If you are a procrastinator like me its about that time to do your taxes. If you are wondering how to save a little bit of change and want some help filing your taxes, check out the list of software companies that have partnered with the federal government to help you file for free:
http://www.irs.gov/efile/article/0,,id=118986,00.html
Use the following websites to get discounts/promotions at TurboTax:
T. Rowe Price - http://individual.troweprice.com/public/Retail/Planning-&-Research/Tax-Planning/TurboTax-Discounts
Scottrade - www.scottrade.com (See the tax preparation section)
Fidelity - http://personal.fidelity.com/planning/tax/tax_content.shtml.cvsr?refhp=pr&ut=A22
Tuesday, March 24, 2009
Monday, March 23, 2009
Wall Street - When is Toxic Good?...
The resounding answer to this question is when you don't have to hold the toxic stuff anymore. That appears to be the solution to the problems plaguing America's banking system, which is clogged with these non-trading pools of mortgages that are usually packaged together to be sold off to investors. (Note: Other assets can be packaged together and sold off...like credit cards debt, however for this discussion we will just focus on mortgages)
The investors who usually bought these packages of assets lost faith in them and ran away and the market just dried up. So the assets began selling for less and less and the banks soon became stuck with these assets that "currently" had little to no value. But here is the tricky part for most people to understand: These assets could have value some day if the economy stabilizes.
So what the government is attempting to do is bring all the key players bank to the table and make it worth everyones while. Here are the players and how they will benefit:
Banks - They benefit, if and when they get these assets that "currently" have little value off of their books
Investors (Private Firms) - They benefit by being able to buy these assets again at reasonable prices, because they provide consistent income
Government - They benefit if both the Banks and Investors come together and hold hands again and start trading these assets again. It will help to stabilize the banks and assist in stabilizing the economy
How the Government plans on doing it:
The stock market is on the rise today because the government has officially unleashed its plan to loan $1 Trillion dollars to private firms(investors) who will share in the costs to find a price and buy these toxic assets from banks and split both the profits and losses around these assets.
This gets all the major players involved again and could change the way Wall Street looks at the banks.
Urb Thoughts:
I think that this plan is a well put together solution to the troubling problem around toxic assets. Ironically it helps and hurts the banks but overall it helps the banks and I will explain why. This hurts the banks because "one day" these assets will have value and they will miss out some of those gains but the biggest plus is getting these toxic assets off of their books. And in my opinion, once these assets are off the books, the banks should have no excuse to not make money. They are borrowing money and pay next to nothing for these dollars because the rate at which banks are being charged is at historic lows (Fed Funds Rate)...its between 0 and .025%!!! I could make money if I was borrowing money at these levels. Now the explosive part is all those bad assets that were sagging down their balance sheets will be sold off...this definitely puts the banks in a better position. The one thing to note is that as banks sell off these assets they will have to take a write-down and earnings for the next few quarters may not be pretty but LONG-TERM the banks may be the best BUY of the century.
I'm not sure how I will play this but I will gain some exposure to:
Direxion Financial Bull 3X Shares (FAS)
Also adding the banks that I belive have the best ability to survive will be key:
Wells Fargo (WFC)
JP MorganChase (JPM)
Bank of America (BAC)
The investors who usually bought these packages of assets lost faith in them and ran away and the market just dried up. So the assets began selling for less and less and the banks soon became stuck with these assets that "currently" had little to no value. But here is the tricky part for most people to understand: These assets could have value some day if the economy stabilizes.
So what the government is attempting to do is bring all the key players bank to the table and make it worth everyones while. Here are the players and how they will benefit:
Banks - They benefit, if and when they get these assets that "currently" have little value off of their books
Investors (Private Firms) - They benefit by being able to buy these assets again at reasonable prices, because they provide consistent income
Government - They benefit if both the Banks and Investors come together and hold hands again and start trading these assets again. It will help to stabilize the banks and assist in stabilizing the economy
How the Government plans on doing it:
The stock market is on the rise today because the government has officially unleashed its plan to loan $1 Trillion dollars to private firms(investors) who will share in the costs to find a price and buy these toxic assets from banks and split both the profits and losses around these assets.
This gets all the major players involved again and could change the way Wall Street looks at the banks.
Urb Thoughts:
I think that this plan is a well put together solution to the troubling problem around toxic assets. Ironically it helps and hurts the banks but overall it helps the banks and I will explain why. This hurts the banks because "one day" these assets will have value and they will miss out some of those gains but the biggest plus is getting these toxic assets off of their books. And in my opinion, once these assets are off the books, the banks should have no excuse to not make money. They are borrowing money and pay next to nothing for these dollars because the rate at which banks are being charged is at historic lows (Fed Funds Rate)...its between 0 and .025%!!! I could make money if I was borrowing money at these levels. Now the explosive part is all those bad assets that were sagging down their balance sheets will be sold off...this definitely puts the banks in a better position. The one thing to note is that as banks sell off these assets they will have to take a write-down and earnings for the next few quarters may not be pretty but LONG-TERM the banks may be the best BUY of the century.
