CHARLOTTE, N.C. — The COVID-19 outbreak is not only a health crisis, it's a financial crisis for millions of Americans.
During this time, many people have questions about how to navigate their funds. It's The perspective and knowledge of financial experts can go a long way in helping us stretch our dollars as far as they'll go.
Wake Up Charlotte’s Billie Jean Shaw had a virtual sit-down Chris Hobart of the Charlotte-based company Hobart Financial Group.Hobart has more than 20 years of experience as a financial expert, working through other financial crises, such as 9/11 and the 2008 stock market crash.
Hobart says during uncertain times, it’s crucial to watch your spending habits and save your money.
“We don’t know how long this is going to last or the long-term ramifications of so many people being out of work," Hobart explained.
According to the United States Department of Labor, unemployment records have been shattered as more than 10 million Americans have applied for benefits in just two weeks. That money hasn't come yet but bills are due now. Did you know that most payment agreements are negotiable? These include credit cards, mortgages and rent. Hobart gave an example renters could present to their landlords.
“Give you a few months without any rent but extend your lease on the back end,” said Hobart.
If you’re not eligible for unemployment benefits, you may find relief in President Trump’s $2.20 trillion stimulus package, officially known as the CARES ACT, here’s the breakdown.
“A one-time payment of $1,200 to single folks, $2,400 to married folks and $500 for each child that you have, ” said Hobart.
Now let’s turn to your retirement plan, that’s another option for financial relief. Due to the pandemic, under government orders, there’s no longer a 10% penalty to withdraw money early from your 401K but no matter when you withdraw, taxes still apply. Hobert says now may be good time to move your 401K funds, to a ROTH IRA which is a tax-free account.
“I think it’s important because with all of the money being spent to get this out of this mess, I fear that tax rates will go up in the future.”