**Edited to add links at the top of the post**
IRS FAQ on Relief Payements - https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know?fbclid=IwAR16Og2UzKxQhnDfwPodTNrlwS3jVzxT1Cv8nwRbdt6ZjGrrmHt-8ZR3S8A
CA Unemployment Calculator - https://www.edd.ca.gov/unemployment/ui-calculator.htm
https://www.irs.gov/coronavirus/economic-impact-payments
CA Pandemic Unemployment Assistance - https://edd.ca.gov/about_edd/coronavirus-2019/pandemic-unemployment-assistance.htm
With the COVID-19 Relief package passing the house, I wanted to highlight some specifics of the plan here. I apologize for the length of the post but I believe details are important;
Summary of key provisions in the CARES Act
Direct cash payments for consumers:
The bill provides “recovery rebates” of up to $1,200 for individuals earning an adjusted gross income (AGI) of less than $75,000, or $2,400 for joint filers earning less than $150,000. The amount increases by $500 for each child. The rebate is phased out above those AGI limits.
Small business interruption loans:
Businesses with less than 500 employees can receive fee-free loans of up to $10 million to help cover payroll, employee salaries, paid sick leave, mortgages, rent and other debts. Loans that are used to cover payroll could be forgiven if businesses retain employees and salary levels.
Expanded unemployment insurance:
The bill increases and extends unemployment benefits, including access to health insurance, for four months for Americans who have lost jobs or been furloughed. Self-employed and contract workers, who are typically ineligible, can now qualify.
Relief for retirement plans and IRAs:
The legislation permits employers to give retirement plan participants who have been impacted by COVID-19 the ability to withdraw retirement plan funds up to $100,000 and increase access to plan loans. Such COVID-19-related distributions can be taken from IRAs as well. The bill waives the 10% premature withdrawal penalty and provides the option for such distributions to be taxed ratably over three years. These COVID-19-related distributions can be rolled back into a retirement plan or IRA within three years. The bill also temporarily suspends Required Minimum Distributions (RMD) for 401(k)s and IRAs in 2020. This would include an RMD normally due by April 1 for individuals who turned 70 ½ in 2019, but only if the individual did not take their RMD in 2019.
Suspended remittance of employer Social Security tax. Employers and self-employed individuals are allowed to defer payment of the employer share of Social Security tax for the remainder of 2020. Half of that amount is due on Dec. 31, 2021, and the remainder on Dec. 31, 2022
.
Student loan payments suspended:
The bill allows individuals to defer payments on federal student loan payments, principal and interest through Sept. 30, 2020. It also allows students whose universities have canceled classes to keep Pell Grants. Employers can also provide a student loan repayment benefit to employees on a tax-free basis.
Expansion of charitable contribution deduction:
Certain cash charitable contributions up to $300 can now be treated as above-the-line deductions for non-itemizers and the 60% of AGI limitation for cash contributions is waived for itemizers
In addition:
In a separate regulatory announcement, the U.S. Department of Treasury has announced the federal income tax filing (and estimated tax payment) deadline will be extended from April 15 to July 15, 2020. The extension for income tax filings and payments is automatic and taxpayers do not need to file for an extension. The deadline for making IRA contributions is also extended to July 15.
As always, feel free to reach out to me with questions.
Did something happen last night? I'm not sure.
Anyway, here's a neat photo article about a family in England taking it's farm wild. Pictures of owls, bees, deer plus others to help you cleanse your online palate.
https://www.cnn.com/2020/10/01/europe/gallery/knepp-farm-rewilding-cte/index.html
This British farm became a biodiversity hotspot by letting the animals rule
With stock market bouncing off the lows from this morning during the continued negative September month, I wanted to highlight some research.
The broader near-term macro concerns cited are:
"Even with a modest correction across stock prices, valuation levels remain elevated, in our view."
"A possible fall surge in the coronavirus could dampen or even reverses economic progress."
"Growing U.S./China tensions."
"There is a growing discourse in Washington, and November's election may further divide the
country."
With all this in mind, this last comment is very important in my opinion.
"However, while stocks are well-supported through improving economic trends, massive monetary support, and record levels of sidelined cash waiting for buying opportunities, we believe it would be unwise to ignore the risks outlined above. We favor tactical allocations to equities, bonds, and alternatives that are generally neutral to strategic targets, concentrating on high-quality assets. Combined with a preference for the U.S., we believe well diversified
portfolios are equipped to manage through a period of heightened volatility in the fall, and if other surprises materialize through year-end."
As always, feel free to reach out to me if you have questions.
Sean Donnelly, APMA, CRPC, CLTC updated their website address.
In this new development, the world's largest sovereign wealth fund sold 42 companies with poor environmental and sustainability records, including 16 electricity producers and 12 mining firms.
The fund was created from surplus revenues of the Norwegian petroleum sector and owns almost 1.5% of all global stocks. In May 2018, it was worth about $195,000 per Norwegian citizen. Is this sell off an ironic use of those funds?
I've been tracking ESG (Environmental, Social and Governance) stocks and funds for years, before the term ESG became trendy, and I have many resources ready to use for those that are interested.
https://globalenergyprize.org/en/media-room/news/2020/10/2020.-esg
https://en.wikipedia.org/wiki/Government_Pension_Fund_of_Norway
Norwegian oil fund to sell shares in companies with poor ESG record
Here's a press release of a new report on Women CEOs in America. Today, 7.8% or 39 of Fortune 500 CEOs are women, and less than 1% identify as a person of color.
I've added a link to the 60 page report below as well.
There are investment solutions that focus on women- run businesses. Feel free to reach out to me if you're interested in learning more.
https://www.prnewswire.com/news-releases/first-ever-women-ceos-in-america-report-released-the-portrait-and-profile-of-women-ceos-and-our-call-to-action-301159151.html
https://www.c200.org/wp-content/uploads/2020/10/Women-CEOS-in-America-2020.pdf
First Ever Women CEOs in America Report Released The Portrait and Profile of Women CEOs and Our Call to Action
