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SRP 2nd 2020 Quarter Participant Webinar

Saving for both college and retirement can be a daunting task. It’s easy to feel like these huge financial goals are in competition with one another. How does one prioritize? Let’s explore the challenges of saving simultaneously for multiple family goals. SRP’s very own Zach Morris (Financial Advisor, Providence RI) will offer specific strategies and tools – especially around 529 accounts, college cost trends, and student debt management – that can help you prepare more effectively.

All retirement plan participants and eligible employees are welcome!

Please join us on Tuesday, May 12th (1:00pm EST / 12:00pm CST / 10:00am PST) for this live Participant Education event!

REGISTER HERE:  https://tinyurl.com/SRPCollege

Limited space available so register today!

This session will be recorded.

The CARES Act and Student Loan Repayment Benefits

Did you know the CARES Act has provisions that impact student loans?

• Extends the tax benefits of Tuition Reimbursement programs under IRS Section 127 Education
Assistance Programs
• Payments by an employer to student loans are not included in an employee’s income
• Up to $5,250 is eligible
• Applies to payments made between 3/28/2020-12/31/2020
• Covers principal and interest
• Federal student loan automatic monthly payments are suspended through 9/30/2020
• Interest on federal student loans is 0% through 9/30/2020
• Any manual payments to federal student loans through 9/30/2020 will go to principal only
• Any missed payments under the CARES Act will still qualify as a payment under the PSLF Program

Student Loan Repayment Benefit Plans are one of the fastest growing employer benefits

• Number of employers offering this benefit increased 100% from 2018-2019¹
• Student loan repayment plan is the most requested financial benefit²
• Outstanding student loan debt has tripled in 12 years from 2007 to 2019³
• Average student loan debt balance is $37,172⁴
• 1 in 4 Americans have student loan debt⁵

Types of Student Loan Repayment Benefits Plans Available

• Direct Pay – Employer makes payments to a student loan provider for a fixed amount (monthly)
• Employer Matching – Company makes a matching contribution to retirement plan for employees
making student loan payments unable to contribute to the retirement plan (Abbott Labs example)
• FlexMatch – Gives employees the flexibility to use company matching dollars towards paying
down student loan debt or being traditionally matched in their retirement plan

SRP can help with the administration of Student Loan Benefit Plans.
Contact your local SRP Managing Director to learn more!

 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.
Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

Sources:

¹https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/Documents/SHRM%20Employee%20Benefits%202019%20Executive%20Summary.pdf;

²https://www.benefitspro.com/2018/05/07/student-loan-benefits-more-popular-with-workers-th/ and https://blog.accessperks.com/2018-employeebenefits-perks-statistics#engagement;

³https://www.valuepenguin.com/average-student-loan-debt and https://www.studentloanplanner.com/student-loan-debtstatistics-average-student-loan-debt/;

⁴https://www.nitrocollege.com/research/average-student-loan-debt;

⁵https://www.thebalance.com/student-loan-debtstatistics-4173224

CARES Act Retirement Plan Provisions

Please find below a 5-minute video by SRP’s Consulting team discussing CARES Act and the impact to retirement plans. Please note these provisions are optional and that clients should reach out to their SRP Managing Director or Plan Consultant to discuss the impacts of the provisions on their plans.

 

 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

SRP WFH Tips: Greg Gavran

 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

Market Update – April 8, 2020

These are challenging times, and this week may be the toughest as we wait for COVID-19 to reach its peak in the United States. As the war against COVID-19 wages on, we continue to be inspired by the tremendous bravery shown by healthcare workers on the front lines. Other heroes will likely emerge from a lab somewhere with a vaccine in the near future. In the meantime, we have important roles to play by maintaining quarantines and social distancing.

We anxiously wait for the day when this threat has passed, as life feels very different. Many of the things we enjoy most are not available right now, such as traveling, sporting events, shows, concerts, or just dinner out with family and friends. We’re video conferencing with our co-workers while children are going to school online, and we’re finding new ways to stay connected and entertain ourselves without leaving our homes. As a society, we’re finding forced isolation can be challenging.

As we adapt to these changes in our daily lives, the stock markets have had to adapt to the new economic realities as well. The longest economic expansion in our nation’s history has ended as the US economy has entered a recession. This economic contraction is quite unique—it’s the first one brought on mainly by governments, as they closed non-essential businesses and initiated social distancing restrictions to limit the spread of the virus. It also may prove to be unique by potentially being one of the shortest recessions in history, depending on how quickly the virus can be contained.

