Former New England Patriots tight end Rob Gronkowski might not be done just yet.

Though Gronkowski retired and didnt play last season, he is still leaving the door open for a return to the NFL. So could he join his former quarterback, Tom Brady, in Tampa Bay?

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Gronkowski will be 31 years old when next season opens. Brady, of course, just left the Patriots for the Buccaneers in free agency.

Heres TMZ with more on the latest with Gronkowski:

Just call Rob Gronkowski the pancake man ... 'cause hes flipping AGAIN on retirement talk -- this time saying hes not totally done with football after all!!! The NFLs greatest-ever tight end has been in a tug-o-war almost since the day he quit the NFL in 2019 ... going back and forth on whether or not hes officially done.

The latest? Gronk told Andy Cohen this week on Watch What Happens Live with Andy Cohen that a reunion with Tom Brady in Tampa Bay aint totally out of the question.

Im feeling good right now, the Patriots legend said. Im happy where Im at. You just never know, man. You just never know. You never know. Im not totally done.

Gronk says the only thing thats holding him back is a passion for the game ... adding, I like to stay in shape, but Ive gotta get that feeling back.

Rob retired in March 2019 ... and has said injuries -- including roughly 20 concussions -- played a big role in him calling it a career at the age of 29.

Gronkowski appeared on Cohens show to promote Survive & Thrive: COVID-19 Celebrity Challenge, which will be live streamed on the Facebook channel of the Arthritis Foundation on Wednesday at 8 p.m.

During the event, Gronkowski and other celebrities including Hall of Fame linebacker Brian Urlacher will face off in various physical and personal challenges that provide an authentic peek into the lives of celebrities as they adjust to a life in isolation.

Free to watch, the event will include both entertaining and educational culinary, athletic, and business challenges, along with challenges for the viewers with a chance to win special prizes for those who donate to the Arthritis Foundation.

Heres video of Gronkowskis interview with Cohen:

Get Giants text messages from reporters: Cut through the clutter of social media and text directly with the Giants beat writers. Plus, exclusive news and analysis every day. Sign up now for a free trial.

NFL analyst Darryl Slater may be reached at dslater@njadvancemedia.com. Follow him on Twitter @DarrylSlater.

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NFL rumors: Will Patriots Rob Gronkowski come out of retirement to join Tom Brady on Buccaneers? (VIDEO) - NJ.com

Q. I was going to start withdrawing from my retirement savings after I turn 70 on June 15, 2020, but heard that the required age for withdrawals is now 72. I have $1,234 per month from Social Security. Should I let the retirement money grow?

Retired

A. Youre correct about the change in the age when you have to take Required Minimum Distributions (RMDs) from your retirement accounts.

The SECURE Act, which stands for Setting Every Community Up for Retirement Enhancement Act, was enacted at the end of 2019.

It changed the date at which distributions must be taken from retirement accounts to age 72 from age 70 , said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

This includes traditional and rollover IRAs, 401(k)s, 403(b)s and 457 plans.

The withdrawals made from these accounts are typically considered taxable income and will be reported as such on your personal income tax return, she said. Roth IRAs do not have minimum age distribution requirements.

Mott said the decision about whether to take distributions now or delay until you reach age 72 depends in large part on whether you need the money now or can afford to hold off.

If you have income from sources other than Social Security and are able to meet your living expense needs comfortably, then the decision to wait may make sense, she said. Depending on how the account is invested, the additional time may enable the value to increase, especially in light of the decline the stock market has experienced thus far in 2020.

At age 72, a required distribution will be calculated based on the previous year-end value of the account, Mott said, but if you need of additional income, you can take any amount you wish from the account now bearing in mind that taxes should be withheld from the distribution to avoid an unwelcome tax bill when you file for 2020.

When you reach age 72, youll have to take at least the RMD.

Another factor to consider is how these distributions will impact your overall income picture as this could alter that amount you must pay for Medicare as well as your income tax bracket, Mott said.

She said Medicare uses a two-year look back to determine whether an additional premium will be paid by each individual and couple.

For 2020, the individual income limit based on 2018 tax data that will avoid an IRMAA Income Related Monthly Adjustment Amount is $87,000 and $174,000 for a married couple filing jointly, Mott said. Your tax professional should be able to provide guidance on the right amount of tax to withhold on your retirement account distributions, how the income will affect your tax rates and what your overall income picture may look like for future Medicare planning purposes.

