Emily Draper, Washington discussed on WTOP 24 Hour News

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Breezy on Friday with high temperatures again around sixty I'm storm team four meteorologist Emily draper forty four degrees and overcast skies in Washington as we had into the fifties this afternoon it's eleven eleven the first of a new month means folks are preparing once again to pay their bills their rants and their mortgage but with millions out of work right now and Morse filing for unemployment assistance due to this pandemic paying bills becomes even more of anxiety filled than it usually is the first of the month so joining us live now to help straighten this out a CBS business analyst Jill Schlesinger Jill one of the exercises many of us will be going through right now ease which bills this month should I prioritize any advice on that yes and but you know I always say food first and that's really that's not a joke that's for real so number one is food and then you start thinking about shelter utilities and insurances I found this really good tool at the from the C. F. P. B. from the consumer financial protection bureau so if you'd like go to consumer finance dot gov and they've got a whole tool for how to prioritize your bills they've got a spreadsheet you can either print out or just fill out online and you know the things that they really are smart about I think is like if you are lucky enough to have a job you need to basically prioritize the things you need for your job now you need to pay your insurance especially your car insurance what do I need for my housing and what are my obligations this is going to help you put it down on a piece of paper even if you just listed out that's going to be helpful great idea thanks for that we are hearing from some small business owners that the SBA loan process is so complicated that some have given up on that process or they feel that they need to hire a professional to help them through it and they can't afford that right now so we know that there are grants and loans available through the SBA any suggestions for those business owners absolutely first of all I the I think that when this first came out it was kind of freaky there's too much information and not a way to distill it so the SBA actually has done a very good job of creating a comprehensive guide and so I think that it's important that people really go in use those resources because there is this thing called the paycheck protection program meaning that if you keep people on staff you can get a loan that could be forgiven basically you can get free money but there are other things as well there are certainly there is a disaster recovery loan this is longer term working capital to small businesses there is a an economic injury loans advance this is a bridge loan so there's a ton of stuff that's actually out there I think the bigger problem is and I spoke to someone who works with small businesses about this recently it can be overwhelming so I think first thing you can do is to take a deep breath look at what you've got right now Lestat your employees look at your payroll and try to project out best case middle case worst case and then you can try to come up with the right solutions that fit each of those cases for those SBA loans that essentially become brands if small businesses don't have layoffs is there a concern that that may be coming too late for some small businesses that are already have layoffs in March well you know you can go back you're allowed they're going to basically say if you did lay people off you can go out get the money and retire them so that's good news good I think the bigger issue really is is it enough time because what I'm hearing from small business owners is I don't know in eight weeks that my business is going to restart and then I'm going to need all these people especially seasonal folks you know I've spoken to speaking to somebody who owned a flower shop who said this is it this is my season right now and I can't tell you that in eight weeks I'm going to get as much business same too for a restaurant you get a restaurant back up and running and that doesn't mean that people are going to go out three or four or five times more than they would have had this whole experience not occurred so I think you're going to be some businesses that really are going to be hurting here maybe that part of that phase for bill is not just around helping out people who are unemployed for a longer period of time but we may need to beef up the help for small business owners Hey guys remember small businesses they employ about sixty million people in this country said this is not a small matter for people who are considering tapping their IRA or four oh one K. to get through this the usual ten percent penalty is being waved should folks consider this option as a lifeline right now you know I guess so I always hate giving that advice you know I'm a certified financial planner so I think you know getting into that precious money that you're going to need long term is really tough but you're right the bill will waive that ten percent penalty on early retirement if you're under the age of fifty nine and a half I will say something interesting you will owe the taxes on the amount withdrawn so if you pull out say ten thousand dollars to get you through you can spread out your tax liability over three years from the distribution date so that something interesting also if you maybe have a spouse who still working there may be a better way to do it maybe you should borrow money from your retirement account maximum retirement plan loan amounts I'm having crease now from fifty thousand to one hundred thousand I have and just remember that you've got to prove that you have been affected by the virus very good advice thanks for your time on all the good information Jill we'll talk again soon take care CBS business analyst Joel Slazenger let's take a look at what's happening on Wall Street Jeff Claiborne the Dow is down four hundred ninety four points the S. and P. five hundred index is down two point seven percent money using ten minutes on WTOP ports at fifteen and forty five powered by Red River technology decisions aren't black and white thank rad alright let's now go to Jonathan Warner all market is now official Wimbledon has been canceled this year the all England tennis club announcing that it will be instead be staged in twenty twenty one beginning on June twenty.

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