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A Word on Inflation

A Word on Inflation

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The Coronavirus Bear Market & It's Place In History.

The Coronavirus Bear Market & It's Place In History.

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TIMELY & RELEVANT - Highlights of the C.A.R.E.S. Act

TIMELY & RELEVANT - Highlights of the C.A.R.E.S. Act

First and foremost, I hope you and your family are safe and healthy.

As you probably know, Congress passed the largest stimulus package in American history, the Coronavirus Aid, Relief, and Economic Security Act (CARES). This was done in an effort to combat some of the pandemic’s harmful economic effects. And while many American investors are feeling financially overwhelmed, retirees may be in an even trickier situation. Not only are you caught in this economic crunch, but you’re doubly burdened by the greater health threat this virus may have on older people. Because of that, Congress passed portions of the CARES Act to positively impact the health and wellbeing of retirees, as well as provisions that benefit those still significantly invested in the markets. Here are the portions of the stimulus bill that will likely have an impact on financial decisions you’ll be facing in the near future:

Stimulus check. One of the most talked about benefits of the stimulus package is the $1,200 stimulus payments for individuals who earned $75,000/year or less and $2,400 for married couples filing jointly that earned $150,000/year or less. This also includes seniors who don’t normally owe taxes and those claiming social security benefits, including retirement and disability. If you don’t need the extra money to make ends meet right now, consider tucking this check away in an emergency fund.

IRS tax deadline extension. The IRS is extending the federal income tax filing due date of April 15 to July 15, 2020 instead, without penalty or interest. This is an automatic extension that applies to all taxpayers, regardless of the amount owed, including individuals, trusts and estates, and those who pay self-employment tax.

IRA contribution extension. Along with the tax filing extension of July 15, 2020, comes an extended deadline for contributing to last year’s IRA. If you get a stimulus check and haven’t yet reached the $6,000 max (or $7,000 if you’re older than 50) for 2019, consider adding it there.

Required minimum distribution (RMD) suspended for 2020. Retirees will not be required to withdraw any amount from their retirement accounts, and no penalties will be assessed.

Nursing home and senior living attention and funding.Both the Centers for Medicare and Medicaid Services will get additional funding with the intention of providing safer, cleaner facilities to prevent the spread of the coronavirus.

Enhancements to Medicare and Medicaid services.There are numerous ways in which this law will assist in getting health services to retirees more quickly, including “telehealth" coverage, 90-day prescription refills and the extension of existing community-based, long-term care programs.

Many of these changes provide extra funding for unavoidable hardships, given the state of the economy and the state of global health. If you have any specific questions on how the coronavirus crisis will impact your retirement, let’s talk. As always, we’re here to help.

TIMELY & RELEVANT - C.A.R.E.S. ACT for Small Business Owners

TIMELY & RELEVANT - C.A.R.E.S. ACT for Small Business Owners

As you probably know, Congress just passed the largest stimulus package in American history, the Coronavirus Aid, Relief, and Economic Security Act (CARES). This was done in an effort to combat some of the pandemic’s harmful effects on the economy. And there’s one particular area within the bill that dedicates $350 billion to support the small business sector.

Since many small businesses have been rocked by the widespread isolation orders forcing Americans to stay home, it’s important to have a solid understanding of the federal small business loan program now being referred to as the Paycheck Protection Program. In short, the legislation seems to be giving lenders the ability to forego the Small Business Administration’s (SBA) typically stringent approval process to allow for faster loan approval. Lenders will have the power to instantly grant any qualifying small businesses a potentially forgivable loan to help cover payroll, rent and utility expenses during this Coronavirus crisis.

So what do you need to know to qualify for cash to help keep your employees on payroll and your business operational?

What is the Paycheck Protection Program? The CARES Act legislation earmarks funds to supply non-collateral loans to small businesses in order to help cover payroll expenses. Loan forgiveness may be offered as an incentive for small business owners to keep their employees on payroll or to continue to pay bills throughout this Coronavirus crisis.

Who’s eligible for a loan? Generally speaking, any business, start-up, veterans organization, tribal business concern or non-profit with 500 or fewer employees is eligible. Sole proprietors, independent contractors and self-employed individuals are eligible as well. For businesses in the food industry, the cap of 500 employees is applied on a per-physical-location basis.

How much can you borrow? If your business is eligible for the loan program, your business can borrow up to $10 million, or 2.5 times your average monthly payroll costs (using salary amounts capped at $100,000 annually per person) – whichever amount is lower.

What does the loan cover? This type of loan can be used to cover rent, interest on mortgage payments, payroll costs, employee health benefits (including paid sick leave) and interest on other debt obligations incurred prior to the loan.

What portion of the loan might ultimately be forgiven?If you’re able to keep employees on payroll or continue to pay the company bills, the amount of the loan forgiveness may include payroll costs (capped at $100,000 annually per person), interest on mortgage payments, rent obligations and utility payments. The total amount forgiven will be reduced if you reduce wages or if your workforce decreases.

When would your loan payment be due? While repayment dates will be determined on a loan-by-loan basis, typically each loan will have an automatic deferment of both principal and interest of at least six months, with the full loan due after two years. The interest rates on loans start as low as 0.5%, and cannot exceed 4%.

When should you apply for a loan? The earlier you apply, the faster you can get relief. If you think you’ll need the help, start now.

For more information on the Paycheck Protection Act Program, the Treasury Department has released its own summary on its CARES Act resource page, and the U.S. Chamber of Commerce has a guide and checklist available as well.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the websites provided here, you are leaving this email. We make no representation as to the completeness or accuracy of information provided at these websites.

TIMELY & RELEVANT - Business Continuity Plan For Small Business Owners

TIMELY & RELEVANT - Business Continuity Plan For Small Business Owners

Life is unpredictable. And the disruption the COVID-19 outbreak is having on our society serves as a great reminder to have a documented Business Continuity Plan (BCP) in place for navigating the unexpected. This is especially true for small business owners who may not have the time and resources to create a formal BCP, but are often significantly impacted by widespread crisis.

If you haven’t already developed your BCP, we can help. Attached is a guide to creating your own BCP that can help you navigate through and recover from an unexpected event. Having a BCP forces you to take the necessary steps to ensure your business can function properly during any type of crisis situation, by anticipating your company’s needs and identifying and fixing any weaknesses. Your customers and clients will also appreciate the fact that you’ve taken the time to think through how you can continue to serve them, no matter what.

Any type of business interruption can be detrimental without a contingency plan in place. And it doesn’t take something as large as this pandemic to wreak havoc on your business. Be prepared, and if you need help, don’t hesitate to reach out.

Click here for the BCP Template
<p>Your Emergency Fund: How Much Is Enough?</p>

Your Emergency Fund: How Much Is Enough?

Having an emergency fund may help alleviate the stress and worry associated with a financial crisis.
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<p>Five Most Overlooked Tax Deductions</p>

Five Most Overlooked Tax Deductions

Five overlooked tax deductions to help manage your tax bill.
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<p>Principles of Preserving Wealth</p>

Principles of Preserving Wealth

How federal estate taxes work, plus estate management documents and tactics.
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