Email your questions to Ask@NJMoneyHelp.com.

Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.coms weekly e-newsletter.

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Should I wait before taking money from my retirement account? - NJ.com

ByHamish Preston,Associate Director, U.S. Equity Indices, Indexology Blog

One of the main risks for retirees is not having enoughinflation-adjustedincomein retirement to support their desired standard of living. The S&P STRIDE (S&P Shift to Retirement Income and Decumulation) Indices attempt to solve this problem byfocusing explicitly on reducing the volatility of income rather than reducing the volatility of returns.

In order to help market participants track the cost of a stream of inflation-adjusted retirement income, we recently published our firstCost of Retirement Income dashboard. (You can sign up for future editionshere.) The dashboard uses the same cost of retirement income measure as our STRIDE indices:the present value of an inflation-adjusted stream of cash flows equal to $1 per year, starting at various retirement dates (vintages) and ending 25 years later.

Exhibit 1 shows that the cost of retirement income increased for all but two S&P STRIDE vintages in the last three months. For example, the cost of 25 years of retirement income beginning in January 2025 increased from $23.05 to $24.54 in Q1 2020. Significant market drawdowns in Q1 2020, coupled with declines in U.S. Treasury yields, presented severe challenges for market participants looking to secure a desired level of inflation-adjusted retirement income.Pre-retirees were particularly impacted given the greater sensitivity of longer-dated vintages to real interest rates, which declined as the U.S. Federal Reserve cut its policy rate in response to the spread of COVID-19.

The dashboard also tracks the hypothetical distributions from post-retirement vintages of the S&P STRIDE indices (see Exhibit 2). For example, the annualized proportion of last months hypothetical distributions in terms of decumulation points to the indexs beginning value was 3.26%. Notably, the decumulation rate is higher than the S&P 500s 2.34% indicated dividend yield.

Finally, the dashboard reminds us that not all retirement strategies have an explicit focus on providing inflation-adjusted retirement income. Exhibit 3 shows that nearer-dated S&P STRIDE indices had significantly higher allocations to Treasury Inflation-Protected Securities (TIPS) than the consensus asset mix embodied in the S&P Target Date Indices. For example, the S&P STRIDE 2020 indexs TIPS allocation (77.2%) was 14 times higher than the S&P Target Date 2020 index (5.5%) at the end of March 2020. This is a result of the S&P STRIDE indices focus on income rather than return volatility, and it impacts asset allocations across the traditional glidepath approach.

For more information, please see theS&P STRIDE Index Series Methodologyand theS&P STRIDE Supplemental Data Guide.

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Tracking The Cost of Retirement Income - ETF Trends

Announced today, Austrian Airlines is to retire half of its Boeing 767 fleet as it deals with its post-pandemic future. The Lufthansa Group airline has been working out how to return from a complete grounding of scheduled services.

Earlier in April, we reported that the CEO of Austrian Airlines didnt think that passenger demand would return to normal until 2023 at the earliest. As a result, the airline has been working out how its post-pandemic future will look. Today, the airline revealed that aircraft would be retired to deal with the crisis. Lufthansa has already committed to retiring some of its aircraft.

To cope with the projected drop in demand, Austrian Airlines will be retiring half of its Boeing 767 fleet. Austrian Airlines is the only Lufthansa Group airline to operate the Boeing 767 still. The airline operates six such aircraft. Some of these are among the oldest aircraft in the entire Lufthansa group. Only 14 Lufthansa A320 aircraft are more aged than Austrians oldest 767s.

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Austrian is to retire three 767 jets. These are:

The retirements will leave Austrian with just three remaining Boeing 767s, according to Planespotters. These are:

As a result of the retirement, the average age of Austrians Boeing 767 fleet will drop from 24.2 years to 20.5 years old. Moreover, the average age of the airlines entire fleet will drop to 14.6 years.

By retiring aircraft, Austrian Airlines will be cutting its capacity by around 20%. Several smaller aircraft will also be withdrawn. The retirement will encompass the airlines entire fleet of seven Airbus A319 aircraft. Additionally, 18 Dash turboprops will be retired early.

The airline predicts that between 25% and 50% of its demand will be lost this year. It expects that traffic will have recovered to 75% of the pre-pandemic level by the end of next year. Demand will then, hopefully, increase to 100% by the end of 2023.

