Talked to my tax advisor and...

[alan1973]

He told me the economic stimulus package was really just a loan borrowed against next year's return. I feel sorry for those folks that have to pay every year!
I am gonna put my money in a high yeild CD and make money off it

 

[muslhead]

HAHAHAHA
I'd get a new tax advisor if I were you. That is not true what he said.

And a high yield CD is an oxymoron. There are no such thing in today's interest rate environment unless you consider 3.5% high yield

MH

 

[VanR__]

CDs with inflation going through the roof is capital preservation at best.
Anyone with more then a hundred bucks in a saving account needs smelling salts tossed under their nose.

 

[alan1973]

CDs with inflation going through the roof is capital preservation at best.
Anyone with more then a hundred bucks in a saving account needs smelling salts tossed under their nose.

i don't get it....laymen terms please?

 

[MDT]

Remember, annual inflation rate is around 3%, so anything around this is only preserving the amount of capital you have (i.e. $1000 now will be worth about the same in 10 years).
If you have extra capital, now is the time to invest in mutual funds, think of the low economy as a buyers market for stocks/bonds. Just realize you will have to "gut it out" and that this investment will make you money in the LONG RUN.
Now is not the time to try and switch money to CD's or bonds, doing so will tie up your money while the stock market re-corrects and starts to grow again (and I believe it will).
Remember, the market historically bounces back in surges, if you have money that is inaccessible you will miss these periodic growth periods.

 

[Sassy]

No, we don't have too pay the stimulus rebate back next year. I looked it up on the IRS.gov website.

Q. Is my stimulus payment taxable?

A. No. You will not owe tax on your payment when you file your 2008 federal income tax return. But you should keep a copy of the IRS letter you receive later this year listing the amount of your payment. In the event you do not qualify for the full amount this year but you do next year, you will need to have the letter as a record of the amount you previously received.

Q. Will the payment I receive in 2008 reduce my 2008 refund or increase the amount I owe for 2008?

A. No, the stimulus payment will not reduce your refund or increase the amount you owe when you file your 2008 return.

**broken link removed**


MDT, gave some good advise for money that you don't plan on using for awhile and can stick it away for several years. Even though the stock market has been kind of bumpy, some stocks have been low making it a good time to invest.

I wouldn't put any money in a CD right now either. When I asked my brother who is a financial planner what to do with some money that is short term that I might have to use. He recommended Tax Free Bond fund or one of the mutual fund money markets. These kind of money markets still don't pay much interest, but it's better than the bank's money market or a CD.

I ended up moving most of my money out of the bank's money market and over to a mutual fund money market. Now I'm getting much better returns. You can set up check writing, direct deposit, bank transfer, etc on these accounts making it very easy to transfer money when you needed.