The shopping blitz is on. Over 212 million Americans visited a store or a website over Thanksgiving weekend. The average shopper spent 6.4% more this year than last, according to the National Retailer Federation. Retailers are hopeful that 2010 will be a return to more discretionary spending, following the previous two seasons of negative and almost flat sales.

Black Friday was started in 1966 or thereabouts. On the day after Thanksgiving, America's consumer hordes would head downtown and open their pocketbooks; moving retail stores' year to date bottom line from red to black. For the last decade, Black Friday may still have been the busiest shopping day of the year, but, according to Slate magazine, it wasn't the biggest. That's been reserved for Super Saturday, the last Saturday before Christmas. However, in 2010, Black Friday may outpace Super Saturday:

First, Christmas itself falls on Saturday. So, procrastinators will need to get in the stores by Friday.

Second, retailers are ready. They are offering low prices, grand giveaways and crazy promotions. The competition is particularly fierce. Many retailers have excess stock and have promised to meet any lower price than theirs. There has been an intensification of promotional efforts by retailers in November and Best Buy confirmed that it had begun its television advertising ten days earlier than last year. Toys R Us opened its door at 10 pm on Thanksgiving evening. Kohl's opened for business on Black Friday at 3 am; Target at 4, and Best Buy at 5.

Third, consumers are in battle-ready form, with new tools to help them. For buyers with smartphones, there are six new apps to help consumers shop smarter and simpler. All of these are free or low-cost apps for Apple and Droid devices:

·  Shop Savvy. Make sure you are getting the best price with this app. Scan the barcode of the item and it will tell you the price at other stores as well as provide reviews.

·  Coupon Sherpa (we like the name) and My Coupons. This will give you access to extra coupons and exclusive deals. Just show the coupon the phone's screen or give the code to the cashier.

·  Pocket Auctions. Allows consumers to stay up to date on eBay auctions while on the go.

Fourth, and most important, there are signs that America's consumers are ready to start increasing their buying. A Gallup Poll show the average consumers anticipate spending $714 on holiday gifts this year, compared with $638 last year. Shopper Trak estimates overall holiday sales will improve 3.2% this year. If so, holiday sales will be just about $520 billion, exceeding the pre-recession total of $516 billion in 2007.

Of course, electronic gadgets will be hot. Even though Apple has already sold 7 million iPads, a survey by Change Wave Research found that 9% of holiday shoppers plan to buy an iPad in the next 90 days. Smartphones, productivity apps and console game systems are also expected to do well.

What's really neat is that regardless of your budget, you can afford this year's Hot Toy- Squinkies. These squishy toys come in plastic bubbles, as a vending machine would dispense, and are only $10 for a 16-pack. They are collectible and include hundreds of characters, including a Lhasa apso dog and a tiny bride. Check out this picture of a Squinkie pony. Better hurry. Squinkies are sold out or on back order at many stores. You'll need one to keep your Beanie Babies and pet rocks company.

For more information, click here.
 

The sand in the 2010 hour glass is almost spent. It's time to take a quick look at some final items for 2010.

This year will be more challenging than usual. Will the Bush Tax cuts be extended? How about estate taxes? Even with this uncertainty, we suggest the following:

ú Consider accelerating income into 2010. The traditional strategy of deferring income is dicey this year due to possible 2011 tax rate increases.

ú                    Review the impact of the Alternative Minimum Tax. Check with your CPA. Most taxpayers have to do their tax planning by computing both the regular tax and the AMT. You'll have to pay the higher of the two amounts.

ú                   Consider selling appreciated securities this year rather than next. First, you may be able to use previous years' capital loss carryovers. Second, the capital gains tax rate is scheduled to rise in 2011 to 20% from the current 15%. Of course, the selling of securities, whether at a gain or loss, should be reviewed with your investment advisor to make sure this makes sense from an investment perspective.

ú                   Consider converting all or a portion of your traditional IRA to a Roth IRA.Starting in 2010, all taxpayers are eligible to convert. Income taxes must be paid on the conversion amount, but the money contributed today to a Roth IRA can then grow tax free for your lifetime and beyond.Taxpayers converting to Roth in 2010 can elect to recognize all of the income in 2010 or spread the income ratably over two years, 2011 and 2012. 

ú                    Consider paying yourself a dividend from your closely-held C corporation.With dividend rates at 15% in 2010 (and scheduled to be taxed at ordinary income tax rates in 2011), this could be a good move.

ú                   Consider purchasing equipment for your business in 2010. The "Section 179" deduction has been temporarily increased to $500,000 for qualifying property placed in service in 2010. This deduction allows taxpayers to  claim first-year depreciation for the entire cost of new and used equipment and software additions. In addition, there is a 50% first-year bonus depreciation. 

ú                      Consider maximizing contributions to your 401(k) plan at work. Contribute as much as you can, particularly if your employer makes matching contributions.

ú                      Consider going green. A great way to cut energy costs and save up to $1,500 in federal income taxes this year is to make energy efficiency improvements to your principal residence. You may be allowed a tax credit of 30% of the purchase price, up to $1,500. Absent Congressional action, the credit won't be available after 2010.

ú                        Make sure that you take your 2010 RMD (Required Minimum Distribution) from your IRA. RMDs were suspended in 2009 but are back for 2010.Owners over 70 ½ are required to take annual distributions.If you turned 70 ½ in 2010, you can delay your first distribution to 2011. However, that would mean two distributions in 2011, which could bunch income into 2011. With income tax rates likely increasing,  it may make sense to take that withdrawal in 2010.

ú                        Consider charitable contributions. You could also consider contributing appreciated securities instead of cash.

ú                        Consider gifts to your children and grandchildren. The annual gift-tax exclusion for 2010 remains at the 2009 level of $13,000. A husband and wife may give $26,000 per done per year.Gifting is a good way to reduce your taxable estate and may be an important in your overall estate plan.

ú                           Consider other estate planning.Under current law, the estate tax, which didn't exist for 2010, comes back with a roar on January 1, 2011. Estate taxes would revert to 2001 levels; a $1 million exemption and a top tax rate of 55 percent. No better than now to review your estate planning with your attorney, CPA and financial advisor.

The Holiday Season is a tremendously busy time. And, this year, there is lot of uncertainty concerning 2011 tax laws. Even so, it certainly makes sense to review the above with your CPA and financial advisor before year-end. Time is running out.