News Stories
7 tax moves to make by year-end
The holidays are bearing down, but to make sure you don't overpay
the IRS when you file your 2009 return next year, you need to
make time for some year-end tax tasks. Some of the tax breaks
will expire Dec. 31, so this could be your last chance to use
them. Others will be around awhile longer, but it might make
sense to claim this year. And some have been helping folks cut
their IRS bills for ages and likely will be around for many
tax years to come.
Click here for the complete story.
Economists expect stronger recovery
ahead in '10
Despite rising fears of the U.S. falling into another recession,
a survey of top economists found them more optimistic about
growth in the fourth quarter of this year and throughout 2010.
But job seekers will have to wait a little longer for employers
to start hiring again.
Click here for the complete story.
6 ways to boost your income in a big
way
Budgets and penny-pinching are all well and good, but if you're
looking to give your income a serious lift, there is no substitute
for entrepreneurial grit. Many turn talent and expertise into
a second source of income, providing consulting services on
the side, for example, while maintaining their full-time jobs.
Others put more skin in the game, making major investments to
start local franchise operations or purchase rental property
in pursuit of passive income. But all who call themselves successful
share similar character traits: a rock-solid work ethic and
a willingness to roll up their sleeves. If you count yourself
among them, the following money-making opportunities might help
give you the raise you deserve.
Click here for the complete story.
IRS Issues Guidance on 2009
Required Minimum Distribution Waiver
The Internal Revenue Service today provided guidance for retirement
plan administrators, plan participants and retirees regarding
recent legislation affecting required minimum distributions.
The Worker, Retiree, and Employer Recovery Act of 2008 waives
required minimum distributions for 2009 from certain retirement
plans.
Generally, a required minimum distribution is the smallest annual
amount that must be withdrawn from an IRA or an employer's plan
beginning with the year the account owner reaches age 70 1/2.
The 2008 law waives required minimum distributions for 2009
for IRAs and defined contribution plans (such as 401(k)s) and
allows certain amounts distributed as 2009 required minimum
distributions to be rolled over into an IRA or another retirement
plan.
Notice 2009-82 (http://www.irs.gov/pub/irs-drop/n-09-82.pdf)
provides relief for people who have already received a 2009
required minimum distribution this year. Individuals generally
have until the later of Nov. 30, 2009, or 60 days after the
date the distribution was received, to roll over the distribution.
The notice also provides guidance for retirement plan sponsors.
It contains two sample plan amendments that plan sponsors may
adopt or use to amend their plans to either stop or continue
2009 required minimum distributions. Both sample amendments
provide that participants and beneficiaries can choose to receive
or not to receive 2009 required minimum distributions. Also,
both sample amendments allow the employer to offer direct rollover
options of certain 2009 required minimum distributions.
Plan sponsors may need to tailor the sample amendment to their
plan's particular terms and administration procedures and must
adopt the amendment no later than the last day of the first
plan year beginning on or after Jan. 1, 2011 (Jan. 1, 2012 for
governmental plans).
IRS 2009-085
Changes to IRA conversion
rules create new complexities
Tax Talk Question: For some time, I have wanted to convert my
regular IRAs to Roth IRAs, however, my income is too high. Is
there any relief in sight on this issue?
Answer: Next year will be a pivotal one for retirement planning, as it will be the first year in which taxpayers will be able to convert funds in regular IRAs (as well as qualified plan funds) to Roth IRAs regardless of their income level. This new conversion option poses significant tax planning challenges and opportunities for 2009, 2010 and 2011.
For the complete article, please click here.
7 retirement investing
mistakes
Everyone knows the secret to investment success is to buy low
and sell high. The problem is most of us lack clairvoyance.
We weigh in on some of the most common mistakes investors make,
and while it's easy to see that chasing hot stocks -- the most
frequently cited mistake -- would be an exercise in futility,
there are other pitfalls to watch out for on the road to retirement.
There are never any guarantees when investing, but avoiding
these seven missteps will better your chances of success.
For the complete article, please click here.
THE
ECONOMY: SEVEN INDICATORS - From CNN Money (as of 12/31/09)
|
The Indicator
|
What It's Telling Us
|
Next Update
|
| Consumer Confidence | Outlook improves to 2-year high | Jan 26 |
| Retail sales | Surprise jump of 1.3% | Jan 14 |
| Leading Economic Indicators | Uptrend continues | Jan 21 |
| Manufacturing Activity (ISM) | Growth for third month | Jan 4 |
| Industrial Production | Return to growth, up 0.8% | Jan 15 |
| Job Growth | Fewer cuts and decline in unemployment rate | Jan 8 |
| Inflation (CPI) | Running at 1.8% | Jan 15 |
You can also see the current US Treasury Monthly Economic Data report
Weekly unemployment claims drop 22,000 to 432,000
- 12/31/09 MarketWatch
The number of people filing initial claims for state unemployment
benefits fell to a seasonally adjusted 432,000 in the week ended
Dec. 26, the Labor Department reported Thursday. Economists
surveyed by MarketWatch expected initial claims to decrease
to 455,000. The four-week average of initial claims dropped
5,500 to 460,250. Meanwhile, the number of continuing claims
in the week ended Dec. 19 declined 57,000 to 4.98 million. The
four-week average of continuing claims fell 122,500 to 5.1 million.
