The COVID-19 pandemic has impacted everyone in one way or another. Unfortunately, one-way that some people are being impacted is by scams that have increased because the scammers know that people are more vulnerable right now. Here are some scams that are happening as well as some ways to avoid them. Stimulus Check As you know, the government has issued stimulus checks to many Americans. There has been a lot of confusion around this and scammers are taking advantage of that by trying to get people to hand over their bank account information. They may call pretending to be the IRS and/or your bank asking you to verify your bank account information so that your check can be deposited. Don’t fall for this! The IRS will use information from your 2018 or 2019 tax filing in order to deposit your check into your account. If you don’t have an account on file with them, they will mail the check to the last known address they have. The IRS will never call, email, or mail asking you to confirm your account numbers. If you have not received your check and think you should have, you can visit the IRS website. Phone Providers As some people are struggling to pay bills, scammers are using this as an opportunity to scare people. You may get a phone call saying your phone line will be shut off if you don’t follow the prompts. This is likely a scam so don't follow the prompts! Some people that have gotten a call like this are current on their phone bill. If you are concerned about your phone line, call the number you know is a legitimate number for them, which can be found on your monthly statements. Debt Reduction Scams As mentioned above, people are struggling to pay their bills right now and that opens up yet another avenue for scammers. If you get a phone call promising debt reduction techniques that sound too good to be true, it’s because they probably are! They will charge for their services and then you will likely not hear from them again. If you are struggling to pay your bills, many companies are offering hardship assistance so reach out to the credit card company, bank, or other lender individually. Dave Ramsey has a wonderful program, Financial Peace University, that has changed lives and helped millions of people save money and pay off debt. They are offering a free 14 day trial right now (for a limited time) and you can read more about that on DaveRamsey.com. Emails We know that we should never click links in emails if we are not sure who sent us the email. That has been true for a long time now. But recently, spam emails and links have been popping up more often. There are even scammers accessing people’s email accounts and sending out bad links. So, if you get an email from someone you don’t know, don’t open the link. If it is from someone you know but the message seems off, don’t click the link until you call them to see if they actually sent it to you. I received a couple emails from people I knew that said “I should have sent this to you sooner” and there was a link. I didn’t click it because I knew that was not actually from them. Coronavirus Test Kits and/or Updates There are at-home test kits being advertised that are not approved by the FDA. Be weary of emails or texts that are offering to sell test kits and/or giving coronavirus updates. Go to the trusted websites to get the updates. In Ohio, you can go to https://coronavirus.ohio.gov/wps/portal/gov/covid-19/home for updates. Donations Unfortunately, some scammers are even claiming to be a charity that is giving back in response to COVID-19. If you are giving to a new cause, be sure to do your research to make sure you are giving to a legitimate charity. And of course, never give donations in the form of cash, gift cards, or by wire.

