With the coronavirus pandemic seemingly taking over every aspect of our lives, it is important to keep your finances a main priority. There are numerous financial opportunities that have come from COVID-19. In this article, we are going to address some of the possible financial opportunities, as well as a rationale for why it could be a good idea to take advantage of the potential opportunities. Keep reading to learn more!
- Roth Conversion from Traditional IRA
Because of potentially lower account values, converting to a Roth IRA from a Traditional IRA could leave you with less tax-related consequences. In addition, tax rates are historically low right now. If you are looking to pay less of a tax rate in retirement, speak with your CPA or give us a call and consider a Roth conversion today.
- Refinance Your Mortgage
Mortgage rates are also at a historically low mark. Because of the status of our economy, now is the time to consider a mortgage refinance. If you have been thinking about it, now might be the time to discuss this and potentially lower your monthly payment.
- Review Your Budget
With more time at home now, you can make time to review your budget. Most people find that when they review and analyze their budgets, they find that there are unnecessary items on the list. When you realize that you can do without some things, you end up having more allotted in your budget for more important things.
- Top Off Your 2019 IRA and HSA
Because the deadline has been extended to July 15th, 2020, you have more time to top off your 2019 IRA and HSA accounts. Now is the time to save more in your retirement and health savings accounts.
- Rebalance Your Portfolio
Take advantage of the market volatility right now and rebalance your portfolio. Because investing can be intimidating during times like these, rebalancing is a great way to get your portfolio back to where it should be positioned and on track for reaching your intended goals.
- Keep Funding Your Investment Accounts
While the market is down, you need to continue funding your investment accounts. This is imperative if you want to have a successful retirement later on. While it is tempting to withdraw in hopes of feeling secure for your retirement, you are better off refraining from withdrawing and continuing to invest.
We know that the coronavirus pandemic has thrown most people for a loop. As these times are uncertain, it is important that you continue to take care of yourself and your financial future. COVID-19 has already had a huge impact on America’s economy, and we know that you likely have questions regarding your retirement. For all questions regarding the status of your financial future, give us a call at (321) 225-3154 or email us at hello@threebridgesplanning.com.