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New Stimulus Bill—What You Need To Know

Posted by The Axial Company

By Richard Harroch, July 27, 2020

 

On July 27, 2020, Republicans put forth their new stimulus package proposal of approximately $1 trillion called the HEALS Act (the Health, Economic Assistance Liability Protection & Schools Act). The Democrats had previously proposed a $3 trillion+ stimulus package under the “Heroes Act,” but Republicans had rejected it as too broad and too big.­

There have been so many news stories and statements about a new stimulus package that it’s difficult to discern what will actually become law. This article describes what you need to know about the likely provisions of the next stimulus bill by answering the most important questions.

 

Here’s what you need to know about the likely provisions of the next stimulus bill.

 

Will there be a second stimulus payment?

Yes, there will almost certainly be a second stimulus payment, although the specific details are in flux. The most likely result is a second stimulus payment similar to the first payment.

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4 Refunds You May Get During The Coronavirus Pandemic

Posted by The Axial Company

COVID-19 has emptied a lot of people’s bank accounts, but some of that money may come back.

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Weekly Market Update, July 20, 2020

Presented by The Axial Company       

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30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98%

Posted by The Axial Company

30-Year Mortgage Rate Reaches Lowest Level Ever: 2.98%

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Weekly Market Update, July 13, 2020

Presented by The Axial Company       

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The CARES Act and Your 2020 RMD

Posted by The Axial Company

The CARES Act suspended the RMD requirement for this year. But what if you already took your required minimum distribution for 2020?

 

You may be able to put the money back into your retirement account.

 

As of June 23, new information has been released from the Internal Revenue Service regarding The CARES (Coronavirus Aid, Relief, and Economic Security) Act, which suspends required minimum distributions (RMDs) for retirement accounts. Those who have already taken a required minimum distribution (RMD) in 2020 from certain retirement accounts now have the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for 2020.

 

The 60-day rollover period for any RMDs already taken this year has been extended to August 31, 2020, to give taxpayers time to take advantage of this opportunity.

 

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020.

 

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020. The notice provides that this repayment is not subject to the one rollover per 12-month period limitation and the restriction on rollovers for inherited IRAs.

 

The IRS described this change in Notice 2020-51 (PDF) and provides two sample amendments that employers may adopt to give plan participants and beneficiaries whose RMDs are waived a choice as to whether or not to receive the waived RMD.

 

If you have already taken or still plan to take your RMD for this year, please consider reviewing your options with your advisor, as they may have changed given the circumstances surrounding the coronavirus crisis. Please feel free to call us and we will be happy to answer any questions you may have.

 

The Axial Team

 

Information published on https://www.irs.gov pertaining to Notice 2020–51, Guidance on Waiver of 2020 Required Minimum Distributions. IR-2020-127, June 23, 2020.

The accompanying pages have been developed by an independent third party. Commonwealth Financial Network is not responsible for their content and does not guarantee their accuracy or completeness, and they should not be relied upon as such. These materials are general in nature and do not address your specific situation. For your specific investment needs, please discuss your individual circumstances with your representative. Commonwealth does not provide tax or legal advice, and nothing in the accompanying pages should be construed as specific tax or legal advice. Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services offered through Axial Financial Group are separate and unrelated to Commonwealth.

 

© The Axial Company. All Rights reserved. 5 Burlington Woods, Suite 102 Burlington, Massachusetts

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Will Coronavirus Quarantine Convince You To Retire Early?

Posted by The Axial Company

We’re all getting a taste of retirement—even if we don’t know it.

No, it’s not the “travel ‘round the world” kind of retirement. It’s more of the “don’t have to leave the house” reality of retirement.

Granted, retirement is a choice while quarantine is a mandate. Still, the similarities can uncover some surprising self-revelations about your retirement readiness.

“The ‘stay safe at home’ policy is similar to retirement because people are getting a taste of what free time is 100% of the time,” says Michael Foguth, founder of Foguth Financial Group in Brighton, Michigan. “When you’re retired or without a job, you find yourself with more time on your hands.”

