Welcome back to another LesWin Financial Newsletter!
2020 is off to a rough start and the first quarter is almost over. Have you ever thought after one quarter that the game was over. We’ve seen time and time again that one quarter does not define a final score in a game. It’s the same way for us 2020. Do you still see 2020 vision? Although we are facing the CoronaVirus pandemic and looming recession, we can still WIN in 2020.
3,280,000 people really filed for unemployment benefits last week here in the U.S. The prior week claim was just 282,000. Congress is still ironing the final bill (Care Act) that should bring some type of aid to the U.S economy however Congress must act fast to avoid further disaster.
There’s been many questions surrounding the stimulus funding that individuals and families will receive in the coming weeks. First if you get a stimulus check, I don’t care how you choose to spend it, just don’t spend it until you have it. As most of you read already, the Government is expected to provide $1,200 per person and $500 per child based off income restriction. One important aspect most people are missing. How does the Government calculate how much you earned?
If you filed your 2019 tax return, the check will be based on your 2019 return. Look for your “adjusted gross income” (Line 7 on your Form 1040 tax return for 2018 or line 8b for your 2019 return). Side note: it’s a beautiful thing to have a wife as a CPA (love you hunny). So essentially the income restriction is not just on your salary/income but on your “Adjusted Growth Income.” If you think you don’t quality go back and check your tax form for these line items.
Here’s a quick glance of the massive $2 trillion stimulus bill:
Relief Checks
$1,200 per person, $2,400 per married
$500 for each child under age 17
**Payments depends on income when adjusted growth income of $75k to $99k and for married income of $150k up to $188k. And $145,500 for heads household, and $198k for couples. More you make, less you get.
Unemployment Insurance
Recipient get an extra $600 a week for 4 months, PLUS their state benefits. Also adds 13 weeks of extended benefits.
Business Loans
$454 billion to provide loans to businesses, states, and municipalities.
Student Loans
Suspend payments on student loans penalty free through September 30th
No penalty or accruing interest for 60 days
Homes
Anyone facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days which can be extended for 4 periods of 30 days each
May not begin the foreclosure process for 60 days from March 18
Does not allow fees, penalties or additional interest to be charged as a result of delayed payment on a federally back mortgage loan
Retirement (PLEASE BE CAREFUL WITH THIS ONE)
You can dip into your 401(k) penalty free – the bill will allow you to take a withdrawal of up to $100k from your retirement savings including 401(K) or Individual Retirement Account (IRA). We will cover this topic in complete detail in another newsletter by itself in a few days. Just note: there are tax implications on the withdrawal. The IRS will allow the withdrawal income to be spread out over 3 years so in the event you take all your money out you won’t be taxed at the highest income tax rate of 37%. (I recommend not take any money out your retirement until you desperately have to — more to follow)
The US now has the most coronavirus cases in the world. As a results, stocks are dropping due to fear and uncertainty. The reality most people don’t understand how investing works or where to begin. That’s why LesWin Financial will be hosting a webinar this Saturday at 7:30pm EST teaching you how to invest as a beginner. Click on the event picture below to sign up to the forwarding link. A recession or market crash is a good time to invest in the stockmarket, especially if you have decades to go before you need money in retirement. The best time to invest was 20 years ago however the second best time to invest is TODAY. You will not only learn how to invest but invest smart as this webinar will teach you how to invest through different tax advantage investment vehicles. You will come away empowered and ready to take the “L” off learn to Earning!