What is not unique is the challenge for investors in navigating the bear market that’s accompanying this recession. Historically, the best time for many investors to buy stocks has been at the trough, or low point, of a recession, although the trough usually has been evident only in hindsight. Since 1970, bear market low points have occurred within an average of three weeks of the biggest increase in weekly jobless claims, something that we hope came last week. In previous recessions since WWII, stocks bottomed an average of about five months before the end of the recession, as stocks sensed improved upcoming economic data (source: FactSet). No one knows for sure when stocks will bottom this time, but looking at these data points suggests we may be getting close.

We’ve received some better news in the battle against COVID-19 over the past few days. China has contained its outbreak, and its economy is restarting. In Wuhan, the epicenter of the China outbreak, the lockdown is being lifted. In Italy, the epicenter of the European outbreak, a peak in new cases likely was reached last week, and the government is starting to plan for a restart of its economy. The epicenter of the US outbreak, New York, is starting to see a slowdown in new cases. This fight isn’t over, and we cannot fully discount another wave of new cases, but the other side of this crisis is coming into view. The stock market also has started to sense that we’re nearing an inflection point.

This is one of the greatest challenges we as Americans have faced, but some light is starting to glimmer in the dark tunnel. We don’t really have a playbook for this human crisis, though we are encouraged that the measures being taken are having the desired effects. The playbook for investing in bear markets and recessions is clearer. It suggests that we stay the course, consider selectively taking advantage of emerging opportunities where appropriate, and focus on long-term investing objectives.

 

 

 

 

Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

 

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of April 8, 2020.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

The Path to Cash

The effects of the COVID-19 pandemic are creating financial havoc for many Americans. With our economy at a near halt, there’s no doubt many may need to tap into financial reserves just to make ends meet. Beware of compromising your retirement savings without first giving serious consideration to all options! Once you’ve tightened your financial belt and cut discretionary spending as best as you can, consider looking to the following sources for cash.

The Path to Cash

Just because these options may be available does not ensure they are financially advantageous. Every situation is unique. Please consider not only your short-term needs but also your long-term Values & Goals, as well as alternate options, before proceeding. A consultation with Strategic Retirement Partners can help ensure your financial actions are aligned with your Values & Goals.

SRP is here to help.

plantoday@srpretire.com / 866-SRP-401K x1

 

 

 

 

Market Update – April 2, 2020

“Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, reach for a bucket.” —Warren Buffett

The battle with COVID-19 rages on, and the headlines continue to get worse. The number of new cases and deaths continues to grow. Individuals and companies are hurting, with even an iconic company like The Cheesecake Factory telling landlords they won’t be able to make their rent payments for April. This current situation is a human crisis, and there is no way to put a value on the lives that have been lost. However, we will get past this pandemic, as we’ve gotten past every other crisis, and we will see better times in the future. As Warren Buffett stated, when clouds are dark, that could spell opportunity for longer-term investors.

We’re already seeing some good news on the horizon. The number of new cases may have peaked in Spain and Italy, the epicenter of the outbreak in Europe. Here at home, new cases may begin to slow within the next few weeks, while Seattle, one of the first major cities in the United States to have an outbreak, has reached its peak of new cases. Corporate America is seeing major breakthroughs as well, as Johnson & Johnson announced human testing on its COVID-19 treatment should start by September, and a vaccine may be ready by early next year.

While we wait for containment measures to take effect and for an ultimate cure, the immediate impact to the economy has been devastating. More than 3.2 million people applied for unemployment benefits last week, more than five times the previous record, while US gross domestic product (GDP) is expected to take a historic dive. Remember, the economy can stop by either pumping the brakes or hitting a tree. Our economy has hit a tree, and the short- and long-term impacts of this abrupt halt could be felt for a long time to come.

The double-barreled support from the Federal Reserve (Fed) and Washington’s recent $2 trillion fiscal stimulus plan (CARES Act) won’t fix the root of the problem—only doctors and scientists can—but it may help the economy restart more quickly once the pandemic subsides. Fed Chair Jerome Powell noted we very well may be in a recession, but this isn’t a typical recession, as our economy started from a strong position. The $2 trillion CARES Act, totaling more than 9.3% of GDP, provided an additional boost. For reference, the 2008 fiscal stimulus plan was 5.5% of GDP, showing just how much larger this plan is than anything else we’ve ever seen. These measures may be viewed as a bridge for consumers and small businesses to help them get to the other side, and so businesses are positioned to take full advantage when the economy restarts. The combined monetary and fiscal policy action may be the catalyst to propel a historic bounce back for our economy over the second half of this year.