In both cases, you need to decide how to fill that time.

“Both now and in retirement, you may spend more time in your current home than ever before, and you may realize that you have more free time than you know what to do with,” says Mike Lynch, Managing Director, Applied Insights Team at Hartford Funds in Wayne, Pennsylvania. “You have to be creative about how you fill the hours, how you stay social, and how you’re able to keep up with daily tasks once you are eating every meal at home and using more resources on a daily basis.”

Consider the coronavirus quarantine as retirement “practice.” If you’re working at home, think of that work as a hobby. It’s something you do, maybe by yourself, maybe with a few other virtual “hobbyists,” but in no way can it fulfill the vibrant social presence of the “at work” environment. You’ll need to come up with alternatives.

Will the decisions you make today regarding those alternatives be the same ones you make in retirement? Perhaps now would be a good time to contemplate this question.

“People can use this time to think about retirement life,” says Ethan Taub, CEO of Goalry and Loanry in Newport Beach, California. “It could be similar, finding new things to do, with no office to go to.”

Did you have to commute to work every day? Did you have certain rituals like, coffee, lunch and water cooler chatter? Has the sudden break from these day-to-day activities revealed who you are or what you’ve envisioned you’d like to be?

“This is showing people that they can exist outside of their office,” says Jeffrey Benowitz of Certified Financial Services, LLC in Paramus, New Jersey. “A lot of people’s identity is wrapped up in their career and this is eye opening.”

You may not even realize it, but this process of self-assessment is preparing you for a better (and perhaps earlier) retirement.

“If you’re taking advantage of distance learning and of ‘think time’ to review your career goals, you’re actually getting a taste of smart retirement planning,” says Joanne Cleaver, Charlotte-based author of The Career Lattice. “If you find you’d like to continue working from home, this is the time to build a transition plan for doing so, either as an employee or through self-employment.”

After several weeks of staying at home, have you been surprised to discover how little you’re spending? And it’s not just cutting your expenses, it’s using less money without an appreciable change in what you feel is important.

The greatest fear people have in advance of retirement is their ability to afford to live without a working salary. The quarantine experience is proving to many that those fears are unfounded. “People see they can limit their activities when required—much like they would have to do to live off their retirement funds,” says Anna Barker, Founder of LogicalDollar in Oregon.

Whether you work full-time from home, have seen your work hours reduced, or have been furloughed or worse, you’re no doubt paying more attention to your budget than ever before.

“Budgeting is incredibly important in both, says Luke Burton, Client Services Associate at Narwhal Capital Management in Marietta, Georgia. “Retirement income is fixed, and staying safe at home should include thorough planning for job disruptions and potential expenses.”

If you’re lucky, you will have discovered you’re better off than you thought when you weren’t giving your budget a second thought.

“People may see that they can live comfortably with a fixed income and off their savings which may prompt them to retire early,” says Ken Van Leeuwen, Managing Director & Founder at Van Leeuwen & Company in Princeton, New Jersey. “With a sense of financial security, and if they enjoy not working, then it would make sense for some people to leave the workforce early.”

It is this sudden retirement revelation that may result from the country’s forced quarantine. Maybe, just maybe, retirement isn’t as hard as you think.

“Those truly divorced from work are getting a taste of how much their life revolves around their occupation,” says Robert R. Johnson, Professor of Finance at the Heider College of Business at Creighton University in Omaha. “In many cases, people (with the means to do so) didn’t consider retirement simply because they never took the time to reflect and do so. While it will undoubtedly be a small percentage of workers, there will certainly be some individuals who realize that stepping away from a career is less difficult than they believed.”

Granted, quarantine isn’t for everyone. For some, it’s akin to house arrest. What’s instructive for those people, though, is whether they will ultimately consider themselves prisoners in retirement.

The fact is quarantine is not house arrest. You still have choices to make. “If you can ‘survive’ this isolation and figure out a routine, retirement will be much easier,” says Scott Bishop, Director of Financial Planning for STA Wealth in Houston. “Hopefully, many pre-retirees will learn that it will be helpful to have activities and routines planed.”

