What has distinguished the companies that have thrived in 2020 from those that are barely surviving? How will the 2020 election results impact financial markets and the economy? What tax strategies can I implement now to potentially reduce my income taxes for 2020? Get answers to these questions and more in the Reby Advisors Fall 2020 Newsletter!
In this edition of Return On Investment, we have included information on the following topics:
1. The Importance of Risk Control
2. Are You Nearing the Age of 71?
3. Pension Reform: The CPP is Set to Change
4. Transferring Wealth: Preparing Your Heirs
5. Unclaimed Balances: Are Funds Owed to You?
6. Year-End Tax Planning Considerations
What has distinguished the companies that have thrived in 2020 from those that are barely surviving? How will the 2020 election results impact financial markets and the economy? What tax strategies can I implement now to potentially reduce my income taxes for 2020? Get answers to these questions and more in the Reby Advisors Fall 2020 Newsletter!
In this edition of Return On Investment, we have included information on the following topics:
1. The Importance of Risk Control
2. Are You Nearing the Age of 71?
3. Pension Reform: The CPP is Set to Change
4. Transferring Wealth: Preparing Your Heirs
5. Unclaimed Balances: Are Funds Owed to You?
6. Year-End Tax Planning Considerations
Reinventing Your Retirement New Realities For New Challenges For Clear ViewSteve Stanganelli
This presentation is part of the Transition Assistance Plan workshop series offered through Salem Works.
While many things in life are uncertain, we can control how we make better decisions. This presentation highlights the fundamental approach needed for short-term fixes and getting back on track long-term.
Inside This Issue:
• Certainty in an Age of Uncertainty
• Happy 60th Birthday, RSP!
• Teaching Kids About Money
• The Value of Dividend-Paying Equities
• In Brief: Housing Market Changes
• Elder Care: Planning Ahead
A Target Retirement Income Plan is a nonqualified, supplemental, after-tax executive retirement benefit program that changes the focus from return on investment to certainty of predictable income in retirement.
The next President will need to confront a number of budgetary challenges and will likely sign into law many federal tax and spending changes. Yet too often, election campaigns are about telling voters what they want to hear rather than what they need to know. To separate fiction from reality, the new Fiscal FactChecker series will monitor the 2016 Presidential campaign on an ongoing basis. To start with, we have identified 16 myths that may come up during the campaign.
With the ups and downs of the stock and real estate markets it is difficult to know where to put your money. In this slideshare we go over the 12 keys to creating financial certainty. You will learn how to avoid market risks and how to bank on yourself with the Family Banking Plan that uses Infinite Banking.
To learn more:
Visit our website at http://www.AllianceGroupFinancial.com
Like us on Facebook http://www.facebook.com/alliancegroup
Watch videos on Vimeo http://vimeo.com/alliancegroup
Watch videos on YouTube https://www.youtube.com/user/alliancegroupfinanci
Rebalancing the UK economy - Peter Hahn, Cass Business SchoolNatalieW
An overview of some of the key trends currently affecting the UK economy, exploring where these might go in future. It is from a NCVO Third Sector Foresight seminar.
After a long spell of staying in denial, the policymakers have shown some urgency in past 6 months. However, they have so far refrained from pressing the panic button. The investors are eagerly waiting to see the finance minister pressing the red button hard today.
In my view, the current state of Indian economy is akin to a person who is single wage earner for his family; has little savings; chronically suffered from hypertension and diabetes, and recently got a heart attack.
This person cannot afford to spend couple of months in bed for recuperating. He has to immediately go for work so that he can pay the bills and feed the family.
Our guide to Retirement Resilience is packed with a wealth of information to help you make informed choices about your pension pot, find out how you can take control and get the most out or your pension. Find out more at https://www.tudorfranklin.co.uk
Reinventing Your Retirement New Realities For New Challenges For Clear ViewSteve Stanganelli
This presentation is part of the Transition Assistance Plan workshop series offered through Salem Works.
While many things in life are uncertain, we can control how we make better decisions. This presentation highlights the fundamental approach needed for short-term fixes and getting back on track long-term.
Inside This Issue:
• Certainty in an Age of Uncertainty
• Happy 60th Birthday, RSP!
