Money Talks Blog by Oxford Planning Group

At Oxford Planning Group we hope you will be amazed by a unique experience. In our two blogs we will include periodic information and viewpoints that we hope you will find interesting. Seasoned Savers is geared towards financially experienced individuals. OPG Basics is aimed towards younger generations just starting out.

We welcome your thoughts and ideas, if you'd like to learn more about any specific area, send us an email at kirsten@oxfordplanning.com

Happy 4th of July!

 

We’d like to wish you a Happy 4th of July.

2020 has been a very challenging year.

On this July 4th weekend take time to be thankful for all that we have and share time with family.

Also remember that we are all in this together.

Together we can change the world, we are all a part of the solution.

Be the good that makes that change.

Wear a mask, social distance, and never forget that black lives matter!

 
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CARES Act 2020 and Retirement Advanced Training What do all the changes mean for you?

As a member of Ed Slott’sElite IRA Advisor GroupSM, Shaun recently completed semi-annual virtual training for the benefit of his clients and team.  Training was provided by Ed Slott and Company’s team of retirement experts, including Ed Slott, CPA.

Originally, this training was going to be held in person but due to COVID concerns, it was decided to be held virtually. This ongoing training allows Shaun to offer the most up to date advice tailored to each client’s needs.

The online workshop provided in-depth technical training on advanced retirement account planning strategies, estate planning techniques and new tax laws, as well as an in-depth look at the new retirement planning landscape since both the SECURE Act and CARES Act ushered in several significant tax and retirement planning laws since January 1.

 

A few training highlights include:

  • The CARES Act: 2020 RMD waiver, coronavirus related distributions and changes to plan loan
  • SECURE Act: provisions and changes effective for the current year
  • SECURE Act special needs trusts
  • Elimination of stretch IRA for most beneficiaries
  • 5 stretch IRA alternatives
  • New 10-year payout rules for beneficiaries

From the elimination of the stretch IRA to the 2020 RMD wavier and penalty-free early distributions, there are so many new rules and laws and many Americans are unsure how to navigate their retirement plans this year.  Through Shaun’s membership with Ed Slott’sElite IRA Advisor GroupSM, he is constantly studying the latest retirement laws and strategies.  

Questions about 2020 tax and retirement law changes?  Contact Shaun at Oxford Planning

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What's Your Plan?

What’s Your COVID 19 Business Recovery Plan?

Ok, normally I’m talking about financial planning and in a roundabout way maybe I still am. To get our economy back on track, the country will need to get working again. I’m not suggesting it’s time to get back to work yet. That’s for the state and local jurisdictions to determine.  But before the mad dash begins to get back to work, what’s your plan?  If we all get together and have solid plans in place, maybe we will be able to get back to work more safely.

What’s your businesses impact with regards to spreading the virus?

Your Employees – From Home to the Office

  • Do employees have high risk family members living with them?  For example, family members with breathing, immune disorders or other.
  • How do your employees get to work?  Do they drive in their own car without exposing others, or do they take public transportation, possibly risking themselves and others?
  • Are you able to limit the number of employees at your facility?  Can some people work from home and others in the office?

Your Employees – At your Office

  • Are employees exposed to other team members or are they isolated in their offices or workstations?
  • Are bathrooms accessible and able to be cleaned and sanitized more often?
  • What do employees touch?  Can it be avoided, or can protocols be put in place to avoid touching things, to sanitize items tec.
  • Are masks needed at work, either all the time or when in certain areas.

Your Customers or Clients

  • Is it safe for your customers to visit your site?
  • What safety protocols can you put in place to protect your customers?
  • Can you do more virtual visits and meetings while we are in transition with this virus?

How can you keep current on your overall situation?

  • Do you have employees that are more likely to be exposed to COVID 19?  Can you segregate them from others?
  • Do you have protocols in place for someone not feeling well, for someone exposed to a person testing positive to COVID 19, for someone with sick children?

