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By Jill Nagy\nGet your life in order, think about possible tax changes and, above all, don\u2019t panic. That is the advice of area financial advisors for surviving in the age of COVID-19.
\n\u201cIt\u2019s never been more important to attend to your estate plan,\u201d said Jeff Vahanian of Vahanian & Associates in Saratoga Springs. \u201cWe are very aggressive about this. People have had to adjust their behavior in many ways. I hope they refocus on things that matter.\u201d
\nHe urges his clients to have a health care proxy, naming someone to make medical decisions if they are unable to; a living will, to indicate their preferences in connection with medical care; and a power of attorney, appointing someone to make decisions in non-medical matters if they are unable to do so.
\n\u201cIn times like these, they are very critical. Nobody should be without them,\u201d he said.
\nVahanian said people with young children to should decide who they want to raise them if they are unable to do so.
\nDan Hazewski, Jr., of Legacy Planning Partners in Glens Falls, advised, \u201cDon\u2019t change anything. We are in a much better spot than last year.\u201d
\nTim Pehl of Luther Forest Wealth Advisors in Malta said the COVID-19 situation should not have much effect on financial decisions.
\n\u201cIt\u2019s a blip on the screen as far as the economy is concerned.\u201d
\nHe is, however, worried about taxes. He suggested \u201ctrying to push income into this current year,\u201d contrary to conventional year-end tax advice. He includes capital gains in that advice because that tax rate is also likely to go up.
\n\u201cTalk to your tax professional or tax advisor,\u201d he said.
\nDale Mullin of WDR Financial Services in Queensbury recommended making sure to have enough money set aside for financial emergencies such as furloughs from employment or failure of a business. Set aside cash for at least six months\u2019 worth of expenses, he advises. Think also about putting more money into an IRA or Roth IRA account. Make longer term investments on a gradual basis so that market ups and downs can average out.
\nMullin is bullish on IRA and Roth IRA tax-deferred retirement accounts. Up to $20,000 invested in such accounts is excluded from New York state taxable income. The mandatory minimum distribution was waived for 2020 and, in future years, it will kick in at age 72, not 70 1\/2. Another recent change is that people who are still working can contribute to an IRA account, regardless of their age.
\nExcept for the waiver of the minimum distribution, these changes are permanent, he noted.
\n\u201cThe rules are more complicated,\u201d he said, \u201cBut they create more flexibility.\u201d
\nHe said people should consider taking investment income, including capital gains, in 2020. Even if taxes are not increased next year, the tax reductions in the 2018 income tax bill expire in 2026 and rates return to pre-2018 levels.
\nPehl also advised investing in tax-deferred savings funds such as IRA, Roth IRA or 401K. Because of \u201cthese crazy market swings, I would probably wait until the last minute\u201d to make investment decisions.
\nHe said the economy will recover from the damage of the COVID pandemic and resulting economic shutdown but it may take a year or more.
\nVahanian said life changes are more important than what happens in the world when making financial decisions. \u201cWait and see,\u201d he advised, and warned that this is not a good time to take on additional overhead.
\n\u201cNo one is un-impacted by what is happening in the country,\u201d he said. \u201cIn times like these, some of the best returns are made. Maintain your poise.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"