Hitting HENRY hard

As a proud member of the Ways & Means Committee I was called in and instructed that my blog entry on HENRY was a slap in the face of my membership. As a result, here is my attempt to rectify the situation.

Here is how a single filer (HENRY) who makes above the $75K-phase-out-to-$95K-cutoff can still take advantage of the $8K tax credit for first time home buyers who buy a home between 1/1/09 and 12/1/09.

First off, LEGALLY shelter as much of your money from the IRS as possible:

1. Max out your 401K contributions - $16.5K (great time to buy)
2. Medical & Dental paycheck deductions - ~$1K (conservative guess of $1K for HENRYs)
3. Max out Health Savings Account contributions - $3K (NOT use-it-or-lose-it)

Total sheltered is $20.5K.

Second, in this economy you should be able to find the maximum amount of $3K in stock losses above any capital gains to apply towards income.

1. $3K in capital losses above capital gains applied towards income.

Total offset to income is $3K.

Grand total is $23.5K. Hence a HENRY who makes a salary all the way up to $98,499 (minus the $23.5K gives us $74,999) is still able to get the FULL tax credit and a HENRY who makes a salary all the way up to $118,499 (minus the $23.5K gives us $94,999) is still able to get a partial tax credit.

Of course, I am sure other ways to shelter money exist such as Flexible Spending Accounts (Medical Expense & Dependent Care) but these are the ones that quickly come to mind where you run no risk (use it or lose it) of losing the money you sheltered. Additionally, you may have other income such as interest and dividends so please consider your exact situation and account for ALL sources of income when performing these projections.

Tough economic times

Friday morning during a super-A$$ economy with annual shareholder meeting taking place in the coming week you wake up as normal to get ready for work. The phone rings. It's a co-worker who is actually off today because of the required 10 days off per fiscal quarter due to the economic downturn. They ask you if you are already at work and you say that you are on your way. They claim that they just read their emails and the head of the department just called a meeting with 5 minutes notice. You think, "WTF, that would mean 8:45am...most of the department, like ME, gets in between then and 9am." Then you start doing that layoff calculus in your head: Friday + Payday + Annual shareholder meeting next week + Early morning short notice meeting = HOLY SHITE!

So now you start contingency planning with regards to personal files you have stored on your company provided laptop most especially the ones for the $3400 class you are taking where you have all your homework including the case study due on Monday. "Shite, when was the last time I backed up to my USB disk?" "Double shite, fireburn school files what about my tuition reimbursement?" "Triple shite, I just booked that 7-day-Caribbean cruise?" "Sweet, my lease ends this month and I haven't renewed yet."

Then you get to work late missing the meeting and find out the meeting was just to give everyone in the department a heads up that layoffs are taking place throughout the company and for right now our department is safe. Meanwhile you are thinking if I was 10 years older and in worse health I may have had a heart attack to find out I am safe...for NOW.

Back at your desk, you don't even feel good about having survived another day since you are learning of folks you know in other departments that didn't make the cut. And let's face it, all the slack has long been gone. These are good-to-great workers who just find themselves on a project or in a business unit that either requires too much capital, not generating enough profits in the short term or both. Your sorrow for them fades when you start thinking that this is what it is going to be like every so often until the economy picks up. You tell yourself that it is best to move on from this paralyzing thought process since all it does is make you sit in fear. But while trying to move on and stay positive you can't help but wondering, "Am I currently in the on deck circle?"

Who is HENRY?

H-E-N-R-Y = High Earner Not Rich Yet

Well, it all depends on your definition of high earner because I would definitely not put myself anywhere near there. But in either case, this isn't about me. This is about all the folks who graduated from college with lots of student loans and a "high paying job." What exactly is a high paying job? If you ask the IRS that would be anything above $55K which is where they start phasing out single filers for deducting student loans. The hard cut-off is $70K.

So for example, you finish college after busting your rump for 4-5 years and now have $32K worth of student loans to show for it. But you're one of the lucky ones, you managed to find a job that is paying you $60K to start in the always-expensive-cost-of-living Northeast.