These are not meant to be an exhaustive list of ideas, but instead are meant to help everyone get thinking.  Each of your businesses, your employees’ family’s lifestyles and structure and your facilities are different and may require unique solutions.  Some of you may not be able to protect your employees and should be more cautious when reopening.  Hopefully we will begin seeing more guidance around this topic soon.  In the meantime, I suggest everyone begin putting together ideas so that when the time comes to reopen businesses, we are already ahead in the process.

Good luck to all. We wish you a safe, healthy and successful recovery.

 

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My 401k is down, now what?

With all of the market volatility people are asking themselves (and us):

  • Should I sell to cash?
  • Should I stop making deposits?
  • Should I reallocate to safer assets?

All of these are great questions and there is no doubt we are experiencing very challenging times with the global effects of the Coronavirus.

To keep things simple, if you are younger and further away from retirement, you can withstand more volatility than someone close to retirement.  If you are within five years of retirement, hopefully you were already allocated more broadly and will experience a little less volatility.  Remember, that if you are invested 40% in bonds and 60% in equities, or even if you are 50% in bonds and 50% in Equities you are still going to experience a significant downturn in this market.

Here is what I tell my clients:  Be patient.  Don’t sell your investments to cash.  Keep your allocation the same unless you were not allocated properly for your goals.  Take time to check with your 401k plan adviser or your personal financial adviser if you have one.  They can offer advice that is specific to your situation.  Keep your deposits to your 401k steady unless you will lose salary during this downturn.  If you expect to lose salary during this downturn, then you may need to make some adjustments to support your daily living expenses.  Remember, any new deposits you can make during this downturn are buying shares at lower prices.  Don’t focus on whether they are the best prices possible as that is near impossible to estimate. 

Here are some statistics that may help you.  We know nothing is guaranteed, but some history sometimes provides some perspectives.

  1. Despite significant intra year drops in the market, the market has been positive 30 out of the last 40 years.1
  2. In the market crash of 2007 – 2009, diversified portfolios representing 40% Cash & Bonds and 60% Equities, recovered almost 2 ½ years quicker than an all equity portfolio.
  3. From 1998 – 2018 inflation was recorded at 2.2% and the average investor was recorded at 1.9%.1  This is caused by the average investor trying to time the market.  Getting out at the wrong time and getting back in after the market has already significantly risen (market timing).
  4. From January 3, 2000 – December 31, 2019:
  • investors who were fully invested in an S&P 500 index received a return of 6.06%
  • investors who missed the best 10 market days thereafter only received a 2.44% return
  • investors who missed the best 20 market days thereafter received a 0.8% return. 

1 Data source J.P. Morgan Guide to Markets Dec 31, 2019

You get the idea.  The more days missed - the lower the return, with some even earning negative returns over the long term. 1

If you have questions, unique circumstances, or just want to talk during these turbulent and now isolating times, we are here any time.  Give us a call.

 

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Happy New Year 2020!

It’s that time of year again where everyone is making New Year’s resolutions and setting goals for the year ahead.  We all know that many new years resolutions get forgotten very quickly. 

At Oxford Planning Group, we are here as your partner to help you achieve your financial goals throughout the year and into the future.  We help keep things simple, organized and up to date.  As you begin the year, it’s a great time for a “Financial Check Up” or even a “Second Opinion” about your current situation.  If you’re a current client, don’t forget to keep us up to date on any changes you have and update us on any new goals.  If you are not a client yet and do not work with an advisor, we recommend our “Financial Check Up” service.  This will give you an idea of areas you need to be focusing on and possible solutions Oxford Planning may be able to help with. If you are not a client yet, and currently work with an advisor, our “Second Opinion” service gives you a great chance to spot check your current situation and to gauge whether you are headed in the right direction.  Either way, we welcome the opportunity to help. 

Happy New Year and thank you to our friends, families and clients for all your continued trust in Oxford Planning Group, LLC.

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Investment Updates

Planning Briefs

Company Info

10713 B Birmingham Way
Woodstock, MD  21163
Phone: 410-995-8711
shaun@oxfordplanning.com

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