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Nothing will make you question your mortality and the associated financial risk quite like a global pandemic.

Unfortunately, as financial planners, we see too often clients with no rhyme or reason behind their financial risk management strategy.

We make it a point to have an intentional, documented insurance discussion with all of our clients.

We take an inventory of our clients’ existing policies and evaluate them regularly.

We often find insurance that isn’t worth keeping, and we recommend that our clients drop it.

We also frequently discover gaps in coverage or current policies that are not appropriate for a client’s financial situation and risk profile, and in those cases, we suggest increasing coverage or changing types of insurance.

Oftentimes, our prospects and existing clients choose to act on our recommendations.

But sometimes, they don’t.

An interesting thing has happened during this pandemic.

Clients and prospects are reaching out to us to initiate or revisit the insurance conversation.

Clients that previously believed they had enough insurance are now taking a second look at our fact-based calculations that show a much higher need.

This seems to be the case globally as life insurance companies are backlogged from a record amount of applications. 

A doctor who didn’t take my recommendation about increasing his life and disability coverage 3 years ago contacted me the other day about increasing his disability income policy and applying for more life insurance.

He said he had a colleague diagnosed with cancer at age 40.

It is going to be more expensive for him now, but luckily for him and his family, he has not had any new medical issues that would disqualify him for coverage.

This doctor is a classic example of someone whose actual need for insurance is much larger than he perceives.  

He has 5 kids under the age of 10, and his wife does not work.

He is the sole breadwinner.  He brings home the bacon and the band-aids.

If his income were to go away, it would be financially catastrophic to his family and the lifestyle to which they are accustomed.

He didn’t believe me 3 years ago but was ready to act this time around.

We also have clients who were originally planning to let their term policies expire contact us about converting the policy to a permanent form of life insurance.

Solid, affordable insurance planning has always been part of a sound financial strategy even before COVID-19, and it will continue to be long after this pandemic is over.

Let’s discuss what the right policy looks like for you and your family.

There is no time like the present, and life insurance companies are attempting to stream line the application process to keep up with the recent in-flux of applications

If you’d like a complimentary review of your risk management strategy, please click here.

On March 27, 2020, the Coronavirus, Aid, Relief, and Economic Security (CARES) Act (the “Act”) was signed into law. A portion of the Act is intended to loosen access to retirement plan funds for individuals impacted by the COVID-19 pandemic.

It is our goal to keep both our individual and business clients as informed as possible during these troubling times. Please click the link below to download a summary of the CARES Act as it pertains to retirement plans.

CARES Act Summary – Retirement Plans

As I’m sure you know, the $2 trillion “Coronavirus Aid, Relief, and Economic Security” (“CARES”) Act was recently signed into law. The CARES Act is designed to help those most impacted by the COVID-19 pandemic, while also providing key provisions that may benefit retirees.1

To put this monumental legislation in perspective, Congress earmarked $800 billion for the Economic Stimulus Act of 2008 during the financial crisis.1

The CARES Act has far-reaching implications for many. Here are the most important provisions to keep in mind:

Stimulus Check Details – Americans can expect a one-time direct payment of up to $1,200 for individuals (or $2,400 for married couples) with an additional $500 per child under age 17. These payments are based on the 2019 tax returns for those who have filed them and 2018 information if they have not. The amount is reduced if an individual makes more than $75,000 or a couple makes more than $150,000. Those who make more than $99,000 as an individual (or $198,000 as a couple) will not receive a payment.1
Business Relief – The act also allocates $500 billion for loans, loan guarantees, or investments to businesses, states, and municipalities.1

Inherited 401(k)s – People who have inherited 401(k)s or Individual Retirement Accounts can suspend distributions in 2020. Required distributions don’t apply to people with Roth IRAs; although, they do apply to investors who inherit Roth accounts.2

Suspended RMD – The CARES Act suspends the minimum required distributions most people must take from 401(k)s and IRAs in 2020. In 2009, Congress passed a similar rule, which gave retirees some flexibility when considering distributions.2,3

Withdrawal Penalties – Account owners can take a distribution of up to $100,000 from their retirement plan or IRA in 2020, without the 10-percent early withdrawal penalty that normally applies to money taken out before age 59½. But remember, you still owe the tax.4
Many businesses and individuals within our community are struggling with the new realities that COVID-19 has created. The CARES Act, however, may provide some much-needed relief for our neighbors, friends, and loved ones.

If you’d like to chat about how the CARES Act impacts you or to see if these special 2020 distribution rules are appropriate for your situation, give me a call or just hit reply.

Under the CARES act, an accountholder who already took a 2020 distribution has up to 60 days to return the distribution without owing taxes on it. This material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Under the SECURE Act, your required minimum distribution (RMD) must be distributed by the end of the 10th calendar year following the year of the Individual Retirement Account (IRA) owner’s death. Penalties may occur for missed RMDs. Any RMDs due for the original owner must be taken by their deadlines to avoid penalties. A surviving spouse of the IRA owner, disabled or chronically ill individuals, individuals who are not more than 10 years younger than the IRA owner, and children of the IRA owner who have not reached the age of majority may have other minimum distribution requirements.

Under the CARES act, an accountholder who already took a 2020 distribution has up to 60 days to return the distribution without owing taxes on it. This material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Under the SECURE Act, in most circumstances, once you reach age 72, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA). Withdrawals from Traditional IRAs are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty. You may continue to contribute to a Traditional IRA past age 70½ under the SECURE Act, as long as you meet the earned-income requirement.

Accountholders can always withdraw more. But if they take less than the minimum required, they could be subject to a 50% penalty on the amount they should have withdrawn – except for 2020.

1. CNBC.com, March 25, 2020.
2. The Wall Street Journal, March 25, 2020.
3. The Wall Street Journal, March 25, 2020.
4. The Wall Street Journal, March 25, 2020.

Please take a moment to listen to our COO & Co-Founder Peter Pigeon on the South Carolina Business Review. Pete talks with Mike Switzer about the emotional toll that comes with investing during a crisis and how to stay positive amidst such troubling times.

Many stock market crashes have happened in the past and every time they do, investors are faced with the emotional toll of investing during a crisis. Our next guest says there are ways to trick your brain into thinking positive in order to prevent panic.

Mike Switzer interviews Peter Pigeon, a certified financial planner with Hobbs Group Advisors in Columbia, SC.

You may listen to this interview here.

When was the last time you reviewed your insurance policies?  Have you ever put together an actual insurance plan to make sure you aren’t missing anything?  Our next guest says many people tend to put off insurance planning because it’s just not a lot of fun. And, he adds, that is unfortunate because insurance should be viewed as a valuable tool in your overall financial plan.

Mike Switzer interviews Peter Pigeon, a Certified Financial Planner with Hobbs Group Advisors in Columbia, SC.

You may listen to this interview here.

The 2018 tax reform brought the most changes to the federal income tax code in over 30 years. And your first real experience with these changes will probably be when you file your upcoming tax return. In general, most tax-payers will pay less tax in 2018 compared to prior years, but our next guest says this law has also created some new retirement planning choices, especially for those planning to retire during the next five years. 

Mike Switzer interviews Peter Pigeon, a Certified Financial Planner with Hobbs Group Advisors in Columbia, SC.

You may listen to this interview here.

Hiring a financial planner does not mean the same thing to all people.  And our next guest says that can cause a lot of confusion.  So he’s in our studio today to help clear up some of these myths.

Mike Switzer interviews Garet Strange, a financial planner and V.P. of operations for Hobbs Group Advisors in Columbia, SC.

You may listen to the interview here.