Insights

How the CARES Act Will Affect You

On Friday, March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act, known as the CARES Act, was signed into law. This legislation provides roughly $2 trillion of economic relief to individuals, corporations, and small businesses during this time of crisis while so many businesses are closed and individuals are out of work.  This is equal to about 10% of annual domestic economic activity.  This exceeds previous fiscal stimulus measures in the U.S. by far.  Such massive stimulus will go a long way towards preserving family finances and the U.S. economy over the course of the Coronavirus pandemic.   We expect additional stimulus, as needed.  In addition to providing economic stimulus to businesses and corporations, below are some of the ways in which this bill could affect you:

WESCAP Update 3/17/2020: Current Coronavirus Outbreak

We stated in an earlier update that “it looks less likely than before that COVID-19 can be contained before it spreads to much of the world.”  There was an opportunity even then for governments to take actions to mitigate its spread.  Those opportunities were squandered.  Two weeks later, the virus has spread to much of the world and is now considered a pandemic.

WESCAP’s Take on the Current Coronavirus Outbreak

Summary:  Covid-19 appears to be spreading more rapidly than first thought, but with a lower mortality rate as well.  Therefore, a worldwide pandemic would be temporarily debilitating, but not likely to have a material long-term impact on most global economies and asset prices. Headline news risk and stock price volatility will remain high until the virus peaks and shows evidence of receding.

Economic and Investment Outlook for 2020

This year we wish to focus on the main questions investors are asking coming into 2020:  Are U.S. stocks and bonds overvalued?  What does this mean for investors?

To read the full report please click here: WESCAP 2020 Economic and Investment Outlook

Stretch IRAs Are Mostly Dead. RMDs Pushed Out to Age 72: How Will It Affect You?

Late last year, the Setting Every Community Up for Retirement Enhancement (SECURE) Act was passed as part of the government’s spending bill and took effect on January 1, 2020.  This new legislation is intended to strengthen retirement security for many individuals. Required distribution rules are changed – some good, some bad.