CARES Act Modification Allows More Retirement Savings Access
Hello Eagle Wealth Family,
While we’ve been having many conversations about your personal financial situations, we’re committed to keeping you informed with the latest changes to retirement account rules.
CARES Act Modification
Americans who have been adversely affected by the COVID-19 pandemic may now be able to access retirement accounts to help cover daily expenses, penalty-free. Now, in addition to those who have lost their jobs during the COVID-19 pandemic, you may access your retirement funds without being subject to the 10 percent penalty if your income was reduced, or who’ve had the start of a new job delayed.[i]
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help Americans deal with the economic impacts of the COVID-19 pandemic.Under the CARES Act, the IRS recently released updated guidelines that will allow more Americans to access money in their retirement accounts without penalty.2
It’s important to remember that CARES Act funds must be used for coronavirus-related financial needs. Those taking advantage of these funds have up to three years to repay a pandemic-related distribution to undo any potential tax situation.
The CARES Act is a complex piece of legislation, and the rules governing access to retirement accounts can be tricky to grasp. If you’re considering taking advantage of the CARES Act, call us and let’s connect to discuss your overall financial situation. We’re here to help you make financial decisions during times like this.
Your Eagle Wealth Team
Our clients never cease to amaze us with innovative thinking. In our latest round of Invested in Community, one client selected Big Brothers Big Sisters of Central Oregon as the recipient. This not only supported a local business, but also helped two families in need. We sent them two $50 gift certificates to Bend’s locally owned Grocery Outlet.
“I was a Big for the program and feel it is such a great source for those in need of Family time. Now with COVID 19 those needs have become necessities. Thanks for letting me have a moment to reflect on others.”
Do you have a great idea for a nominee? Perhaps your favorite coffee shop, bookstore, or boutique could use some help. Let’s make a difference together.
Sign up now for the next Invested in Community drawing on Wednesday, July 22nd.
Slap on some sunscreen, pack up some snacks (and maybe a few cold beers), and get ready to relax on the water. Fishing is a socially distant friendly activity. It’s easy - just keep a fishing pole length apart! There may even be more benefits below the surface, check out Why Taking a Fishing Trip Is Good for Your Mental Health.
Give yourself permission to take a rest and have a little fun. So, maybe you won't catch anything but with all that's happening "out there" maybe some peace and quiet is the real catch of the day.
P.S. Stuck at home? You can still get better at fishing without being on the water.
The Week on Wall Street
Stocks were mixed last week as investors reacted to positive economic data, progress on a COVID-19 vaccine, and the continued nationwide increase in COVID-19 cases.
The Dow Jones Industrial Average gained 2.29%, while the Standard & Poor’s 500 rose by 1.25%. But the Nasdaq Composite Index dropped 1.08% for the week. The mega-cap technology companies saw some profit-taking last week, sending the Nasdaq Composite to its first loss in three weeks. The MSCI EAFE Index, which tracks developed stock markets overseas, ended 2.19% higher.[i],[ii],[iii]
Stocks Find a Way Higher
After a Monday rally melted away on news that California was rolling back its reopening plans amid rising infections, a new earnings season began on a hopeful note. Stocks posted back-to-back daily gains on the strength of positive earnings surprises from a few money center banks and encouraging news about progress in the development of a COVID-19 vaccine.[iv]
Despite a strong retail sales number, new jobless claims and rising U.S.-China tensions reminded investors that global economic recovery remains fragile, leading stocks to pare some of the week’s earlier gains.[v],[vi]
Earnings Season Begins
While investors long ago accepted the idea that this earnings season would be ugly, reflecting the impact of the economic shock due to COVID-19, it didn’t mean that there weren’t important insights to be gained from this quarter’s earnings reports.
Three money center banks last week kicked off the earnings season, reporting substantial declines in profits and an additional cumulative $28 billion set aside for loan-loss reserves.[vii]
Banks are an important economic bellwether since they touch every part of the U.S. economy. Although their earnings were significantly lower, they actually beat consensus Wall Street estimates, which encouraged investors and set the stage for stocks to move higher. The story on this quarter’s earnings season, however, is far from finished as investors await the stream of companies releasing their quarterly results in the days and weeks ahead.
THIS WEEK: KEY ECONOMIC DATA
Wednesday: Existing Home Sales.
Thursday: Index of Leading Economic Indicators. Jobless Claims.
Friday: New Home Sales.
Source: Econoday, July 17, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Lockheed Martin (LMT), Snap (SNAP), Coca Cola (KO), Texas Instruments (TXN), Capital One Financial (COF).
Wednesday: Microsoft (MSFT), Tesla (TSLA), United Airlines (UAL).
Thursday: AT&T (T), Intel (INTC), Union Pacific (UNP).
Friday: Verizon (VZ), American Express (AXP).
Source: Zacks, July 17, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
[i] The Wall Street Journal, July 17, 2020
[ii] The Wall Street Journal, July 17, 2020
[iii] The Wall Street Journal, July 17, 2020
[iv] CNBC.com, July 14, 2020
[v] WSJ.com, July 16, 2020
[vi] CNBC.com, July 16, 2020
[vii] The New York Times, July 15, 2020