Checks In the Mail?

Checks In the Mail?

30 Seconds or less…

It’s the Million Dollar Question!

The House of Representatives are all scrambling to get back to DC for an in-person vote on the $ 2T Stimulus Package. Antiquated rules require an in-person vote if even 1 representative does not agree to vote for the bill. (We know they won’t have any problems getting a flight back to DC! ) It was thought that the bill would pass by unanimous voice consent and not require travel. And now we know that’s not true. Welcome to Washington!

What does this mean for the rest of us?

  • Uncertainty always makes the Markets nervous. Trading was off 1K points early but is floating up and down now.
  • More questions circling around WHEN relief checks will get to the American taxpayer. (Not IF as all lawmakers are focused on getting checks into the hands of Americans.)
  • Plus the economists have had more time to digest the latest data.
  • Finally, mid-April is right around the corner and that’s Earnings Season. Companies are required to report publicly their quarterly #s. They will have to tell us as investors what their earnings were, if they suffered any losses, what their expenses are expected to be (keeping staff on payroll, increasing front line employee wages, etc), and share what their expectations for the following quarter are.

Did I mention the markets would be choppy for a while? The bottom hasn’t been tested yet despite some analysts calling for buying opportunities. Remember, we’re still not clear on the duration of this event! That said we are doing fine. Remember: #BeTheCalm!

A Bright Spot for your Day ~ The President of China and Trump are respectfully communicating again. Their doctors are sharing intel on the virus with our top docs. This is much needed cooperation to address this world health crisis!

In the Weeds –

Who’s Covered? – There are many great articles out there and even calculators helping people figure out if they will receive a stimulus check or not (as the bill currently outlines.) Your 2018 or 2019 Adjusted Gross Income (AGI) is the key determinant ~ those making less than $75K filing individually or $150K filing jointly as a married couple qualify for the stimulus checks with less being paid out up to the $99K cutoff. I’ve seen numbers as low as 83% to as high as 93.6% of the American taxpayers will receive a stimulus check. (The latter figure is from The TAX Foundation.) The stimulus check is completely independent of your current work status, Social Security Checks or any state Unemployment Insurance payments. This program is expected to inject $300B directly back into the economy. These payments will not be taxed. Some might have to return part or all of the money if they make too much money in 2020. Not expecting that to be to a big risk!

Who’s Not Covered? Potentially eligible Americans’ who have dropped out of the system and no longer file tax returns. Various article show the number to be estimated at roughly 12% of the American population. Further, illegal aliens are also finding day laborer jobs and/or household jobs drying up. There is no mechanism in place to support these populations. (This is not about politics but rather looking at impacts to the various populations within our economy.)

Unemployment Numbers! – Wow! 700,000 initial jobless claims was the peak in the deep recession of October 1982. We hit almost 5 times that this week with 3.3M initial jobless claims. Despite the unprecedented jump, the markets rallied when the number came in below $4M. Unemployment Insurance is state run: what % of a worker’s income is covered, the waiting period, and how long did you work in the state before being let go, did you move across state lines, etc.; all those technical qualifications vary depending on the individual state so look at your state website for details. A number of states have said they are having trouble responding to the sudden jump in claims so that 3.3M is probably understated.

Prior to this health crisis the unemployment rate was very low at 3.6% in January. Many economists are calling for it to exceed all past known economic events and could even reach as high as 30%. Unemployment will hit workers up and down the economic spectrum which is why the Stimulus Package includes an extra $600 per week intended to cover a higher portion of the workers income. The stimulus funds will also help to cover gig workers, freelancers and furloughed employees who are typically not covered by Unemployment Insurance.

Everyone is pulling out all the stops to help our communities get through this! Other Resources for those in Need: (Consolidated & shared by a good friend of mine, thank you!)

Beware of the Scammers!

FBI warning about Coronavirus-related scams: https://www.ic3.gov/media/2020/200320.aspx

What can we do?

Stay calm, be prudent about how you choose to spend your money right now, and take the long view on the market. More importantly, focus on helping those in need within your community, exercise social distancing when exercising, and be your amazing selves!

We will lead our families, our communities, and our teams calmly through this event!  #BeTheCalm #Leadership!!!

If you have any questions or topics of interest, please send them in!

Stay Healthy! Susie

3 thoughts on “Checks In the Mail?”

  1. A well thought out article. You have found many valuable resources that people will need to support themselves during this crisis. I can’t imagine finding all this information by myself!

  2. This is fantastic Susie! Thanks. Not easy to digest so much information in a well-written piece, but you did it. Hope you’ll keep updating! We have 25 employees so lots to sort through, but thankfully still rolling the concrete trucks.

    1. Thank you! Take a look at the Paycheck Protection Plan under the SBA. It rolled out Friday night and is intended to provide liquidity to small businesses. Good Luck!!!! Susie

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