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Cypen and Cypen December 10, 2009
Cypen and Cypen December 10, 2009
Cypen and Cypen December 10, 2009
The new rates for business, medical and moving expenses are slightly lower
than last year's. Mileage rates for 2010 reflect generally lower
transportation costs compared to a year ago. The standard mileage rate
for business is based on an annual study of the fixed and variable costs
of operating an automobile. The rate for medical and moving purposes is
based on variable costs as determined by the same study. Taxpayers always
have the option of calculating the actual costs of using their vehicle
rather than using standard mileage rates. IR-2009-111 (December 3,
2009).
7. THE MARKET CRASH AND MASS LAYOFFS: Recent dramatic declines in U.S.
stock and housing markets have led to widespread speculation that
shrinking retirement accounts and falling home equity will lead workers to
delay retirement. Yet, according to a working paper from National Bureau
of Economic Research, weakness in the labor market and its impact on
retirement is often overlooked. If older job seekers have difficulty
finding work, they may retire earlier than expected. The net effect of
the current economic crisis on retirement is thus far from clear. The
authors use 30 years of data to estimate models relating retirement
decisions to fluctuations in equity, housing and labor markets. They
found that workers age 62 to 69 are responsive to the unemployment rate
and to long-run fluctuation in stock market returns. Less-educated
workers are more sensitive to labor market conditions and more-educated
workers are more sensitive to stock market conditions. The authors found
no evidence that workers age 55 to 61 respond to these fluctuations or
that workers at any age respond to fluctuating housing markets. On
balance, the authors predict that increase in retirement attributable to
the rising unemployment rate will be almost 50 percent larger than the
decrease in retirement brought about by the stock market crash. Very
interesting. NBER Working Paper No. 15395 (October 2009).
8. THE TEN STRANGEST MUTUAL FUNDS: Perhaps you thought you already were
invested in some weird stuff. For your further edification, here is U.S.
News & World Report's take on the 10 strangest mutual funds:
B The StockCar Stocks Index Fund (SCARX). At first glance, this fund,
which tracks an index of companies that support NASCAR's Sprint Cup
Series, is a dream come true for racing fans. But a more careful look
reveals a different story: most of its holdings are only tangentially
related to NASCAR (Disney, Target, Coca-Cola and Sony, for example).
C. The Blue Chip Winery Fund. Jokingly called the best "liquid"
investments on the market, wine funds once enjoyed some popularity. This
fund takes a bit of an untraditional approach to wine investing; instead
of buying actual bottles of wine, it will invest exclusively in real
estate holdings like wineries and storage facilities.
D. The Herzfeld Caribbean Basin Fund (CUBA). While most managers talk
about investing with long time horizons, few are willing to stake large
chunks of their fortunes on an event that may never happen in the lifetime
of their funds. The fund manager has been waiting patiently for the last
fifteen years for the Cuba embargo to come crashing down. Buena Suerte.
E. The Marketocracy Masters 100 Fund (MOFQX). If you are a mutual fund
investor, chances are there has been a time when you have loudly ranted
about how you can do a better job than your fund manager. With this fund,
you get the opportunity to be your own manager -- at least kind of, and
only if you beat out thousands of other investors. If a model portfolio
you suggest is used, you get a small piece of the action.
F. The Vice Fund (VICEX). As its name suggests, this fund invests in
"sin
stocks," and its list of top holdings is littered with companies that
conscientious investors love to hate: Philip Morris, Lorillard, British
American Tobacco and Altria.
G. The Monetta Young Investor Fund (MYIFX). Ever wonder what would
happen
if you put your third-grade child in charge of a mutual fund? Chances are
it would include plenty of Disney and McDonald's shares, so it is no
coincidence that those companies are among this fund's top holdings. Apart
from picking stocks that kids readily recognize, the fund offers to mail
shareholders finance-related games and activities for children, and lets
families accumulate rewards points that can help pay for college tuition.
H. The Timothy Plan Aggressive Growth Fund (TAAGX). Have you ever
wanted
a complimentary moral audit? On this fund's website, that is only one of
several services offered to potential clients who are interested in
investing in accordance with Christian values. Shalom, Brother.
J. The Women's Leadership Fund. When this fund opens its doors next
year,
it will focus on companies that have significant female representation in
their leadership teams. And while the fund is largely idealistic in
nature -- 20 percent of fees it collects will be set aside for promoting
opportunities for financially disadvantaged women -- it also points to
research claiming that companies that embrace gender diversity in their
boardrooms tend to perform better.
9. YOU COULD HAVE HEARD A PIN DROP: At a time when our president and
other politicians tend to apologize for our country's prior actions,
here's a refresher on how some of our former patriots handled negative
comments about our country:
He answered by saying, "Over the years, the United States has sent many of
its fine young men and women into great peril to fight for freedom beyond
our borders. The only amount of land we have ever asked for in return is
enough to bury those that did not return."
12. QUOTE OF THE WEEK: "Between two evils, I always pick the one I never
tried before." Mae West
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