New Stuff

BAD NEWS
From Probate & Property,”” the ‘Bush tax cuts’ expire at the end of 2010, and the 1990’s marginal income tax rates return in 2011. Beginning in 2013, wealthy taxpayers begin paying higher taxes to fund the national health program.” Here’s a summary:

Highest federal tax rates on: 2010 2011 2013
Investment income (interest, rent) 35% 39.6% 43.4%
Wages (1.45% health ins +0.9%) 36.4% 41.0% 41.9%
Dividends 15.0% 39.6% 43.3%
Long-term capital gains 15.0% 20.0% 23.8%

SERIOUSLY DELINQUENT
It seems the economy plays no favorites. According to Registered Rep, 1 out of 7 mortgages in excess of $1 million are seriously delinquent versus 1 out of 12 for mortgages of less than $ million.

FINGERS CROSSED
As we’re big believers in the markets but face clients who want to run to the “safety” of bonds, Warren Buffet’s recent comments at the Fortune Most Powerful Women Conference in Washington came as a welcome observation. he said he “can’t imagine” choosing bonds over stocks at current prices, but concedes that’s what many investors have been doing because of a “lack of confidence” in the economy’s future. “They’re making a mistake, the ones that are buying the bonds” at record low yields. Sure hope he’s right. For the full story (and a video clip) go to http://www.cnbc.com/id/39522030

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