SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online newsletter so I can thank them personally.
Robert A. Imparato, Jr CFP®
CERTIFIED FINANCIAL PLANNER™ professional
Craig A. Hyldahl CFP®
CERTIFIED FINANCIAL PLANNER™ professional
R.I.C.H. Planning Group, LLC
105 Fieldcrest Avenue, Suite #507
Edison, NJ 08837
Robert: 732-326-5240
Craig: 732-326-5240
Fax: 732-326-5331
Robert: robert@richplanninggroup.com
Craig: craig@richplanninggroup.com
Website: www.richplanninggroup.com
November/December 2020
Retirement and the COVID Crisis
The COVID-19 pandemic has likely affected most retirement plan balances and people’s ability to save monthly. But the hardest hit were retirees or those nearing retirement.
Boomers at Risk
Unfortunately, retirees and older workers have little time to recover portfolio losses. Some nearing retirement may have experienced permanent job loss, forcing them to tap retirement savings, claim Social Security benefits or even retire earlier than planned leading to permanently reduced income.Generally, most people should try to avoid accessing retirement funds early. However, if you must tap your retirement accounts due to the pandemic the CARES Act included several tax breaks that may be helpful:
- The CARES Act waives the usual 10% early withdrawal penalty on coronavirus-related distributions taken from IRAs and 401(k)s before age 59 1/2 in 2020.
- Coronavirus-related distribution income can be spread out over three tax years – potentially lowering your overall tax hit. However, it may make sense to report the entire distribution this year if your estimated income for tax year 2020 is unusually low.
- If your 401(k) plan allows for employee loans, the CARES Act doubled the amount you may borrow from $50,000 to $100,000 in 2020.
Know that these tax breaks will expire December 31, 2020, unless Congress acts to extend them.
Take Action
For most people, the best path is the same as always:Stay the course with your investments. Remember that markets have historically recovered and reached new highs.* You do not want to miss out on the upswing, so maintain an asset mix in your portfolio that’s appropriate for your needs, goals, time horizon and risk tolerance. This may require that you work with your financial professional to assess your situation and rebalance your portfolio.
During stressful times like these, it is important to reign in emotions so as to prevent making bad decisions. Work closely with your tax and financial professionals to help focus your savings and tax strategies toward a financially secure future.
*https://www.morningstar.com/features/what-prior-market-crashes-can-teach-us-in-2020 . Past performance does not indicate future results.
GE-3144808(7/20)(Exp.7/22)
CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Securities offered through Equitable Advisors, LLC (NY,NY (212) 314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor. Annuity and insurance products offered through Equitable Network, LLC, which conducts business in California as Equitable Network Insurance Agency of California, LLC; in Utah as Equitable Network Insurance Agency of Utah, LLC; and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and Equitable Network are affiliated companies and do not provide tax or legal advice.
R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively.
GE-4833845.1 (7/22)(Exp. 7/24)
CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
These marks are awarded to individuals who successfully complete the CFP Board's initial and ongoing certification requirements.
R.I.C.H. Planning Group, LLC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.