The gradual decline in continuing claims over the past few months
suggest companies are no longer getting rid of workers, and
may even be hiring. Yet year-end data tends to be especially
volatile because of holidays, bad weather and other one-time
factors, economists say. Consumer confidence picks up, but home
prices flatten out - 12/30/09 Washington Post Consumers are
feeling a little better about the economy but home prices are
flattening out after an unexpected rebound in the spring and
summer, according to two closely watched reports released on
Tuesday. A monthly survey by the Conference Board, a private
research group, found that consumer confidence picked up slightly
in December after rising in November, but still remains at a
weak level. The results largely capture consumer attitudes about
the labor market. Meanwhile, the Standard & Poor's/Case-Shiller
home-price index, which tracks sales in 20 major metropolitan
areas, showed that prices of single-family homes were largely
flat in October compared with September.
Initial jobless claims fall 28,000 to 452,000
- 12/24/09 MarketWatch
First-time claims for state unemployment benefits fell a seasonally
adjusted 28,000 to 452,000 in the week ended Dec. 19, hitting
the lowest level since September 2008, the Labor Department
reported Thursday. Economists polled by MarketWatch were looking
for an initial claims level of 470,000. The four-week average
of new claims fell 2,750 to 465,250, which also the lowest level
since September 2008. In the week ended Dec. 12, the number
of people who continued to collect benefits fell 127,000 to
5.08 million, the lowest level since February. The four-week
average of continuing claims fell 90,000 to 5.23 million, the
lowest level since March. The insured unemployment rate remained
at 3.9%.
Consumer spending and income rise, but new-home
sales drop - 12/24/09 Washington
Post
Americans' incomes and spending levels rose in November, while
new-home sales dropped, according to data released Wednesday
that suggest the economy has continued a steady but unspectacular
expansion as the end of the year approaches. Personal income
rose 0.4 percent, the fifth straight month of increase, and
consumer spending rose 0.5 percent, the Commerce Department
said. Those numbers were lower than expected, but nonetheless
suggest that Americans were becoming more confident about spending
money as the holiday season began. However, when adjusted for
inflation, the gains are less impressive, and economists said
that at those levels of growth, the nation will likely emerge
from its deep downturn slowly.
U.S. wage growth accelerates in November
- 12/23/09 MarketWatch
Compensation earned by U.S. workers rose 0.3% in November, another
signal that labor markets are slowly improving, the Commerce
Department estimated Wednesday. The increase in wages and salaries
was the best since April, and helped to push up total personal
incomes by 0.4% in November, the biggest gain since May and
in line with expectations of economists. After inflation, after-tax
disposable incomes rose 0.2% for the third straight month. Inflation-adjusted
real spending increased 0.2% in November after a 0.4% gain in
October. The personal savings rate was steady at 4.7%.
U.S. GDP revised down to 2.2% annual rate
- 12/22/09 Marketwatch
The U.S. economy grew at the fastest pace in two years during
the third quarter, but the revised annual growth rate of 2.2%
was much slower than initially reported, the Commerce Department
estimated Tuesday. U.S. real gross domestic product increased
for the first time since the spring of 2008, boosted by higher
consumer spending, a rebound in investments in homes, a slower
pace of inventory reduction, more exports, and robust government
spending. Economists surveyed by MarketWatch were expecting
only a minor revision to 2.7% in the third estimate. The revisions
to third-quarter GDP were in three major areas: Business investment,
consumer spending, and inventories.
U.S. Nov. existing home sales rise 7.4%
- 12/22/09 MarketWatch
Home buyers rushed to qualify for an expiring federal tax credit,
boosting resales of U.S. homes by 7.4% to a 6.54 million seasonally
adjusted annual rate, the National Association of Realtors reported
Tuesday. The sales pace was the highest since February 2007
and was the third straight large increase. Sales are up 28%
since August. Buyers were rushing in November to finalize sales
ahead of the Nov. 30 expiration for the tax credit, said Lawrence
Yun, chief economist for the real estate lobbying group. The
tax credit was subsequently extended and expanded to include
repeat buyers. Economists surveyed by MarketWatch were expecting
existing home sales to rise to a 6.28 million annual pace in
November.