• Teaching Kids About Money
• The Value of Dividend-Paying Equities
• In Brief: Housing Market Changes
• Elder Care: Planning Ahead
A Target Retirement Income Plan is a nonqualified, supplemental, after-tax executive retirement benefit program that changes the focus from return on investment to certainty of predictable income in retirement.
The next President will need to confront a number of budgetary challenges and will likely sign into law many federal tax and spending changes. Yet too often, election campaigns are about telling voters what they want to hear rather than what they need to know. To separate fiction from reality, the new Fiscal FactChecker series will monitor the 2016 Presidential campaign on an ongoing basis. To start with, we have identified 16 myths that may come up during the campaign.
With the ups and downs of the stock and real estate markets it is difficult to know where to put your money. In this slideshare we go over the 12 keys to creating financial certainty. You will learn how to avoid market risks and how to bank on yourself with the Family Banking Plan that uses Infinite Banking.
To learn more:
Visit our website at http://www.AllianceGroupFinancial.com
Like us on Facebook http://www.facebook.com/alliancegroup
Watch videos on Vimeo http://vimeo.com/alliancegroup
Watch videos on YouTube https://www.youtube.com/user/alliancegroupfinanci
Rebalancing the UK economy - Peter Hahn, Cass Business SchoolNatalieW
An overview of some of the key trends currently affecting the UK economy, exploring where these might go in future. It is from a NCVO Third Sector Foresight seminar.
After a long spell of staying in denial, the policymakers have shown some urgency in past 6 months. However, they have so far refrained from pressing the panic button. The investors are eagerly waiting to see the finance minister pressing the red button hard today.
In my view, the current state of Indian economy is akin to a person who is single wage earner for his family; has little savings; chronically suffered from hypertension and diabetes, and recently got a heart attack.
This person cannot afford to spend couple of months in bed for recuperating. He has to immediately go for work so that he can pay the bills and feed the family.
Our guide to Retirement Resilience is packed with a wealth of information to help you make informed choices about your pension pot, find out how you can take control and get the most out or your pension. Find out more at https://www.tudorfranklin.co.uk
Gary Trennepohl on "Financial Markets in 2011," during Reynolds Business Journalism Week, Jan. 7, 2011.
For more information, please visit businessjournalism.org.
Coronavirus Financial Assistance ProgramsMark Gottlieb
[Attorneys of All Disciplines] Under The Caption - "Must Be Shared" - Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are also eligible. Call us if you need further assistance.
[퐀퐭퐭퐨퐫퐧퐞퐲퐬 퐨퐟 퐀퐥퐥 퐃퐢퐬퐜퐢퐩퐥퐢퐧퐞퐬] 퐔퐧퐝퐞퐫 퐓퐡퐞 퐂퐚퐩퐭퐢퐨퐧 - "퐌퐮퐬퐭 퐁퐞 퐒퐡퐚퐫퐞퐝"- Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are eligible. Call us if you need further assistance.
Similar to Financial Synergies Wealth Advisors | Q1 2020 Newsletter (20)
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global
overview, then features the returns of stock and bond asset
classes in the US and international markets.
The report also illustrates the impact of globally diversified
portfolios and features a quarterly topic.
This report features world capital market performance and a
timeline of events for the past quarter. It begins with a global
overview, then features the returns of stock and bond asset
classes in the US and international markets.
The report also illustrates the impact of globally diversified
portfolios and features a quarterly topic.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios.
This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of
stock and bond asset classes in the US and
international markets.
More from Financial Synergies Wealth Advisors, Inc. (20)
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
1. Apologies to
Stephen King
MIKE BOOKER, CFP®, CHFC®, CFS®
SHAREHOLDER, FINANCIAL ADVISOR
If a month or so ago, someone said to you that all
schools will be closed well before graduation; the vast
majority of all public gatherings would be canceled;
even though the economy was going gangbusters,
Congress would be hurriedly crafting the largest
economic stimulus package in history; the NCAA
Basketball Championship (March Madness) would be
canceled and (for us golfers) the Masters, British Open
and U. S. Open would be canceled or delayed, you
would have thought them completely deranged. You
would have never believed even one of their assertions.
But here we are…in our real life Stephen King movie.
