About a month ago, President Trump signed an executive order that expanded economic relief to taxpayers. Starting September 1, 2020 and through December 31, 2020 employees can defer payroll taxes. [Read more…] about Should You Participate in a Payroll Tax Relief Program? Most Likely Not!
In this video, I provide a quick summary of the HEROES Act, a new $3 trillion stimulus package aimed to provide additional assistance and reliefs to individuals, businesses, and government entities. The bill was passed by the House of Representatives on Friday. Also, I talk about the second stimulus check and other keys provisions of the new stimulus package, including student loan forgiveness and housing assistance.
I recently got a new client and due to the COVID-19 lockdown we had to go through a lot of things virtually. When I have a new client, I always go through a pre-determined process that outlines specific steps and actions both the client and I need to take. One of the very first steps is to send the client a questionnaire to get some basic information about the client and get some insights into the client’s current financial situation and overall life philosophy. One of the questions in my questionnaire asks the client about his or her top five bucket list goals. Usually people list buying a house, travel to an exotic place, upgrading a car, saving for a college and some other things. But this lady mentioned that she wanted to stop using credit cards. It came as a little shocker to me. Of course, she is not alone in that attitude. I am hearing and seeing that many people, especially millennials, opt out from using credit cards in favor of debit cards. But are credit cards indeed as black as they are painted? Let’s find out.
During difficult times like the one we are all getting through right now, there are people that play on the public’s fear about the coronavirus pandemic and do harm than help. I have zero tolerance for that and would like to talk about some scams that you need to be aware of now and what you can do to protect yourself from becoming a victim of a fraudster or a scammer.
The stimulus package allowed workplace retirement plan participants and IRA owners to tap into their retirement accounts and withdraw up to an aggregate $100,000 without penalties for COVID-19 related purposes. Usually, with the exception of certain situations, by tapping into your retirement account prematurely, and that is before age 59.5, you will have to pay a 10% penalty. This penalty was waived.
It’s official – the government will be sending free money checks to millions of Americans. $1,200 will go to individuals and heads of households and $2,400 will go to married couples with no kids. Also, if you have kids, expect to get an additional $500 per child.