- The Finance Gourmet

New Biden Covid Student Loan Help

February 16, 2021 by Finance Gourmet

A whole lot of Covid financial relief protections were scheduled to end in December. As expected, some of those money helping tweaks have been extended in 2021. For example, the Biden administration recently extended the mortgage foreclosure moratorium and forbearance protections. Student Loan Relief Flexibility On January 20, 2021, various student loan relief measures were extended through September 30, 2021. Student Loan Interest Rate Set to Zero Most federally owned student loans have had their interest rate set to zero percent during the pandemic. This continues through September 30, 2021. The zero percent interest rate is pared with student loan payment suspension. Technically called administrative forbearance, student loan payment suspension allows borrowers to skip student loan payments without late payment penalties, or any other negative effects. If you have lost your job, or are having other financial difficulties during the Covid pandemic, then this is a useful way to help save some money for use toward other things. Is Acorns safe? However, if you are not having financial difficulties, and are still getting your normal paycheck from your job, this is an excellent opportunity to improve your overall financial health. Although your loan administrator will automatically place your student loans …

What Else Is In New Covid Stimulus Bill

December 30, 2020 by Finance Gourmet

If you are interested in financial independence, you know you need to watch and manage your money beyond a new $600 stimulus check. You need to know what else is in the new Covid stimulus bill. Here are the new Covid stimulus bill details you need to manage your money. New Covid Stimulus Bill Breakdown New Covid Stimulus Checks By now, you have probably heard about the new $600 stimulus checks, and the fight over whether or not to get $2,000 stimulus checks. Mitch McConnell has blocked $2,000 stimulus checks and runs the Senate like he is the King of the Senate, so that means there is no debate, no compromise, and not chance of $2,000 stimulus checks coming, so don’t bother worrying about that. The $600 is per person, and includes children. So, if you are married with two kids, you can look for $2,400 stimulus checks. It works the same as last time with the IRS using your direct deposit information. If you did something to fix your direct deposit info last time, it should stay fixed for this time as well. There are income phaseouts again to keep the payments from going to higher-income earners. Couples making …

Covid Student Loan Relief Ending Soon

November 16, 2020 by Finance Gourmet

In March, the government began offering options to help benefit borrowers with student loans during the Covid pandemic. The Covid student loan benefits were to stop collecting on student loans, to charge 0% interest rates on student loans, and to suspend student loan payments. Basically, you could turn off paying on your student loans with no detriment. Or, if you were one of the lucky ones still doing well during the Covid crisis, you could keep making loan payments and get ahead thanks to zero percent interest. The benefits only applied to federal student aid loans, and do not apply to private student loans. One of the downsides of programs like SoFi student loan refinances is that the refinanced loans become private student loans and no longer benefit from any federal student loan programs, even though the Sofi student loans interest rates can be much lower than regular student loans. Private student loans are not regulated by the Department of Education Student Loan Covid Scams Unfortunately, as is often the case, scammers were not far behind the news announcing these student loan aid provisions. They came back out when Congress passed a law making the Covid student loan aid last …

Covid Investing – Just 1 Tip

December 1, 2020October 22, 2020 by Finance Gourmet

People keep asking me about how to invest based on Covid. Covid investing would be the idea of investing in the potential vaccine manufacturers, distributors, the company that makes glass vials, and things like that. Those company’s stocks are already up on the hope that they’ll benefit. It’s unlikely they are underpriced relative to risk at this point. However, there is an easier way to make a Covid investment. Covid Vaccine To update the original post I must point out that the potential Covid vaccine has arrived faster than I thought it would. The economy is still on the bring thanks to Congress’ inaction on a stimulus package, but in the short-term, expect investors to focus on the vaccine and what might mean for companies, with or without a stimulus. Watch for a lot of over-optimism in the vaccine manufacturers such as Pfizer. If one of them comes out as the dominant winner, then that could really move the needle for them, but present a lot of risk for the others. In my opinion being the main vaccine provider is now priced into all three stocks with vaccines pending before the FDA. Unless they all get something like a third …

Fed Says 0% Interest For Years

September 16, 2020 by Finance Gourmet

According to news reports, the Federal Reserve will signal that its interest rate plan will remain unchanged through the end of 2023. These kinds of “leaks” are typically from Fed staffers trying to lessen any shock ahead of the actual Fed meeting. What 0% Interest For Three Years Means For starters, this is both a bold, and a baloney statement. It’s bold in that stating there will be no interest rate hikes for three years, the Fed is making a prediction about the U.S. economy and where it will be going and committing to 0%. It’s baloney, because if things go well coming out of the whole Corona virus thing and the U.S. economy roars ahead in 2021, or 2022, the Fed will just come out with a new statement saying that economic data dictate a new policy direction. So, what is the point of the Fed’s statement? Investors know how to make money. It isn’t about predicting the future, it’s about determining what the risk is and pricing it accordingly against the possible return. This is a lot easier than it sounds. It requires looking at an impossible number of variables, and weighing each one. In the end, the …

Should I Skip My RMD This Year?

