This week has seen several interesting developments in the ongoing COVID-19 pandemic and legislation meant to provide relief to individuals and businesses. We want to share a few thoughts with you about stock market behavior and provide some helpful information.

First, we know some of you may be considering selling all your stocks. We would like for you to see this instead as an opportunity to buy. As we learned in the 2008 recession, the best course of action is to buy in small amounts as the market drops, and then again as it begins to rise. This is a terrific way to get value for your money–you’re buying at a discount. We closely monitor the market every day and make educated choices about how much you should be holding in stocks and bonds while the market responds to the pandemic.

Second, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This $2 trillion stimulus package contains hundreds of provisions affecting consumers, industries, and employers. We have briefly outlined some of the highlights below:

Individuals may benefit in a few ways, including a $1,200 payout for adults and an additional $500 per child under 17. Also, the 10% tax penalty has been waived for taxpayers younger than 59 ½ who want to withdraw up to $100,000 from their IRAs and/or 401k plans. The CARES Act waives required minimum distribution for 2020, including those due April 1.

Third, businesses can also benefit from CARES. Businesses with fewer than 500 employees can apply for a payroll protection loan to cover payroll, mortgages, rent, utilities, and any other debt service requirements. Some portions may be forgiven on a tax-free basis if certain criteria are met. Other loans are also available, including expanded access to existing economic injury disaster loans.

The CARES Act also provides for tax credits for employee retention, deferral of payroll and self employment taxes, and changes to net operating loss and net business loss rules.

If you have any questions, please do not hesitate to reach out to us. We will be glad to talk further about any opportunities you would like to take advantage of.

Advisory Services offered through Obsidian Personal Planning Solutions, LLC. Securities are offered through Triad Advisors, member FINRA/SIPC. Obsidian Personal Planning Solutions, LLC, and Obsidian Personal Planning Solutions, Inc, are not affiliated with Triad Advisors.