Weekly Club Meetings Now Online!!
Our meetings are Monday at noon, CLICK HERE to join us
Our weekly Rotary Club meetings are now being conducted live online via Zoom! No special software is required on your computer. Just CLICK HERE and you'll be plugged in. Start time is noon on Mondays, but try to sign in by 11:45am to virtually socialize with your fellow members. We are trying to stick to our regular format, except can attend from your home! All members, visitors, and guests are invited to attend. Zoom is very easy to use, if you would like to see a short Zoom tutorial, click here: Zoom Tutorial. See you Monday!!
MONDAYS
11:30 AM – NETWORKING.
12:00 - 1:00 PM MEETING
DON'T MISS THIS!
June 22
SCORE: Fostering vibrant small business communities through mentoring and education
INSPIRATION: Barb Wachtman (Retired)
Rotary Is….John Hoffman (Star Excavating)
SPIN AUTHOR: Mark Westerhausen (DWD)
Web Master & AV: Julie Zollinger
PROGRAM: John Hoffman: SCORE: Fostering vibrant small business communities through mentoring and education
MENU: You are on your own!
MENU: You are on your own!
Financially Speaking amid Covid 19
The EconomyThe economy was forced into an artificial shutdown in March. As many as 40 million people were unemployed at one time – the highest ever. The economy has improved some in May, but the recovery has not reached everyone. Those who must go to their workplace, such as manufacturing, restaurants, hospitality, are worse off than those who can continue to work from home. Projections are that unemployment will improve (!) to 10% by the end of the year.
The Federal Reserve Bank has done its best to help the economy by injecting trillions of dollars into the economy and reducing interest rates. These actions have helped to ensure that money is available so spending can continue, enabling the economy to function.
The Paycheck Protection Program (PPP) and unemployment benefits of $600 per week have helped immensely. Will there be another stimulus program? There is one being discussed in Congress, the Heroes Act, but if the economy continues to improve, legislation may not move forward.
The Markets
The stock markets, on the other hand, have fared much better. After a record drop in February, the S&P 500 has rebounded quickly, and it only down 5.9% for the year! The market will continue to be volatile as the year goes on.
Certain industries are doing quite well now, and have been leading the charge, Facebook, Amazon, Tesla, and Netflix are some of the companies helping to buoy the market. Travel and retail will take longer to recover.
Investing is a long-term endeavor, and that is important to remember in times such as these. Those who are able should keep three to six months’ expenses in cash so that investments don’t have to be liquidated during a down market.
Opportunities/Challenges
Our current situation presents some opportunities for individuals.
It is estimated that over 30 trillion dollars exist in retirement funds. A recent change to federal law allows those meeting certain requirements to take up to $100,000 out of their retirement funds in 2020 to help with expenses. The money can be paid back over three years, or they can keep the money and enjoy delayed taxation without a penalty. Don’t do this without first talking to a financial advisor or tax advisor.
Minimum required distributions have been suspended for 2020. It might make sense for some to not to take your distribution this year.
Individuals may deduct $300 of contributions on their tax return this year without itemizing. Congress is trying to incentivise us to help charities out during this crisis.
It could also be a good year to convert all or part of your traditional IRA to a Roth IRA. A Roth IRA is not subject to income or required minimum distribution rules. You pay tax on the distribution to get the money into the Roth, but it can be worth it, particularly in the current envirionment of low valuations and historically low tax rates.
This is also a good time to look at refinancing debt due to lower interest rates, but make sure it makes sense for your particular situation.
Going Forward
The economy has started to improve, but it will take a while to have a complete recovery. The financial markets will continue to be volatile. At the same time, many opportunities exist that may be helpful to you. We will get through this, but patience will be required!
High Five!
Have a special event coming up or major milestone? Whether it is business or personal, your fellow Rotarians want to know.
For a $5 donation, at weekly meetings you can share:
•Any events happening around town that you support
•A special sale or promotion your business is offering
•Family / Personal celebrations
•Anything you want to share
Please email Holli prior to the meeting, so that you can be recognized.