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What The New Deal Means To Me.

December 19, 2010

Upon first glance the $858 billion bill seems like the perfect Christmas gift. Tax cuts, unemployment benefit extensions, mortgage insurance deductions, extension of tax breaks and I’m sure other things we don’t  know about yet in the 70 plus page bill. As an independent single lady with no dependants (aside from my meow meows’) who rents without any outstanding student loans, I am only affected by the Social Security payroll taxes. The two percent cut means more cash in my pocket per pay period. It has been estimated that if a worker has an annual income between $40,000 and $50,000 (the average income for most people my age) it would save them about $770 a year. Sounds pretty sweet right? Hello Coach bags, Steve Madden boots and new home accessories a la Ikea.

Now instead of barely living  pay check to pay check I might actually have some breathing room. Well, not really. While this new addition of cash to my checks are a plus, it’s at the expense of my Social Security. I know most 27 year olds don’t think about retirement plans or 401k’s but keep in mind I have a tiny little old lady living deep inside me.  When my deepest fondest loves include Andy Griffith, Golden Girls and bingo I am clearly an old soul. So while I should be jumping for joy (and a small part of me is) I do have hesitations.

I worry that with this 2 percent cut, to an already controversial retirement system, what will be left when I’m ready to benefit from my years of wasted youth and hard work? I’d like to say I won’t be one of those people who solely depends on Social Security for retirement, but I also thought I wouldn’t fall in love with Conan O’Brien and his fiery red locks but alas I have. I suppose this is just something that we as young Americans have to keep in mind, that short-term fixes aren’t always best in the long run. I feel like as I get my future pay checks I will be smiling on the outside while the little old lady inside me weeps. Good thing she can’t talk, I wouldn’t want her chirping in my ear when I’m in the dressing room at Sax’s Fifth Avenue (ok it’s really Target but it sounded cool to say). 

So if you need a shopping buddy or some sound advice when your inner granny starts acting up feel free to stop by and visit us at Gunwel Associates, Inc. At GAI (www.gunwel.com) we are looking forward to help you decide what to do with your new pot of gold. Give us a call at 212-979-6830 and don’t forget it’s that time of year when we offer year-end tax reviews (for free!). See you soon!

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2 Comments leave one →
  1. December 20, 2010 3:28 pm

    Great blog Natalie!

  2. Jennifer permalink
    December 20, 2010 5:39 pm

    Wow way to be a party proper lol we could do so much right now with $770. j/k I must say you definitely have a good eye out for hidden political short term bandages that will have devastating effects on long term systems. I too would rather not be 80 and still working because what we pay now will never be returned to us. Great job as always!

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