Funny thing though is that after hearing your whole life about student loan tax deductions you realize that at your salary level this doesn't amount to much. You don't worry about it though as you put your nose to the grindstone and try to be the best employee ever. Three years later due to well earned raises you cross the $70K cut-off limit. You think no-biggie since you never really got much back from that measly deduction anyway. However, it still is a painful reminder to get that letter from your loan provider pointing out how much you paid in interest the previous year. I mean, those bastards are just rubbing it in your face that you won't be able to deduct any of that interest paid.

Two years later, you start thinking about buying a home because it is the prudent thing to do and there are no income limits on the tax dedcutions for interest paid on your home. But in the Northeast, your 5 years of prudent savings doesn't even look like it could be 10% of the selling price of the homes. Yeah, even in this downturn. And you wanted to put 20% down because you heard of all the no-money-little-money down horror stories. But wait, what about that news clipping you saw that spoke about an interest free $7500 loan from the Gov now expanding to possibly a $7500 grant (via tax credit) and you think, "Cut me a slice of that pie!" So as a good citizen you go to their website and read the fine print which clearly states that earners above $75K are phased out until a hard cut-off at $95K. So, using your salary numbers you do the number crunching and then it hits you.

HENRY, he is I and I am him.

Redbox + iPhone = Obvious Winner

Every once in a while I have to throw someone a bone. And today I toss one out to Redbox who has been very good to me over the past 8 or so months. A Redbox app for the iPhone is so blatantly obvious I feel as if it has already been done but no one told me. Look, I will just walk you through one quick scenario where having a Redbox app on the iPhone is sheer geinus.

Redbox-Iphone App Scenario:
Monday morning and my plane lands in Ssacramento, CA and upon touching down I remember that I have to return two Redbox DVDs (The Rocker - 3 stars, Pineapple Express - 2 stars) that I have in my backpack which I picked up last night for the sole purpose of watching on the plane ($2 for 2 DVDs for 1 night) using my laptop. While I sit on the plane waiting to get off I open up my Redbox app with the 3G turned on and see that the nearest Redbox is less than 10 minutes away using the iPhone's GPS capabilities. I then hit the map it function which opens the iPhone's Maps application to get an understanding of the turn by turn directions I would need to get to that Redbox location from the airport. Hmmm, it's actually in the direction I am heading, SWEET! While in the app I see that the free 1-day rental Monday code is also posted which reminds me that I wanted to get The Secret Life Of Bees (hey, it's Black History Month). While still on the plane, I use my Redbox app to check to see if it is available at the location I already planned on visiting. It is, SCORE! I'm now being hustled off the plane so I pack my iPhone away and race to the rental car terminal forgetting to reserve my movie. Finally I arrive at the Redbox location and there are about 3 people in front of me. I overhear the couple in front of me saying that they hope that The Secret Life of Bees is still there. Instantly I pull out my iPhone and open the Redbox app and check to see if it is still available at this location. I see it is and since I already created and registered my account I am able to quickly hit the RESERVE button. My sincere apologies to the couple in front of me as I can't help but giggle when they get to kiosk and see that The Secret Life of Bees is gone. I return my two DVDs from the previous night and grab The Secret Life of Bees and head out to dinner with my Rancho Cordova compadres.

Hey yo Redbox, why is this not happening?

Troy at the Theater

Folks have been asking me to do movie reviews and some others have been emailing/texting asking if I have seen Slumdog Millionaire so I figured I would kill these and other related topics with one blog entry.

First off, I must have been singing the praises of Da Box way too much. Everytime I go to my local Redbox lately there is a line. All my Redbox using friends claim that there are lines at their local Redbox as well. A family member called me all the way from Dallas to tell me that Dallas-area folks must be reading my blog because the TWO Redbox kiosks at their grocery store has a line. So from now on, my message to you is: Redbox SUCKS!

Movie ratings are assigned by myself (regular guy), Movie Snob (indie-artsy perspective), and the ScriptKeeper (female perspective).

