Under the CARES Act, individuals were eligible to take $100,000 of coronavirus-related distributions from retirement plans. In addition to the distributions being free of penalty there are also accommodations with the IRS for claiming the income as well as repayment of the distributions.
The performance and enthusiasm of November will be hard to top. In the month of November, the Dow gained 11.8% - this is the best November since 1928. The S&P 500 rose 10% and Nasdaq 11%. Transports, Industrials, Financials all enjoyed their best month since April of 2009. Also, the Dow hit the coveted all time high of 30,000. Some believe that November may have taken some of the steam from December’s momentum however, both the consensus and Fed both agree that growth should be about 4% next year. As we wrap up the year, there are obviously a few reasons for pessimism over the next two months but there are more reasons for optimism over the next 12 to 18 months.
Making trade and investment decisions based solely on big events is hardly ever an effective strategy. Having said that, there were obvious concerns about how this year’s election would affect markets and planning strategies. The best thing to do would have been to pick an allocation which you felt comfortable with and ride whatever wave came along with the election results. Some investors sat the sidelines, some bought what they thought might be winners in whatever their assumed outcome scenario was. All in all, what occurred is what I mentioned in our previous election commentary blog – the markets only care that there IS a President.
On the heels of the first Presidential debate of the 2020 Election, investors are increasingly turning their attention to the election and the impact that the result will have on the stock market. It is understood that elevated uncertainty usually affects markets in a negative way bringing lower stock prices. But as we have seen throughout our experiences with COVID this year; stocks move based on expectations of the future.
Talking about money with your children does not have to be complicated. The best way to accomplish this is to use day-to-day activities and turn them into learning opportunities.
Younger children often do not understand money and its’ value. This is most apparent when you are giving your child coins. For example, if you give your child the choice between a penny, a dime and a nickel they will almost certainly choose the nickel simply because of the larger size. It is highly important to teach your child value at a young age.
Any conversation about planning for incapacitation or death is uncomfortable for many people, especially if you are having the discussion with your parents. It is important to remember however, that this discussion while uncomfortable will spare you additional stress and pain when you and your family are going through a crisis.
Many have received the Economic Impact Payment from the IRS, while some still await their payment. Here are some facts that you should know:
Payments will be made throughout the rest of 2020. If you don’t receive a Payment this year, you can also claim it by filing a tax return for 2020 next year.
