We are 1/3 of the way through this program, how are you feeling? While this is still a very difficult time we’re settling into what is our new reality. Today Pete covers the new proposed stimulus package in depth, watch the video here:
The Big Three
We are facing three big challenges as a nation: the virus, the stock market, and the economy. Many people lump the latter together, but they all should be treated separately.
The virus. Stop the spread and stay inside. That’s all we can really say about that.
The stock market we can speak a bit more confidently on. The stock market has actually been up the past two days which means something but not too much. The market is sensitive and is seeking confidence and stability. If the market sees there is a plan in place it reacts positively. Pete worries that tomorrow morning when unemployment numbers come out for the week the market will react poorly.
The economy is hurting and will hurt for a while. The stock market may be up or down in a day but what’s happening in the economy will take a long time to recover.
Alright, this is big and not quite finalized as of this writing. BUT if it goes through this is what we know so far. Expanded unemployment benefits, assistance/bailouts for airlines, cruise lines, hospitals, etc. are all included. As well as generous forgivable small business loans IF the business owner retain all employees.
Another big factor is student loan deferrals until October, which includes interest being waived.
Now to the point that you all care about the most: the check. Here are the details we currently know:
- Based on your last filing (2018 or 2019, depending on if you’ve filed yet)
- If you haven’t filed yet, only file if it benefits you (the deadline has extended)
- $1,200 per person up to $75,000 income for an individual, $150,000 if married and filing jointly
- $500 per kid
- Completely phased-out at $99,000 individual and $198,000 for a couple
- Bill was built to provide the average family of four $3,400
It is worth noting that MANY people are excluded from this stimulus. It is not perfect by any means, but it’s something.
It’s likely these checks won’t hit mailboxes until early May. In the meantime, you’ve got to get lean and survive. When they do it, if you are behind on bills it should help a bit. If you’re still employed and don’t have a full three-months of expenses in an emergency fund this is where it should go. If you are employed and have healthy savings feel free to pump it back into your local economy (think family owned restaurant take-out, etc.).
One word of warning: You may hear you’re about to get a $3,400 check and spend it in advance. This a bind you may have gotten yourself into in the past with tax refunds and bonuses. Please avoid that here! Times are too fragile to make any risky moves.
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