The COVID-19 virus has changed our lives, at least for the short run, in impactful ways. As financial advisors, none more pressing than the changes it has created in regards to retirement planning and rules around retirement accounts. At least for now, these changes create unique opportunities in the year 2020 and we’ll certainly keep you up to date, if Congress decides to make anything permanent. During our last newsletter we talked about the fact that Required Minimum Distributions have been eliminated in the year 2020. That is important if you are someone over the age of 72. However, some of the other provisions could impact you regardless of age. Let’s take a look… Retirement Account Distributions Typically one needs to be age 59 ½ or older to be able to pull money from a retirement account (IRA or company sponsored retirement plan) however for the rest of this year (and retroactively for anyone that may have taken a distribution in 2020) you can a avoid the 10% early withdrawal penalty, on up to $100,000, if you meet one of the following two qualifications: You, your spouse, or your dependent is diagnosed with COVID-19. You have suffered financial hardships or consequences as a result of the pandemic. This would typically be someone who has lost or had their income reduced, not been able to work because of lack of childcare or a myriad of other reasons why someone could have had a negative financial impact. Realistically there are probably very few people that haven’t been financially impacted, even if minimally, by COVID-19. 401(k) Loans Participants in company sponsored retirement plans now have the ability to borrow at a much higher amount that historically has been allowed. Normally a plan will allow you to borrow up to 50% of your balance or $50,000, whichever is lower. However the CARES Act has increased that amount to $100,000 or 100% of your balance, which is lower. What Should I do? Dave Ramsey, America’s Voice on Money, always says, retirement plan distributions should only be used in the event that someone is trying to fend off foreclosure or bankruptcy and we tend to agree. Why is this? When you take a distribution from your retirement account you are satisfying a need today at the expense of your future. A $100 distribution today, at an 8% return, over 20 years means you actually took $466.10 from your future self. If you didn’t contribute again for another 5 years it would take a $146.93 deposit to make up for the unplugged $100 over the last five years. Many times, a retirement plan distribution can seem like an easy way to satisfy a current need when you can often satisfy that need another way. If you’re using it to make a payment on a loan – call the lender. Right now, many lenders are willing to waive a payment or two if you have lost your income. They learned in 2008, it’s better to work with a borrower than face the wrath of an angry government and public because you foreclosed, evicted or repossessed from too many clients. If you need income to survive – right now on OhioMeansJobs.com, which is a site hosted by Monster Jobs there are 116,135 jobs open in the State of Ohio. Many are probably not glamorous but if it’s the difference from pulling out your future retirement savings or rolling up your sleeves for a bit and doing something you may not enjoy, to keep your Retire Inspired Dream alive – I know what I’d be doing. I recently met with a young man, who works all day and spends his evening delivering pizzas for Pizza Hut. The classic gazelle intense Ramsey follower. When COVID-19 hit the fan he was furloughed but guess what, Pizza Hut was ready and willing to give him more shifts and he still has income to protect the four walls and we haven’t had to touch any of his retirement accounts. 401(k) Loans – When taking from a 401(k) you are paying yourself the interest back into your 401(k) account but you have unplugged an investment that, in many cases, has performed at a higher rate of return than the very low interest rate you are paying yourself. Not only that but you are unplugging the investment (for the purpose of the loan) at the very worst time because of point number 4. Depressed Values – Any distribution right now is more than likely being taken at a level that is far from the highs. As we saw during the last few weeks the stock market can jump back up just as quickly as it went down. An old investor adage is to buy low and sell high. Right now, for many people, they are most likely selling low to take a distribution, so in most cases it would be advisable to try and avoid the distribution or loan. BOTTOM LINE While changes are coming to the retirement landscape, our advice is to stay the course. Keep focused on your Baby Step and only use the CARES ACT changes should you be in a situation where a retirement distribution is unavoidable. Should you need to talk through your specific situation please contact your Whitaker-Myers Wealth Managers Smartvestor Pro today!

As you know, the government is issuing stimulus checks in order to help balance out the hardships that many people are feeling right now. Many Americans have already received their check or will be receiving it soon. If you are receiving one, it's a good idea to have a plan for the best way for you to use the money. That’s why we wanted to share... 4 Things To Do With Your Stimulus Check: If your job is stable, use the money to push you closer to achieving the goal that you are working on. We follow and recommend Dave Ramsey’s baby steps so if you are following that plan, you would use this money toward which ever step you are on. Meaning if you are on baby step 2, then the money would go towards your debt snowball. If you have lost your job or it looks like you might be losing your job, put this money in your savings account in case you need it. Whenever you have uncertainty in your job, it’s a good idea to “pause” the baby steps and save money. If you need it, it’s there and if you don’t end up needing it and life goes back to “normal” you can press “play” and put that money you had saved towards the baby steps again. Be generous. If you are through the baby steps, your job is stable, and you are wondering what you should do with this stimulus money – it is never a bad idea to be extra generous. Give a bigger tip, support a small business, pay for that haircut you were scheduled for but couldn’t get, give extra to your church… the list goes on and on because unfortunately, there are a lot of people in need right now. So, if you are in the position to give, being generous is always the most fun you will have with money. Save for retirement and/or kid’s college. If you are on baby steps 4 or 5 but haven’t been able to save as much as you would like, consider using this money to save more into those investment accounts. The way they have structured the stimulus package is an amount per person and also per child. If you are through the baby steps and do not need the money to cover your basic needs because of a job loss, you may consider putting the child's money in an UTMA investment account or college fund for them. As Dave Ramsey talks about often, one of the best parts of following the baby steps plan is the impact that is can have on your family. It can change your family tree forever. If you have questions that are specific to your situation, we would be happy to help. You can meet our team here.

