9/27/2009 The Money Show Financial News Of The Week.

" She eyed Susan Kaplan. ABC's nine W. Susan is joining us from the first -- I'm ready Vince I'm gonna skip over the rules -- the road to Susan only be with list of ten in let Susan go right into her financial news of the week."

" Well the and if you see -- front page of the globe this morning. Massachusetts effect too recovers -- the rest of the country in terms of the recession job losses this slowing faster housing housing. Still -- rebounding quicker. And."

" We did say -- for awhile and them that was coming true good."

" It's really really great news from Massachusetts and I think. It didn't hurt that we got a lot of TARP monies we know every wrote we travel is being repaired right now."

" Exactly the ones that I can't get that vote -- what. We watch you know Austin why would they close down sorrow drive and park drive. It doesn't get a sense doesn't make any sense at all. That to separate routes."

" Well the only issue is the only people coming into Boston and so on Sunday morning you would mean so."

" That's. -- to -- what you think it."

" Market. Gave back a little basically used to date does -- pretend. The entities that are fifteen aspects of 32%. Food -- nine recovery and things to look and daring night the average money market. In the country has little. From zero point 25% to zero point."

" But as you as you pointed out week we are due for inflation maybe a year away maybe two years -- all the money they're printing print. Which again actually uses opportunity you keep telling people to -- shore up. Because. News -- wanna get into the only get 2% return -- every three years CD in the next year. Our a year after you go to a money market for 4% --"

" Actually it's not worth without being rewarded for taking the time risk on mortgage rates however are slow. Around fifteen year. You know between four and the Ford and snapped inside its thirty year fix to the little over."

" Are actually I've you can get if you get a decent Freddie get down to five. -- a couple of play yet to be really ever really good credit what have you but you can get in some cases as little as four point 875 so the."

" Is you have to refinance street sign it over and over and over. There is that there. Have been increasing. Lead people have been asking about kept. Over and over and it and that over. Is that it's too early. So basically inflation protected treasury. And it. We get inflation the typical gave you greater concern if we don't they won't -- right now they're actually in negative territory so. So it's just a little early there it not a bad idea but when inflation this year is really the point not now. On the machines. Too bright. And the games aren't distributed until maturity -- the tax position -- annually in like a regular treachery but it is tax free statewide but the big tax. Federal you do today. And right now on to give you an example it's too early. Is right now a regular tenured treasury will locate these three and a half percent while a ten year inflation protected security will give you 1%. So it's much much too early for now. The other good news that then there's been a lot of things coming through but want. That I'm sure people have noted that the Bank of America wants to pay back their whole long. Now. So even. And a Yankee is now have enough money apparently with his. Against all of those people who said it would be ten years things can never come back. Not true not true not true."

" We should also put a lot of people are -- art. Pissed off about that frankly because they're saying well we gave all this money to them. And and and now there you know they're not using or have you but what a lot of people forget and we and you and I talked about the satellite. The recent at least you I wasn't that you that you as well the reason we we we're sorry in favor of giving this TARP money wasn't. That. Was -- basically to keep the companies from going into bankruptcy and to keep the credit flowing."

" And and it's actually been a good investment because the bad thing is that this notebook calling -- a bail out it was a low. And were earnings we the taxpayers the government 15%. This year and what they're paying back to last so. It's really was the perfect thing to do actually. And it's really very helpful."

" I get people should also recognizes that -- between the TARP money and the so called stimulus package which is although the deal."

" and -- in -- People have been concerned about the dollar not being is valuable. The only way that's really going to -- is if you're going to Europe pour another country where you're going to have to get less for your. Value that you would get -- here but if you are staying here living you're paying bills here it has nothing. And has no impact -- do in fact of the good side of aid dollars it's not as valuable is that our exports have much more appealing to the rest of the world -- we're paying back. Debt it -- cheaper dollars so most people don't realize that if you really staying here. The less valuable dollars ultimately is actually a good thing for you."

" And the fact threat matters for the bulk of the people not only at people like going. All overseas on vacation there a lot of army going out of state over me on vacation -- that you know the state vacations as the as the as the -- as as they come to be called. So it it is not a bad thing."

