Why the CARES Act Eligibility is YOUR golden opportunity!

Reinvest for your retirement

We are living in wild times.

Most of us have never seen anything affect our entire world like Covid-19. 

Unemployment, fear, anxiety, and dread are at all-time highs. Individuals, organizations, and governments around the globe are scrambling each day to determine how to help.

Whether you agree with the many responses or not, there are opportunities for the smart investor. One such opportunity is within the CARES Act.

The Coronavirus Aid, Relief, and Economic Security Act (CARES) was designed to help Americans in their Covid-related financial distress. The Act looks out for workers and families, small businesses, job security, and government stability. It is a multifaceted program created to aid our country.

There is one provision in particular, however, that you need to understand.

Retirement Savings

For those diagnosed with Covid, or had family who have, or who have had their financial reality adversely affected by the virus, there are provisions for withdrawing income from retirement investments like 401(k)s and IRAs.

For 2020, an individual who fits the specifications can take up to $100,000 out of their retirement savings with no early withdrawal penalties. There is typically a 10% charge for any early withdrawals from retirement savings and 20% withheld for tax purposes. With the CARES Act, all $100,000 of an early savings withdrawal is yours.

So, what could you do with the $100,000, you ask?

Get By

For some, they will withdraw money to pay bills, cover their mortgages, put food on the table, and get by. Businesses are bankrupt, jobs are gone, and people are left wondering what to do next. This provision for early withdrawal by the CARES Act is a mercy for many American families. Let’s not forget that.

You probably still have your job, business, or cash flow, and your quality of life is not suffering. You don’t need an extra $100,000 to get a boat or buy that costly dog you’ve always wanted or stock away enough canned goods and toilet paper to live for decades in self-isolation. You will lose more than you gain by taking money out of investments to blow on whatever tickles your fancy.

Instead, you can use that money to…

Reinvest

Your 401(k) probably doesn’t give you the best returns on your money. As you’re growing in your understanding of markets and investments, you likely see where you could do better with your money.

You have an opportunity to take funds that are increasing a bit and make them grow dramatically!

Reinvest your savings into other opportunities. You can start a self-directed IRA where you make all the decisions about where your money goes. You can put it into a promising start-up company, a reliable real estate investor with a great plan, or get some shares in gold.

Or you could invest in…

Real Estate

A self-directed IRA allows you to purchase real estate with your savings. Check out my earlier blog on it here!

Not only is real estate a substantial investment with exceptional returns, but if you invest in rental properties, you also grow your monthly cash flow. Your investment puts income in your pocket regularly.

You may have money available to you that you could use right now or hold on to while you wait for property prices to come down. Whatever your preference, don’t miss your chance!

If you’re not sure how to make the most of this opportunity, let’s talk! Book a call with me on my website, and let’s get you started.