We know that the Coronavirus (COVID-19) has impacted all of us and yet the level of impact can vary depending on your specific circumstances. If your income is changing due to everything that is going on, we know that can be stressful. We also know that just as fear is contagious, so is hope and joy. It can be hard to feel hope & joy when you are stressed about money but we are here to help! There Is Hope: The Coronavirus & Your Money As one of Dave Ramsey’s Smartvestor Pros, we are passionate about helping others with their money goals. That has always been a passion of ours and we know it is more important now than ever before. If you are working Dave Ramsey’s baby steps and are in Baby Step 2 (paying off all your debt except for you home) and are concerned that you may lose your job, press “pause” on the baby steps. Meaning, pay minimum payments on everything and put the money you would normally send to debt, in your emergency fund. This is to build up money in case you do lose your job. Then, when you get through this, you will press “play” and take the money you saved and pay it on your debt. Another thing you might want to do is look at your budget and cut out everything that is not essential. This is not forever, just until you make it through this storm. If you did lose your job and don’t have enough to pay all of your bills, make sure you are cover what Dave Ramsey calls “the 4 walls” first. That is Food, Shelter, Transportation, Utilities, (and basic clothing). These are the things that are the most important for you and your family to make sure you cover before paying for anything else. You will also have to look for a job to start bringing in income. This might not be your dream job, but it will be something to help you through this tough time. Ken Coleman, one of the Ramsey personalities, has a list of companies that are hiring right now on his Instagram page. You can view that here. Other Resources To Help… Ramsey Solutions is dedicated to helping people with their life and their money and they have really taken that commitment to a new level during this time. Below is a replay of the Livestream that Dave Ramsey, Rachel Cruze, and Ken Coleman did entitled "A Message Of Hope" Also, at DaveRamsey.com/Hope you can find a bunch of other resources including… A 14 Day FREE Trial of Financial Peace University. If you have never taken this class and are stressed about money, this is a perfect time to get this information for FREE for the first 14 days! Dave Ramsey’s audiobook, The Total Money Makeover, is $1.99. This book lays out Dave’s proven plan for money including the 7 Baby Steps! Ken Coleman’s book on careers entitled “The Proximity Principle” is also $1.99. There are other resources, and you can see them all listed on DaveRamsey.com/Hope. If you have any questions specific to your retirement plans, investments, or any other money questions, please feel free to reach out to one of the Financial Planners on our team. You can meet our team and contact us here.

In an interview done in September 2019, fund manager Dan Ivascyn, who is the chief investment officer of PIMCO, where he leads the firms income, credit hedge fund and mortgage opportunistic strategies, explains the firms cautious outlook and why its stressing liquidity in managing assets. Dan is most well known as manager of the PIMCO Income Fund, where he’s produced one of the best records of any bond manager since taking the helm in 2007. In 2013 Morningstar named Dan their Fixed Income Manager of the Year. At Whitaker-Myers Wealth Managers we have utilized the strategies of Dan and PIMCO for many years and are happy to give our clients the opportunity to hear from one from one of the best fixed income managers of the last decade. You can listen to this episode here: https://www.morningstar.com/podcasts/the-long-view/20

At Whitaker-Myers Wealth Managers, one of our core values is to have the heart of a teacher. Meaning, we want to educate and inform our clients as much as we can. That is especially true in a time like this when there is a lot going on in the world and the stock market is seeing the affects of that. Our hope is that the video below will help you understand what we are looking at when we are making our recommendations to our clients. If you have questions, please be sure to reach out to us!

Last week, we shared a few articles that we have found to be helpful in understanding what is happening with the stock market. If you missed those, you can check them out here. We want to continue to provide helpful information to you because we understand that it can be hard to know what to think about everything you are hearing in the media. If you turn the news on for any length of time, you will likely hear about the coronavirus. A virus can affect the economy in multiple ways and of course, one of those is seeing a stock market downturn. The article below by Dave Ramsey's team summarizes how a virus can affect the economy as well as what you can do and what it means for your money. You can read the artcile here: Dave Ramsey: How Coronavirus is Affecting the Economy: What You Need to Know This video by Chris Hogan has really helpful information as well: As one of Dave Ramsey's Smartvestor Pros, we are happy to answer any questions you may have about your investments. If you have any questions at all, please do not hesitate to reach out to one of the advisors on our team.

