Wow, what a crazy world we live in. At least the weather has been nice, other than the pollen! We hope everyone is staying well and keeping safe. In time this will pass, but I believe eventually we'll all be stronger and more grateful for our blessings because of it. If there's one thing that's come to light even more so in this current crisis, it's how important it is to have a well thought out financial plan that can get you through the difficult times - especially if you're retired or approaching retirement.
I know I've said this many times before, but asset preservation and proper income planning should take precedence over growth as you approach retirement and grow older. As we age, it just makes sense to take more risk off the table and protect our income and assets. Still, the biggest mistake most retirees make is not having a well blended retirement plan that takes this into account. At JDS Wealth Management, that's what we focus on every day, and we've been very successful at it.
This month's The Wealth Report discusses the Coronavirus and the global economic impact, as well as a few things that you might want to consider in order to position yourself better for the future. But there are also a few things I want to mention in case our readers may not be aware of them:
Required Minimum Distributions from IRA accounts DO NOT NEED TO BE TAKEN THIS YEAR. Obviously, if you rely on the money from your RMDs to pay the bills, then you will likely still want to take them, but if you have RMD plans set up on accounts and don't actually need the money - especially for investment accounts that have taken a significant loss - then you can consider skipping taking your RMDs for this year. Just be sure you get them set back up to start again for next year to avoid penalties. Note: this also applies to Inherited IRA RMDs for 2020.
RMDs do not have to be started until age 72 due to the passage of "The SECURE Act" - unless you turned 70.5 prior to January 1, 2020
The tax filing deadline has been moved from April 15th to July 15th.
Consider doing an IRA to Roth IRA conversion, especially if you'll need your IRA to provide income for you at a later date. I'll explain the reasons why if you call me.
Remember - doing nothing is easy, and planning takes work!! CV-19 is no excuse not to plan. It should encourage most to do so, and most folks actually have more time as of now. Even though we can't meet in person for the time being, we're still conducting business over the phone and electronically. Feel free to give us a call for a free consultation or a free preliminary "Chart Your Course" retirement plan. Also, if you have friends or family that are worried about their financial plans for the future during this time, then encourage them to reach out to us. We are here to hopefully provide a little clarity during this uncertain time. Just let us know if there is anything we can do to ease some of your concerns going forward.