Some parts of the country will get hit a lot harder than others, and it will take them longer to recover.
By Jerome Idaszak, Associate Editor, The Kiplinger Letter

We’re forecasting a mild, short contraction ending well before the year is out. With housing and lending industries hurting, factory production and retail sales falling, employment shrinking and consumer incomes slowing, there’s no question that a recession is under way. But relief is already in sight.

Still, some parts of the country will be hit a lot harder than others. In states that led the housing boom, including Florida, Nevada and Arizona, as well as Southern California, thousands of jobs in construction and real estate services are disappearing as home values fall. Frost Belt states are in pain, too, especially Michigan and Ohio because of troubles in the beleaguered auto manufacturing industry.

But look for a turnaround soon, with expansion returning in the second half of this year. The fiscal stimulus from Washington and the accumulated interest rate cuts by the Federal Reserve plus other moves will translate into a 2.5% growth in the economy for the third quarter and a similar pace in the fourth quarter. Next year, though, we expect a tepid 2% or so gain in gross national product, and it may feel even slower to some. John Silvia, chief economist with Wachovia Corp., says, “We’re still working through the housing crisis, and we’ve got credit problems to deal with.”

The individual Alternative Minimum Tax (AMT), implemented in 1969, is a parallel income tax system that was created to prevent 155 wealthy Americans from aggressively using tax credits, deductions, and legal tax shelters as tools to help them avoid having to pay federal income tax. The idea was simple: Create a minimum tax that ensured everyone pays Uncle Sam his due.

Fast forward to present day and you’ll find millions of middle-income Americans are now getting snared by the AMT. The main reason the AMT now reaches into the pockets of the middle-class is because regular income tax brackets are indexed for inflation but the AMT thresholds are not. The result has been the steady expansion of households who find themselves hit by the AMT — especially households with a large number of children, education credits, residential energy credit and/or state and local taxes.

Why haven’t Americans been clamoring for an immediate overhaul to the AMT? Thus far, the full effects of the AMT have been deferred by Congress enacting a series of temporary patches — boosting the amount of the AMT exemption.

The last temporary fix to increase the exemption, however, expired at the end of 2006. If Congress fails to ratify another provisional one-year increase in the next few months, the number of households paying the AMT will escalate exponentially from approximately 4 million in 2006 to nearly 23 million for 2007.

To determine if a taxpayer owes tax under the AMT, filers must calculate their taxes under both the regular tax and AMT systems — making the “Alternative Minimum Tax” tax a bit of a misnomer considering taxpayers must pay the higher of the two. The biggest factor impacting AMT filers is that they are no longer eligible to claim certain deductions and exemptions (i.e. education credits, child care credits, and the deduction for state and local taxes).

Sound complicated? It can be if taxpayers don’t plan ahead and use the tools that are available to them as a significant portion of taxpayers may be surprised when they are suddenly hit with a big tax bill, plus possible penalties come next April. Some planning tools are even free, such as the tool offered by 2nd Story Software, Inc., makers of the popular tax program TaxACT.

“It seems unlikely that lawmakers will fail to pass another patch to serve as a quick fix to hold down the reach of the AMT. Guessing wrong, however, could prove costly. Unfortunately, there are a vast number of factors that will trigger the alternative tax for any given taxpayer,” says Stephanie Behrends, spokeswoman for 2nd Story Software.

“TaxACT Preview is a taxpayer’s ally, allowing users to perform what-if scenarios to determine their estimated tax liability,” she says. “Users simply need to step through the TaxACT interview entering their forecasted income and deductions for the tax year by answering simple questions in layman’s terms. TaxACT simultaneously calculates your projected tax with the regular tax system and the AMT system based on the taxpayer’s tax bracket and the most recent tax information available.”

Visitors need only to complete the site’s free online registration to gain access to TaxACT’s Online Deluxe Preview version. The tools available at www.taxact.com allow users to generate a forecasted federal and state income tax refund or liability amount – which will provide valuable insight into their tax situation. Once the final version of TaxACT releases in early January 2008, users can easily finalize their tax return and print and/or e-file their federal tax return for just $9.95.

Do you have more questions regarding the AMT and how it may impact you? More information is available at www.IRS.gov — just enter keyword “AMT” or “Alternative Minimum Tax”.

(ARA) - Like many baby boomers, Sarah Vick and her husband decided to downsize to a smaller home after her two sons went off to college. When they started sorting through their belongings, Vick realized she had 22 sets of china. Some she’d bought herself, while others had been inherited from her mother, grandmother and aunts.

