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4 Important Financial Planning Discussions to Have in 2020

4 Important Financial Planning Discussions to Have in 2020

April 10, 2020

During uncertain times, it is often a good practice to stop and review your financial planning goals and objectives. A lot of changes are occurring very rapidly in our markets, economy, and world here in 2020.

Several of the important financial planning topics we are reviewing with clients right now during 2020:
1. We are reviewing with all our clients who do not need their 2020 Required Minimum Distributions (RMDs) to consider postponing their RMDs for this year. The CARES Act and stimulus packages recently enacted are going to allow for you to pause them this year, 2020.
2. Do not take from IRA/401k accounts unless you absolutely need the cash. These should be a last line of defense. Even though penalties are being waived for those under 59.5 for early withdrawal – you will still have to pay taxes. Taking the withdrawals during a down market, plus paying income taxes will be detrimental to your long-term returns and ultimately your retirement balances.
3. Do not make emotional decisions to change your investments based on market reactions. If you do not need to take withdrawals – stay the course or see if you should rebalance.
4. If you are in a position where cash flow is still greater than your expenses, and you have excess cash – now is not a bad time to start looking for additional opportunities in the market for the long-term. A lot of individual equities, funds, and asset classes look a lot more attractive today than they did a month or two ago from a valuation standpoint for the long-term.

We believe that one of the easiest ways to separate yourself from the pack is to make sure you make emotionally intelligent decisions during times of uncertainty. The easiest way to do that is to make a plan, review your plan on a regular basis, and only stray from your plans if you have major life or goal changes!

*You should consult with an advisor or financial professional if you have questions on the above or would like to review your cash flow situation, portfolios, or the options available for individuals and businesses from the economic policies enacted here in 2020.*