Dear Friends and Family,

The events of this past month have proven beyond any doubt to be historic. The new administration is working quickly to improve economic conditions. Key efforts target housing, lending, and liquidity—areas at the core of the financial crisis.
House Financial Services Committee Chairman Barney Frank announced H.R. 703, a bill to promote bank liquidity and lending through expanded deposit insurance, the HOPE for Homeowners Program, and other provisions. It would raise FDIC insurance coverage to $250,000 and increase the FDIC’s borrowing authority from $30B to $100B. We believe making these provisions permanent is key to restoring investor confidence.

Are you ready for some relief? Consumer prices are expected to rise less than 3% in 2009. In today’s environment, consumers have increasing bargaining power. Banks, credit card companies, phone providers, and even gyms may be more open to negotiation. Over 70% of Americans have successfully secured better deals recently.

Tracking your spending can also help clarify where your money is going. Free online budgeting tools make it easier to follow a spending plan.

Billpay is now available on Fidelity.com for personal accounts. If you have questions or need help enrolling, contact Vicki at 425-657-2208 or vicki@katzfamilyfinancial.com.

Fidelity will mail most 2008 tax reporting statements in late February, due to delays in receiving third-party data. This approach reduces the need to send corrected forms.

We thank you for your continued loyalty and look forward to speaking with you soon.

Sincerely,

Katz Family Financial