“I was overwhelmed,” says Vick. “I had china patterns I didn’t even know the names of from the 1920s and 1930s, and I also had crystal, silver and collectibles. Really the only time I used my fine china was during the holidays, so I didn’t need all these collections, but they’re special to me.” Vick knew she wouldn’t have room at her new home for all of her pieces, meaning she would have to get rid of them.

“I felt so guilty having all these patterns I couldn’t use, but I just didn’t want to sell them at a yard sale; they mean so much to me,” she says. “That’s why I wanted to help someone else who might be looking for these same pieces to complete their own set of their family china.”

But where could she turn to for help? In the past, Vick had purchased pieces from Greensboro, N.C. based Replacements, Ltd., the world’s largest supplier of discontinued and hard to find china, crystal, silver and collectibles, so that’s the first place she checked.

“We not only sell tableware, we buy pieces as well,” says Randy Foster, Replacements’ vice president of product operations. “We are really able to help customers like Sarah out in that we’re able to bring two needs together. We connect those folks looking to sell something they don’t want or need anymore with someone who may be searching for a special piece in their grandmother’s pattern they never thought they’d see again.”

Other sellers include those going through lifestyle changes, such as Susan Dubois, who decided she no longer wanted her wedding china following her divorce. “Selling my china marked a way to start healing so I could move on with my life and start over,” reflects Dubois. “It really wasn’t about the money, but I’m a single mother of two teenage sons, so the extra cash really did help out.”

Foster says Replacements also hears from folks who stumble across forgotten treasures stuffed in a closet or hidden away in the attic. With spring cleaning around the corner, would-be sellers need to keep in mind that the company is looking for quality merchandise, and doesn’t buy every pattern. Inspectors need to physically examine pieces to make sure they’re in good condition before making a final offer. “Obviously we wouldn’t buy anything that is chipped or cracked,” says Foster. “I also think a lot of customers are surprised to find out we buy by the individual piece, they don’t have to have the entire set.”

Vick says it’s not a problem if the seller is stumped and doesn’t know the name of their collections. Replacements’ free pattern identification service can help figure out that information. “I put some of the patterns I couldn’t identify in a box and sent them over to Replacements’ research department,” Vick remembers. “They were not only able to identify the pieces, they told me what they were willing to pay for them.”

Replacements research team identifies approximately 65 patterns every day. To find out more about selling to Replacements, Ltd., contact the company at 1-800-REPLACE or visit

(ARA) – As children, many baby boomers went through a familiar right of passage — the IQ test their parents forced on them to learn just how intelligent they were. Today, many of those baby boomers are increasingly concerned about their “retirement IQ,” or where the stand on the path to a successful retirement. According to Thrivent Financial for Lutherans research, 71 percent of boomers say the lack of money is the single most important issue preventing them from accomplishing the things they wish to do in retirement.

The struggle they and many others face is getting a clear picture of where they are and what they need to do to reach their retirement dreams. “People want help seeing the big picture of retirement,” says Pam Moret, Thrivent Financial executive vice president of marketing and products. “Because everyone’s situation is unique, getting a good assessment and some immediate recommendations on what to do can be critical in creating financial security for your golden years.”

So where does one go to get their retirement IQ? ThriveQ (www.ThriveQ.com) is an online tool that gives users a scare-free assessment — a ThriveQ score — that ranks each individual on their retirement path without generating a shocking multimillion dollar savings total that leads many people to despair.

“Seventy-one percent of boomers wish they had begun saving for retirement upon landing their first job, and 86 percent advised Generation X to start saving as soon as possible,” says Moret of the survey findings. “They know something needs to be done, but they need an easy, non-intimidating way to get into a better position for tomorrow.”

ThriveQ is based on seven key principles for retirement. First, have a vision. Focusing on the things that inspire you will keep you motivated to do what’s needed to be better prepared for retirement. Second, plan ahead because it’s never too late or too early to start preparing for retirement.

Controlling spending, the third principle, is another important step toward retirement success. “Your values are your best guide to determining your spending,” says Moret. “By spending only for those things that are important to you and your family, you can keep debt to a minimum.”

Fourth, once you control your spending, it’s time to save and invest. Saving too much is always better than saving too little. Simple steps, like incorporating automatic savings programs, can make saving and investing as painless as possible.

In realizing retirement dreams, rethink work. This fifth principle centers on thinking of working past the minimum retirement age, or cycling in and out of work for several years. It may be the opportunity to follow your passion, a way to stay connected or a chance to be your own boss.

