In 1998 Economics Professor and Nobel Prize winner Paul Samuelson (1915 - ) noted that, "Many people now believe that if they simply hold stocks long enough they will not, lose money for statistics have shown that since 1926 U.S. equity market has not suffered a loss in any given 15 year."

He called it a fallacy, and conceded that it is truly likely that if you hold stocks over long periods of time that they would tend to produce returns higher than other assets. But to believe that it is a God given statement ... Is simply not correct!

"Risk does not go to zero over long periods," but there are many articles that reflect how risk goes down longer time period. What is seldom introduced is fact that if there is a significant onetime loss, it can be monumentally overwhelming.

In any case Samuelson noted that: "The problem is that when stock prices do turn down (as inevitably happens even in strongest of bull markets!) your optimistic equity exposure can overwhelm your gut level risk tolerance, leading to poor short-term judgments and even outright panic!"

Taxes are one thing you can't avoid. When economic conditions are tough, last thing anyone wants to do is pay taxes. Luckily, you could be better off than you realize. There are some very favorable rules embedded in tax code for job seekers. When dealing with taxes, sometimes it pays to be between jobs.

This month's newsletter is a repeat of last April's newsletter. It briefly discusses some of possible tax benefits for unemployed. These are just tips that you may want to look into, please talk to a tax expert before filing your return. Don't pay more than you have to!

The following topics will be covered:

1. Basic Tax Deductions 2. The Big Bucks 3. Playing It Safe

================================================ IMPORTANT TAX TIPS FOR JOB SEEKERS ================================================

1. BASIC TAX DEDUCTIONS Many of costs associated with a job search can be deducted from your income. As long as you are not entering job market for first time, searching for work in a different field of employment, or returning to work from a long spell of unemployment, many typical job search costs are tax deductible. Individually these costs can be small, but they can add up very quickly. Eligible expenses may include:

1. Phone calls and faxing fees 2. Costs for typing, printing, and mailing resumes 3. Employment agency fees 4. Ad space in newspapers, trade magazines, or on web sites 5. Traveling costs for job interviews (This does not just include airfare or public transportation. The costs of driving to an interview can be deducted on a mileage basis.) The list continues on, but you get picture.

The 2 most important things to remember are: 1. These expenses are only deductible if you itemize them. 2. Only job search expenses exceeding 2% of your adjusted gross income are tax deductible. (please check with a tax expert on finer details)

2. THE BIG BUCKS The deductions don't begin and end with your minor expenses. As well as small costs of printing, postage, etc…, large expenses associated with job hunt can also be deducted. The two primary "major expenses" are as follows: