3 Wins for American Retirees

There’s a lot to celebrate about America, especially for retirees. As the Fourth of July approaches this weekend, retirees in America have much to appreciate and be thankful for this year. Here are just three examples:

Required minimum distributions for 2020

In the midst of COVID-19 and downturns in the economy, there is a silver lining: required minimum distributions are no longer required for 2020.¹ That means retirees are free to keep their qualified money in their accounts if they wish, offering the benefit of (hopefully) ongoing interest gains.

However, it may be a good time for retirees to review their financial portfolios to see if a rollover conversion from a 401(k) to a Roth would be beneficial. This has the potential to save Americans more money in the long run by paying taxes today versus paying taxes in the future when they do withdraw those funds.

Summer upturns in the market

The market took quite a dive once COVID-19 hit America and shutdowns began. In a month’s time, the S&P lost 1150 points from its highest point to its lowest.² Even so, the market has bounced back in a tremendous way, in part thanks to the CARES Act economic stimulus.³

As of June 30, 2020, the market is only about 300 points lower than its peak back in February.⁴ While no one knows for certain what will happen with the market next, it seems possible American retirees may continue to see some gains at least through the summer.

Virtual financial educators

One of the greatest industry shifts in the last few months has been the move from in-person, physical offices to virtual, online work. That move has been successfully traversed by American Retirement Institute as many of our financial educators have continued classes online.

These virtual classes offer the same benefits and information as an in-person class with the added benefit of not having to leave your home! Our financial educators have been proud to help many retirees by answering their most burning questions about what’s happening in retirement today.

If you’re considering gaining knowledge about your RMDs, 401(k), and shifts in the market, now is the time to speak to a financial professional about what to do with your remaining retirement funds. A great place to start is one of our ARI virtual webinars. It’s not too late to sign up! Go to the Our Courses page to find the right class for you today!

1: https://www.forbes.com/sites/ashleaebeling/2020/03/27/congress-suspends-required-minimum-distributions-for-401ks-and-iras-for-2020-opening-window-to-tax-savings/#3a06ee532cb6
2: https://www.cnbc.com/quotes/?symbol=.INX
3: https://www.shearman.com/perspectives/2020/03/congress-passes-largest-ever-economic-stimulus-package-key-provisions-of-cares-act-covid-19
4: https://www.cnbc.com/quotes/?symbol=.INX

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