With each week that passes, you are becoming more accustomed to your home-bound life. It’s becoming less of an anomaly and more the new normal. How will this change your outlook on retirement?

“Many enjoy the freedom working from home provides more than expected,” says Max Kimmel, owner of One Shot Finance in New York City. “If you were worried about boredom, but managed to entertain yourself, retirement sounds better.”

Whether or not you do accelerate your retirement date depends on your age. “A lot of people will like the lifestyle of not having to do work, and being able to be home and free,” says Taub. “This is not going to be doable for most people, but for those close to retirement, this could be their reality soon if they allow it.”

Not only may this era of self-quarantine hasten retirement for you, it may also change your outlook and expectations for retirement. Whereas in the past, retirement was viewed as a personal voyage (literally, since many anticipated travel which may be off the table in the near-term), now it may be framed in terms of relationships and proximity (whether virtual or physical).

“The boredom and inactivity, being isolated in your home with little productive to do, you may decide you have to build a life separate from your occupation,” says Dr. Guy Baker of Wealth Teams Alliance in Irvine, California. “This may cause you to be involved more in the church, community, missions work—maybe start a new business you can manage in retirement.”

“Some people may really enjoy this time at home,” says Lynch. “They might find a new hobby or interest, maybe they have started volunteering virtually, or have found time to connect with old friends. They may determine that this has been a good test, and that they are ready to embrace retirement.”

One traditional aspect of retirement—spending more time with your family—will become truer than ever. “Many people are going to find that staying at home with loved ones feels better to them than heading off to work each day,” says Morgan Taylor, CMO for LetMeBank in the Greater Los Angeles Area.

Often life throws you lemons. How many times have you made lemonade out of them?

“Those who have used the time to catch-up on reading and projects, try new at-home activities, and work to reinvent themselves may be pleasantly surprised with the lessons learned while staying at home,” says Steve Parrish, co-director of the Retirement Income Center at The American College of Financial Services in Des Moines. “Some will find the experience empowering, and they may realize their fear of retiring was unfounded.”

Kyle Winkfield, President of Finley Alexander in Rockville, Maryland, offers this personal testimonial: “I do have to say that even though we are living with these necessary restrictions right now, I have a renewed appreciation for staying at home. The convenience of waking up a little later, saving ourselves from work commutes, and making the most of what we already have in-house are certainly some appealing aspects that sheltering in place have in common with retirement. I’ve also seen how much money we are saving by staying home, from savings on gas to entertainment to eating out. I have definitely spoken to some clients and family members who are reconsidering their retirement age, as they’ve seen some of the silver lining of being home this past month, and are wondering if it’s a sign that they’ve been doing too much for too long, and now it’s time to sit back and enjoy a bit more.”

So, what is it for you? Is the glass half empty or half full?

Will you frame your coronavirus quarantine in a way that convinces you to retire early?

Or, has the experience been the opposite for you?

Will “staying safe at home” give you reasons to avoid retirement as long as possible?

By Chris Carosa, Senior Forbes Contributor, Retirement © 2020 Forbes Media LLC. All Rights Reserved.

© The Axial Company. All Rights reserved. 5 Burlington Woods, Suite 102 Bu rlington, Massachusetts

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What to Know About Stimulus Checks Via Debit Card

Posted by The Axial Company

What to Know About Stimulus Checks Via Debit Card
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Looking Back at the Markets in May and Ahead to June 2020

Posted by The Axial Company

Posted by Brad McMillan, CFA, CAIA, MAI, Jun 3, 2020

Presented by The Axial Company

May was a good month, in terms of the virus, the economy, and the markets. But what does this positive news mean for the month ahead? Let’s take a closer look.