Sixth, protect your future through insurance and other means to ensure you can withstand any financial surprises. Finally, think about giving back and making a positive impact on others in retirement. By seeking activities that enrich your life and the lives of others — via helping others through gifts of time, talents and treasures — you actually are preparing yourself for a happier retirement.

Created by Thrivent Financial in cooperation with author and gerontologist Ken Dychtwald, Ph.D., a world leader on the effects of an aging population on the marketplace and retirement, ThriveQ helps individuals find their unique retirement vision and measures progress toward that vision, while encouraging actions that will help them achieve their goals.

The questionnaire takes about 10 minutes to complete, with each user receiving their ThriveQ — a score ranging from 1 to 1,000. Based on their score, participants will also be assigned to one of five groups according to their retirement readiness: Survivor, Provider, Striver, Thriver and Thriver +.

After a user receives a ThriveQ score, they also see their score as compared to other ThriveQ users and are given three customized recommended actions based on their answers. Participants can also save their score and track their progress as they accomplish the recommended actions, thus improving their score over time. The site also offers real-life examples of people taking steps to achieve their definition of retirement success.

Learn more about how to achieve your goals for retirement by visiting ThriveQ.com.

Courtesy of ARAcontent

18kt white gold case and pearlmaster bracelet with 2 rows of 174 diamonds and 14 large diamonds along the center. Mother-of-pearl dial with diamond hour markers. Bezel set with 40diamonds. 31 jewel chronometer movement. Synthetic sapphire crystal. Concealed clasp. Case diameter 29mm. Date displays at 3 o’clock position. Rolex Oyster Perpetual Lady Datejust Pearlmaster Diamond Ladies Watch 80309PM. Rolex Model Number 80309.

Just in case you were wondering what to get for your honey’s next birthday. You can see hundreds of more reasonably priced women’s watches and other jewelry at NeverEnufjewelry.com.

Steve Nison’s self paced learning guide tests users on their understanding of Japanese candlestick patterns using multiple charts with detailed explanations.

The Candlestick Course explains patterns of varying complexity so you always build on a solid foundation. Take your knowledge to the market, test, move ahead to the next pattern or review and retest.

Nison integrates candlestick patterns with the more conventional Western chart patterns you already know to speed your candlestick learning.

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It’s a newspaper, it’s a Web site–it’s all of the information that comes rolled up in every edition of The Wall Street Journal and much more, available online. Anyone who wants to stay on top of U.S. and international news, especially economic and technology-oriented stories, will find {tag]The Wall Street Journal Online[/tag] to be a valuable asset. Forbes has called it “simply the best business news site on the Web.”

The interactive Journal delivers stock quotes on demand, continually updated news, a customized news- and portfolio-tracking service, access to extensive archives, and “briefing books” for 22,000 companies and more than 7,000 U.S. mutual funds.

Tax preparation has never been easier. Turbo Tax software guides you through your return step-by-step and can electronically retrieve W-2 wage, mortgage interest, and other types of data for hundreds of participating employers, mortgage companies, and financial institutions. Summary pages at the end of each section let you edit data you’ve already entered. You can also import information from your last year’s TurboTax return so you don’t have to enter it again. Plus, a refund monitor constantly displays and updates your tax refund or tax due.

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Chart Your Way to Profits shows readers how to harness technology available online to analyze markets and make profitable trading decisions. This comprehensive guide discusses the philosophy of technical analysis, including chart patterns and technical indicators. Most important, it shows readers how to design their own charts and indicators in a way that enables them to easily monitor the markets and make solid trading decisions.

Timothy Knight (Palo Alto, CA) is the founder of www.Prophet.net, which has been rated by Forbes magazine and Barron’s as the number one online site for technical analysis. Prior to starting Prophet.net, he was vice president of technology products for Montgomery Securities. Knight has traded for over 20 years, primarily using technical analysis and price charts and is currently the Senior Vice President of Technology at INVESTools, the leading provider of online investor education.

Trading Software Book Reviews

Profiting with Forex introduces investors to all the advantages of the global foreign exchange market and shows them how to capitalize on it. Readers will learn why forex is the perfect supplement to stock and bond investing; why it is unrivaled in terms of protection, profit potential, and ease of use; and how it can generate profits, whether the other markets are up or down.

Written by two leading forex experts, this complete investing resource uses basic economic principles, solid technical analysis, and lots of common sense to develop an arsenal of tools and techniques that will lead to winning results in the lucrative foreign exchange marketplace. Profiting with Forex includes everything that investors need to know about the foreing currency markets.

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