Welcome everybody! Abe Abich, Founder and CEO of Abich Financial Services just wanted to give you some critical talking points when it comes to your retirement plan post covid 19.
Number one for 2020, there are no RMDs due period for anybody whether it’s your own required minimum distribution or an inherited IRA or inherited 401k where you would otherwise have had a required minimum distribution.
Nobody, because of the carriage act has an arm d-do for 2020 so if you don’t need the money don’t take it out right because the market might still be down while you take money out the market might be up but if you can leave your money in there and continue to enjoy tax deferral and compound interest and hopefully growth and you don’t need the money then don’t take it out now.
If you need the money and and that’s an RMD amount or which are all that your that you need to live on then sure take it out but if you don’t have to we’re recommending that you don’t so that’s number one.
Number two, the market is very volatile right now even in this last week we saw the market continuing to go up and in one day.
Last week the market lost six to seven percent just in one day having its worst day since March where we saw the big correction and crash so the markets very volatile right now.
Be cautiously optimistic about how you invest we don’t think we’re out of the woods yet you know there’s a lot that is unfolding here in 2020.
Don’t forget we have an election and the market likes certainty and when we have an election coming up there there is a lot of uncertainty with that just around the corner.
Number three, what we really recommend is taking the big-picture approach when it comes to your investments and retirement plan.
We’ve talked to a lot of people over the last few months who are essentially trying to time the market and saying aid well our accounts are down now why would we get out why would we sell or you know were or up now.
We’re up and we’re ahead of where we were in March before this crash I’m okay you know I don’t know if I need to do anything that’s thinking with too much short-term thinking right.
You’re just thinking about the next couple months the upcoming days you need to be looking at your retirement plan over the next 20 30 years in taking a big-picture approach when it comes to how you’re investing and the risk tolerance that you can manage.
Don’t be looking to get it in and out at different times be thinking growth in income separate and separate your funds to serve a different purpose.
Write all of your funds and retirement plans should have a purpose some for growth some for income. Some for legacy and charity some for long-term care perhaps so keep that picture in mind.
Take a long-term approach and view on your retirement plan and don’t get caught into the minutia oh the markets up the markets down because do you want to live a retirement like that. You don’t you want to create as much of a stress-free retirement as possible so you’re not thinking about your money and you’re not thinking about the market as you’re on the golf course and traveling and taking cruises and spending time with your family.
So if you have any questions about the three things we just talked about the current state of the market here in 2020 and the post covid retirement planning recommendations that we’re making right now give us a call visit our website and schedule a complimentary consultation with us. http://abichfinancial.com