A BAD START: The year has started off on a bad note.  (I am watching Chariots of Fire on ESPN Classic as I write this.  The Scottish runner, Eric Liddel slipped and fell but finished his race in first—I hope the markets mirror this performance in 2008).  After only three trading days, the S&P 500 is down 3.86% (2nd worst start ever), the Dow is down 3.5% (4th worst ever), and the Nasdaq is down 5.57% (worst ever).

JOBS: This past week’s bad news that was a bit of a surprise came in the form of the jobs report from the U. S. Commerce Department.  Expectations weren’t particularly high.  Analysts had estimated that we’d see about 70,000 new jobs in December.  The gain was only 18,000.  Also, the nation’s unemployment rate jumped to 5%.

HOME VALUES: The value of the average home in the USA has doubled in the last 10 years. Over the course of the past year, median sales prices have dropped from $217,300 to $210,200.

MOST AMERICANS PESSIMISTIC ABOUT RETIREMENT: Only 37% of Americans believe their standard of living during retirement will be equal to or greater than the lifestyle they maintained during their working years (source: Mercer Workplace Survey).  55% of working Americans are either somewhat or very concerned that they might deplete their entire life savings during their retirement years (source: Society of Actuaries). 

CHANGE IN THE LAW, A TAX INCREASE OF SORTS: Children under the age of 18 with unearned income greater than $1,700 in 2007 are subject to the kiddie tax. The child’s unearned income (e.g., taxable income from investments) above the $1,700 threshold is taxed at the parent’s marginal tax rate instead of the child’s marginal rate. In 2008 the dollar threshold increases to $1,800 and the law is changed to affect all children under the age of 19 as well as all children under the age of 24 who are full-time students.

HEALTH CARE COSTS: The cost per employee for an employer to provide health care in 2007 was $7,983, an increase of +6.1% from a year earlier.

If you would like to apply for a Mortgage Loan, you can APPLY ONLINE HERE, you can call John Thomas at 302-703-0727.

John R. Thomas – NMLS 38783

Certified Mortgage Planner – Primary Residential Mortgage, Inc.

302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office

248 E Chestnut Hill Rd, Newark, DE 19713