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How to Make the CARES Act Part of Your Financial Plan
Special to The Truth
For many Americans, the
current state of the economy is creating real financial
challenges and concerns. However, the federal government’s
recently enacted CARES Act is intended to provide some
financial relief to families and business owners who may be
struggling to manage their finances, using cash
disbursements, expanded unemployment benefits, and different
loans and tax credits.
In addition to reading up
on CARES Act programs, experts say there are several ways to
make sure you get as much financial support from the bill as
possible. Here are three things to think about:
• Estimate the value of
your economic impact check and plan how you will use the
money. The Internal Revenue Service may send up to $1,200 to
individual taxpayers and $2,400 to married couples, plus
another $500 for each qualifying child. Tools such as The
Washington Post’s stimulus check calculator can help you
determine the amount you may receive. Then you can decide
what to do with your check: e.g., pay your bills, buy
essential goods, save it or even invest it.
• Check your eligibility
for unemployment benefits. The CARES Act created a new
Pandemic Unemployment Assistance program to provide benefits
to people who lost their jobs, had their hours reduced or
are unable to work for reasons related to COVID-19. You may
qualify for these benefits even if you are self-employed or
an independent contractor. Unemployment benefits have also
been increased by $600 a week and extended to up to 39 weeks
of coverage. The Department of Labor’s website (www.dol.gov/coronavirus)
has more information on these changes, as well as guidance
on applying for unemployment.
• If you own a small
business, consider applying for a federal loan. The CARES
Act set aside hundreds of billions of dollars for the Small
Business Administration and the Treasury Department to
provide financial relief to business owners and their
employees. Loan options include the Paycheck Protection
Program to help businesses keep workers on their payrolls
and the Economic Injury Disaster Loan to help cover a
temporary dip in revenue. Visit the SBA’s website (www.sba.gov/funding-programs/loans/coronavirus-relief-options)
to learn more and apply.
A Certified Financial
Planner (CFP) professional can help you understand these
programs and make sound decisions about how to use your
stimulus funds. A CFP professional can also provide
competent, ethical advice on maintaining your financial
well-being during this period of uncertainty. And, this
advice can be provided remotely via phone calls, emails and
video conferencing technology. To find a CFP professional
near you, visit www.letsmakeaplan.org.
With thoughtful planning,
you can make the most of these and other financial resources
to weather the economic storm.
Courtesy StatePoint
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