.

Real Life Situations


Question
 My son just announced his engagement.  They plan to be married at the end of this year or early next year.  Does it matter for their income taxes when they marry?  Are there any other income tax issues?

 

Answer:                

If you’re planning a wedding near year-end, put the romance aside for a moment to consider the tax consequences. The tax law still includes a “marriage penalty” that forces some pairs to pay more combined tax as a married couple than as singles. The “marriage penalty” could be substantial if both partners have high earnings.  But, there are some situations when tying the knot saves on taxes.  This is another situation when running the numbers is needed for a definite answer.

 

And, whether you have one job between you or two or more, revise withholding at work to reflect the tax bill you’ll owe as a couple        

 

Feel free to contact me if you or someone you know has this type of situation.  Tax laws can be tricky; thus, the above answer cannot be applied to all circumstances because the slightest variation could cause a different outcome.

Motivational Quote of the Week

“A good goal is like a strenuous exercise – it makes you stretch.”

                                                                                  –Mary Kay Ash

Technology Breakthroughs That Could Make A Difference

1. Apple’s Biggest News: An Open Standard for Video Calls – Apple’s new video calling system, FaceTime, with live mobile video calls between users, interoperable across different phones and carriers, could be a force for major changes in the way we experience the Web and the world. Analyst Alfred Poor estimates that 3.2 million consumers will have access to mobile video chat in 2010, which will grow almost 50-fold in the next five years, to an estimated 142 million consumers. As Kevin Kelly of Wired magazine wrote, “we are witnessing the birth of a new culture around video communication – we are in the midst of becoming ‘people of the screen.”

Source:
NYTimes.com

2. Next Generation CT Scanners View Whole Organs in Real Time – Next-generation CT scanners now allow doctors to image an entire organ in less than a second or create a detailed 3-D movie of an organ in real time, with about half the radiation dose and half the contrast media. Using Toshiba’s Aquilion One, for example, UT Southwestern physicians said they will be able to accurately diagnose a stroke or heart attack in about 20 minutes. Currently, doctors often perform a battery of tests to confirm a heart attack — an EKG, CT angiography, nuclear testing and catheterization — which can take hours or even days.

Source:  EurekAlert!

A Special Show

“Your Financial Choices” airs on WDIY Wednesday evenings, from 6-7 p.m. The show is hosted by Valley National’s Laurie Siebert CPA, CFP®. This week, Host Laurie Siebert, CPA, CFP® will be joined by guest, Ray Holton, retired long-time editor of The Morning Call and Tom Riddle, President of Valley National Financial Advisors. We will discuss how we can learn from studying the immense changes of the last 25 years.

Laurie will take your calls on this subject and other financial planning topics at 610-758-8810. WDIY is broadcast on FM 88.1 for reception in most of the Lehigh Valley; and, it is broadcast on FM 93.9 in the Easton/Phillipsburg area; and, it is broadcast on FM 93.7 in the Fogelsville/Macungie area – or listen to it online from anywhere on the internet. For more information, including how to listen to the show online, check the show’s website www.yourfinancialchoices.com and visit