Slumdog Millionaire - Great movie set in India that shows the road traveled all the way to the game show, "Who wants to be a millionaire?" Had the ending not been so "Hollywood" it would have been a strong competitor for best movie of 2008. This is a great choice for the regular movie viewer who wants to baby-step their way into indie-artsy films in the future. Troy: 5 stars, Movie Snob: 4 stars, ScriptKeeper: LOVED IT!

Happy-Go-Lucky - Dark comedy that is definitely not for the average everyday movie viewer who just wants to be entertained. This is a great movie to see with folks where you then go out for drinks or coffee after. Definitely spurs one into taking a look within. Definitely the best movie of 2008 for the indie-artsy crowd. Troy: 5 stars, Movie Snob: unseen, ScriptKeeper: LOVED IT!

Nights in Rodanthe - OK, so the ScriptKeeper dragged me to see this "romance" movie. And surprisingly, even though the ending was somewhat predictable it was better than I thought. Troy: 3 stars, Movie Snob: UNSEEN & PROUD OF IT, ScriptKeeper: LOVED IT!

Tell No One - French foreign thriller that is my vote for the best movie of 2008. And I have to give props to the Movie Snob (for the 100th time before he calls yet again for referral credit) who recommended it to me. This is just a great movie in every way measurable. Keep in mind that this movie is in French so you will have to read subtitles. But trust me, you will not be disappointed. Troy: 5 stars, Movie Snob: 5 stars, ScriptKeeper: LOVED IT!

Gran Torino - Social drama with Clint Eastwood playing the part of a WWII veteran who is somewhat stuck in his old school ways. My first thought leaving the theater was that Clint Eastwood wins the oscar for best actor after this performance. I mean, he IS the movie. The funny thing is that even though the movie is a drama it was more like a comedy with racial and ethnic jokes serving as the subject material. Movie Snob claimed he was noticing that some folks were laughing a little too hard and too long at his theater down in JawJuh! :) Troy: 5 stars, Movie Snob: 5 stars, ScriptKeeper: LIKED IT!

PS: The ScriptKeeper would also like you to know that she LOVED Sex And The City.

We thought Chris Rock was joking...

Remember when Chris Rock said the following in Never Scared?
Oprah is rich, Bill Gates is wealthy. If Bill Gates woke up tommorow with Oprah's money, he'd jump out a fvckin' window and slit his throat on the way down saying, "I can't even put gas in my plane!

German tycoon Adolf Merckle commits suicide
By Markus Nagle Markus Nagle
BLAUBEUREN, Germany (Reuters) – German billionaire Adolf Merckle has committed suicide, in despair over the huge losses suffered by his business empire during the financial crisis, his family said on Tuesday. The media-shy billionaire, whose family controls some of Germany's best-known companies, was hit by a train on Monday evening, local officials said. "The desperate situation of his companies caused by the financial crisis, the uncertainties of the last few weeks and his powerlessness to act, have broken the passionate family entrepreneur and he took his own life," a family statement said. State prosecutors from the southern city of Ulm said Merckle, 74, left work on Monday and died after being hit by a train near the town of Blaubeuren. He left behind a suicide note to his family, they added. There was no sign of anyone else being involved, they said. In 2008 Merckle was ranked as the world's 94th-richest person and Germany's fifth-wealthiest by Forbes magazine. Read more: http://news.yahoo.com/s/nm/20090106/bs_nm/us_merckle_6

Well, like they always say, truth is stranger than fiction. Look, I know I'm supposed to have lots of comments and questions to add to this and the truth is I actually have too much. But instead of listing them, I'll just repeat what a friend emailed me back regarding the article. It reads much better than anything I would have ever said:

I am not really surprised by this article. There are many people who place their happiness, self-worth and existence in the perceived and notoriety of their riches. Perhaps he would've lived happier if he shifted his thoughts to the many people he was able to bless with employment, donations and the many contributions that his riches afforded others. I find as I age that the true meaning and sustenance of my life is not how much I have in the bank but rather how many people I managed to be a blessing to daily.

Damn, you blessed at least one today. Thank you.