I'm not sure how I will play this but I will gain some exposure to:
Direxion Financial Bull 3X Shares (FAS)
Also adding the banks that I belive have the best ability to survive will be key:
Wells Fargo (WFC)
JP MorganChase (JPM)
Bank of America (BAC)
Thursday, March 19, 2009
Wall Street - The PULSE
Hey everybody I am back to hit you with a quick post to keep you in the loop with what's going on in the stock market. By now, I know the average person is paying attention on a daily basis because I get a weekly call from my sister asking me about why things are falling or more importantly what should I be doing with my money. And if you recall when you don't hear much from me I am usually doing one thing and that's reading. I am constantly reading about what everyone has to write and listening to what everyone has to say...to get a feel of the market's temperature. How can you do this?!?! Well simply start by tuning in here as often as you can to get a pulse, not always daily but a frequent pulse as to what may be changing out there. And if you get tired of reading, check out CNBC's homepage and select the VIDEO tab for very frequent video posting of their on air show.
Wall Street's Pulse - Awhile back I compared Wall Street to a prized fighter that was down and out, maybe like one of my favorite fighters Roy Jones Jr. The latest prognosis is still not that good...the patient needs help getting up in the ring right now and the count keeps going to about 8 (get to 10 and the fight is over). For those of you that don't know what a knockout blow is for Wall Street, well its would be a depression. And the trainers right now are the Obama Administration, The Treasury Department, and The Federal Reserve. They are constantly looking at the fighter, checking its vitals, and assessing how to help him keep fighting. But right now the vitals of Wall Street do not look good:
Investors (who are like the fans in the stands) have sobered up to these realities and almost given up on the fighter, but the trainers keep working. And their work seems to be helping the fighter get a little bit better:
Now onto what I believe and what I'm doing:
I believe the fighter is still hurt badly which means don't cheer (or buy stocks just yet). I truly believe that safer alternatives are out there and should be evaluated for your portfolio. I still like OWNING CASH, and not doing a whole lot especially in your retirement portfolios...don't be the hero or the only one cheering when the fighter just got knocked down again. Invest in safer alternatives:
Cash
Gold (GLD)
High Yield Corporate Debt (LQD)
Municipal Bonds (TFI)
And if you feel like you need to be in the markets, be careful and be a bottom feeder...the nastiest thing out there. Wait until things gets really bad and nibble on the most beaten down sectors. For instance I do this when the banks look really bad, like when everyone though Citigroup was going out of business and I buy just a little bit of the bank stocks ETF on steroids (FAS)...it gives me 3X the returns of bank stocks, but I bite just a little. And when things start to look like they are on a roll I sell. I don't panic about selling to early because in a few days I start to look for a point to be a top feeder and bet that things will come back down and buy the FAZ, which bets the banks will fall...TIMES 3X! But don't stick around to long in these trades or else you'll be writing me with heartburn as I have often had, but irrational fans sober up eventually.
Wall Street's Pulse - Awhile back I compared Wall Street to a prized fighter that was down and out, maybe like one of my favorite fighters Roy Jones Jr. The latest prognosis is still not that good...the patient needs help getting up in the ring right now and the count keeps going to about 8 (get to 10 and the fight is over). For those of you that don't know what a knockout blow is for Wall Street, well its would be a depression. And the trainers right now are the Obama Administration, The Treasury Department, and The Federal Reserve. They are constantly looking at the fighter, checking its vitals, and assessing how to help him keep fighting. But right now the vitals of Wall Street do not look good:
- Unemployment numbers continue to rise and have now been estimated to reach over 10% within the next year or so.
- Companies continue to cut jobs left and right and give not so rosy outlooks for the rest of 2009
- Consumer Savings rates were above 5%, which is at levels that we haven't seen in a long time!
- Retail Sales numbers are barely off their lows, which means people ain't buying!
- The consumer and companies are still having difficulty getting access to capital.
Investors (who are like the fans in the stands) have sobered up to these realities and almost given up on the fighter, but the trainers keep working. And their work seems to be helping the fighter get a little bit better:
- Banks are receiving more and more capital
- The stimulus plan and housing bills are aimed at helping home owners and generating jobs
- There is talk about adjusting mark to market (how banks place a value on assets they own)
Now onto what I believe and what I'm doing:
I believe the fighter is still hurt badly which means don't cheer (or buy stocks just yet). I truly believe that safer alternatives are out there and should be evaluated for your portfolio. I still like OWNING CASH, and not doing a whole lot especially in your retirement portfolios...don't be the hero or the only one cheering when the fighter just got knocked down again. Invest in safer alternatives:
Cash
Gold (GLD)
High Yield Corporate Debt (LQD)
Municipal Bonds (TFI)
And if you feel like you need to be in the markets, be careful and be a bottom feeder...the nastiest thing out there. Wait until things gets really bad and nibble on the most beaten down sectors. For instance I do this when the banks look really bad, like when everyone though Citigroup was going out of business and I buy just a little bit of the bank stocks ETF on steroids (FAS)...it gives me 3X the returns of bank stocks, but I bite just a little. And when things start to look like they are on a roll I sell. I don't panic about selling to early because in a few days I start to look for a point to be a top feeder and bet that things will come back down and buy the FAZ, which bets the banks will fall...TIMES 3X! But don't stick around to long in these trades or else you'll be writing me with heartburn as I have often had, but irrational fans sober up eventually.