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Weekly Market Update, June 1, 2020

Weekly Market Update, June 1, 2020

Presented by The Axial Company                        

General Market News              

  • The 10-year Treasury yield opened at 0.66 percent on Monday, while the 2-year came in at 0.17 percent and the 30-year at 1.43 percent. We are set to get some May economic numbers this week, which should give us a clearer view on where we stand as an economy. The Federal Reserve meets next week, and, while it has done a lot and has essentially asked Congress to step in, it should be interesting to see what members have to say when faced with hard May economic numbers.
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2019 IRA Contribution Deadline Extended

Posted by The Axial Company

2019 IRA Contribution Deadline Has Been Extended
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Coronavirus Update - May 15, 2020

Posted by The Axial Company

By Brad McMillan, CFA, CAIA, MAI, May 15, 2020

Today, I'd like to provide an update on the coronavirus crisis, including the economic and market implications. It was another good week in terms of controlling the virus, with the daily spread rate dropping to less than 2 percent for five days in a row. Plus, testing increased to more than 300,000 tests per day, and the number of new cases per day continued to decline significantly. Similar progress was seen on the economic front. Layoffs continued, but millions of people have started to return to work—one of the positive effects of the reopening process. Of course, risks remain, with a second wave of infections looming the largest. But the foundation of the economy is starting to be rebuilt.

Given all of this good news, why are the financial markets starting to get nervous? Watch my latest video to learn more.

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The Importance of Having a LTC Plan: The Replay

Posted by The Axial Company

Did you miss our virtual session on the importance of having a long-term care plan last week?

 

You can listen to the replay now by Clicking Here!

 

This session was a discussion about health, lifestyle, family and how you want to be prepared for the unexpected. We couldn't think of a better time than now for a conversation like that.

Our partners at Ash Brokerage touched on important considerations such as:

  • Why long-term care planning is about more than money
  • The importance of having a written plan
  • Understanding why Medicaid and Medicare should be your last choice
  • Considerations and goals when choosing a funding source and insurance options

If you are interested in learning more about whether long-term care insurance makes sense for you, contact your advisor. We'd be happy to go over any questions you may have. 


© The Axial Company. All Rights reserved. 5 Burlington Woods Dr, Suite 102 BURLINGTON, Massachusetts 01803 United States781.273.1400

 

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Market Thoughts for May 2020

Posted by The Axial Company

Market Thoughts for May 2020
 

Posted by Brad McMillan, CFA, CAIA, MAI, May 4, 2020


In April, U.S. markets were up by double digits. Still, the economic damage continued. Millions of jobs were lost, and businesses shut down. But we did see progress. The spread of the virus slowed, and testing increased. Plus, federal stimulus provided funds to individuals and businesses.

The markets noted these improvements, bouncing back in April. In fact, the markets expect a full recovery in about year. Are they right?


Stay tuned to my latest Market Thoughts video to find out.

 

 

Market Thoughts for May 2020 from Commonwealth Financial Network on Vimeo.

Authored by Brad McMillan, CFA®, CAIA, MAI, managing principal, chief investment officer, at Commonwealth Financial Network®.

© 2020 Commonwealth Financial Network®

© The Axial Company. All Rights reserved. 5 Burlington Woods, Suite 102 Burlington, Massachusetts

Disclosure: Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets. All indices are unmanaged and investors cannot invest directly into an index. The Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue-chip stocks. The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. It excludes closed markets and those shares in otherwise free markets that are not purchasable by foreigners. The Bloomberg Barclays Aggregate Bond Index is an unmanaged market value-weighted index representing securities that are SEC-registered, taxable, and dollar-denominated. It covers the U.S. investment-grade fixed-rate bond market, with index components for a combination of the Bloomberg Barclays government and corporate securities, mortgage-backed pass-through securities, and asset-backed securities. The Bloomberg Barclays U.S. Corporate High Yield Index covers the USD-denominated, non-investment-grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below.

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Scam Alert! Protecting Yourself and Your Finances During Coronavirus

Posted by The Axial Company

Scam Alert! Protecting Yourself and Your Finances

Presented by The Axial Company

 

The number of stories about fraudsters taking advantage of unsuspecting victims seems to grow by the day. Of course, it’s easy to think, “This will never happen to me!” But to keep your money and personal information safe, it’s vital to stay abreast of the latest scams.