" We've talked a number of times to that the IRS being all over foreign accounts and in an effort to keep its stores open to activated the IRS. Will expand until October 15 its limited amnesty program for US taxpayers with undeclared income months for an account. I haven't gotten huge debt and you haven't gone to them now's the time it's much much better if you tell them that -- come. And on earth view from a -- rockets if you penalty that you will lead."

" And so it's bad enough the -- you -- that an alternate to a criminal case."

" Exactly right so you have to be really careful and really let them now. One of the things in in jeopardy right now is that is that congress is fighting over in terms. New policies that you -- public accountants. But let the -- your employer where you can pay for medical costs dental things like that with pretax dollars. This thing AP Euro last year to use that so I would really look into it if you got like did crowned implants. Braces for the kids things like that coming up. It really pays to go to HR fill out the paperwork. And you'd sure all untaxed money to pay for it means really significant savings that may be blocked. Them."

" Speaking of of of tax issues the estate tax. Situation is is scheduled to or may very well change -- 2011."

" To yes that must change because. If they don't write something in. It will go away and they certainly can't have that and lose so that residents so it's actually -- Surprising that they haven't dealt with that tight."

" Given given the people who who are -- in congress nothing surprises me. And just for her explanation purposes at this juncture. Until the base they put aside sunset. Provision in the law but at this juncture what is that exemption on an honest that out of state taxes."

" We are allowed to leave each about three and a half million dollars without paying state tax."

" That runs through 2011. Corrects. -- 2010. K as -- by by the end of 2010. Either. Yeah you can do is gonna."

" Because the end of this year they've got to have something you know. Or you can -- next year and you know I think perhaps no matter how much is that."

" Which -- a lot of people want but congress is not gonna allow that because of all the revenue so ultimately. And I'm at I know -- I'm asking you looking your crystal ball with -- the guest as to where you think they'll reach that bit that. Three point five million dollar number."

" These people -- the top of the these -- planning attacks isn't what they've told me is they expected to settle in between two and three million."

" Okay so that most people are still going to be covered."

" Right Massachusetts is one million but the calculator is much lower so it's smaller dollar. One of the issues that -- is. -- Is that for victims of recession who've lost their jobs the last thing they are probably thinking about is the taxation on that. But in the real issue. And the IRS. Your friends want to help deal. If you go to www. IRS dot. And played in. Don't like. And an economic turndown delicate view questions that you should ask because what they're they're fearful is that if you Lucia Japanese people lump -- that. -- And leave and vacation time the last thing you're realizing is that that's fully taxable."

" And and especially hard times people gonna tend to wanna spend that."

" Exactly if you receive public assistance food stamps for those entitlement not taxable. Unemployment. Depending on where you live -- the averages 305 dollars a week. And so it without amount people are not thinking of paying taxes. On the American recovery and reinvestment act made the first 2400 dollars of benefit to exempt from federal taxation but only for 2009. And so what -- kicking into 2010. Taxable."

" Which is right around the corner."

" The other -- but the other real. At sea change in your thought about your taxes and that if you're unemployed excuse sort of become like like com. I felt simple it person in that expenses that you -- looking for a job including resonate production outplacement agency fees. Those things are tax deductible. So it really pays to go to get the government -- web site and they really do wanna be helpful so that on top of losing your job. You don't have uncle Sam coming after you."

" Especially especially in a situation where you know how much money. To begin with because you're -- at -- job."

" The problem the economist every one has basically said that the recession is over but the news this week. Is that the recovery will definitely be -- And oh."

" And an even though as you start at the beginning of the show saying that Massachusetts is ahead of the curve which it is itself and it's gonna be slow Massachusetts to."

" Exactly right. What does it mean really ghoulish part possible as sustained said that many people are choosing to sell. Prepaid. Cemetery plot. -- because these have actually. Appreciated quite apparent that that people using this as a last ditch. Pride in the prime."

" And -- effort."

" They're more -- reason that and we probably probably shouldn't go there until that the reasons that the recession is done except for."