May 20, 2020 by Finance Gourmet

As part of the economic relief legislation passed to help with the coronovirus, Congress removed the requirement that people age 70 1/2 and older take their required minimum distribution this year. This leaves many taxpayers wondering, should I skip my RMD this year. Tax Benefits of Skipping RMD This Year Usually anyone above the age of 70 1/2 years old is required to withdraw a minimum amount from their tax-advantaged accounts each year. The amount is calculated based upon an IRS provided actuarial table, and the amount of money in the taxpayer’s accounts. The calculated amount must be withdrawn from the accounts, and becomes taxable income. Higher taxes are the result for most people. The main benefit of skipping the required minimum distribution is lower taxes for the 2020 tax year. Distributions from non-Roth IRA, tax-advantaged accounts such as IRAs and 401ks are taxable income. Not only do taxpayers have to be taxes on the distribution, but the money withdrawn increases the taxpayers overall taxable income. The higher taxable income may reduce or eliminate certain tax deductions or credits that are limited to taxpayers with lower incomes. The $1,200 stimulus payment itself was limited to taxpayers with incomes under $75,000 …

Restart Finances with Restarting Economy

April 28, 2020 by Finance Gourmet

As parts of the country start moving into reopening after coronavirus lock downs, it’s time to start thinking about how to restart your own personal finances when the restrictions end. So, how do you restart finances while the country is restarting economy? Going Back To Work Despite all the news reports, protesters, and talking heads on television, the decision to go back to work or not is a deeply personal one rooted in your own personal circumstances. Review of Zelle Scam Legit or Safe? First, assess your own personal health risk situation. As many reports have noted, certain people seem to do worse than others when it comes to contracting the coronavirus. Although there are numerous reports of otherwise young, and healthy people ending up in the hospital, the odds still look the worst for those who are older, or that have preexisting conditions. If you can’t safely return to work, it is time to start looking into what your possible options are. Coronavirus Unemployment Be sure to check out unemployment programs. Even if you may not have qualified in the past, the rules have been changed, and benefits are more generous with a $600 boost for many unemployed people. …

2023 Required Minimum Distributions

September 11, 2023April 10, 2020 by Finance Gourmet

If you have an IRA or 401k and you are over 70 1/2-year-old, you need to take a required minimum distribution, or RMD, from your retirement account each year. However, with the coronavirus pandemic, Congress passed specific relief for certain kinds of retirement accounts creating different rules for your 2023 RMD. New 2023 RMD Rules Normally, taxpayers over the age of 70 1/2 years old have to take money out of their retirement accounts like IRAs and 401k plans. The reason is simple. The IRS doesn’t want that money sitting there untaxed forever. So, when you get into retirement, it wants to tax that money that you enjoyed paying no taxes on for all of those years. With the coronavirus pandemic of 2020, however, Congress looked to provide some relief to taxpayers in the form of $1,200 payments, small business loans, and relaxing the rules on accessing and using retirement plan money. One of those benefits is the suspension of required minimum distributions, or RMDs, for 2020. All RMDs, regardless of the owner’s age, or how many required minimum distributions have already been taken are suspended for 2020. In other words, there are no required distributions during 2020. If you …

How To Get Your Coronavirus Money

April 6, 2020March 30, 2020 by Finance Gourmet

The coronavirus has upended the U.S. economy and sent millions of Americans into unemployment. While it isn’t enough to offset everything, Congress did pass some legislation providing a cash infusion to Americans as a way to both help people through a tricky time, as well as try and prop up the economy. Of course, getting funds out to all Americans isn’t an easy task. Really, the only way to handle such a thing is to tap into the one institution almost every American must interact with, the IRS. How To Get My $1200 Payment As is always the case when you try and get to “everyone” someone gets missed, and this big government payout is no exception. If you have the “average” interactions with the IRS your payment is on the way and you don’t have to do anything. If you have a less common situation, then things can get trickier. Check out my Acorns review Basically, if you filed income taxes in 2018, or if you’ve already filed for 2019, the IRS will use the same information you provided for any refund, or payment you had. If you didn’t file taxes, either because your income was too low, or …

The Big Market Plunge

February 25, 2020 by Finance Gourmet

The stock market has been on increasingly shaky ground over the past several months as valuations raised quickly on dubious fundamentals. When this happens, market get skittish and start looking for any reason to make at least a small correction. That reason popped up this month in the form of the coronavirus. The coronavirus isn’t actually new. Several strains are already very well known both in the U.S. and abroad, but the latest strain seems to spread more quickly and easily than other strains. As fear of an epidemic (justified or not) rise, investors get nervous and start to look for safer investments. See my review of Acorns. While that may not mean wholesale selling out of portfolios it’s easy to see how investors might prune back international investments, and even investments in the United States that depend are harder hit countries like China. What Investors Should Do About the Coronavirus? As always, while any market plunge is scary, a well-crafted, regularly refinanced portfolio is best way to invest for the long-term. One day, the coronavirus will be old news, just like Ebola, and bird flu, and the other scary viruses that have made headlines in the past. When that …