My favorite jacket is a softshell material designed to block wind on the front, breath out the sides and back, plus provide a layer of insulation. Have 2 of these purchased for under $40 last year and were on sale for the same price a few weeks ago.

http://www.nashbar.com/bikes/Product...23_-1___204514

Since buying two of the Nashbar jackets, I have purchased Giordana and Sugoi softshell jackets, both have a regular retail price over $100 and are comfortable for cold weather rides. But neither jacket performs any better then the Nashbar jacket, they may look a little better but that's all.

I also have rain jackets I could wear, but would rather use something breathable for cold rides to help reduce moisture.