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Special Report – A Fourth Update

The daily cadence of life has certainly been interrupted by these interesting times. We sincerely hope each of you is finding a good way of coping with the disruption to your schedule. As most parents of any age can probably relate too, our houses have turned into roller-skating rinks with all furniture pushed to the side and rugs pulled away. There are no injuries to report, yet. 

As was expected, the virus is reaching the point where it is personal, and we know people who have it currently or are in the recovery phase. There have been four coronavirus cases associated in one way or another with people we know. One in Washington and three in New York. Out of the four cases, three have been successful recoveries and the fourth individual is still battling the virus. 

Additionally, Lisa, a tax preparer in our office, is married to a Navy Chief stationed on the USS Theodore Roosevelt. As has been reported, the ship is struggling with an outbreak of the virus and is working on containment. With 5,000 sailors stationed on the ship-based out of San Diego, this is going to be closely watched by many in our community. 

S.3548 “THE CARES Act”

Congress has passed and the President has signed the CARES Act as of today, Friday the 27th of March. The markets rebounded significantly in anticipation of the bill offering a respite from the downturn of the last several weeks. There is a significant amount of information in the bill and we will be doing our best to understand it over the course of the weekend. We will be providing an update on what we find relevant and timely for our clients soon. Some of the covered areas are:

  • Recovery Rebates 
  • Retirement Plan Distribution Penalty Waivers
  • Student Loan Payment Provisions 
  • Employee Retention Credits
  • Payroll Tax Deferral

Attached is the link to the direct Senate legislation:

We are here to help you make rational, informed and well-reasoned decisions, and we thank you for your continued trust and support. Your input is always welcome, and we ask that you contact us with any questions or concerns. 

DISCLOSURE

All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards.

Investing in securities in emerging markets involves special risks due to specific factors such as increased volatility, currency fluctuations and differences in auditing and other financial standards.  Securities in emerging markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.

An index is a statistical measure of the change in an economy or a securities market. In the case of financial markets, an index is an imaginary portfolio of securities representing a particular market or a portion of it. Each index has its own calculation methodology and is usually expressed in terms of a change from a base value. Thus, the percentage change is more important than the actual numeric value. An investment cannot be made directly into an index. 

Investing in fixed income securities involves credit and interest rate risk. When interest rates rise, bond prices generally fall.  Investing in commodities may involve greater volatility and is not suitable for all investors. Investing in a non-diversified fund that concentrates holdings into fewer securities or industries involves greater risk than investing in a more diversified fund. The equity securities of small companies may not be traded as often as equity securities of large companies so they may be difficult or impossible to sell. Neither diversification nor asset allocation assures a profit or protect against a loss in declining markets. Past performance is not an indicator of future results.

Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC.  Investment Managed Solutions (IMS) Platform programs and services offered through Avantax Advisory ServicesSM. All other investment management and financial planning services are offered through Reason Financial. Reason Financial and Avantax Advisory Services are unaffiliated entities.  Placing business through Avantax Insurance AgencySM and Avantax Insurance ServicesSM. CA Insurance Sean P Storck #0F25995, Steven Pollock # 0E98073

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