INSIDE THIS ISSUE
1. Apologies to
Stephen King
2. Don't Let a
Recession Faze You
3. Coronavirus
Stimulus Package
Overview
4. Financial Synergies
Branch Office
Q1 2020
Newsletter
Quarterly
...continued on next page
4400 Post Oak Pkwy, Suite 200, Houston, TX 77027 | 713-623-6600 | info@finsyn.com | finsyn.com
2. 2„„
...continued from page 1
If you’re like me, you have already received a mountain of emails, all the way from Walmart to
your dog walker, telling you that they will be there for you and that "we will get through this
together". I'm not going to go there. I don’t need to. When it comes to you and Financial
Synergies, this is all understood, old news. We have been through so much together that we
already know we will be there for each other and that we will get get through this together. We
always have. This time is no different.
It is true, however, that our economy is on hold. Americans are risking their livelihoods so that
others might live. This isn’t survival of the fittest, it is quite the opposite-our aim to protect our
most vulnerable. But, there is something that has gotten lost in the shuffle of all this fear and
confusion. Our economy can withstand almost anything thrown at it, even COVID19, because
our economy is…us. It is our energy, our minds and our ability to tough things out. To stand fast.
To be resilient. This is a tough one, but so are we.
Here are three facts I want you to remember as we go through this period together:
1. Busts plant the seeds of booms:
Every down day or week plants seeds for the next upswing. Down markets are temporary
events, up markets provide long-term rewards to tough, patient investors.
2. Successful investing is not about earning the highest return possible.
It’s about earning pretty good returns for the longest period of time possible.
Earning 20% a year and getting washed once a decade will leave you worse off than earning
6-8% a year and being able to survive when times get rough. Survival is the single most
important ingredient to long-term growth.
3. What you see on TV and Twitter is mostly noise. Noise never gets it right.
In the summer of 2011, the market suddenly lost 20%. Every news and social media outlet was
predicting deep financial crisis and reported that everyone was panicking out of this failing
market. Vanguard published a study a few months after the market had experienced a dramatic
rebound from its lows that year and found:
98% of investors didn’t make a single change to their retirement portfolios in August,
when market volatility peaked … Ninety-eight percent took the long-term view. Those trading
are a very small subset of investors.
I know that Financial Synergies clients are well within that 98% this time around, too. Noise
over-hypes perceived panic. Tune out that useless noise.
Find a way to hang in there.
Things look bad right now.
Things might look bad tomorrow.
Things will continue to be bumpy.
If the bumps seem too big or feel like they are happening a little too often, call us. Let’s talk.
3. Financial Synergies Quarterly Newsletter | Q1 2020 3
With activity in many industries sharply curtailed in an effort to reduce the chances of
spreading the coronavirus, some economists say a recession is inevitable, if one hasn’t already
begun. From a markets perspective, we have already experienced a drop in stocks, as prices
have likely incorporated the growing chance of recession. Investors may be tempted to
abandon equities and go to cash because of perceptions of recessions and their impact. But
across the two years that follow a recession’s onset, equities have a history of positive
performance.
Data covering the past century’s 15 U.S. recessions show that investors tended to be rewarded
for sticking with stocks. Exhibit 1 shows that in 11 of the 15 instances, or 73% of the time, returns
on stocks were positive two years after a recession began. The annualized market return for the
two years following a recession’s start averaged 7.8%. Not too shabby.
Don't Let a Recession Faze You
MIKE MINTER, CFP®, CFS® | SHAREHOLDER, PORTFOLIO MANAGER
Recessions understandably trigger worries over how markets might perform. But history can be a
comfort for investors wondering whether now may be the time to move out of stocks.
Stick to the long-term game plan and you’ll be rewarded.
Source: Dimensional Fund Advisors
4. Coronavirus Stimulus Package Overview
WILL GOODSON, CFP® | FINANCIAL ADVISOR
On Friday, March 27th, the President signed into law a $2.2 trillion-dollar stimulus plan known as the
Coronavirus Aid, Relief, and Economic Security Act, or CARES Act. It is the largest stimulus package of its
kind and is intended to help combat the economic impact of the COVID-19 virus. This federal aid package
will provide much needed financial support for businesses large and small. Billions of dollars have been set
aside to help corporations – especially airlines – with additional assistance for states and local
municipalities.