If you have been watching the news and paying attention to the stock market over the past week, then you know the stock market has been down. We understand that can cause some questions so we wanted to direct you to a few articles that we have found to provide helpful information. Here is an article from First Trust which is one of the fund companies that we use: https://www.ftportfolios.com/blogs/EconBlog/2020/2/25/time-to-fear-the-coronavirus Here are 2 articles from Dave Ramsey's team: https://www.daveramsey.com/blog/how-to-avoid-costly-mistakes-when-market-is-down https://www.daveramsey.com/blog/dow-jones-stock-market-slide-keep-investing If you have any questions, please feel free to reach out to us.

We know that finding a Financial Advisor is a big decision. We also know that sometimes it can be hard to even know what questions you should ask a Financial Advisor when you are interviewing them. That's why today we are sharing a few questions you should ask a Financial Advisor. These are questions that we answer everyday and often times, we are educating people on the answers to these questions even if they don't ask them. That's because we think these are important questions people should have the answers to when they are looking to build a relationship with a Financial Advisor. Questions to Ask a Financial Advisor Question #1: Are you a Fiduciary? Not all financial professionals are bound to the fiduciary standard which is why this is an important question to ask. Being a fiduciary means that the financial professional is required to act in the best interest of their clients and to put their clients' interest above their own. If you are interested in learning more about this, here is an article from The Motley Fool that gives an in-depth description of fiduciary as well as other standards in the investment world. Having an advisor that is a fiduciary is important so this is a question that you want to make sure you are asking. Question #2: How do you get compensated? Financial Advisors can get compensated in different ways so it is important to ask this question ahead of time. Your Financial Advisor should be willing to explain their fee schedule to you. They should understand that it's not that you don't want to pay them for their expertise, but you want to have an understanding of what you are paying. Question #3: What is your investment philosophy? This is important. You want to know what their investment philosophy is and make sure it aligns with your values. Dave Ramsey always says that your Financial Advisor should have the "heart of a teacher" and we couldn't agree more. You are looking for a professional to help you with your investing because it is not what you do everyday BUT it is still your money and you should still be able to explain how and where your money is invested. This is why your advisor should be teaching you and helping you to understand financial concepts that you are not familiar with. Question #4: How will we communicate about my investments? You are saving for your future and you want to make sure you are able to keep an eye on your investments. That is why asking how your advisor plans to communicate with you is a good idea. Do you have annual meetings? Do they have online portals available that you will be able to see your account(s) performance? How will you get in touch with them if you need something or want to make a change? These are all good questions to ask to ensure that you know how you will be able to communicate with them once you are an active client. Question #5: Do you have minimum account balances? Some investment firms have minimum account balances, which means you have to have a certain amount of money in order to open accounts with them. This can feel discouraging if you are just getting started saving for your retirement. Our firm doesn't have any minimum account balances because we want to be able to help everyone that wants to be able to save for their future. Other Questions to Ask a Financial Advisor If anything else is important to you, you should bring it up to them and ask their stance on it. For example, if you follow Dave Ramsey's principals and are not using debt as a tool, it might be worth while to talk about that with your Advisor. You want to make sure you are building a relationship with someone that understands your values and will help you work to achieve those! In short, you should feel comfortable with your Financial Advisor and never feel like you are asking a "silly question." They should be willing to teach and educate you!

As one of Dave Ramsey's Smartvestor Pros, we are passionate about helping people save money, pay off debt, and achieve their financial goals. Dave Ramsey has 7 Baby Steps that he walks people through in his class, Financial Peace University as well as his book, The Total Money Makeover. You can see all 7 baby steps on his website! As Financial Planners, we spend the majority of our time helping clients with retirement, college, and other financial planning goals, which starts at baby step 4 in Dave's baby steps. We do understand the importance of helping people with a plan to work through all of the baby steps which is why we were excited to be featured on a segment with WKYC, Cleveland's Channel 3 News, helping someone get started with saving and paying off debt. You can view the full segment below:

