Capital Growth Inc’s Director of Client Services, Erica Tanner, recently joined CBS8’s Morning Extra with Heather Myers to share advice on taking control of your finances during this economic downtime. She shared our Financial Relief Fact Sheet and useful tips and opportunities to take advantage of right now.
Read the transcript below or watch the video here.
Erica Tanner (ET): Good morning, Heather. How are you doing?
ET: Well, I think the natural inclination in this is you’re scared, you’re nervous, you want to turn off your contributions and really you should be doing the opposite and taking advantage of this market volatility.
Of course it’s going to depend on if you have your job or not. So, if you do still have your job and you’re lucky enough to contribute to your 401k, at least contribute enough to catch your companies matching contributions if they offer it.
That’s what I would definitely say. To go against your emotions. Don’t invest on your emotions but just follow the plan that you have established.
ET: It’s definitely a last resort but some people are really struggling and nervous. Just keep in mind though that it is a loan that you are required to pay it
back or you’re gonna suffer some consequences and tax liabilities.
ET: Well, there are a few things that you can be doing to lessen your liability.
For some people it might be advisable to do a Roth conversion or a partial Roth conversion to take advantage of this volatility and lessen your tax liability.
You can also not take your RMD from your IRA and not have to sell low in this market. It’s something that’s just for 2020 and if you don’t need that money maybe you shouldn’t take it.
ET: I definitely think so. I mean it’s gonna depend on everyone’s personal situation, what your current rate is. But I think it’s worth a call or an investigation and to see what you qualify for. Especially if you have a credit card and you have a high interest rate, it’s probably worth a phone call to your creditors to see if you can qualify for a lower interest rate.
ET: Absolutely and I think this might be one of the most important things because people put it off. So, if you have not established a trust or a will, seek an estate planning attorney. Get that
established. Get all of your financial accounts and your home in the name of your trust. So many people don’t do this and when they pass away, they leave their loved ones hanging with all of the trouble of trying to resolve it in probate.
Also make sure that your IRAs have beneficiaries and they’re up to date. A lot of people don’t realize that they haven’t established it and then again, you leave your loved ones to deal with that after your passing.
Go to ssa.gov. Check your Social Security Statement. Make sure that they have all
of your income history so that when you do claim your Social Security that all of it’s there for you to claim and there are no errors. These are super important and I deal with them all the time in my position to help loved ones figure it out after a passing.
Just do yourself a favor. Your future self will thank you. Your family will thank you. It’s so important to do that especially because you have the time now.
ET: I think what I really wanted to do is to let people know that you don’t have to do this alone. You don’t have to be scared right now. Because it’s really scary and we don’t know where this economy is going.
But we have gone through this before. We have gone through cycles of down markets before. Seek that professional advice. Look for a financial advisor who’s qualified, who has gone through a storm like this and has navigated it and can help you navigate through your situation.
ET: Yeah, there is. If you go to our website, capitalgrowthinc.com, there is a checklist about what I spoke about; what things you can be doing to take control and not feel so nervous; and things that you can do through this that are really positive and can help you come out on the other side better prepared for the next time this happens.