Leading Economic Indicators rise 0.9% in November
- 12/17/09 MarketWatch
The index of leading economic indicators rose for the eight
straight month, pointing to an improved economy in 2010, the
private Conference Board said Thursday. The index increased
0.9% in November after a 0.3% gain in October, the research
group said. Six of the 10 leading indicators were positive.
For the first time since December 2007, employment did not make
a negative contribution to the index, potentially a good sign
for future job growth, the board said.
U.S. jobless claims rise in latest week
- 12/17/09 MarketWatch
First-time claims for state unemployment benefits rose unexpectedly
in the latest week, the Labor Department reported Thursday.
The number of initial claims in the week ending Dec. 12 rose
7,000 to 480,000. The consensus forecast of Wall Street economists
was for claims to fall to 465,000. Claims in the prior week
were revised to 473,000 from the intial estimate of 474,000.
The four-week average fell for the 15th straight week.
US Consumer Prices Rise - 12/16/09
Forbes.com
U.S. consumer prices rose in line with expectations in November
on a surge in energy costs, but prices were flat, excluding
food and energy, a government report showed on Wednesday. The
Labor Department said its Consumer Price Index leaped 0.4% on
a seasonally adjusted basis after an unrevised 0.3% gain in
October. A 4.1% burst in the energy index led the rise, as gasoline,
electricity, fuel oil and natural gas prices rose.
Producer prices rise 1.8% in Nov on energy
prices - 12/15/09 MarketWatch
Wholesale prices rose a larger-than-expected 1.8% in November
after seasonable adjustments, with energy prices accounting
for about three-fourths of the increase, the Labor Department
reported Tuesday. The producer price index has risen 2.4% in
the past year, the government said. This is the first rise since
November 2008. The core PPI - which excludes food and energy
prices - rose 0.5% in November, more than expected. Leading
the advance were higher truck and cigarette prices. Core prices
are up 1.2% in the past year. Economists surveyed by MarketWatch
expected a 1.0% rise in the November headline PPI and a 0.3%
gain in the core rate. The PPI had risen 0.3% in October, while
the core rate was down 0.6%.
Nov retail sales up for third month in last
four - 12/11/09 MarketWatch
U.S. retail sales rose a better-than-expected 1.3% in November
for third monthly increase in the past four months, the Commerce
Department estimated Friday. The sales gains were widespread
across most kinds of retail outlets, including autos, gasoline,
department stores and hardware stores. Only clothing- and furniture-store
sales declined. The consensus forecast of Wall Street economists
was for retail sales to rise 0.5%. Excluding autos, sales rose
1.2%, the biggest gain since January. Wall Street had expected
a increase of 0.4%. Excluding gasoline and autos, sales increased
0.6
Consumer sentiment soars in early Dec -
12/11/09 MarketWatch
Consumer sentiment improved markedly in early December, according
to media reports on Friday of the Reuters/University of Michigan
index. The consumer sentiment index rose to 73.4 in early December
from 67.4 in November. The increase was larger than expected.
The consensus forecast of Wall Street economists was for sentiment
to rise to 69.0. This is the highest level of consumer sentiment
since September. The strong stock market and last week's better-than-expected
job report were seen boosting consumer moods.
Initial jobless claims rise 17,000 to 474,000
- 12/10/09 MarketWatch
The number of people filing claims for state unemployment benefits
rose by 17,000 to a seasonally adjusted 474,000 in the week
ending Dec. 5, while the total number of people claiming benefits
of any kind topped 10 million, a sign of very sluggish hiring,
the Labor Department reported Thursday. First-time claims --
which measure new layoffs -- rose for the first time in six
weeks in the week after Thanksgiving. Economists surveyed by
MarketWatch had expected initial claims to fall to about 450,000.
Finally, Some Very Good Jobs News - 12/4/09
NY Times
Today's jobs report is by far the best one since 2007. The economy
lost only 11,000 jobs in November, the Labor Department reported.
That's down from 111,000 last month and a peak of 741,000 in
January. The report was much better than expected by economists
surveyed by MarketWatch, who were looking for 100,000 fewer
jobs and a steady 10.2% unemployment rate. The government also
significantly revised its September and October job loss estimates.
September's data was adjusted to show a loss of 139,000 jobs
instead of 219,000, and in October 111,000 jobs were lost, instead
of 190,000. Even allowing for the November loss, the revisions
added 148,000 people to the list of those employed in the United
States in November. Another piece of good news was the growing
number of hours worked by those who still had their jobs - to
an average of 33.2 hours a week, from 33 hours. It was the biggest
rise since 2003. The increase could be a sign that some employers
are on the verge of doing more hiring.