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Tips for Teaching Your Children About Money

Posted by The Axial Company

There really is no right or wrong age to teach your children about financial matters. Like most aspects of parenting, it may be based simply on a feeling about their actual readiness for something. One of the most important parts of teaching kids about money is to keep it simple but also to realize that, like investing, it is a long-term process. Keeping it simple means no big terms or concepts for them to comprehend. You don’t want to do a deep dive on option strategies for making money on the volatility of the Hang Seng stock market!
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The Importance of Having a LTC Plan: Join Us for a Virtual Session with Ash Brokerage

Posted by The Axial Company

The Importance of Having a Long-Term Care Plan
SPECIAL VIRTUAL SESSION
APRIL 30 | 4 p.m. EDT


We know you’re watching the market and wondering – like so many of us – “Will I be ok?” It’s too early to predict the long-term impact the coronavirus will have. But even before the current market decline, there’s one financial planning challenge that extends far beyond your income and assets: longevity.


Living longer has changed financial planning. And while we’ve done a lot of financial modeling, we’ve never finalized your plan for a long-term healthcare event.


This is a discussion about health, lifestyle, family and how you want to be prepared for the unexpected. I can’t think of a better time than now for a conversation like that.


We've put together an exclusive virtual session with our partners at Ash Brokerage to talk through important considerations such as:


• Why long-term care planning is about more than money
• The importance of having a written plan
• Understanding why Medicaid and Medicare should be your last choice
• Considerations and goals when choosing a funding source and insurance options


Click Here to Save Your Spot Now!


Please make time to join us for this important event. If you can’t make it this time, make sure to let us know so we can schedule another session at a time that works better for you.


We suggest testing your mobile or computer devices ahead of time to ensure they're working properly. If you need any help getting started, please contact our office and we'll be glad to walk you through.


We look forward to hosting you for this call!


© The Axial Company. All Rights reserved. 5 Burlington Woods Dr, Suite 102 BURLINGTON, Massachusetts 01803 United States781.273.1400

 

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Coronavirus Update - April 17, 2020

Posted by The Axial Company

By Brad McMillan, CFA, CAIA, MAI, April 7, 2020

Today, I'd like to provide an update on the coronavirus crisis, including its effects on the economy and markets. With regard to the virus itself, we’re seeing signs of progress. This week, the daily spread rate dipped below 5 percent, and the number of new cases per day started to stabilize. With this good news on the pandemic front, the focus is shifting to how to reopen the economy. Here, the news is not as good. With more than 22 million jobs lost over the past several weeks and many businesses remaining closed, the damage is mounting.

Mitigating measures, like the stimulus checks, are starting to take effect, but a recession is likely. How bad will that recession be, and what could it mean for the markets? Watch my latest video to learn more.

 

 

 

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Should You Consolidate Your Retirement Accounts?

Posted by The Axial Company

 

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Join Us in Supporting Healthcare Workers

Posted by The Axial Company

In these uncertain times, doing something with an impact on others can offer a sense of purpose and meaning. As you’ve likely heard, there is a shortage of protective masks within the medical community. Grassroots efforts have been popping up across the nation to provide alternative masks to health care professionals should they need to use them at some point.

Whether you sew regularly, or you’re simply looking for a way to keep busy—what better time than now to break out the old machine?

 

Here’s some information on how you can get involved:

  • Masks can be sewn using this simple pattern.
  • JOANN Fabric and Craft Stores has posted an informational page that includes video and photo tutorials.
  • JOANN recommends using 100 percent cotton fabric. You can easily order supplies on JOANN’s website and have them delivered. JOANN is also offering curbside pickup at its store locations.
  • A working list of institutions accepting finished product via mail or delivery can be found here.

 

Axial will be doing our part among our employees and staff as well, to support the dedicated healthcare workers and first responders on the front lines of this pandemic.

We hope that you and your family are staying safe and healthy!

 

Best regards,

The Axial Team

© The Axial Company. All Rights reserved. 5 Burlington Woods, Suite 102 Burlington, Massachusetts

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