World War I took more than 15 million lives, only to be followed by the pandemic of 1918, which claimed another 50 million. Very few would have expected to see the boom in technological development, economic growth, and the stock market that followed during the “Roaring ‘20s.” It is always darkest right before the dawn, and our resolve and determination will once again shine through. Longer-term investors may want to consider looking for opportunities to invest in an eventual market recovery, as stocks are in the zone where adding to equity exposure could be quite beneficial. Or as Warren Buffett would say, they better get their buckets ready.

 

 

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All data is provided as of April 1, 2020.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Strive to Recession Proof Your Finances with Pete the Planner

COVID-19 continues to ravage America. The U.S. economy has all but come to a halt. Unemployment numbers are soaring. Uncertainty prevails in our day-to-day lives.

Are you financially prepared?

SRP cares about your financial life. That’s why we’ve asked our friend Peter Dunn, aka Pete the Planner®, to share his financial insights on Strategies that Seek to Recession Proof Your Finances.

Click the video below to view a 15 minute message from Pete.

Peter Dunn a.k.a. Pete the Planner® is an award-winning comedian and an award-winning financial mind. He’s a USA TODAY columnist and the author of ten books, six of which were featured in a nationwide launch at Barnes & Nobles stores in January of 2015. He is the host of the popular radio show and podcast The Pete the Planner Show . Pete has appeared regularly on CNN Headline News, Fox News, Fox Business as well as numerous nationally syndicated radio programs. In addition to his work educating the public, Pete is also the CEO and Founder of Your Money Line and Hey Money. Your Money Line is a corporate financial wellness solution connecting employees to confidential, objective financial guidance. Hey Money is a direct-to-consumer monthly subscription that connects people to friendly financial experts. Pete lives in Carmel, Indiana with his wife and two young children.

SRP is here to help. No question is too small.
plantoday@srpretire.com / 866-SRP-401K x1

For more Plan Sponsor and Participant resources, visit
https://srpretire.com/covid-19

 

 

 

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial. Global Retirement Partners, Strategic Retirement Partners and LPL Financial are not affiliated with Pete the Planner, Your Money Line, or Hey Money.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

What Retirement Plan Sponsors Need to Know About CARES Act

The CARES Act (Coronavirus Aid, Relief and Economic Security Act) was signed into law on March 27, 2020. The CARES Act is designed to provide support to Qualified Individuals who are experiencing financial consequence as a result of COVID-19. Qualified Individuals include those quarantined, laid off or subject to reduced hours or those unable to work due to lack of child-care as a result of COVID-19. Please find below a summary of the CARES Act provisions specific to Retirement Plans.

Just because these options are available does not ensure they are financially advantageous. Please consider not only your short-term needs but also your long-term Values & Goals, as well as alternate options, before proceeding. A consultation can help ensure your financial actions are aligned with your Values & Goals.

Retirement Plan Distributions to Qualified Individuals

  • Permits in-service hardship distributions up to $100,000 during the period January 1, 2020 – December 31, 2020.
  • Waives the 10% early distribution penalty
  • Taxable, however, 20% federal income tax withholding can be ignored
  • Distribution can be repaid to the plan within 3 years to gain tax-free rollover treatment
  • Can recognize the distribution as taxable income spread over 3 years, effectively spreading federal tax obligations out over 3 years (state tax TBD).

Relaxed Retirement Plan Loan Rules for Qualified Individuals

  • Permits Plan loans up to the lesser of 100% of the participants vested balance or $100,000
  • Individuals with outstanding loans with a repayment due from the date of enactment of CARES through December 31, 2020 may delay loan repayments for up to one year.

Required Minimum Distributions Temporarily Waived

  • Option to waive RMDs for the year 2020.

Most recordkeepers are providing a global amendment to retirement plans, making these options available as soon as administratively feasible, unless the Plan Sponsor elects not to include these options. Plan amendments for these provisions are not required until the last day of the first plan year beginning on or after January 1, 2022 (January 1, 2024 for governmental plans).

 

SRP is here to help.

plantoday@srpretire.com / 866-SRP-401K

 

 

This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advisory services are offered through Global Retirement Partners, an SEC Registered Investment Advisor. Global Retirement Partners and Strategic Retirement Partners (SRP) are separate entities from LPL Financial.

Global Retirement Partners employs (or contracts with) individuals who may be (1) registered representatives of LPL Financial and investment adviser representatives of Global Retirement Partners; or (2) solely investment adviser representatives of Global Retirement Partners. Although all personnel operate their businesses under the name Strategic Retirement Partners (SRP), they are each possibly subject to differing obligations and limitations and may be able to provide differing products or services.