View you can use and economic news

	Time Will Tell. That popular idiom is more apt than ever as we head into a year that has potential for economic improvements...but that starts out with plenty of uncertainty and controversy. The articles below break down important, timely topics that may face the economy, the housing industry, and you in the coming weeks: One Down...More to Go - The Fiscal Cliff was avoided, but the markets are still clouded with uncertainty. Read how it impacts home loan rates. What to Watch - What will happen in 2013 with housing, jobs and inflation? Read the 3 predictions for 2013 below to find out. Mileage Rates - The IRS has raised the mileage rates claimed by people who drive for work. Find out how much...and if you qualify! Q&A: Is Your Computer Protected? - Read these tips to stop malware from slowing your computer or spying on your sensitive data. If you have any questions or would like to discuss your unique situation, call or email today. And please forward this newsletter to friends, family members and coworkers who may find this information helpful.

One Down...More to Go

	The big news last month was that the Fiscal Cliff was avoided after a last-minute deal passed in Washington. The deal shielded millions of Americans from higher taxes and extended Unemployment Benefits for the long-term unemployed. However, spending cuts were not addressed. So we’re not out of the woods yet. Despite the deal, there is actually more uncertainty on the horizon. The major wildcard is how Congress and the Obama Administration will deal with the Debt Ceiling, the delayed sequester, and the continuing-resolution trifecta—each of which, if handled poorly, could send the economy into a recession. Here’s a quick review of what’s at stake in the coming months: In just a few months, the US Treasury will run out of money, which means the US won’t be able to pay its bills.            At about the same time, automatic annual spending cuts (known as the sequester) totaling $110 billion that were delayed with the Fiscal Cliff bill will kick in. About a month later, the government will shut down unless another continuing-resolution giving departments and agencies budget authority to spend is passed. Rest assured, Congress and the Obama Administration are working to avoid those worst-case scenarios and will likely arrive at a compromise. But the markets are watching to see how quickly and comprehensive such a compromise will be. In the meantime, this kind of uncertainty usually benefits Bonds, which benefits home loan rates because they are tied to Mortgage Bonds. That means now is a great time to consider a home purchase or refinance, as home loan rates remain near historic lows. Let me know if I can answer any questions at all for you or your clients.

What to Watch: 3 Predictions for 2013

	As we head into 2013, the main concern on most people's minds is the fragile economy. By most indications, the economy is on the right track and is steadily improving. But there is still a long way to go and the economy is still susceptible to national and global crises (so the upcoming Debt Limit negotiations and the global economy are still important topics to watch). With that in mind, here are three predictions about what to expect in 2013: 1. Housing--The housing market has begun to show some signs of stabilizing and even improving. On the one hand, the number of homes at risk for foreclosure has been shrinking. In addition, home prices have been starting to rise--which is good news for homeowners looking to sell and for homeowners who are worried about their homes being "underwater" (or worth less than they owe on them). In fact, a recent report indicated that median home prices increased in 25 states, which pulled 1.6 million homeowners out of negative equity. And Goldman Sachs has reported that the fundamentals are pointing towards larger gains for housing prices in the next couple of years. Finally, new residential construction is improving and it has a long way to go before it runs out of room to grow. Based on recent trends in building permits and housing starts, it is possible that new construction activity could increase as much as 20% in the coming year. That's good news for the housing industry, as well as all of the jobs related to it. The bottom line is that the housing market looks poised for meaningful growth in 2013. 2. Jobs and Unemployment--Overall, the labor market in 2013 should look much like it did in 2012. That said, employment is on the right track with a number of positive factors to look forward to, including improvements in residential construction, automobile manufacturing, state and local government hiring, and the energy sector. In addition, the improving credit conditions mean that small business may be better positioned to grow and increase their hiring. 3. Inflation--The archenemy of home loan rates is inflation. That's because inflation reduces the value of fixed investments, such as Bonds. And, since home loan rates are tied to Mortgage Bonds, any bad news for Bonds is also bad news for home loan rates. The good news is that inflation is starting out the year tame. One news story that is worth watching is the Fed's goal of injecting trillions of dollars into the economy. While this can help improve the economy, it may result in increased inflation. But based on a number of reports and factors, it is likely that any rise in inflation will only be slight, meaning that it shouldn't be much of a concern in 2013--especially when you consider more important concerns like employment and wage growth.

Mileage Rates for 2013

	If you drive a car, truck or van for work, you'll want to make sure you know the standard mileage rates that the Internal Revenue Service (IRS) has set for 2013. These mileage rates are used to calculate deductible costs for driving an automobile for business, charitable, medical and moving purposes. So when it comes to filing your taxes this time next year, you'll need to know these numbers! New for 2013 As of January 1, 2013, the standard mileage rates are as follows: Businesses = 56.5 cents per mile driven (up from 55.5 cents in 2012) Medical or moving = 24 cents per mile driven (up from 24 cents in 2012) Charitable organizations = 14 cents per mile driven (same as 2012) Make Sure You Qualify Before you calculate your deduction, make sure you qualify. The IRS reminds taxpayers that they cannot use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. Additional Option Although the IRS provides the standard mileage rate for ease and convenience, you're not required to use it. If you prefer, you can calculate the actual costs of using your vehicle instead of using the standard mileage rates. Remember, if you have questions or concerns, talk to a tax consultant or accountant to discuss your options and unique situation.

Q&A: Is Your Computer Protected

	QUESTION: One of the biggest culprits for a slow or malfunctioning computer is malware. Are you sure your computer is protected? ANSWER: Malware is short for "malicious software"--or software and viruses that are installed on your computer without your knowledge or permission. Once on your computer, malware can slow or crash your computer, control other software, 'spy' on your online activity, and even track your keystrokes in order to steal your login and password information. The Federal Trade Commission's website, On Guard Online, suggests a number of ways to protect against malware: Set your web browser and operating system to update automatically Use a pop-up blocker or set your browser to stop malware downloads Don't click on pop-ups that you randomly come across online If you frequently download software, music, videos or other files, make sure you do so from sites you trust (downloads are perhaps the single most frequent way to get malware on your computer) Use up-to-date anti-virus software--such as Microsoft's Security Essentials or AVG Anti-Virus, which are both free For more tips on how to protect your computer from malware, visit On Guard Online.