Converting your IRA to a Roth = A Great Opportunity
Posted On: July 13th, 2010 by James Posted In: Financial Health • Government Actions
File this one under, ”Check with your financial planner and tax adviser before taking action.”
So now that the Lebron’s choice episode is behind us, we can focus on another reason why 2010 is a unique moment in our financial lives. This year there is a moratorium on the Roth IRA rules. If you are in a higher tax bracket, you’ve been shut out of the Roth IRA party…until now. This year, ANYONE can convert an existing IRA into a ROTH IRA. There are 2 major consequences to doing this:
- Whatever portion of the balance you convert will be considered taxable income for this year.
- The balance you convert will be able to grow and compound into the future, and when you go to withdraw this money, you will do so TAX FREE!
HERE’S WHAT I THINK ABOUT TAX FREE RETIREMENT ASSETS
Continue Reading – Converting your IRA to a Roth = A Great Opportunity
Good Politics, Bad Policy: Take Action Now
Posted On: June 3rd, 2010 by James Posted In: Financial Health • Government Actions
There is a new Senate Bill that has recently been turned loose out of committee, and I believe that it is potentially disastrous for the Mortgage industry as we now know it.
The area of concern is amendment (SA. 3962) offered by senators Merkley (D-OR) and Klobuchar (D-MN) to S. 3217, the “Restoring American Financial Stability Act of 2010.” First let me start by saying that I’m personally ALL FOR financial stability, who isn’t? This Act is DEFINITELY passing later this year. Think of it like a political battleship that is unsinkable, floating through the rivers of congress. Every congress person is attempting to toss little bits and pieces of legislation onto the boat as it is certain to be approved into law. This amendment is one of those toss on pieces, and here is the gist of what it is trying to do:
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Greece is the Word!
Posted On: May 6th, 2010 by James Posted In: Financial Health • Government Actions • Mortgage Rates
Mortgage rates had a wild ride today where we saw a swing of over 80 basis points as the international markets continue to have concerns about Greek debt. Fixed rate mortgage pricing is fully informed by yields on FNMA Mortgage bonds. In general- When lots of people are BUYING bonds, the associated yield can be lowered. As its the yield that is what attracts buyers.
When there is a lot of FEAR and DOUBT in a marketplace, bonds of all kinds become very attractive. But a bond is a promise to repay over a given time frame. I heard that certain Greek “treasury” (or the Greek equivalent of US treasury bonds) Bonds were showing a yield of over 20% at times yesterday. What this means is that nobody is buying the bonds out of fear that Greece will not be able to pay them back. That yield has to be VERY high to outweigh the perceived risk.
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March Madness for Mortgage Rates
Posted On: April 9th, 2010 by James Posted In: Government Actions • Mortgage Rates
March madness! NCAA tourney time, is always exciting for the dramatic upsets and almost upsets, and 2010 is no different. My bracket is a total disaster (full disclosure: I have Duke vs. Ohio State in the finals), as I write this post, I’m down to 2 of my final 4 teams even in contention!
The funny thing is- this whacky, topsy-turvy drama is also taking place in the US Mortgage Bond market. We had been kind of “lulled to sleep” in the previous 3 weeks after trading in a high and tight range giving us all VERY LOW MORTGAGE RATES during that time. I read a great article describing this long waiting period as a “tightening coil” needing to release its energy up or down… and well… it released alright, as the bottom fell out of the market on Wednesday.
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What is the Impact of Health Care Reform on Mortgage Rates?
Posted On: March 23rd, 2010 by James Posted In: Government Actions • Mortgage Rates
Exciting changes are taking place in our nations capital, this blog post isn’t about whether I’m for health care reform or against what is happening there in Washington, but I am interested in thinking about what this means for our financial markets and in particular what will this mean for our rates?
My feeling is that in the long term this type of health care reform will tend to be negative for rates, but to what extent I can’t say, and in the short term, I don’t see this having any real effect on markets.
But the reason I see this having a net negative effect is for two reasons:
Continue Reading – What is the Impact of Health Care Reform on Mortgage Rates?
