03.27.2020

Procyon Perspectives – March 27th, 2020

By Jeff Farrar

We sincerely hope you and your loved ones are safe and healthy during these challenging times. At Procyon, we have adopted two phrases to describe both the unprecedented events taking place, and the actions that are under our control and can be taken in response.

The Great Cessation and Be Well. Be Informed. Be Not Afraid

The first represents what we are observing around us: it seems like we collectively have hit a giant red STOP button on the economy!

The second reflects how we can choose to respond to what we’re observing and subsequently adapt to a different way of life.

As always, our priority is to provide you with an informed perspective you can trust so you may continue to face the ongoing uncertainty with financial confidence. To this end, we offer the following updates this week:

  1. Virus Update
  2. Relief Package
  3. How you can help others
  4. How you can help you

 

Virus Update

The COVID-19 virus continues to move around the world. As we mentioned last week, all eyes are on Italy. We are hopeful that they may be seeing the peak of new infections this week just about two weeks after they began their countrywide lockdown. To be clear they still have new cases but less than before. The US is still moving up the curve, having begun our efforts later. The below graphic from the Financial Times is instructive although we wish it counted not just cases but illustrated it as a percent of each country’s population.

Relief Package

 The Markets continued their volatility this week though mostly to the upside anticipating the eventual passing of the third federal relief bill, the CARES Act. You can be sure that a relief bill twice as large as the Economic Stimulus Act of 2008 put together in a week will have some financial waste in it, but large portions are headed to the right place to help people and companies get to “the other side” of this temporary cessation. The “summary” we have read is 40 pages long, but here are a couple points that may be of interest:

  • Cash payments to citizens meeting income requirements
  • Extended unemployment benefits
  • Financial lifeline for the hardest hit industries like airlines
  • Added benefits for FSA and HSA
  • Temporary waiver issued for 2020 Required Minimum Distributions (RMD’s)
  • Defer 2020 payroll taxes for businesses until next two years
  • Loans for small businesses to cover monthly expenses like payroll, rent and utilities for up to eight weeks; loan forgiveness for businesses that maintain their workforce
  • Withdrawal from 401(k)s not subject to penalty or taxes and under special repayment provisions and expanded loan provisions

 

How You Can Help

The coming weeks are increasingly going to see an impact on our most vulnerable citizens and the non- profits that aim to help them. If you have a Donor Advised Fund or would like to make a direct charitable contribution, consider the following:

Nationwide nonprofits such as:

 

Give to Restaurants & Food Banks:

  • Send a grocery gift card to your local charity or food bank
  • Donate a non-perishable food item to your local food bank or shelter
  • Send a digital gift card or box of food to families that cannot afford to stock up

 

Take Care of Your local At-Risk Community:

  • Check-in on elderly neighbors to see if you can offer any social support or help shopping
  • Introduce yourself to your neighbors and/or exchange phone numbers

 

How You Can Help You

Remember what flight attendants often say when you are leaving for that long-awaited vacation.

“In the event of an emergency, put on your own oxygen mask first so that you can then help others with theirs.”

At Procyon we want to ensure that, in these stressful times, you are taking care of you. In order to be there for others–including your loved ones–you need to tend to your own needs.

The following are different resources that you may find helpful in various ways at this unusual time:

Food Delivery Services

 

Health & Wellness

 

Exercise

 

Family Support

 

Ideas for Kids Activities

 

Online Museum & Virtual Zoo Tours

 

We hope you find this information helpful and hope you will Be Well. Be Informed. Be Not Afraid. Warm Regards,

Your Entire Procyon Team

Download PDF BACK