As such, during 2022, the airline expects to be operating with 60 aircraft, just three-quarters of its pre-crisis fleet. However, because the focus is on retiring smaller aircraft, only 20% of the airlines capacity will have been withdrawn. The airlines CCO, Andreas Otto, mentioned that Austrian will will part with the oldest and smallest aircraft for ecological reasons.

Austrian Airlines isnt the only airline in the Lufthansa group to be parting with aircraft. Its parent airline Lufthansa has already announced the immediate retirement of 18 aircraft. The figure includes seven Airbus A340-600s, six Airbus A380s, and five Boeing 747-400s. The airlines retired A340s are being sent to an aircraft graveyard in Teruel.

Will you miss Austrians retired aircraft? Let us know what you think and why in the comments!

Read more here:
Austrian Airlines To Retire Half Of Its Boeing 767 Fleet - Simple Flying

Its been a rough couple of months for all investors, as the Dow Jones Industrial Average DJIA, -2.31% and S&P 500 SPX, -2.77% and Nasdaq Composite COMP, -3.14% indexes plunged more than 30% from their all-time highs before bouncing back nicely through last week. (They sold off again Monday, but were higher midday Tuesday.)

And no one was hurt more than the 73 million baby boomers, the generation born between 1946 and 1964, nearly half of whom already are retired, while millions more are right on the cusp. By some measures, Gen Xers, those born between 1964 and 1980, are in even worse shape. For both this marks the third wealth-destroying major bear market in the past 20 years, and some of us think we havent hit bottom yet.

One reason for this is that target-date retirement funds, which have become the retirement savings and investing vehicle of choice for many boomers and Gen Xers, have been hit hard in the recent bear market. Typically, these funds decrease their allocation to stocks as the funds get closer to the retirement target date. But some of the most popular funds that have a retirement target date of 2020 hold 50% or more of their assets in stocks.

Target-date funds now account for $1.8 trillion in assets, according to Sway Research, predominantly in workplace defined-contribution, or 401(k) plans. Vanguard Group is the leader with 37% of the market, while Fidelity and T. Rowe Price follow with around 12%-13% each. That means almost two of every three dollars in target-date funds are managed by the Big Three.

From Feb. 20 through March 20, which coincided with almost all of the recent market selloff, target-date 2020 funds from Fidelity FFFDX, -0.60%, Vanguard VTWNX, -0.78% and T. Rowe Price TRRBX, -0.94% lost 19%-22% of their value, according to Morningstar Inc. (After the recent rally, theyre 11%-14% off their highs.)

Vanguard had the lowest equity allocation50% domestic and international stockswhile T. Rowe Prices 2020 target fund had 58% in equities. These firms 2025 target funds had 59%-64% of their holdings in equities, according to the firms websites.

The rationale, of course, is that with increasing life expectancy, investors need to hold more stock to generate the growth theyll need over long retirements to keep from running out of money. But 50% in stocks has proven too risky for people who are retiring now, and investors should hold less stock or keep two to three years of retirement living expenses in cash as insurance. (The right kind of annuity can help, too.)

Americans in general have roughly 50% of their individual retirement accounts (IRAs) in equities, although the equity percentage of the balanced funds they own raises that past 55%. Stock holdings, however, drop when people turn 60, according to a study by the Employee Benefit Research Institute (EBRI), and hover between the high 40s and mid-50s for the rest of their lives.

Of course, just because everybodys doing it doesnt make it right. Ronald J. Surz, president of Target Date Solutions and of its parent company, PPCA, Inc., based in San Clemente, Calif., has long railed against the dominant industry practice of having 50% or more in stocks at the retirement target date. He believes that even five years before they retire, investors enter the risky zone, where they have to pay more attention to preserving than accumulating capital. Thats because sequence of returns riskdrawing down diminished retirement funds in the midst of a bear marketcan force retirees to tighten their belts way more than they expected.

So, weve got a lot of people in the risk zone, more than we ever had before, most of whom I think dont really realize that theyre taking more risks than they can afford, Surz told me in a telephone interview.

Instead, Surz recommends a different glide path to retirement and beyond, based on research by Wade D. Pfau and Michael Kitces, which found that reducing equity exposure to 20%-40% at retirement, then building it back up as retirement proceeds would maximize their level of sustainable retirement income, and/orreduce the potential magnitude of any shortfalls in adverse scenarios.

Surzs proprietary SMART Target Date Fund index, based on those concepts, lost only 2% in the selloff, although it did lag in the latter years of the recent long bull market. John Hancock also has some more conservative target-date funds which lost at least 5 percentage points less than Vanguard, Fidelity and T. Rowe Prices 2020 funds in the recent selloff. But as Surz points out, investors dont choose their target funds; theyre stuck with the 401(k) provider their employers pick for themand thats mostly the Big Three.

Target-date funds have a lot going for them, and theyre certainly better than the flawed judgment of individual investorsexcept when they get to retirement itself. Thats why I think the Big Three need to do a big rethink. Theres got to be a better way.

Howard R. Gold is a MarketWatch columnist. He owns target-date funds from Vanguard and Fidelity. Follow him on Twitter @howardrgold.

The rest is here:
Target-date funds are failing those on the cusp of retirement - MarketWatch

Phil Drake, Great Falls Tribune Published 10:49 a.m. MT April 21, 2020

HELENA Eric Feaver, longtime employee labor leader, has announced his retirement and Amanda Curtis, a former state lawmaker and Democratic candidate for U.S. Senate,will replace him as president, union officials said Tuesday.

Feaver announced his decision over the weekend at the third annual conference of the Montana Federation of Public Employees (MFPE) which was held online Friday and Saturday due to the COVID-19 pandemic. The MFPE is Montanas largest union with 23,000 members.

Eric Feaver(Photo: Courtesy Montana MEA-MFT)

Curtis, who had served as second vice president, was elected as MFPEs next president. First Vice President Bill Dwyer was re-elected, current MFPE Treasurer Rich Aarstad was elected second vice president, and Michelle Wheat was elected MFPE treasurer. They will take office June 15.

Feaver was a fixture at the state Capitol, often attending legislative meetings and sessions and letting lawmakers know what the union thought of proposals and decisions. He often found himself at odds with elected officials.

We are unique, we are diverse.In the Montana context, we are huge and we have a huge responsibility to see that the labor movement in this state goes forward, Feaver said, according to a news release. If we fail or if we are killed by the political processes by the things that have occurred in states like Iowa and Wisconsin and Michigan, the labor movement will die in Montana. It rests on our shoulders to bear the burden of the labor movement and to defend it.

The conference drew nearly 500 member leaders, a record number of attendees, organizers said. Members also voted on constitutional amendmentsand approved the years budget.

Amanda Curtis(Photo: STATE OF MONTANA)

Feaver became president of the Montana Education Association (MEA) in 1984 and guided its throughits merger with the Montana Federation of Teachers (MFT) in 2000, according to a news release.He was elected president of the newly formed MEA-MFT.

Then, in 2018, Feaver oversaw the merger of MEA-MFT with the MPEAto form the Montana Federation of Public Employees (MFPE).

Feaver discussed the merger with the Tribune in 2018.

I think numbers matter. I would like to be a union of this size than not, he said.Having a large number of employees paying dues for a union is a powerful statement, and we intend to show that.

One of the best things about my job is that there is always a reason to come to work, he said in that interview. It keeps the adrenaline pumping. Every now and then, when we lose, it makes us all the more anxious to win the next time.

Curtis is a Butte educator, former state legislator and nominee for U.S. Senate.

This union has a 138-year history and were going to continue for another 138 years and centuries after that regardless of whos in governance, she told MFPE delegates. Were going to keep protecting pensions, bargaining better pay, benefits, and working conditions, and getting our members elected to office.

Members include K-12 public school teachers and support staff; state, countyand municipal employees; higher education faculty and support staff; Head Start employeesand health care personnel.

Reporter Phil Drake is our eye on the state capitol. For tips, suggestions or comment, he can be reached at 406-231-9021 or pdrake@greatfallstribune.com.

Read or Share this story: https://www.greatfallstribune.com/story/news/2020/04/21/eric-feaver-retire-montanas-largest-union-amanda-curtis-take-reins/2996695001/

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Feaver to retire from state's largest union, Curtis to take reins - Great Falls Tribune

Carveth Care Centre personal support workers Cherry Reyes and Cheryl Reston wear personal protective equipment before supporting residents at the Gananoque facility. (Supplied Photo) Submitted / Submitted Photo

KINGSTON With high rates of COVID-19 and subsequent deaths at retirement homes in Almonte, Bobcaygeon and other areas in the province, Kingston-area retirement and long-term care homes have pretty well managed to keep the coronavirus at bay.

