As you all are aware, the volatility in the markets continues to be high due to the economic and social impact of COVID-19. This week brought about many changes including the passing of the CARES ACT. Here are some highlights from this week:
- The CARES Act was passed last Friday. This has substantial impacts on most individuals and many businesses:
- Ability to suspend your retirement plan RMD (required minimum distribution) for 2020.
- Depending on your income you may be eligible for up to $1,200 per person and an additional $500 per child.
- The 10% penalty on premature withdrawals from IRAs and qualified retirement plans has been waived for COVID-19 related purposes (up to $100,000).
- If you are a small business owner there are many new provisions that can help. We would be happy to discuss those with you individually.
- Up to a $300 cash donation to a charity may be deducted regardless if you itemize or not.
- It is likely that there is more stimulus on the way
- The fiscal policy response to the coronavirus is faster and larger when compared to the response during any previous financial crisis in our history.
- Congress is ready to do even more if the economy still needs additional stimulus.
Market Volatility is not likely to go away any time soon
- Companies are continuing to revise their earnings projects due to changing conditions. Clear visibility is going to remain impaired for some time.
- Green Shoots of hope
- The Food and Drug Administration issued its first authorization for a COVID-19 test that looks for antibodies in the blood. Testing positive for antibodies likely means that a person has recovered from COVID-19 and cannot be re-infected.
- Abbott is going to market with a point of contact test that gives results in minutes.
- Significant advances are being made in therapeutics and vaccines
- Human behavior, market signals, and aggressive policy changes are working to shift the course of the virus
We know this has been a difficult and trying time for you, your families, businesses and everyone worldwide. Our team encourages you to not give into the fear and panic that is being displayed across the media and other channels. We are choosing to lean into hope and continue to feel honored to work hard on your behalf. Please contact us at any time with questions…we are here to help.
The Planning Group of the Nothwest