With the recent passage of the CARES Act, it has presented several opportunities that you may be able to take advantage of:

What to do with the Stimulus Money

If you want to check the status of your payment, update your bank account or address, use this link.

1. Pay off credit card debt
2. Put it into a savings account, especially during these uncertain times. Aim to have 3 months of living expenses in a savings account.
3. If you have no credit card debt and are comfortable with your savings, then seriously consider investing it. Investments can range from relatively low risk to extremely high risk, but right now there are a lot of opportunities when stock prices drop like they have.

What to do with Required Minimum Distributions (RMD’s)

• RMD’s can be waived this year (2020), including inherited IRA’s as well.
• If you don’t need  the money, skip this year’s RMD. Don’t pay the tax if you don’t have to.
• If you want to waive your remaining RMD withdrawal(s) for 2020, let us know.

If you, or anyone if your family, have Student Loans…

*** The CARES Act has a huge impact on student loans. ***

Read our blog post on all the changes, their impact and some strategies to take advantage of

What to do about Auto Insurance

• With people driving much less due to quarantine guidelines, many insurance companies are offering discounts, rebates and/or credits during this time. Call your insurance company to ask directly.
• Here’s what some popular insurance companies are automatically doing with your payments:
• Geico – offering 15% off your next six month auto insurance renewal.
• State Farm – offering a 25% credit from 3/20/2020 – 5/31/2020.
• Progressive – offering 20% off premiums for April and May for existing customers.
• Allstate – 15% of April and May 2020 premiums will be returned.

What to do about your Financial Plan

*** Review your financial plan and make sure you’re still on track to reach your goals ***

What to do about your Budget

• Review your budget and make sure your spending and savings align with your goals and values.
• Try to cut one or two frivolous monthly expenses.
• Read our post on the 20/30/50 Budget.

Ways to take advantage of Low Interest Rates

• Consider refinancing your mortgage.
• Consider refinancing your private student loans to pay them off sooner, or for less money.

What to do about Retirement Savings

• Consider increasing your monthly contributions so you are buying more at these lower prices.
• Remember you should be saving at least 10% of your income for your retirement.
• The biggest risk to your retirement is not saving at least 10%. This is what causes us as advisors to panic, not the stock market.
• The contribution deadline for 2019 IRA and Roth IRA contributions has been pushed out to 7/15/2020. If you would like to make a contribution, let us know.
• If you have traditional IRA’s or old 401k’s, look into converting those to Roth IRA’s now that the value has dropped. If you would like to convert, let us know.

What to do about Estate Planning

• Make sure you have a Basic Estate Plan in place.
• Review the beneficiaries on your accounts to make sure they’re up-to-date.
• Has this crisis made you re-think your Life Insurance needs?

What to do about Tax Loss Harvesting

• If you have non-retirement investments, look at selling some investments to generate a tax loss which could lower your taxes and make it possible to purchase a similar investment.
• We have already done this in some cases. Call to discuss.

As always, any questions, just ask.

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