Wednesday, March 11, 2009
My Reality Show: Pt.3 Homebuying 101
The good thing is I've picked the provisions in the stimulus bill that seriously has me thinking about getting me off the coach and spending money again. Now the catch is will I put in the work to get the job done. But my next dilemma is trying to find a step by step help to determine how to buy a house...oops forgot I live in Chicago and should say a condo or townhome.
I hope my steps will will assist anyone who is a first time homebuyer looking for answers.
Step one in my Homebuyer 101 steps:
1. I definitely will be needing a mortgage and my to get me going down the right path I wanna make sure that my credit history is clean and clear. My first goal this past weekend was to search through my credit report and make sure that there isn't any surprises in there. The only strange issue I ran into was that some of my father's credit history was mixed with my but luckily he has been reliable when paying his bills. At this point, take the time to dispute anything on your credit reports that you believe shouldn't be there. I've heard that it's best to submit your disputes in writing but the internet has made it pretty easy to also dispute something online. Don't forget to look at ALL 3 reports from the major credit bureaus,
Experian, TransUnion, and Equifax...because when it comes to a mortgage most banks and brokers pull ALL 3 to get a feel a good feel of your credit history.
The best thing is our work is now easier as the government has passed a rule that allows you and I to have a FREE view of our credit history, once a year...and it can all be done at one website! Please note that there is the only one website that will allow you to do this for free and it is attached here: https://www.annualcreditreport.com/cra/index.jsp
The others websites claim to offer this service but they come at price...so get it done for free.
I hope my steps will will assist anyone who is a first time homebuyer looking for answers.
Step one in my Homebuyer 101 steps:
1. I definitely will be needing a mortgage and my to get me going down the right path I wanna make sure that my credit history is clean and clear. My first goal this past weekend was to search through my credit report and make sure that there isn't any surprises in there. The only strange issue I ran into was that some of my father's credit history was mixed with my but luckily he has been reliable when paying his bills. At this point, take the time to dispute anything on your credit reports that you believe shouldn't be there. I've heard that it's best to submit your disputes in writing but the internet has made it pretty easy to also dispute something online. Don't forget to look at ALL 3 reports from the major credit bureaus,
Experian, TransUnion, and Equifax...because when it comes to a mortgage most banks and brokers pull ALL 3 to get a feel a good feel of your credit history.
The best thing is our work is now easier as the government has passed a rule that allows you and I to have a FREE view of our credit history, once a year...and it can all be done at one website! Please note that there is the only one website that will allow you to do this for free and it is attached here: https://www.annualcreditreport.com/cra/index.jsp
The others websites claim to offer this service but they come at price...so get it done for free.
Tuesday, March 10, 2009
One in a Zillion...
One of the coolest things coming to TV maybe ZillionTV. It launched last week (I believe) in a mission to bring the web to your TV. Yeah I know we've heard this theme before maybe this one brings the best of all worlds together. The service will be free to you and me and allows us to easily be able to watch whatever we want because they are best friends with all the big dogs in the media business like Sony, Universal, NBC, Warner Bros, and Disney. So they've got a deal to let us watch anything from new shows, old sports classics, to chick flicks, to the best in Sci-Fi...when we want and how we want (like commercial free). Hmmm imagine that I don't have to pay an arm and a leg for basic shotty cable service....tight!
Wanna see check it out: http://www.zilliontv.tv/
Wanna see check it out: http://www.zilliontv.tv/
Monday, March 09, 2009
My Reality Show: Pt. 2 First Pick in The Stimulus Bill Draft
I have decided to announce my first pick in the economic stimulus bill draft! After reviewing the contents of the bill, I realized the Obama administration did some things right in crafting the stimulus bill. For me, there is a provision in the stimulus bill that has the upside of a Lebron James. Yup, there is some first round potential in the First Time Home Buyer Credit. A close second, my Chris Paul pick, was the Higher Education Tax Credit. I tip my hat to the administration because the bill provides just enough incentives for me to help do my part and stimulate the economy. Although I would have loved to take advantage of the original amount, I am glad that $8000 in credits will be available to assist me in possibly buying a place in the expensive city of Chicago. I was surprised after rereading my own post that I had missed the provision on going back to college and the assistance that is provided there. So we'll see but after I get a place...maybe I'll start studying for the GMAT. Now I will likely miss the 2009 credit but I could take advantage of the 2010 credits.
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