I hope everyone is staying safe and healthy. It’s hard to believe it was Memorial Day holiday earlier this week. The day was unlike any other Memorial Day I can remember. The weather outside was beautiful. But there was no place to go and no opportunity to spend the day with other family members and/or friends. Fortunately, we have six of us living in our home. We had a nice day.
At its peak, the S&P 500 Index declined about 34% from its February 19th high. At Thursday’s close, it was down only about 10%. Despite the rebound, a Roth conversion can still make sense. A market decline is also not the only reason to consider one. This week’s first article shares some thoughts on how to do a Roth conversion. It also discusses some of the factors to consider when deciding whether it makes sense.
If you have any friends that are nervous and do not have an advisor or whose advisor is not reaching out to them, feel free to have them schedule a call. I’m happy to spend 15 or 20 minutes answering their questions, no-obligation because they are a friend of yours.
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Here are the links to this week’s articles as well as a brief description of each:
1. How to Do a Roth Conversion. From a process perspective, completing a Roth conversion is not that hard. Deciding whether to do one and how much to convert can be more complicated. This article provides a good overview of the relevant factors involved:
· The downside
· The timing
· How much to convert
If you would like to discuss Roth conversions, please schedule a call.
2. The Risks – Know Them – Avoid Them. Some states are re-opening and many of us can move around more freely than we could a couple of weeks ago. The decisions around how to act in the face of this pandemic are difficult. I don’t envy those who have to make these decisions. This article, written by an Associate Professor of Biology, provides insights into some of the risks associated with the relaxation of quarantine-related rules. It shares examples of how easily the virus can spread. As noted in the article’s conclusion, if you do go out, wear a mask. You may not like it, but it will help everyone.
3. Coronavirus: The Next Normal. Going through the pandemic will result in changes. I often think about and read other’s opinions about how it will change. I found this article, written by an investment manager who I once interviewed for a publication, insightful. He shared thoughts on topics such as remote life, e-commerce, digital payments, healthcare, and housing. I found the discussion about digital payments particularly intriguing.
4. 6 Tips to Controlling Background Noise in Your Video Meetings. Working from home and conducting at-home video conferences is not without challenges. You may have to confront issues such as barking dogs and conversations among other family members. These background noises can be disruptive. This article shares six tips to help improve your background acoustics. They range from the type of room you use to moving closer to the microphone or using a headset.
5. Filling the Gap. When it comes to healthcare coverage, reaching age 65 can be a big relief. You’re finally eligible for Medicare. Unfortunately, you may be disappointed. Medicare doesn’t cover all of your expenses. You have to decide what to do about the shortfall. The common solution? Buy a Medigap policy. Sounds easy, right? Not so fast. The number of choices can be overwhelming. Read this article if you’d like help in narrowing down the options a little. It compares two Medigap plans along with Medicare Advantage. Note that using an independent insurance broker has no additional cost. That broker can serve as your point of contact. That has advantages over calling an 800 number.
If you need a pep talk or to discuss your investment strategy, please schedule a call or reply to this email. I’m here for you and happy to talk.
P.S. There has been an increase in coronavirus-related phishing and identity theft scams. Please be on alert for “official-looking” emails asking you to open an attachment or click a link to read an official statement – they may contain malware. If you get a suspicious email, check the sender’s name and email address to make sure they’re not fake. When in doubt, delete the email. Do you have someone in your life who you think might be at greater risk of email scams? Forward this to them so they’re aware.
We hope you find the above posts valuable. If you would like to talk to us about financial topics including your investments, creating a financial plan, saving for college, or saving for retirement, please complete our contact form. We will be in touch. We can schedule a call or a virtual meeting via Apprise Wealth Management’s Zoom account.
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Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.