About our guest author
Kevin Barlow of
in the Los Angeles area has over 13 years of professional experience in financial services working with high net worth individuals and families on customized investment solutions.
He holds the Chartered Financial Analyst designation and is a member of the CFA Institute as well as the CFA Societies of San Francisco and Orange County. Kevin can be contacted directly at
Now is a great time to think about personal finances
Doing something is better than nothing. And starting today is better than starting tomorrow.
Here are a few reasons why now may be a great time to dig in and evaluate your financial situation:
You potentially have the extra time if business is slower than past years at this time
Tax deadline is approaching
Post-pandemic may change your business for the long-term so planning your personal future is more important than ever
Review the below four areas of personal finance that may be good to think about and consult a tax or financial advisor professional about.
1) Financial planning for all
CARES act allows you to access money Retirement accounts with no penalty- but you will owe taxes
You have until July 15th, but filing taxes now can give you faster access to your refund
Interest rates have decreased, now is a good time to reach out to your business lenders and mortgage holders to renegotiate
2) Ideas for first time investors
Consider a Roth IRA if you qualify so your earnings grow tax free
Look for broad market exposure instead of company specific risk
Stocks currently provide higher dividends than bank accounts, CDs or bonds
3) How to optimize existing portfolios
Focus on companies with strong balance sheets and income statements
Selectively sell stocks that have losses to reduce your tax bill this year
Better risk/reward characteristics in Large Cap US Stocks
Don't time the market! Make a lot of good decisions instead of trying to make one perfect decision
4) Estate taxes
Consider selling or transferring part of your business to next generation of ownership at depressed values
Consider charitable donations directly from your retirement account for greatest tax benefit
Stay in "The Game"
Lastly, a quick reminder that short-term changes in the U.S. stock market are expected and are often sensationalized by the media.
The two charts below tell a story.
February 2020 through April 2020 S&P 500 Index
1871 through 2017 S&P Index
The first one shows the decrease in the S&P 500, a collection of large public companies, over the last several months.
And the second chart shows that this decrease will ultimately be just a blip and stocks and businesses have done well through out history, even through depressions and wartime.
Housecall Pro is offering the Coronavirus Evening Update for Home Service Businesses for informational purposes only and to foster thoughtful communication and discussion regarding the COVID-19 pandemic; Housecall Pro is not offering advisory services or otherwise advising or representing any members of the group invited to participate. Housecall Pro is not offering legal, medical or other professional advice in the Coronavirus Evening Update and makes no representations or warranties regarding the content of the Coronavirus Evening Update. Participants should obtain independent advice relating to their businesses and their particular circumstances.