Planning Newsletter - Apr 2020

Newly Signed CARES Act

We cover several important aspects of the recently signed CARES Act and how it could affect your retirement accounts in 2020. 

• Required Minimum Distributions (RMDs) are not required in 2020.

• Qualifying individuals can withdraw up to $100,000 from a retirement plan without the applicable 10% penalty.

Possible Economic Impact, Stock Performance after Prior Downturns

• Vanguard is forecasting a sharp contraction in Gross Domestic Product (GDP) in the coming quarter of nearly 17% on an annualized basis followed by a sharp upswing.

• Historically, US equity returns following sharp downturns have been positive.

• There is no proven way to successfully time the market. Missing only a few days of strong returns can drastically impact overall performance.