According to Public Health Ontario, as of Sunday afternoon there were 114 outbreaks in Ontarios long-term care homes and 249 deaths among residents or patients at those homes. After not having any cases in the Kingston area for the past couple of weeks, Providence Manor in Kingston reported one new case on Monday.

Brett Gibson, the co-owner of Gibson Family Healthcare with his sister Lisa Burgess, said in an interview that at their two homes Carveth Care Centre in Gananoque and Helen Henderson Care Centre in Amherstview its mostly good preparation, but also a little bit of luck, that is keeping COVID-19 out.

Gibson, also the mens hockey coach for the Queens Gaels, sees similarities between coaching hockey and managing the coronavirus.

I think with coaching, this role is quite similar. My sister and I have put plans in place and you plan for the worst and hope for the best, and I think the plans that weve done have allowed our front-line staff to perform on demand, because weve communicated to them right from the beginning, he said.

From an early start date, theyve been very diligent, and with an early start date, theyve been sticking with the plan. Its very similar to coaching: You put plans in place and you hope your players stick to those plans, and the preparation is whats going to lead to the performance.

Carveth has 104 residents in its long-term care home and 38 in its retirement home, while Helen Henderson has 104 in its long-term care section and 65 in its retirement home.

Some of the mitigation controls at both facilities include one entrance in and out of the building, with no outside visitors. Everyone wears surgical masks inside the buildings, social distancing is being practised, and people visiting loved ones inside can no longer go up close to the window of their room. Theres now a painted line on the grass two metres away from the building.

Staff member Angela Ballantyne, a personal support worker at the Carveth Care Centre in Gananoque, checks on a resident in an undated photo. (Supplied Photo) Submitted / Submitted Photo

Our dining rooms are now spread out at both nursing homes, so theyre six feet apart when our residents are eating, and our recreation programs have gone down to a bare minimum, Gibson said.

Gibson knows the facilities he and his sister manage have been lucky with their mitigation techniques while some other homes have not.

There is luck involved. This virus is a deadly virus and I dont think anyone intentionally wanted to infect any of these homes, he said. There also is a lot of preparation, and I think that has a lot to do with the successes. You obviously have to have luck, but you can put a lot of measures in place to make sure youve earned that luck.

I think these (other) homes were prepared and they got unlucky some of them.

Gibson said he and his sister keep good lines of communication with residents and family members. Those measures include regular email updates.

They have a line where its directly coming from the top, Gibson said.

Dr. Ashok Chadha, the general manager and director of care at the Windsor Retirement Residence in Amherstview, said COVID-19 did not enter the facility due to the early lockdown and other safety protocols he put in place well before the government orders to do so came in mid-March.

We were the first in doing basically everything, Dr. Chadha said. We were way ahead of the authorities and government.

Chadha said he started educating residents of the 81-unit facility about COVID-19 in January.

They were well prepared. Were the first ones to talk about lockdown and the first ones to bring in screening guidelines and stayed ahead of things before they went widespread in the province, he said.

Chadha said staff members also had to stop working at other long-term care homes early in the outbreak to prevent the spread of the virus. He also banned outside agencies and contractors from coming into the Windsor.

Mitigation protocols include wearing masks throughout the facility and social distancing. Residents are allowed to walk outside in the private, fenced grounds as long as family members dont come on the property.

Chadha was also concerned about the residents anxiety and mental health during the new quarantine measures.

We were also very proactive in taking steps to talk to them more and give them breathing exercises, he said. Our residents are just not limited to stretching their arms on the balcony. They can go out and walk.

If this thing continues for a month or another two months, its going to take its toll on their mental health.

Despite the lockdown, residents have been able to keep up their recreational activities as long as social distancing is respected.

Our ultimate goal is their safety and well-being, Chadha said.

imacalpine@postmedia.com

twitter.com/IanMacAlpine

Original post:
Local retirement homes determined to keep COVID-19 out of facilities - The Kingston Whig-Standard

If you just retired last year, you were feeling pretty good about things: Stocks kept hitting all-time highs and your portfolio looked as if it could sustain a comfortable lifestyle for years. Or, based on the same set of assumptions, you decided this was the year to finally hang it up and were looking forward to spending time on the people and things you really love.

Oops.