Much of the stimulus has also been earmarked for the benefit of individuals, families, and small businesses.
Families and business face significant financial strain while the country focuses on social distancing efforts
to help reduce the spread of COVID-19. The CARES Act provides aid through a variety of channels,
including direct payments, loans for small business, leniency on retirement distributions, short-term
student loan relief, and much more.
Below is a summary of the provisions related to individuals, families, and small businesses.
Direct Payments to Individuals and Families
One of the major provisions of the CARES Act provides direct payments to qualifying individuals and
families. Individual tax filers may receive up to $1,200 if their Adjusted Gross Income (AGI) is less than
$75,000. Married filing jointly households are eligible for up to $2,400 if their AGI is less than $150,000.
An additional $500 is available for each dependent child under age 17. These amounts are based upon the
most recent tax return the IRS has on file (2019 or 2018 tax returns).
Individuals and joint filers whose AGI exceed these thresholds may still receive direct payments but they
will be reduced based on how much one’s AGI exceeds these limits. The credit faces a 5% reduction based
on the amount of “excess AGI.” For example, let’s assume you’re a married couple with two children under
age 17 and have AGI of $160,000. You initially would qualify for a total payment of $3,400 ($2,400 for
MFJ + $500 per child). However, AGI exceeds the stated $150k threshold by $10,000. Thus, the payment
amount is reduced by $500 ($10,000 “excess AGI” x 5%). Thus, the family would receive a direct payment
of $2,900 ($3,400 – $500).
For high income earners whose AGI far exceeds these thresholds, they may be completely phased out of
any direct payment.
Special Rules for the Use of Retirement Funds
The CARES Act has relaxed many provisions that relate to retirement plan distributions given this
unprecedented event. In order to qualify for a coronavirus-related distribution, the distribution must be
made:
(1) on or after the date of the enactment of the bill and before December 31, 2020,
(2) to an individual –
(I) who is diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention,
(II) whose spouse or dependent is diagnosed with such virus or disease by such a test, or
(III) who experiences adverse financial consequences as a result of being quarantined, being furloughed or
laid off, or having work hours reduced due to such virus or disease, being unable to work due to lack of
child care due to such virus or disease, closing or reducing hours of a business owned or operated by the
individual due to such virus or disease, or other factors as determined by the Secretary of the Treasury.
Financial Synergies Quarterly Newsletter | Q1 2020 4
...continued on next page
5. Financial Synergies Quarterly Newsletter | Q1 2020 5
Coronavirus-related distributions cannot exceed $100,000 for 2020. The distributions are taxable, but the
bill allows these taxes to be spread over a three-year period. If you’re under the age of 59 ½, the 10%
early withdrawal penalty is waived. Additionally, distributions from retirement accounts can be
repaid over a three-year period and do not count against the normal annual contribution limits.
For example, if a worker needs to take a distribution from his 401k, he can repay his account within
three years and spread out the taxes from the distribution over the same time period.
401k loan provisions have also been temporarily expanded. Loan limits have been increased to
$100,000 from $50,000, and the repayment of these loans may be delayed up to one year.
Lastly, the CARES ACT eliminates Required Minimum Distributions (RMD) for 2020. This includes anyone
who turns age 72 this year (the new RMD age from SECURE Act), individuals who turned 70 ‰ in the
second half of 2019 & elected to take their first RMD prior to April 2020, and beneficiaries of
inherited retirement accounts.
Congress recognized the need for waiving RMDs this year. These distributions are calculated using
year-end balances from 2019. Many retirement account owners have seen their accounts decline due
to the impact of COVID-19. By waiving the RMD requirement, it should allow those retirement
accounts time to recoup some of those losses as the market turns around in the future.
Expanded Unemployment Benefits
The spread of COVID-19 has already had a significant impact on unemployment. Many businesses have
had to temporarily close and either furlough or lay off workers. As of last week, over 3.3 million
people filed for unemployment benefits – the largest single reading ever.
The CARES Act expands the eligibility of unemployment benefits and increases the amount
individuals may receive. The bill now covers the self-employed, those who have been furloughed, and gig
workers. Benefits may increase by up to $600/week above traditional benefit amounts for up to 4
months. Typically, individuals are required to wait at least one week after losing their job before they can
receive benefits. The bill now allows for immediate payment. For those who previously exhausted their
unemployment benefits, they will receive an extension for up to 13 additional weeks.
