On Friday, March 27th, President Trump signed into law the CARES Act, formally named the ‘‘Coronavirus Aid, Relief, and Economic Security Act".
The roughly $2 trillion coronavirus economic stimulus bill has many provisions, but these two points should be noted immediately:
- This legislation allows all those subject to taking a mandatory Required Minimum Distribution (RMD) based on their previous December 31st balance, to skip taking it this year due to the market decline. This especially applies to those of you who DO NOT need part or all the RMD income this year. If you are a client who has not already taken your RMD this year, please contact us to discuss how we recommend you move forward.
- The CARES Act provides roughly 80% of American adults with a payment from the government to help offset the impact the coronavirus will have. See this informative article from The Washington Post which answers questions regarding who will get checks and how much you may receive.
During these difficult times, we need to remain calm and think rationally. At the same time, we need to be realistic about the coronavirus and how badly it will negatively impact our health, the economy, and the many markets we invest in. The CARES act passed by Congress, along with stimulus measures already taken by the Federal Reserve, are important steps in the right direction to get Americans through these uncertain times.
Please don’t hesitate to reach out to us anytime to discuss further.