For the third time in the past 20 years, the market has thrown investors, particularly retirees, a wicked curveball. The novel coronavirus and the draconian shutdowns that have come in its wake have sent the economy reeling and stocks plungingas much as a 34% decline in the S&P 500 from its February 19 all-time closing high.

Weve rallied from the lows but depending on how long the shutdowns lastand how much permanent damage is done to the economy---we still may not have seen the ultimate bear-market bottom.

Regardless, this is a retirees worst nightmare. Its the dreaded sequence of returns riskby retiring just when the market has tanked, retirees could lock in lower income for years. Thats particularly true if you had way too much invested in stock (80% or more of your holdings) in an effort to catch up. Now you may spend the rest of your life trying to catch up with where you were before.

As I wrote here previously, Americans near or at traditional retirement age hold on average roughly 50% in stock. Those people sustained 17% to 20% declines in their overall holdings, not counting any offsetting gains in bondholdings during this time. Thats bad but not disastrous, though the 56% loss the S&P 500 SPX, +7.03% incurred during the financial crisis walloped even conservative portfolios.

So, what do you do now? Retirement Weekly reached out to financial planners and weve culled what we regard as the best advice from 15 of them from across the country and present them here in two parts. Every single one of them, of course, advised people to get a financial plan. I agree, but since this is their livelihood and doesnt give specific advice to readers who dont have a plan, Ill mention that here and then move on.

Ill conclude with some of my own advice. Im not a certified financial planner but Ive invested and written about retirement for years and even got a retirement plan done for me. (Ill deal with financial planning in a future column.) But right now Ill yield the floor to the planners.

Everybody tells you this, and its almost always true, although I believe there are special circumstances under which it might make sense to sell some stock into bear market rallies. But heres what the planners say:

Stop! Do not make financial decisions based on emotions, says Thomas J. Duffy of Tinton Falls, N.J.

Dont make an emotional decisionbased on market conditions during a temporary crisis (or, conversely, during a period of temporary euphoria), writes Benjamin Simiskey of Katy, Texas.

Dont sell out of the market, says Zach Abrams of Cleveland, Ohio. Losses are only losses if you sell and realize them. Recouping losses once you sell is incredibly difficult.

Let me jump in and give an example here. Lets say you had a $500,000 retirement portfolio with $300,000 in equities, whose value fell by a third. That would leave you with $200,000 in equity value and a $400,000 portfolio value overall.

Lets also say you had 3,000 shares in a stock ETF selling at $100 at its peak. Those shares now sell for $66 each. If you keep them they would have to rise 50% for your equity holdings to reach their previous value (not counting stock dividends and reinvestment).

But if you sell, say, 1,000 shares and have 2,000 shares left at $66 each, youll raise $66,000 in cash and your remaining stockholdings will be worth $132,000. In this case, your stock ETF would have to rise 76% for that part of your holdings (including the cash you got from the sale) to reach its previous $300,000. And for much of that time youd have a lot less equity to provide growth to meet future living expenses. That could force you to tighten your belt much more than you expected.

But its not all gloomy. While the market downdraft has wounded investment portfolios, it doesnt need to be fatal to your retirement plans, writes Michael Hennessy of Fort Lauderdale, Fla. But you only get one chance to retire right.

No pressure, folks: After giving you the donts in this part, next time well tell you what you can and should do now.

Go here to see the original:
Is this the retirement apocalypse? - MarketWatch

Expert advice for retirees during this financially tumultuous time. Buzz60

The new coronavirus outbreak and economic measures to contain it could have a significantly negative impact on retirement preparations for millions of Americans.

Account balances have been depleted by the stock market collapse. Many people now need to tap into their accounts to make ends meet. Others, facing layoffs or reduced hours, won't have the income to make investment contributions.

Still others, in their early 60s, will start taking Social Security benefits as soon as they can, locking in lower monthly payments for the rest of their lives.

But the fallout isn't entirely bad.

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The government has introduced several temporary changes that could help people shore up their finances and manage their retirement accounts more effectively.

Here's what is changing:

One change involves the required minimum distributions that investors normally must begin after reaching age 72 with Individual Retirement Accounts and some 401(k)-style plans.

Set on selling stocks amid the coronavirus crisis?Consult this checklist first

Under provisions of the new federal CARES Act, RMDs may be suspended for 2020 to help investors rebound from stock-market losses.

