Proactive Planning and Health Remain Critical
There are many aspects impacting our society beyond COVID-19 as we collectively navigate together.
Consider in 8 weeks, 36.5 million Americans of 155.7 million employed in February have filed for unemployment. For MA, 1,053,000 or more than a quarter of the workforce from February are now unemployed.
On 4/28, Reuters “U.S. Medical Testing, Cancer Screenings Plunge” cited examples across the country where cancer screenings were down 68%, cholesterol panels fell 67% and outpatient office visits fell nearly 60%. The reason, perception of hospitals overrun and fear of becoming infected.
Harsh realities that need balance, diligence and strategy with your personal changes, finances, and health. Whether you have been impacted or feel shielded by WFH, don’t naively put off proactive steps for what’s next.
Everyone’s situation is different. So too are the options and weighting of taxation, expenses, penalties and opportunity costs. Here are some starting points to explore or seek help from a CFP.
CARES Act for IRA Withdrawals - If diagnosed with coronavirus or suffer financial harm due to coronavirus (i.e. job loss), can take up to $100,000 without the 10% premature withdrawal penalty. Additionally, income tax due can be spread over 3 years with the option to return some or all of the funds to an IRA within 3 years.
Home Equity Line of Credit (HELOC) - I stress with clients to establish when times are good, keep the balance at $0 and have access for emergencies. Today, some large banks have stopped taking applications, repeating 2008 actions. If you’re employed and have at least 30% equity in your house, shop local banks and credit unions. Furthermore, understand the variable terms (Prime minus X%), early termination fees, initial costs and duration (i.e. 10 - 15 years).
MassSave - If you have a major home repair, always fully vet the rebates, incentives and 0% interest loans available through MassSave. When available, this is a better option than reducing emergency funds.
Lastly, Don’t Wait To Seek Preventive Care - Our family’s primary care provider sent an email recently containing: “If you have a chronic medical condition like diabetes, heart disease, hypertension, depression, asthma or COPD, your concerns about COVID-19 may have kept you from seeking care in recent months. We want to assure you that we have created safe and accessible ways to care for you…”
Yes, don’t put off your health or your planning over fear, that is not the “new normal”.
For your finances, hundreds of Certified Financial Planners can work with clients 100% electronically to enter an engagement, learn about your situation, deliver a plan and help with execution.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Glenn Brown is a Holliston resident and owner of PlanDynamic, LLC, www.PlanDynamic.com. Glenn is a Certified Financial Planner™, Chartered Retirement Planning Counselor and fee-only fiduciary helping clients take control of planning and investing, so they can balance kids, aging parents and financial independence.
This article appeared in the June editions of Holliston Local Town Pages, Ashland Local Town Pages and Natick Local Town Pages.
Please call me at (508) 834-7733 or directly schedule a meeting to learn more about considerations for planning and investing so you can balance kids, aging parents and your financial independence.
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