If you have been one of the many impacted by COVID-19 and you’re closer to retirement than some, then you should look through these tips to see what you can do to overcome this problem. Check Your Savings Check your savings account to see how much money you have. It’s a necessary exercise to be sure you have enough in your account to last your entire retirement. If you are not working with a financial planner, this may be an ideal time to start. You should also verify that you have more than you need since you never know when …
UPDATE: RMD Requirements
If you missed the news, the IRS announced that if you already took out your maximum percent for your Required Minimum Distribution, you are still in luck. According to the IRS, you can still roll over those funds and put them back into your account. That is according to the current Coronavirus, Aid, Relief and Economic Security (CARES) Act waiver. This new waiver has been extended until the end of August. That should give you enough time to replenish your accounts before the end of this year, if you choose to. These updates also include what will happen with your …
Summer Travel: Flying in the Pandemic
After months of desolation at the airports, air travel has increased every week leading into the busy summer vacation season. With full flights becoming more of the norm, it is more challenging than ever to socially distance on planes, making it important that you follow additional precautions. Mask Up: The number one thing that you need to remember before heading to the airport is to mask up. Most airlines and airports now mandate the use of masks. It is a good idea to bring along a few different masks to switch out as necessary. If you are boarding a long …
Risk Tolerance Vs Risk Capacity: Knowing The Difference
The economy that we all wake up in each day under COVID-19 looks a lot different from the one that existed before the virus took hold in the United States and around the world. It has been a major point of reflection for people all around the world. Many are reviewing how they have ran their personal financial life up to this point and reconsidering some of the steps that they have taken. As such, one of the items that some have looked at is their risk tolerance versus their risk capacity. The two are different, and we want to …
Financial Lessons This Crisis Can Teach You
The current economic crisis was unexpected, but it hit quickly. Within a month, the stock market lost about a third of its value. Many investors were hit particularly hard. As states largely locked down, many workers saw their jobs evaporate without much warning. Some of these layoffs were temporary. Unfortunately, many people are still out of work. One thing is clear, the rapid decline in the ability of many Americans to pay their bills should teach some important lessons. Emergency Funds Are Necessary First, it’s extremely important to have a fund for rainy days. It will eventually rain, and having …
Your 401k Match is Suspended. Now What?
The recent global pandemic has caused many different types of economic fallout. It has resulted in many companies suspending the matching of their employee’s 401(k) contributions. The Plan Sponsor Council of America conducted a survey. It discovered over 20 percent of large companies and organizations are currently suspending their matching contributions. A report from the Center for Retirement Research showed approximately 50 companies have suspended 401(k) matches for its employees. Factors Many employees are listening to what financial experts are saying about continuing to contribute to their 401(K) if their employer has suspended matching contributions. These experts explain there are …
Don’t Get Swept Up In The Recession
Between February of 2020 and June of 2020 the Dow Jones Industrial Index moved violently from around 27,000 down to below 20,000 and then very quickly back to around 25,000. Anyone watching those market movements surely had a great amount of fear sweep over themselves regarding their retirement savings and their ability to trust the stock market to provide them with the capital appreciation that many of us used to take for granted. It has been a short window of time during which so many began to question what they could do to protect their retirement even as we start …
Recognize and Prevent Elder Financial Abuse
Yesterday was World Elder Abuse Awareness Day. There can be many ways the elderly are abused by family or those close to them. Let’s look at abuse from a financial aspect. Financial abuse can be a complicated subject, but at its most basic level it involves taking advantage of an older adult through manipulation or intimidation to steal their money or property. Elderly adults are some of the most vulnerable to financial abuse. Some of the biggest risk factors for older adults include: • IsolationIsolation can cause extreme loneliness in seniors, leaving them desperate for any sort of social …
Estate Planning in a Pandemic
The ongoing COVID-19 global pandemic has disrupted life in countless ways. The health crisis has led many people to examine their own mortality and realize that they are not prepared for the end of life situations. As the crisis continues to rage on, it is more important than ever to make sure that your will and other important estate planning directives are in place. According to Caring.com, 52% of people over the age of 55 do not have a will or other vital estate planning documents in place. While it can be a bit more challenging to get these directives …
CARES Act Creates Tax Relief
In March 2020, the unemployment rate was 4.4 percent; just one month later the number had skyrocketed to 14.7 percent－the highest figure since the Great Depression of the 1930s. Some 29 million Americans are now temporarily or permanently out of work. COVID-19, the pandemic coronavirus, in many ways, has crippled the U.S. economy. The good－or at least better－news is that the federal government has made a flurry of tax and process decisions that should bring relief to many in the form of The Coronavirus Aid, Relief and Economic Security program, or The CARES Act. Here’s a quick review of the …