News Affecting Your Financial Life – April 2020 Issue
The April 2020 edition of Fairman Group Perspectives highlights returning to work after COVID-19, coronavirus scams, rebalancing portfolios, and CARES Act distributions. Learn more!
Common Coronavirus Scams
The IRS recently issued a warning about various schemes related to economic impact payments that are being sent to taxpayers under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The IRS warns taxpayers to be aware of scammers who use words such as “stimulus check” or “stimulus payment” instead of the official term, “economic impact payment”, and other methods.
Coping With Market Volatility: Could This Be a Chance to Rebalance at a Discount?
In a volatile market, it’s easy to allow your emotions to influence your investment decisions. But if you can keep your cool while those around you are losing theirs, you may be able to take advantage of potential opportunities. One way to do that is by reviewing your portfolio to determine if it’s time to rebalance your asset allocation or modify your level of diversification. Rebalancing means adjusting your portfolio to get it back to your original target allocation.
CARES Act Retirement Plan Relief Provisions
A 10% penalty tax generally applies to distributions from an employer retirement plan or individual retirement account (IRA) before age 59½ unless an exception applies. Due to the coronavirus pandemic, the penalty tax will not apply to up to $100,000 of coronavirus-related distributions to an individual during 2020.
