Six Key CARES Act Benefits (4/7/2020)

The Coronavirus Aid, Relief and Economic Stimulus Act (CARES Act) has passed congress and has been signed into law by the President. Like all legislation, the devil is in the details. As the provisions of the law go into effect in the next couple of weeks, we will learn more of the details. For now, it is helpful to highlight 6 key benefits so we can make plans accordingly.

Six Key CARES Act Benefits (4/7/2020)

The Coronavirus Aid, Relief and Economic Stimulus Act (CARES Act) has passed congress and has been signed into law by the President. Like all legislation, the devil is in the details. As the provisions of the law go into effect in the next couple of weeks, we will learn more of the details. For now, it is helpful to highlight 6 key benefits so we can make plans accordingly. Before you take any actions, we strongly recommend you contact us so we can help you think through how you can get the maximum benefit from this relief package.
  1. Approximately 90% of U.S. taxpayers will get a check (technically a refundable tax credit). The maximum amount of the check is $1200 for individuals, $2400 for couples plus an additional $500 per child under the age of 17. The amount of each check will be reduced at the rate of $5 for every $100 of additional income over the limit. The limits are:
    a.      Single taxpayers – $75,000 AGI
    b.     Joint taxpayers – $150,000 AGI
    c.      Head of Household taxpayers – $112,000 AGI
  2. The Required Minimum Distribution (RMD) from qualified retirement plans is suspended. In other words, you don’t have to take a RMD this year. If you have already taken your RMD for this year but it has been less than 60 days since you took the money out, you can put it back into your IRA and not owe taxes on the distribution (not applicable to inherited IRA’s).  If it has been more than 60 days, you may be able to put it back – check with us for the details.
  3. The CARES Act allows you to take distributions of up to $100,000 from your IRA or your employer-sponsored savings plan, before age 59.5 without the 10% penalty if you have been impacted by the corona virus. You can pay this back over three years and you can pay the taxes over three years. However, this solution to a short-term problem may have severe negative long-term consequences. So, before you take advantage of this benefit, contact us to help with your long-range planning.
  4. Small businesses (those who employ less than 500 people) can qualify for loans to help with payroll expenses, rent, mortgage payments and certain other business expenses. These are administered through the SBA and may be forgiven if certain criteria are met. Contact us if you would like to discuss the details.
  5. Self-employed individuals may qualify for special unemployment benefits if they don’t qualify for other forms of benefits. Contact us for details if you think this benefit applies to you.
  6. Required payments for Federal student loans are suspended until September 30, 2020 with no late payment penalties or added interest. If you have private student loans, you must contact your loan provider to find out if there are relief options. Other restrictions apply so contact us before you take advantage of this benefit.

These are just 6 of the key benefits of the CARES Act. There are other benefits that may be helpful to you. I’ll be writing about those in future blogs so be sure to check back often.

 

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Financial Satisfaction Survey

 


Directions: The statements below will help you to think about and assess how satisfied you are with many aspects of your financial life. Indicate your level of satisfaction for each statement with stars.
(1 star = "Not Satisfied", 3 stars = "Moderately Satisfied", 5 stars = "Very Satisfied")

I am satisfied with...

1. ...with my ability to meet my financial obligations

2. ...with the income my current job or career provides me.

3. ...with my spending habits.

4. ...with the level of debt I carry.

5. ...with the “extras” that I am able to buy for myself and/or loved ones.

6. ...with the level and quality of insurance protection I currently have.

7. ...with the amount of money that I save and invest on a regular basis.

8. ...with my current investment choices.

9. ...that I am on track to build a sufficient retirement nest egg.

10. ...with the level of employee benefits I receive.

11. ...with my style of personal bookkeeping and financial record management.

12. ...with my ability to provide financial help to family members.

13. ...with my estate plan.

14. ...with my level of charitable giving.

15. ...with the level of financial education I have attained.

16. ...with how I respond emotionally to my personal finance issues.

17. ...with my ability to communicate about my financial matters.

18. ...with the feelings I have about my money life.

19. ...that financial issues do not cause stress or strain in the relationships that are important to me.

20. ...with the working relationships I have with my financial service providers (i.e., insurance agent, banker, broker, financial planner, accountant).


© 2002 - 2018 Money Quotient, Inc. All Rights Reserved. This document is available via licensing arrangements with Money Quotient and is protected by federal copyright law. No unauthorized copying, adaptation, distribution, or display is permitted - moneyquotient.org.

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Life Transition Survey

 


Directions: In each section, select the transitions that you are currently experiencing and those you are likely to experience in the future. In addition, check transitions in the short to mid-term and long-term columns that you either hope to experience or anticipate with concern.

Work Life Transitions

1. Change in career path:

2. New Job:

3. Promotion

4. Job loss

5. Job restructure

6. Education / retraining

7. Sell or close business

8. Transfer family business

9. Gain a business partner:

10. Lose a business partner:

11. Downshift / simplify work life

12. Sabbatical / leave of absence

13. Start or purchase a business

14. Retire:

15. Phase into retirement

16. Other


Financial Life Transitions

1. Purchase a home:

2. Sell a home:

3. Relocate:

4. Purchase a vacation home / timeshare:

5. Re-evaluate investment philosophy:

6. Experience investment gain:

7. Experience investment loss:

8. Debt concerns:

9. Consider investment opportunity:

10. Receive inheritance or financial windfall:

11. Sell assets:

12. Other:


Family Life Transitions

1. Change in marital status (marriage):

2. Change in marital status (divorce):

3. Change in marital status (widowhood):

4. Expecting or adopting a child:

5. Hire child care:

6. Child entering adolescence:

7. Child with special needs:

8. Child w/pre-college expenses:

9. Child going to college:

10. Child getting married:

11. Empty nest:

12. Family special event (Bat/Bar Mitzvah, anniversary party, trip):

13. Helping and/or gifting grandchildren

14. Concern about aging parent

15. Concern about health of spouse/partner or child:


Legacy Life Transitions

1. Increase charitable giving:

2. Give special financial gifts to children/grandchildren:

3. Give parental pension (monthly stipend):


© 2002 - 2018 Money Quotient, Inc. All Rights Reserved. This document is available via licensing arrangements with Money Quotient and is protected by federal copyright law. No unauthorized copying, adaptation, distribution, or display is permitted - moneyquotient.org.

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