PEOPLE WITH COVID-19 IN THAT
STATE.
WISCONSIN SAFER AT HOME ORDER
STAYS IN EFFECT FOR ANOTHER
MONTH.
WE WANT YOU TO BE AS
INFORMED AS POSSIBLE.
NAVIGATING THE CHALLENGES OF
COVID-19, ONE AREA OF CONCERN
FOR MANY IS MONEY.
THE CARES ACT PROVIDES RELIEF
TO BUSINESSES AND INCLUDES NEW
RULES THAT PROTECT RETIREMENT
ACCOUNTS.
WE GET A CLEARER PICTURE.
WE ARE LEARNING DAY BY DAY ALL
THE THINGS THIS CARES ACT
COVERS, THIS ECONOMIC RELIEF
PACKAGE FOR CORONAVIRUS.
COUPLE THINGS, WHIT COMES TO
THE RMD'S, IF YOU WERE 70 AND A
HALF OR OLDER LAST YEAR IN
2019, YOU WERE REQUIRED TO TAKE
OUT MINIMUM DISTRIBUTIONS LAST
YEAR.
SO WHAT THE CARES ACT HAS
ALLOWED US TO SUSPEND THOSE FOR
THIS YEAR.
WHY IS THAT IMPORTANT?
NOBODY WANTS TO SELL
INVESTMENTS IN THE DOWN MARKET.
WE LOST ALMOST 35% IN ABOUT A
SIX WEEK PERIOD.
WE RECOVERED ABOUT HALF BACK.
NOBODY WANTS TO SELL
INVESTMENTS WHEN IT IS LOW JUST
LIKE YOU DON'T WANT TO SELL
YOUR HOUSE AT THE BOTTOM OF THE
REAL ESTATE BUBBLE LIKE TEN
YEARS AGO.
IT IS GOING TO ALLOW THE THERE
WILLS COME BACK AND HOPEFULLY
NEXT YEAR THE MARKET WILL BE
BETTER.
ALSO PENALTY FREE ACCOUNT
WITHDRAWALS.
YES, IF YOU ARE UNDER 59 AND
A HALF, TYPICALLY THE IRS WOULD
DO AN ADDITIONAL 10% PENALTY
FOR YOU TAKING MONEY OUT OF THE
ACCOUNTS, YOU BEING TOO YOUNG.
IT ALLOWS YOU TO TAKE OUT
100,000-DOLLARS WITHOUT THAT
PENALTY.
YOU STILL HAVE TO PAY YOUR
FEDERAL AND STATE TAXES ON THAT
MONEY.
TYPICALLY IN A 401-K YOU CAN
TAKE UP TO A $100,000 IN YOUR
401-K. I'M NOT A BIG FAN OF
THESE UNLESS YOU NEED TO
UTILIZE THESE DOLLAR.
AND SOME OPPORTUNITY FOR
ROTH CONVERSES.
YES, IT IS -- I WOULD RATHER
SELL YOUR IRA'S AND 101 K
BEFORE YOU GET INTO A ROTH
BECAUSE THAT MONEY GOES TAX
FREE.
IT IS AN OPPORTUNITY TO HAVE
THOSE TAX FREE IN A ROTH.
IN THE FUTURE YOU DON'T HAVE TO
TAKE UP -- IT IS NOT ALWAYS THE
BEST SITUATION FOR EVERYBODY TO
LOOK AT A ROTH, SOMETIMES IT IS
NOT A BENEFIT.
SO TAX BRACKETS ARE STILL LOW.
IT IS A GREAT OPPORTUNITY TO
TAKE ADVANTAGE OF THAT.
STILL CHECK WITH A PROFESSIONAL
ON THAT.
MAYBE A QUESTION HAVE YOU
BEEN GETTING, SHOULD WE BE
TAKING ADVANTAGE OF THE NEW
RULES TO ACCESS OUR RETIREMENT
MONEY?
YEAH.
WE HAVE HAD CLIENTS IN THAT
SITUATION, MOST ARE IN THE
PRERETIREMENT.
WE HAVE BEEN PREPARING FOR
THINGS LIKE THIS.
A LOT OF CLIENTS HAVE BEEN
ASKING FOR THEIR CHILDREN.
IF I WHEN THE OPPORTUNITY TO
TAKE MONEY OUT OF MY IRA UNDER
59 RIGHT NOW UP TO A $100,000
OR TAKE MONEY OUT OF THE 401-K
I REMEMBERED OPT FOR THE LOAN
INSTEAD OF TAKING WITHDRAWAL
OUT BECAUSE IT FORCES TO YOU
PAY IT BACK.
SO I THINK JUS TO HAVE THESE
AVAILABLE, IF YOU WERE NOT
AFFECTED DON'T TAKE ADVANTAGE
OF IT.
YOU DON'T WANT TO PUSH YOUR
RETIREMENT THREE TO FIVE YEARS
OR LONGER.
LOOK AT YOUR SITUATION AND
DON'T TAKE ADVANTAGE OF THAT.
THE WHOLE RMD SITUATION, I
THINK THAT IS A GREAT IDEA NOT
TO TAKE ANY DISTRIBUTION OUT
THIS YEAR.
WHAT ABOUT DO YOU THINK
THERE'S ANYTHING WE CAN DO TO
AVOID HAVING TO MAKE A DECISION
LIKE THAT DOWN THE ROAD IN THE
FEW HER?
YEAH.
I THINK WHAT THIS TAUGHT US IS
THE UNEXPECTED HAS JUST
HAPPENED AND IT JUST DID.
AS FAR AS PEOPLE LOOKING AT
THEIR BUDGET, IF YOU HAVE NOT,
I'M SURE MOST HAVE GOTTEN DOWN
WITH THE BUDGET.
CAN YOU DOWNLOAD A WORK SHEET
ON MY WEBSITE.
FILL THAT OUT AND STOP THAT
USELESS SPENDING.
GET BETTER WITH YOUR BUDGET AND
ALSO IT TAUGHT US AS WE PREACH
ABOUT HAVING ENOUGH MONEY IN
RESERVES, IF THOSE PEOPLE HAD
ENOUGH MONEY, THEY REALLY HAVE
NOT BEEN AFFECTED AT ALL.
GET THOSE RESERVES BUILT UP.
WHEN YOU GET LIFE BACK TO NORM
AND YOU ARE BACK TO YOUR JOB OR
FULL TIME, BUILD UP THE
RESERVES THREE THE SIX MONTHS
OF YOUR EXPENSES SET ASIDE IN
CASE ANYTHING HAPPENS LIKE THIS
IN THE FUTURE WILL YOU BE IN A
GOOD SITUATION.
NEVER STOP PLANNING FOR THE
FUTURE FOR RETIREMENT.
YOU NEVER STOP CONTRIBUTING TO
THOSE INVESTMENTS.
IF ANYTHING THIS IS A GREAT
OPPORTUNITY TO KEEP INVESTING
MORE.
THIS IS A GREAT OPPORTUNITY TO
PUT MORE MONEY INTO THE MARKET
WHEN IT WAS RECESSED BECAUSE IT
WILL HELP YOUR MONEY GROW
FASTER.
ANY QUESTIONS ABOUT COVID-
19?
LET US FIND THE ANSWERS.