December 2003
Dear Survivor of Wars, Stock Market Vertigo and JGTRRA*
Wow! What a year! Who would have predicted last January that before the winter solstice we would find Saddam playing groundhog, the stock market up 24% and taxes on capital gains reduced 25-50%? Who says there is no Santa Claus?
At long last, investors are willing to look at their portfolios again. Considering the market managed to lose (9%), (12%) and (22%) in 2000, 2001 and 2002, this year’s 24% gain has been a welcome relief.
If that is not enough, consider the new tax bill. While we can get into a lot of discussion as to who got more, there is little doubt there was something for everyone who pays taxes. Look at these stocking stuffers:
· Rates reduced approximately 10%
· Marriage penalty reduced
· Child credit increased
· Long term gains tax reduced to 15%
· Tax rates on qualified dividends reduced to 15%
· Depreciation allowances for equipment increased
Of course, as nice as these gifts are to receive, we hope the Santas in Washington go on a diet. After all, even the jolly old elf has a budget.
We end this year in anxious prayer for the safe return of those courageous women and men who serve their country in a dangerous world.
We also wish you an enjoyable holiday. May the coming year find you and your loved ones grateful for all the blessings we are fortunate enough to take for granted.
TERRY, LOCKRIDGE & DUNN, INC.