How to take advantage of any stimulus/bailout?

[LOL!]

I'm trying to figure out if there is anything in the stimulus/bailout that will help me (and probably you as well).

First, the only debt we have is a 5-figure mortgage at a sub-5% fixed rate. We are no where near being foreclosed on.

Second, we've lost alot of money in the stock market, but so what?

Third, we don't have an extragavant lifestyle and don't need to buy anything except food and utilities. We are not profligate spenders, so if we got more money we would just invest it.

Fourth, I don't think we are gonna lose our jobs, but you never know. We probably would not mind being forced into full-time retirement.

I just don't see any of the money flowing directly to my bank account. Some things that might help me:

1. Allow more than $3000 of capital losses to offset ordinary income.

2. Give me some free medical coverage if I decide to leave my job well before eligible for Medicare or if I lose my job.

3. Make my taxes go away, but I don't pay much in taxes now anyways.

4. Free college tuition at elite private universities for my kids.

5. A nice 6% to 8% guaranteed return on government "bailout" bonds.

6. Make the stock market go back up ... a lot.

7. Increase limits on 401(k) and Roth contributions as well as remove restriction on Roth income eligibility.

A question for discussion: Is there anything in the stimulus legislation that is good for folks who might be considered financially prudent?

 

[dex]

A question for discussion: Is there anything in the stimulus legislation that is good for folks who might be considered financially prudent?

First time I ever used these things.

 

[LOL!]

http://www.nytimes.com/2009/02/13/your-money/13money.html?ShowMeTheMoney suggests that some of what I wished for may be in the works.

 

[dex]

This is what they could have given back to us - per person.
They could have cut out some of the rich if they wanted to.
800,000,000,000
320,000,000 Total Populaion
$2,500


800,000,000,000
233,600,000 Adults
$3,425

800,000,000,000
110,000,000 Workers
$7,273

 

[Bikerdude]

ER's under 62 get nothing. If you are collecting a pension or living on your assets and not on a Government program (even if you are under the max income and pay taxes) you get squat. I'll just take a "thank you" from those of you that are getting my tax money.

 

[Leonidas]

The car buyer tax-deduction looks interesting. I may have to upgrade my shopping plans from used car to new car - I'll have to crunch some numbers and see if this will work for me.

 

[DblDoc]

I'm in the wrong income tax bracket to get most of the benefits - in fact I'm sure I'll be contributing further to help pay for it all. I suppose if the 40x plan limits or Roth limits were waved or substantialy increased that would help.

At least my job(s) are secure (so far)...

DD

 

[Zathras]

IF the general economy benifits from the stimulus package, my finances also improve.
I don't need any direct assistance so I would consider any direct assistance a waste (as it would not help the economy very much at all).

 

[lightwaves]

I agree with Zathras. I am hoping the general economy improves which in turn benefits us all. Not looking for what is in it for me personally. Seems like many of our citizens have ignore JFK's call which was "ask not what the country can do for you, ask what you can do for your country". Seems like too many of us ask what the country can do for me (me, me, me) and we all are paying the price for that;(.

 

[dex]

Seems like many of our citizens have ignore JFK's call which was "ask not what the country can do for you, ask what you can do for your country". Seems like too many of us ask what the country can do for me (me, me, me) and we all are paying the price for that;(.

This sums up the the overriding problem in this country.

 

[LOL!]

I would not mind if they made charitable cash or stock contributions something that one did not have to itemize in order to deduct. Even though I itemize now, it won't always be that way.

 

[OAG]

The only thing we get is what we got in May 2008 although this time it will be $500 instead of $1,200. Old folks on SS; I am also on a Military Retirement and a Disability from the Veterans Administration -- but NO triple dipping here; that remains the same. So now we have to figure out what to do with this big windfall - spend, save, donate, are a few options. For us it truly is a windfall but for many, in this environment, it will not be enough. We have just devolved, as dex said, into a "gimme society".

 

[W2R]

The car buyer tax-deduction looks interesting. I may have to upgrade my shopping plans from used car to new car - I'll have to crunch some numbers and see if this will work for me.

I agree, but I would expect that my Toyota dealer will just withdraw their present $2000 cash back offer on the model I am interested in, and charge me just enough to balance any tax deduction.

Guess we will have to see how this shakes out, and like you, I am torn (between buying a new car in 2009 or buying a new car in 2010-2011, for me). I will probably wait.

Edit: After reading the article LOL! cites, I see that the deduction will be for the full amount of state and local taxes on the car and doesn't require itemizing. With 9.75% state and local sales taxes here, and a measure on the ballot to increase that to 10%, that could amount to more than I thought. Interesting that this would benefit those in areas that gain more revenue from sales taxes, as opposed to those that gain more revenue from other forms of taxation.

 

[Moemg]

I've been thinking about buying a new car and this may give me the push I need .

 

[Leonidas]

I agree, but I would expect that my Toyota dealer will just withdraw their present $2000 cash back offer on the model I am interested in, and charge me just enough to balance any tax deduction.

That was one of my first thoughts. If I strike quickly it may be before the industry can get its business together and respond. But I worry that if I move now there may be minor provision in the law, or the inevitable tax rules that have yet to be developed, that will come back and bit me.

 

[REWahoo]

I've been thinking about buying a new car and this may give me the push I need .

Let's hope several hundred thousand others think the same way...

 

[Rich_by_the_Bay]

I'm in the wrong income tax bracket to get most of the benefits - in fact I'm sure I'll be contributing further to help pay for it all. I suppose if the 40x plan limits or Roth limits were waved or substantialy increased that would help.

At least my job(s) are secure (so far)...

DD

You might get some AMT relief.

 

[ziggy29]

If this provision about tax credits for buying a new car come to pass, the used car market is going to tank. Anyone who may need to sell one of their cars in tough times may wind up getting screwed.

 

[Leonidas]

If this provision about tax credits for buying a new car come to pass, the used car market is going to tank. Anyone who may need to sell one of their cars in tough times may wind up getting screwed.

That could come to pass. One thing about government "fixes" to what ails us is that the unintended consequences can be worse than the original illness.

 

[Bimmerbill]

I don't pay state or local sales tax. What a rip! Was thinking of downsizing into an economy car or something.

 

[MichaelB]

What's in it for FIRE'd folk...

Democratic vice presidential candidate Joe Biden said Thursday that paying more in taxes is the patriotic thing to do for wealthier Americans.

Biden calls paying higher taxes a patriotic act - Barack Obama News- msnbc.com

We get the most patriotic part of the [-]bailout[/-] [-]porkfest[/-] [-]subsidy[/-] stimulus. Anybody thinking they got left out of this is sadly wrong.

 

[FinanceDude]

This needs to be moved to FIRE-Related topics........

 

[TromboneAl]

I'm not saying that the stimulus/bailout will fix the economy. I'm not saying that I have faith in the government.

But being a person with a lot of imagination, and for the purposes of argument, I'll say that there is a possibility that the stimulus/bailout will give us an opportunity to continue living in a world with a functioning financial system and a government.

To illustrate, this scene from Mad Max:

 

[FUEGO]

.

 

[FUEGO]

This needs to be moved to FIRE-Related topics........

I agree. It would be easier to discuss everything if every thread were in that forum. That way an individual post wouldn't risk being deleted as easily if the Moderators decided there was some political elements in the post.