June 12, 2020
2020 is proving to be a year we will not soon forget. The month of May whirled past us as we geared up to re-start client meetings in June, and here it is June 12th already! We are offering in person meetings with proper distancing, masks and cleaning procedures. We also have a video option for those who have decided not to venture out just yet. We are currently scheduling July – November. Tina Barrow will be reaching out via phone and email but feel free to call 317-859-2502 or email email@example.com anytime with your preferred date and time.
Join us today for Chapter Six of Sarah’s Book Club as Sarah Boston recaps recent news and what the next chapter means to you.
The full impact of COVID-19 on the economy has yet to be realized so markets recovering in a “V” shape was quite unexpected. The economy faces high unemployment due to shutdowns, and the slow re-opening plans, along with supply chain disruptions, threaten future wage replacement and growth. These concerns, along with a potential resurgence of COVID-19 cases, creates a scenario of instability for investors. We are pleased to see portfolios react positively with markets but will continue a path of risk management and caution for clients.
Fed Meeting Takeaways
Federal funds rates remain unchanged at 0.00%-0.25%Weak demand and significantly lower oil prices are holding down CPIThe Fed projects a 6.5% decline in economic output in 2020, but expects to see growth again in 2021Unemployment is expected to settle around 9.3% by year’s endStill developing the Main Street Lending Program and is looking into including non-profit organizationsStressed that the Fed only has lending powers, not spending powers, and the power to grant money to businesses or individuals lies with Congress through fiscal policy.
Recommendations for Clients
Review your budget for upcoming cash/liquidity needs.Update and/or review your financial plan and risk profile so that your long-term goals are reflected in your portfolio. Communicate how this recent downturn affected your confidence so we can evaluate if you are properly invested.
Be aware! Current COVID-19 Scams Help receiving stimulus checks or unemployment payments
Designed to obtain your personal information. Do not click on a website link in an email and instead utilize direct websites that are verified.For Stimulus checks: https://www.irs.gov/coronavirus/get-my-paymentFor IN Unemployment benefits: https://www.in.gov/dwd/2362.htm
Cures or treatments for COVID-19
There are currently no vaccines, pills, lotions, lozenges, or any other over-the-counter products available to treat or cure COVID-19. These ‘cures’ can be extremely dangerous to your health – even fatal. Never accept a medical treatment or virus test from anyone other than your doctor, pharmacist, or local health department. If someone offers you a vaccine, cure, or treatment, do not provide any personal information, including your financial information, Medicare or Medicaid number, or private health insurance information.
There is not a government mandate that you have to take a COVID-19 test. A health official may contact you to inform you that you were exposed to COVID-19 and should quarantine for 14 days. Scammers will likely ask you for health insurance information, including your Medicare or Medicaid number, or other personal information.
Medical Bill Audit
If you do receive treatment for COVID-19, be sure to check the medical bills and Explanation of Benefits you receive from your provider, government health program, or insurance company after your treatment to ensure you have not been billed for medical services you did not receive and that the dates of service are accurate.
Carefully research requests for donations. Do not send cash, gift cards, or wire money.
Many of our clients believe volunteer time is an essential part of their financial plan. We want to congratulate Terry Hunter, recognized recently by The USO of Indiana for the incredible amount of hours she has volunteered at the Camp Atterbury USO Center. Terry’s father was a Prisoner of War in WWII and her son served in the Navy. She started volunteering in 2016 after reading an article in the newspaper and loves bringing lunch for service members nearly every week. She has volunteered over 650 hours!At a time when charitable giving and volunteer hours are needed more than ever, we would like to thank Terry and all of our clients for their service to their communities. It makes a huge impact!
The Treasury Department has released updated guidelines regarding PPP loans. Key points are listed below as well as in this article. We recommend consulting your banker and tax preparer for personalized guidance on how the updates affect you. “Coverage period” extended from 8 weeks to 24 weeks. Application for forgiveness extended to 10 mos following coverage period. Expenditures for payroll reduced to 60% from 75%. (There are still questions around compensation calculations, further clarity is expected so check with your lender.) Also includes the deferral of payroll tax until 12/31/20 with 50% paid by the end of 2021 and the remaining 50% paid by the end of 2022. Loan repayment terms extended from 2 years to up to 5 years. *Banks are not obligated to amend the terms, discuss this option with your lender. Extension for rehiring employees or hiring qualified employees to the end of the year. *Documentation will be important.
At the end of June we are releasing the first of our new podcast series, Page by Page: Financial Storytelling for Every Chapter of Your Life. The first volume is “But I don’t want to be a burden….A Guide to Caregiving and Advocacy.” Stay tuned for more details!
-The Bookends Team
Mike Wetzel, Financial Adviser, Principal: Mike.Wetzel@bookendsfp.com
Sarah Boston, Financial Planner, Investment Consultant: Sarah.Boston@bookendsfp.com
Chandy Wilcoxon, Financial Adviser: Chandy.Wilcoxon@bookendsfp.com
Mindy Christian, Operations Manager: Mindy.Christian@bookendsfp.com
Bridgett Mueller, Operations Assistant: Bridgett.Mueller@bookendsfp.com
Tina Barrow, Client Services: Tina.Barrow@bookendsfp.com
Heidi Hargis, Chief Compliance Officer: Heidi.Hargis@bookendsfp.com
Gene Trueblood, Chartered Financial Analyst
7320 US 31 SIndianapolis, IN 46227
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