The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was signed into law on December 17, 2010. Here's a quick guide to the key provisions:

Individual income tax rates: Rates stay at 2010 levels for 2011 and 2012 for all taxpayers, with the lowest marginal tax bracket at 10 percent and the highest at 35 percent.

Capital gains and qualified dividends: Long-term capital gains and qualified dividend rates remain at a 15-percent maximum for 2011 and 2012. Taxpayers in the 10-percent and 15-percent brackets qualify for a 0-percent tax rate on some or all capital gain income.

Itemized deductions and personal exemptions: Repeal of the itemized deduction and personal exemption phaseouts continues through 2012.

Marriage penalty: The standard deduction for married couples who file jointly will continue to be double the deduction for single filers through 2012.

Alternative Minimum Tax: The 2010 and 2011 exemptions were increased, reducing the AMT's impact on middle class taxpayers. Certain nonrefundable personal credits can offset AMT liability for 2010 and 2011, including the Child Tax Credit, the Child and Dependent Care Credit, and the Nonbusiness Energy Property Credit.

Charitable IRA: For 2010 and 2011, taxpayers over age 70½ may make a tax-free transfer up to $100,000 from their IRAs to qualified charities; transfers for 2010 can be made as late as January 31, 2011.

Transfers can satisfy some or all of the required minimum distribution.

Payroll tax reduction: In 2011, payroll taxes will be reduced 2 percent. Because the tax act was passed so close to year-end, expect some delay before the reduction is reflected in paychecks.

Energy-efficient improvement credit: Expenses for energy-efficient furnaces, water heaters, doors, windows, and other qualified property may qualify for a credit through 2011, although the maximum lifetime credit is reduced to $500 for 2011. If a credit was taken in a prior year, no further credit is available.

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Whether you are starting to build a nest egg, or are close to retirement, your investments have likely been impacted by negative market performance.

Here are some suggestions for taking action and gaining control over your financial life: 

Consider what's important to you and why
You know certain things are important to you, but you may not spend a lot of time thinking about why they are. For example, having money may be important. But the reason why it is important to you is likely different from why it's important to someone else. Reasons may include:

• retiring early
• buying a second home (or a first home)
• sending a child to college
• purchasing a new car

When you explore why things matter to you, what you're really doing is thinking in terms of concrete goals rather than broad concepts. This is a great way to start taking charge of your finances and what you want to accomplish. 

Develop a financial plan 

It's difficult to create a complex financial plan on your own, but you can take action by finding a professional to assist you. The goals that you have identified are too important to leave up to chance, emotional decisions, or inertia. Once you come to that realization, the decision to craft a plan using the services of a financial professional is easy.

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With the New Year now behind them, investors can sit back and reflect on what has been a favorable year for most major markets. The Dow Jones Industrial Average (see graph above) and the S&P 500 Index returned 14.06 percent and 15.06 percent, respectively, for the year. The major indices gained momentum in the second half of the year, returning 8.04 percent and 10.76 percent in the fourth quarter alone. Bears were on the wrong side of the trade, as improving economic data helped drive stocks higher.

International markets proved to be a bit more challenging, as investors wrestled with the ongoing European debt problem. The MSCI EAFE Index returned 7.75 percent in 2010, with a 6.61-percent gain coming in the fourth quarter. Markets rewarded risk takers, as the emerging markets, measured by the MSCI Emerging Markets Index, returned 16.36 percent for the year. The global recovery has been more favorable to emerging economies, which typically have been less reliant on debt and financial markets to finance growth than the developed nations.

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By Jeffrey St.Clair,  Galloway & Associates

NOTE: Chornyak & Associates cannot accept or respond to message via Twitter.

Blogs and social media are quickly replacing traditional push advertising as the primary means for growing businesses in the twenty-first century.

 
Experts agree that social media are effective in spreading awareness, monitoring public opinion, establishing new contacts, enhancing brand image, and building relationships.  However, many small business owners and entrepreneurs have resisted joining the Twitter bandwagon considering the 140-character phenomenon to be just for the young and Internet-addicted.

Reaching out

A recent survey by Abrams Research of over 200 social media leaders indicated that their consensus is that Twitter is the best social media tool for businesses.  Small business marketing expert Eric Rudolf says "First and foremost, starting a Twitter feed can allow your small company to reach previously unsolicited markets." 

Rudolf goes on to praise a company-based Twitter feed for giving small businesses a new channel to reach its EXISTING contacts as well.  He points out that a core group of customers have probably received dozens of e-mails, newsletters, phone calls, and direct mail pieces from you.  Giving loyal followers one more clever way to hear from you can do nothing but increase the read rates of your marketing messages.

Twitter can also help level out web-site traffic during off-peak periods by providing an easy, immediate and free way to drive people to a website.
 

Twitter benefits
Small business marketing agency Kherize5 lists the following ways that small businesses can profit from having a Twitter presence:

1. Share Information.  If you are just getting started and checking things out, a great way to get involved in the community is to re-tweet articles, comments breaking news, etc.

2. Build Relationships.  Inbound marketing brings us back the handshake days when we got to know someone before we tried to sell them. Find people with common interests and ask questions, talk with them.

3. Build Brand.  This is both personal and business brand as there is a person behind every business. Let people know you exist and how you can provide value.

4. Customer Service.  We see this time and time again where someone tweets a problem and the problem is handled as they are monitoring their mentions.  

5. News.  Breaking news tweets are so popular as we all like to be in the know but do not necessarily have the time to check out news web sites all day. Twitter is so instant that within minutes stories are shared - many times before the news crews are able to get on scene.

6. Inform Customers.  Have a new product or service?  Special offer? Tweet your followers to keep them informed.

7. Get Recommendations.  Twitter is all about connecting with people.  Connect and ask if they can provide a recommendation for something or someone you need.  

8. Referrals for Employees. Again reach out to your community for some referrals.  The best part is that generally people will not refer someone unless they have gotten to know them.

9. Find New Customers/Clients.  People ask questions and for referrals. Be there to be able to get the referral.  Be personable, solve problems and provide value.

10.  Monitor Brand.  Create a search for what people are saying about you as well as the industry.  A wealth of information can be found with a simple search.  Be sure to be responsive. People would love to hear from you.

If you are unsure about the value of Twitter and other social media to your particular business, please contact Jeff St.Clair at 614-284-7511 or jstclair@columbus.rr.com with any questions.