U.S. Factory Orders in October Topped Forecasts
- 12/4/09 AP in the NY Times
Orders to American factories unexpectedly rose in October by
0.6 percent, the sixth gain in seven months. It was further
evidence that the manufacturing sector is beginning to recover,
which will help support the overall economy. A flat reading
had been expected by economists. Orders for durable goods, items
expected to last three years, rose 0.6 percent, unchanged from
a preliminary estimate last week. Orders for nondurable goods
rose 1.6 percent, propelled by gains in demand for petroleum,
chemicals, plastics and food.
3rd-Quarter U.S. Productivity Revised Down
to 8.1% - 12/4/09 Reuters in the
NY Times
Worker productivity in the United States was less robust than
previously thought in the third quarter as workers earned more
money and output rose at a slower pace, the government reported
on Thursday. The Labor Department said that nonfarm productivity
rose at an annual rate of 8.1 percent, still the quickest rate
since the third quarter of 2003, rather than the 9.5 percent
rate reported last month. Analysts polled by Reuters had forecast
that growth in third-quarter productivity would be revised down
to 8.5 percent. Productivity, which measures hourly output per
worker, grew at a 6.9 percent rate in the second quarter.
Service Sector contracts unexpectedly -
12/4/09 Reuters in the NY Times
The nation's services sector, meanwhile, unexpectedly contracted
in November, with an index measuring activity falling to its
lowest reading since July, according to an industry report released
on Thursday. The Institute for Supply Management said its services
index shrank to 48.7 in November from 50.6 in October. That
was slightly below the 51.5 median forecast of 62 economists
surveyed by Reuters. A reading above 50 indicates expansion
in the sector.
Productivity revised down, still best in 6
years - 12/3/09 MarketWatch
U.S. nonfarm business productivity increased at an 8.1% annual
rate in the third quarter, revised down from the 9.5% estimated
a month ago, the Labor Department reported Thursday. Economists
surveyed by MarketWatch were looking for a revision down to
8.6%. Unit labor costs - a significant marker for inflationary
pressures from wages - fell 2.5%, revised up from a 5.2% decline
reported a month ago. In manufacturing, productivity increased
at a record 13.4% annual rate. Unit labor costs fell 6.1% annualized
in the sector.
Initial jobless claims fall 5,000 to 457,000
- 12/3/09 MarketWatch
In a sign of improving labor markets, new claims for state unemployment
benefits dropped for a fifth straight week, the Labor Department
reported Thursday. But a large increase in the number of people
collecting checks indicates hiring remained sluggish. The number
of Americans filing for state unemployment benefits fell by
a seasonally adjusted 5,000 to 457,000 in the week ending Nov.
28. It's the fewest initial claims since September 2008. Claims
in the previous week were revised lower by 4,000 to 462,000.
Economists surveyed by MarketWatch had expected initial claims
to rise to about 480,000.
Economy improving modestly, Beige Book says
- 12/2/09 MarketWatch
The U.S. economy "improved modestly" in late October and November,
with moderate gains in consumer spending, manufacturing and
housing offsetting "dismal" conditions in commercial real estate,
the Federal Reserve said Wednesday in its Beige Book report
on the economy. Eight of 12 Fed regions reported the economy
had picked up since mid-October, while conditions were little
changed or mixed in the four bank regions stretching from Ohio
and Pennsylvania to the south. Labor markets remained weak,
"with further layoffs, sluggish hiring and high levels of unemployment."
Business contacts told the Fed that there was little or no upward
pressure on wages or consumer prices.
Job picture: Signs of improvement - 12/2/09
CNNMoney.com
The pace of U.S. job losses slowed in November, according to
two reports released Wednesday. Automatic Data Processing (ADP,
Fortune 500), a payroll-processing firm, said private-sector
employers cut 169,000 jobs in November. It was the eighth month
in a row that the number of job cuts fell from the month before.
The number of cuts in October was revised down to 195,000 from
the previously reported 203,000. Economists surveyed by Briefing.com
had forecast a loss of 150,000 jobs last month.
ISM index surprise drop - 12/1/09
CNN Money
The November manufacturing index from the Institute for Supply
Management fell to 53.6 from 55.7 in October, surprising economists
who were looking for ISM to fall to 55. However, any reading
over 50 implies expansion in the sector.
Pending-home sales index rises 3.7% in October
- 12/1/09 MarketWatch
Signed sales contracts on existing homes in the United States
rose for the ninth straight month in October, a real estate
industry group reported Tuesday. The pending home sales index
rose a seasonally adjusted 3.7% in October from September, the
National Association of Realtors reported. The index is up 31.8%
compared with last October. The index rose 6% in September.
The index tracks sales contracts on pre-owned homes. Typically,
it takes a month or two after the contract is signed for the
sale to close. At that point, the sale is booked in the NAR's
existing-home sales report.
