Kane Financial Update – June 1st, 2020

3 Minute Read

Good morning,

I hope this email finds you and your families well. CNY has officially entered phase two reopening which means Kane Financial can begin in-person client meetings! 

The state health department has provided required guidelines to businesses that are reopening, which thanks to Lyndsey’s hard work, have been 100% implemented at our office.  We are taking every safety measure and precaution necessary so that our clients can feel comfortable coming to our office for meetings.

In terms of the markets, our economy, and general financial planning, here is a brief list of recent FAQs:

How are the markets doing?
Following the fastest stock decline in our history (34% in just under a month), markets have rallied by 36% from March lows, all while some of the worst news was coming out.  The downturn provided several excellent buying opportunities within client accounts.

Will the Stock Market go back down?
It could, and if it does, we will again add to long equity positions in client portfolios.  That said, this rally has been very encouraging.  Markets are forward looking economic indicators, taking in current known information, and projecting what our economy will look like 6-9 months down the road.  We do not quite know the extent of economic damage the shutdowns have caused, and that unknown is still hanging out there for markets to digest.

What else should we be thinking about for the rest of 2020?

  • Required minimum distributions from pre-tax IRAs have been moved to age 72, and suspended for 2020.
  • Charity donations up to $300 have been added as a top line deduction for tax purposes for 2020.
  • The SECURE Act passed in late 2019 making Roth IRAs even more attractive.
  • Kane Financial now offers tax planning for clients (no extra cost) and can run tax scenario analysis for 2020.
  • If you have earned income, you can continue IRA contributions past age 70.5.
  • Your stimulus check is not taxable, it is essentially a tax credit.
  • IRA contributions for 2019 can be made up until July 15th, 2020.
  • For small business owners, ask your accountant about tax planning for 2020 as there have been numerous extension, deferment, and forgiveness programs that became available during the pandemic.

Finally, since we can meet with clients once again we would love to set up a review meeting with you.  After the market volatility we have experienced, now could be a great time to re-evaluate risk tolerance and portfolio allocations. 

Please feel free to schedule a meeting using the link on our website, it goes directly to my calendar where you can indicate the type of meeting, and the date/time that is most convenient for you.

I look forward to hearing from you, if you have any questions or concerns at all, please do not hesitate to contact the office.

Best,
Clint

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