• Latest
  • Fails
  • Funny
  • News
  • Awesome
Latest
Popular
Videos

Yummy
Lifestyle
News
Awesome
Pop Culture
Funny
Fails
Science
Travel
Life Hacks
Technology
Style
Stories
Nostalgia
Video
Cars
Gaming

About
Contact
Privacy
Terms
DMCA
unemployment jobs economy

Financial Tips For When You've Lost Your Job Due To Covid-19

Over 3 million people in the U.S. have recently filed unemployment claims as a result of the severe economic impact of the coronavirus.
Life Hacks
Published April 29, 2020
Advertisement
Share
Next
Advertisement
Advertisement
Read This Next
5 Body Language Tips To Use In Virtual Meetings
Sometimes it's not what you say that matters. It’s what your body says that does.
The Top Ten Worst Easter Candies
Don't @us.
Advertisement
Read This Next
'Backyarding' Is The New Trend To Move Indoor Activities To The Great Outdoors
Kirk Pynchon | Lifestyle
10 Fun Crafts That Will Distract Your Kids For Almost A Half An Hour!
Life Hacks
Yes...There Are Actually Good And Bad Feng Shui Plants
Kirk Pynchon | Lifestyle
Advertisement
You May Also Like
Keep Your Dog's Joints Fit And Healthy With These Five Tips
Your dog...and your dog's joints...will thank you.
New Alzheimer’s Research Could Inspire Better Treatments And Earlier Diagnosis
There is hope.
Is It OK To Exercise When You're Sick?
Learn the signs so you don't make it worse!
Channels
news
awesome
funny
science
life hacks
Advertisement
More Channels
style
nostalgia
lifestyle
travel
technology
Advertisement
unemployment jobs economy

Financial Tips For When You've Lost Your Job Due To Covid-19

Over 3 million people in the U.S. have recently filed unemployment claims as a result of the severe economic impact of the coronavirus.
Life Hacks
Published April 29, 2020
Advertisement
Advertisement
Next
Share
Advertisement
Advertisement
Read This Next
5 Body Language Tips To Use In Virtual Meetings
Sometimes it's not what you say that matters. It’s what your body says that does.
The Top Ten Worst Easter Candies
Don't @us.
Advertisement
You May Also Like
These Are The Top Ten U.S. Counties With The Worst Air Pollution
In the time of COVID-19, dirty air may be even more dangerous to our health.
'Backyarding' Is The New Trend To Move Indoor Activities To The Great Outdoors
Here are some ways to bring more “backyarding” into your life!
10 Fun Crafts That Will Distract Your Kids For Almost A Half An Hour!
Finally, a way to entertain your kids (without screen time) and get some "me" time for yourself!
Advertisement

1. Covid-19 And Joblessness

Media Source

Over 3 million people in the U.S. have recently filed unemployment claims as a result of the severe economic impact of the coronavirus.

Some of those suddenly jobless have limited financial resources besides unemployment benefits. Others are fortunate to have emergency savings or investment vehicles they can draw from such as a 401(k). Then there are those who are still working, but feeling the effects of business slowing down.

 “Overall, the pandemic has put many people in a weakened financial condition that they didn’t expect,” says Steve Kruman, a financial planner and investment advisor at Bryce Wealth Management. “And there are some lessons in there that could better protect them and their loved ones going forward.”

 Kruman has tips to help people weather the financial storm and learn how to plan differently for the future....

Advertisement

2. Don’t Panic In The Stock Market

Media Source

”Don’t sell now,” Kruman says. “People who are being induced into panic are selling, and somebody else is buying those  shares for when prices recover. The stock market always has fluctuations. It comes down to risk tolerance. You have to be prepared for volatility and be diversified.”

Advertisement

3. Be Careful With The 401(k)

Media Source

“When sources of funds are limited, people should withdraw only the amount they need from their 401(k),” Kruman says. “You want to look for other sources that would be accessible without taking on the major tax hit of raiding the 401(k). Home equity loans are great, and they are at rates much lower than the tax rates of the 401(k)."

"Also, cash value life insurance policies are good sources to borrow from as well. For those who lost their job but have adequate reserves, it’s advisable to roll their 401(k) money over to an IRA at the earliest possible opportunity. Employer-sponsored plans have several drawbacks, including limited investment options. By rolling to an IRA, you can select from a much wider investment universe.”

Advertisement

4. Consider Making A Roth Conversion Now

Media Source

When you move money from a tax-deferred retirement account into a Roth account, the money is taxed at that time. “But by making that conversion, you are putting yourself in a position to get tax-free income for life if you comply with two requirements,” Kruman says. 

Those requirements: be at least age 59 ½ and don’t take any gains out of the Roth for five years. Most financial professionals expect taxes to go up sometime in the future. One reason is that the recent economic stimulus will need to be paid for at some point. 

Another reason is that the tax cuts passed in 2017 will expire at the end of 2025 for personal rates. “So paying the taxes now at a lower rate when you make the Roth conversion is the better bet for the long run,” he says.

Advertisement

5. Don’t Rely On Group Life Insurance Anymore

Media Source

Many people have the majority of their life insurance through their job. But when you lose the job, you lose the life insurance. 

“You have to replace it with new life insurance at an older age, which means a higher premium, and with possibly negative health changes, again upping the premium,” Kruman says. “It’s vital to have a well worked-out plan of personal life insurance, which means not tied to a job.”

Advertisement

6. Find An Independent Financial Advisor

Media Source

“An independent advisor doesn’t have a company telling them what to invest clients’ money in,” says Kruman. “A client’s best interest should always be the number one priority for an advisor, and it’s easier to maintain that focus by being independent of any parent company’s fee goals or investment selection limitations.”

Advertisement

7. Weathering The Storm Wisely

Media Source

“Now is a tough time for many,” Kruman says, “but it is time that can be used wisely to consider the things you can differently to protect yourself and your family financially from the next period of economic uncertainty.”

Steve Kruman is a financial planner, investment advisor and insurance agent at Bryce Wealth Management. He’s also a licensed attorney in Pennsylvania and New Jersey, focusing on estate planning. Kruman is a Life & Qualifying Member of the Million Dollar Round Table, the only industry organization for people who are ethical top performers.

Advertisement
  • About
  • Contact
  • Privacy
  • Terms of Service
  • DMCA
© Guff Media