Elon Musk – the CEO of Tesla is walking a fine line. He is opening back up his production facility for cars in California and the electric battery facility in Nevada without a plan in place. He has also stated that employees who are “no-shows” when the facilities open back up are at risk of having their unemployment insurance claims denied. While we believe that opening up the economy is the right thing to do, we also believe that you must have a plan in place. Without a plan in place, we risk a second wave of the Covid-19 virus to be spread which could cause significantly more harm to the World economy.
We wanted to provide you with a feel good story this week about the coronavirus after we have all been on lockdown and haven’t heard good news in a while. This article is about a few people in their late 90’s, early 100’s who have been doing some amazing things to help raise money to fight the impact of the coronavirus. You may have heard of Captain Tom from the U.K. who just turned 100 years old and raised over $39 Million for the National Health Service’s fight against the coronavirus. Enjoy.
It has been stated for the past month that closing down the US economy was the right thing to do. Nobody knew how the Corona-virus would spread or how many people it would affect. As we all adjusted our lives to this new way of living, we are now asking the question on when should the economy open back up? It seems that everybody has an opinion on this and nobody knows who is right. Georgia and South Carolina are the first to open up their economies with another group not far behind. We see States grouping together because they want to have a fair and safe reopening. Imagine if Indiana were to open up business in their state and Ohio stays closed for an extra month. Not only will Indiana companies gain a lot of business from Ohio, Ohio will lose business and may never get it back. State’s have to be cognizant of this fact and at the same time be careful not to open up too early and face a second wave of the virus. 04.29.20
There have been a variety of changes to the income tax scene over the last few weeks: 2020 RMDs waived, 2019 tax payments extended, and a $300 above-the-line charitable deduction just to name a few!
Andy Young, our in-house CPA and CFP®, hits the highlights in our latest video.
We like articles like this that think outside of the box and consider what the future will be like. This article considers 11 items that could be extinct in the next several years because of changes to the economy due to the pandemic and also just changes to the way we do business every day. It is pretty surprising that Touch Screens is one of the categories. If you look around us everyday there are touch screens everywhere you go – Fast food restaurants, ATM’s, airports, rental cars and much more. It seems that this technology has been ramping up for sometime now so companies could use less workers and save on costs. Now they are going to have to come up with something new to be able to clean the screens after each use. 04.24.20
In our latest video, Melanie Colwell gives a brief economic outlook and tips for stress management during this unprecedented time. One of the best strategies? Showing gratitude.
Thank you to our clients for your trust and confidence. Thank you to the essential business workers for ensuring our basic needs are met. Thank you to the medical providers for being our front-line heroes.
Another part of the CARES Act enacted the Paycheck Protection Program.
This program is offering loans to small businesses (less than 500 employees), sole-proprietors, and non-profits.
If funds are used for qualified payroll costs in the next 8 weeks, the loans can be forgiven. However, there are lot of details and caveats that Greg explains further in the below video.
Watch this video and then go talk to your bank as soon as possible!
The Coronavirus Aid, Relief, and Economic Security Act aka “CARES Act” was signed into law on March 27, 2020.
Individuals may be entitled to $1,200 checks ($2,400 for individuals filing a joint return) and $500 for each qualifying child under age 17 if certain income requirements are met. Did you know these checks are actually designed as a credit on your 2020 Tax Return?
Our video below discusses these checks in further detail.
The world is changing, and we changing with it. Introducing the Galecki Financial Management Video Blog Series! Kevin Chandler kicks us off with a introduction of the faces you’ll be seeing in the coming days and weeks.
The coronavirus epidemic has sent shockwaves through the American economy, as many investors already know. Still, with a little economic sense, investors should be able to maintain long term confidence in their portfolios and in the market. The United States economy was due for a recession; since 2009, the economy has rebounded to the tune of 121 consecutive months of GDP growth, a national record. With such large expansion, however, must come an eventual downfall (due to market overvaluation, inflationary output gaps, etc.). It has been nearly 11 years since the last recession in the United States. Recessions, on average, occur every 5 to 6 years. Long story short, a recession was on the horizon. The coronavirus epidemic caused the recession through fear. Consumer expenditures, based on popular economic belief, make up approximately 70% of total economic expenditures. When consumers are faced with outside influences, such as fear imposed by a deadly virus, spending habits change, and the economy is forced to shift accordingly. In the case of the coronavirus, fear decreased consumer expenditures. People are afraid to go out in public to eat, shop, etc. With the decrease in consumer expenditure, the economy was done in. However, the bright side of the economy’s current standing is this: the cause is known. In the 2008 financial crisis, the cause was not so easily identifiable. Some economists blamed it on market overvaluation while others blamed consumer confidence and the housing market. Knowing the problem makes finding a solution infinitely easier. The FED has already moved to halt the onset of a recession; similar action from the FED took much longer in the 2008 financial crisis. Ultimately, there is no system malfunction that is causing the current economic decline. The culprit is an outside invader, a virus that will be beaten by the United States medical system. Once the virus is gone, consumer confidence will return, and the economy will surge once again.