A Personal Note..

• Temporarily suspend the rule that seniors age 70.5 take the required annual distribution from their retirement accounts.  This proposal gives retirement plans and accounts a chance to rebound.  It's an important move - you don't want to be forced to take money from your retirement plan(s) in a down market.  Remember, I have always advised clients to take smaller distributions from their retirement accounts anyway, (and if they can), as it gives the markets time to bounce back.

• 1/3 of the proposed $825 billion stimulus plan is aimed at tax cuts.  This will include a $500/worker and $1,000/ family tax credit.  Businesses will also get some breaks to help them grow.   Need I say more?

• Require companies to automatically enroll their employees in 40(I) Ks and IRAs.  Do you know how many people receive these types of plans and ignore them?  Especially younger workers?  This proposal will aid those who don't realize, or understand, how interest compounded over 30-40 years adds up, and the importance of investing NOW! 

• The Fed plans to initiate a program that expands the availability of consumer loans.  We have to get consumers purchasing in order to move the economy along.  This proposal is an important boost to consumers who have been so tapped out. 

• The Fed may also expand another program under which it is buying up to $500 billion in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae.  This is great, especially for first time homebuyers, as it will keep the mortgage rates low!

• Stay with high quality, financially stable companies that pay dividends, have low debt and high cash flow 

• Keep your debt in check, and try to pay it down, if you can

• Make sure you continue to save for your retirement