BY ROBERT INTELISANO
How are you doing? A simple enough question, but what’s your answer? It could depend on where you’re from, who’s asking or where you’re at mentally.
If you’re from the Midwest, you might take it literally and go into a rant about the wife and kids. If you’re from New York, you might say “How you doin?” The usual response might be “good, thanks.”
My answer is “I’m choosing to do well” and I will tell you why. I’m a 70’s kid, and 70’s kids are tough!
I’ve been doing a series of Payroll Protection Program (PPP) phone strategy sessions with friends, clients, CPAs, attorneys and bankers. It’s clear PPP has a myriad of problems and they need to be fixed quickly. We need additional help for millions of “solo-preneurs” and small businesses that face annihilation.
It’s clear that we need to fight for the money that we deserve. I know for a fact that the initial $349 billion has not yet been fully distributed. Just this week, it was announced that $150 billion was returned by large corporations. Their deadline to return the money is Thursday, May 14.
THREE FINANCIAL PLANNING TIPS
• Consider converting from a Traditional IRA to a Roth IRA. The odds are good your income is down this year, hence you will be in a lower tax bracket in 2020 than 2019. Many stock market accounts are down from pre-COVID-19 highs. The government response to COVID-19 significantly raises the federal deficit, making it more likely tax rates will be going up in the future when you will be taking distributions. You have until December 31, 2020, to make the conversion.
• Consider consolidating student debt, especially if it is over $100,000. Interest rates are at record lows, and we have banks that will consolidate and lower rates. The total of student loans in this country is larger than auto and home loans combined. Students are graduating with piles of debt in a tough job market.
• Consider refinancing your mortgage. We are at record lows and I don’t see it changing much the rest of this year or next. Keep the faith, you are not alone. Feel free to reach out to me; action diffuses fear.