The recently enacted SECURE Act eliminated the ability for a beneficiary to stretch an inheritance over their lifetime, if the inheritance is coming from retirement savings such as a Traditional IRA, Roth IRA, or Employer Plans such as a 401(K). Previous to the SECURE Act, beneficiaries that inherited retirement savings could roll that into an “Inherited IRA” and take the required minimum distributions over their lifetime. Now, they must take all of the money out within 10 years of the account holder passing away. There are no required minimum distributions that have to be taken, but the account has to be empty after 10 years. When the beneficiaries take this money out, they will have to pay taxes on any of the money that is in a pre-tax account and it will be taxed based on their ordinary income-tax rate at that time. This means, instead of stretching the distributions (and taxes) over their lifetime, they now have to take the money and pay the taxes within 10 years. Exceptions To The Inheritance Changes in the SECURE Act... The information above only applies to non-spouse beneficiaries. Spouses still have the same options they had with inheritances prior to the SECURE Act. The other exception to this would be minor children. The 10 year rule wouldn’t apply to them until they reach the age of majority. The age of majority varies by state. Currently in Ohio, it defaults to age 21 unless stated otherwise in your will. The Roth IRA Becomes Even More Appealing The SECURE Act may make the Roth IRA even more appealing, especially for estate planning purposes. If you are wondering what a Roth IRA is, you can read this article that we wrote detailing it. If you are doing a great job saving, and you are currently saving exclusively into pre-tax accounts, it would be worthwhile for you to talk to a Financial Planner to see if a Roth IRA would be right for you. This is because a Roth IRA could not only be beneficial for your retirement planning but also planning for if/when you pass an inheritance on to your beneficiaries. Since Roth IRAs are funded with money that you have already paid tax on, you don’t have to pay taxes on distributions in retirement. This also means that beneficiaries will inherit and be able to use Roth IRAs tax-free as well. As discussed above, the SECURE Act will still require the Roth IRA to be drained within 10 years of the account holder passing away but the beneficiaries will not have to pay taxes on that money. This could save your beneficiaries a lot of money in taxes. In addition to that, Roth IRAs do not have required minimum distributions. This means, you will not be forced to take money out of Roth accounts while you are in retirement, giving you more flexibility and control of your income (and taxes) in retirement. We recognize that everyone has specific financial planning needs, and there are exceptions to some of the things mentioned, and for that reason, we recommend that you speak to a Financial Planner about your specific situation. We have 5 Financial Planners on our team and we would be happy to discuss the details of the SECURE Act and how it may affect your retirement planning. Schedule a meeting with one of us here.

If you recently got a new job, you may be wondering what you should do with your 401(K) (or another employer plan) from your previous employer. The good news is that you have options. The 3 Main Options To Choose From When Rolling Over Your 401(K): Option 1: Leave the 401(K) with your previous employer When you leave, you may have the choice to leave your 401(K) at your previous employer. (There can be exceptions to this, so please be sure you are reading the paperwork they send you after you leave.) Option 2: Roll the 401(K) from your previous employer into your new employers 401(K) plan. Your new employer’s retirement plan may allow you to roll your 401(K) from your previous employer into your new plan. Every plan is different and has different rules, so this is something you will have to ask to see if they allow it. If there is a waiting period until you are able to contribute to the 401(K) with your new employer, you will have to wait until then to roll the old employer plan over. Option 3: Open an IRA and roll over your 401(K) into that account. You can open an IRA and roll your 401(K) from your previous employer into the new IRA. When you do a direct roll over, you will not be subject to taxes or penalties. You are simply taking the pre-tax 401(K) and rolling it over to a pre-tax (Traditional) IRA. (Or if your 401(K) is Roth, you will roll it into a Roth IRA.) Side note: There is an option 4 and that is to withdraw the funds from your previous employer’s 401(K) plan. This is NOT a great idea as you will be hit with taxes and penalties on that money in the year that you take the distribution. Please be sure you talk with a Financial Planner before making a decision. What option is the best option? Generally speaking, you will have more control over your account and your investment options when you roll your previous employer plan over to an IRA. This is because you get to choose what Financial Planner you work with and what investment options you have access to. Whereas when you no longer work at that previous employer, your interaction with them is likely limited. Because everyone’s situation is different, we highly recommend that you have a conversation with a Financial Planner in order to make the best decision for you. We would be happy to discuss this with you and answer any questions you may have. You can schedule a meeting with one of us here.