Back and forth with Movie Snob 2

So it was another Redbox Monday (free 1 day rental) and I was on my way to my nearest Redbox location when I received a text from the Movie Snob asking me for a recommendation. I thought to myself, "This must be a trap since the Movie Snob doesn't regard my opinion when it comes to movies." But in any case I played along especially since I had no clue what to get myself. In the end, he gave me two future recomendations and of course we had another back & forth:

Movie Snob: Anything good in Da Box today?

Troy: I'm on my way now. What do u recommend?

Movie Snob: I grabbed Run, Fat Boy, Run but you've already seen that.

Troy: Yes I did. Rated it 3 stars on Da Flix.

Movie Snob: Get Transsiberian (should have known the Movie Snob would know some Indie film to recommend). And get Stuck if you feel like getting two.

Troy (currently at Da Box now reviewing selection): What?? And pass up Morris Chestnut & Gabrielle Union in The Perfect Holiday?? Are you trying to turn my nubian brothers & sisters against me or something?

Movie Snob: Well, Transsiberian & Stuck are the only two I've seen.

Troy: Well, I got Perfect Holiday...stepping up my Black cred!

Movie Snob: You crazy!

Troy: Dude, Obama in the House now so u have to step up ur Black cred. For example, if you haven't seen at least 3 movies where Morris Chestnut & Gabrielle Union play love interests you get labeled a poser.

Movie Snob: LOL (texting like a teenage girl), The Best Man, Breaking All The Rules, The Brothers.

Troy: Oops, I mis-texted. I meant FIVE movies. See, just as I thought, you are a POSER!

Movie Snob: The Inkwell & Two Can Play That Game. I'm still Black with a capital 'B'.

Troy: Inkwell?? I said Union & Chestnut playing love interests.

Movie Snob: You can't get blacker than Inkwell. It was written, produced, and directed by a Black man. Chestnut was the love interest of Jada. He was a love interest.

Troy: I can't even remember Jada in Inkwell. Was she an extra or do all Black people look alike to posers? And first off they (Chestnut & Union) have to be in the same movie as love interests. This has nothing to do with Jada Pinkett Smith.

Movie Snob: Yes, Jada was in Inkwell. Chestnut & Union have only been in THREE movies together and I've seen two, Breaking All The Rules and Two Can Play That Game. Oops, I almost forgot The Brothers and I've seen that. Still Black with a capital 'B'.

Troy: Dude, the rule is FIVE (5) not THREE (3).

Movie Snob: Alright Poser, you name FIVE and show ME your Black card.

Troy: The three you mentioned, Perfect Holiday which I plan on watching tonight and the fifth is a pilot I saw for an ABC Sunday Night Movie called Bringin' Down Da House: Obamas that stars Chestnut as Barack & Union as Michelle and it tells their story of their journey to the White House. Hell, an up & coming actor we both know plays the role of Rev. Jeremiah Wright. So as you can see, I'm BLACK for life...all the letters are capitalized in my BLACKness.

Movie Snob: It just dawned on me that you might be setting me up for your blog again.

Troy: Never a setup. This is all truth...but it does make for a great blog entry. :) Hell, I can see that up & coming actor getting best actor nominations for his role as Rev. Jeremiah Wright...at the BET awards.

Movie Snob: Damn, why it got to be the BET movie awards?

Troy: Oh don't get me wrong, his performance was stellar. Unbelieveable if you ask me. Hell, the acting job he did had ME wanting to walk out of that church. :)

Movie Snob: Let the record show that you couldn't name three Chestnut-Union movies that you've seen.

Troy: I have seen 4 and I am watching the fifth now.

Movie Snob: Name them.

Troy: Brothers, 2 Can Play, Breaking Rules, Bringin' Down House: Obamas, and I am watching Perfect Holiday now.

Movie Snob: Alright, but at best you a redbone.

Troy: Concede. I'm Black like tar! Flavor Flav has got nothing on me. I stand unsurpassed in my Blackness. I'm unseen, void of light, like a SHADOW.

Movie Snob: Tell me the ending of Perfect Holiday and the Obamas.

Troy: Ummmm, Christmas came and Obama (played by Chestnut) won the presidency.

Movie Snob: That's what I thought. I SAW BOTH TOO!