Recently the S&P 500 hit a new intraday high, which was driven both by some certainty around election results as well as optimism for a COVID-19 vaccine on the horizon. The morning after election day, it seemed fairly clear that the Republican party would maintain control of the Senate. Stock markets rallied after having been positioned for a “blue wave” of Democratic control that would have led to more sweeping reforms.
As borrowers approach the end of their 24 weeks for the Payroll Protection Program (PPP), the question “What do I need to do to apply for forgiveness?” goes through their minds. Many borrowers scrambled getting items put together to apply for the PPP loan because funds were limited, but they do not need to rush when applying for forgiveness. The borrower must apply for forgiveness within ten months following the end of the covered period of 24 weeks. If forgiveness is not applied for, loan payments will begin at the end of this 10-month period. Once forgiveness is applied for, the lender has up to 60 days to review the forgiveness application.
It is hard to believe we are already in the fourth quarter of 2020. Usually by this time of year, vacations are over, children and grandchildren are settled back into school, and the focus begins to shift toward the upcoming holidays. However, as we are all reminded daily, 2020 has been anything but an ordinary year. We are in the midst of a global health pandemic. There is civil unrest across the country and we are approaching a presidential election with a close race between two individuals who are vastly different.
As many parents embrace summer and recover from a challenging stint of homeschooling their children, there is one aspect of education that will stay primarily our responsibility: teaching our children about money.
During times of market volatility, our team at Buckingham Advisors works diligently to identify opportunities to implement tax and financial planning strategies. While it can be very distressing to see account balances go down, it’s important to remember that stocks/equities are long-term investments, and pull backs and moments of fear are a part of economic cycles. In this article, I want to cover some basic financial planning principles to ease anxiety and discuss a few more advanced planning strategies to consider.