Proactive Steps in an Uncertain Environment

In our continued effort to assist our clients with all things pertaining to their financial well-being, the following are some proactive steps that should be explored in these uncertain times.

  1. Apply for a loan under the Paycheck Protection Program. If you own a small business, you should begin the process of applying for the SBA loan available to American businesses who have been adversely affected by the coronavirus.  If you would like to read our Whitepaper for additional details on the Paycheck Protection Program, please give us a call.  You can also access it by clicking here.
  2. Explore refinancing your current mortgage or any other debt. The recent interest rate cuts enacted by the Federal Reserve have resulted in much lower rates for mortgages and lines of credit.  Check and see what you are currently paying and if you have any other debts that might benefit from timely refinancing.
  3. Explore a Roth Conversion. The recent decline in the markets has created an opportunity to now move a Traditional IRA to a Roth, thus creating a reduced tax liability in doing so after a corrective market.  Roth income in retirement is generally tax-free.*
  4. Consider using Qualified Assets for your income needs. The CARES Act resulted in much greater liquidity for Qualified Assets.  You may take a distribution up to $100,000 from your IRA, company sponsored retirement plan, or a combination of both, without incurring the 10% penalty prior to age 59 ½.  You may also have the taxes due on the distribution spread out over three years, and if you choose to, pay it back within three years, without penalty. Also, Required Minimum Distributions have been eliminated for 2020.  If you have already taken RMD’s this year, you may be able to pay some or all of them back.*  Taking income from taxable sources may be the best course of action for the remainder of 2020, depending upon your specific situation.

*some restrictions and limitations may apply; we recommend you review your particular situation with your tax preparer

Over the past eighteen months, we have continually emphasized the importance of risk-specific portfolios and the benefit of a comprehensive Financial Plan.  Not surprisingly, we have found that through this recent turbulent time, the clients that have gone through this process with us have had an easier and more beneficial experience than those that have yet to participate.  We urge you to reach out to us to discuss further how to begin utilizing Riskalyze and WealthMap.

We stand ready to address all of these topics in greater detail and can offer introductions to other professionals, should their assistance be needed.  Thank you for your continued trust and confidence in Biondo Investment Advisors.