Additionally, the CARES Act helps create short-term compensation programs for many states. These
programs are designed to provide benefits for individuals who are still working but have had hours cut
significantly. These individuals would not qualify for unemployment benefits under normal circumstances.
Charitable Giving Provisions
The CARES Act has introduced a temporary $300 Above-the-Line charitable deduction for 2020. It
applies to taxpayers who do not itemize their deductions. It must be a cash contribution paid directly
to a charitable organization. Thus, a contribution to a donor advised fund (DAF) does not qualify.
For those who do itemize, the bill suspends the AGI limits for charitable gifts for 2020. Under the current
tax law, the deductibility of charitable donations is limited to 60% of AGI. Instead, the limit is
increased to 100% of AGI for 2020. Any additional amounts may be carried forward for up to 5 years.
Again, these cash donations must be made directly to charitable organizations. DAF contributions are
not eligible.
Student Loan Relief
The CARES Act provides temporary student loan relief. Borrowers are not required to make payments for
three months, and loan interest will not accrue during this time. Additionally, this three-month period will
still count toward individuals who are pursuing loan forgiveness programs. It’s unclear if these payments
will automatically be suspended. Since many borrowers make automated monthly payments, it is
recommended that they contact their loan service provider to ensure these payments are postponed.
...continued on next page
6. Financial Synergies Quarterly Newsletter | Q1 2020 6
Relief for Small Business
Small businesses have suffered significantly as a result of COVID-19 and the social distancing efforts to
help minimize its spread. The CARES Act provides several provisions to assist owners in these difficult
times.
The bill provides small business owners access to SBA loans to help cover qualified costs. These loans are
primarily directed toward businesses with less than 500 employees, but exceptions do apply. The loans
must be specifically used to cover expenses related to things such as payroll (for workers making less
than $100k), group health insurance premiums, rent, utilities, mortgage interest, and other debts. The
SBA loan amount equals up to 2.5 times annual payroll costs from the previous year, not to exceed $10
million. The interest rates are capped at 4% and loans may be repaid over a 10-year period.
These loans may be forgiven if certain provisions are met. Business owners must use the loan proceeds
within an 8-week period once approved, and the funds must be used on the qualified expenses listed
above. Owners must also maintain the same number of employees they had prior to eligibility. If these
requirements are met, business owners will not owe any tax on the amount forgiven.
Additionally, the CARES Act allows impacted business owners to delay making payroll tax payments for
the time period between when the bill became law and December 31, 2020. If eligible, 50% of the payroll
taxes that would have been owed at the end of 2020 may be paid by December 31, 2021. The remaining
50% may be paid by December 31, 2022.
Additional Considerations
President Trump suggested in a press conference on March 29th that his administration is considering
modifying the deductibility of meals and entertainment expenses. The tax law changes passed in 2017
greatly minimized how these business expenses could be itemized for tax purposes. As the President
suggested, this would be an additional measure to support local business, such as restaurants, who have
seen their revenues significantly impacted by the social distancing measures to help prevent the spread
of COVID-19.
This entire situation is fluid so it is likely that other provisions may be considered to help protect the
economy and reduce the impact of COVID-19.
Conclusions
While these remain uncertain times, the efforts made by the passing of the CARES Act should help to
mitigate some of the near-term damage done to the economy due to COVID-19. It provides relief to
businesses and workers when it is desperately needed. It is unclear if additional measures will be needed,
and how long these circumstances may last. Ultimately, it is our belief that we will persevere through this
challenging time.
We are excited to announce the opening of our new branch office in Tyler, TX, with Will
Goodson as the primary advisor at the location. This is Financial Synergies’ first office beyond
the greater Houston area. As we have continued to experience tremendous growth, we felt this
was a unique opportunity to extend our footprint and serve the wealth management needs for
families in the greater East Texas area.
If you have friends or family in the area that would benefit from a relationship with Financial
Synergies, please let us know! We would love the opportunity to help with their wealth
management needs. For more information reach out to Will at 903.258.9600 or check out the
Tyler office website at www.financialadvisortylertx.com/
Financial Synergies Opens Branch Office in Tyler, TX