This is notable because those withdrawals would have been based on account balances as of Dec. 31, 2019, when the stock market was much higher.

The new one-year RMD waiver is a "huge help" for many seniors who had been facing taxes on higher account values, said Ed Slott, a certified public accountant and founder of IRAHelp.com.

"Now, clients can sit out a year and avoid the tax bill on their 2020 RMDs, if they wish," he said.

President Trump signs the CARES Act, providing $2.2 trillion in economic relief during the coronavirus pandemic. USA TODAY

Under the CARES Act, investors in workplace retirement plans and IRAs can withdraw up to a combined $100,000 in 2020, from all such accounts, without incurring the usual 10% early withdrawal penalty. The penalty normally applies for people under age 59 1/2 or 55 in some cases with 401(k)-style plans.

However, not everyone will get this break.

"The affected participant or IRA owner (including a spouse or dependent) would need to either be diagnosed with SARS-COV-2 or COVID-19 or experiencing adverse financial consequences as a result of an event," noted Fidelity in a commentary. These consequences include a layoff, furlough, reduced work hours, a lack of available child-care assistance or a business closing in the case of self-employed individuals.

Ordinary income taxes still apply on permanent distributions, but the impact may be spread evenly over three years. As an option, investors can repay some or all of the withdrawn money back into a retirement plan within three years to avoid the tax bill and rebuild their account balances.

"That's why this provision was put into the bill to help people get back on track for retirement," said Meghan Murphy, a Fidelity vice president for global thought leadership. "It's like a mortgage: What you get approved for might be much more than you need."

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In most 401(k) plans, employees can take out loans rather than making permanent withdrawals. Loans can be a tempting way to access cash quickly. Among the benefits: There's no lengthy application process, the interest you pay goes back into your account rather than to a bank and the transaction isn't included on your credit report.

Under the new CARES legislation, the amount employees may borrow from their 401(k) plans increases to $100,000 this year from $50,000 before (assuming there's at least that much in the account).

Many plans only allow employees to borrow up to a certain percentage of their balance, such as 50%, though that threshold is waived this year, Murphy said. Also, the legislation allows loan repayments to be delayed for one year.

Taking out a 401(k) loan isn't necessarily a great option. If the stock market rebounds while your money is out on loan, you could miss some juicy gains. And if you can't or don't repay a loan, the balance would be taxed and that 10% penalty might apply down the road.

Prior to the new coronavirus outbreak, relatively few 401(k) participants had taken out loans, including during the 2007-2009 recession, Murphy said. But the unprecedented pressures that now apply, including heightened health-care needs, could change that.

The coronavirus (COVID-19) is impacting the global economy and raising fears of a recession. What causes a recession and what are the signs? USA TODAY

Other retirement provisions

This year, the deadline for filing federal income-tax returns and paying taxes has been delayed from the normal April 15 date to July 15. Many states, including Arizona, have adopted the same schedule.

As one consequence, July 15, 2020, also becomes the deadline for making 2019 contributions retroactively to IRAs though not for workplace 401(k) plans. This isn't a huge benefit, as relatively few Americans max out their IRA contributions, but it's a modest advantage for those who do.

Also, the optional ability to make tax-free transfers from an IRA to help a favored charity has been retained. This provision remains open to seniors 70 1/2 or older. It has proved popular among some people who don't need to live off their withdrawals.

The new rule changes provide relief, or at least more flexibility, for workers and retirees with retirement accounts. Yet many employers, especially small businesses, might need assistance too, and they are eager to get it.

The American Retirement Association, which includes affiliates such as the Plan Sponsor Council of America,has asked the Treasury Department to amend regulations to give employers more flexibility during the new coronavirus outbreak, including the option of suspending matching-fund contributions they make to employee accounts.

Many businesses closed their offices or transitioned quickly to telecommuting, which hindered their ability to amend plans properly and provide notices to workers, meaning that matching-fund obligations continue, the American Retirement Association said in a letter to the Treasury.

Without a relaxing of these and other rules governing 401(k) programs, "The financial crisis facing employers might force them to terminate their plans rather than keeping them intact but partially frozen, until the business recovers," the letter warned.

The American Retirement Association and its member employers and financial-service companies don't want to see 401(k) plans scuttled, which they fear could be a disaster for the long-term goals of millions of people. Rather, they seek "breathing room" for hard-pressed 401(k) sponsors, allowing time for them to recover.

If that happens, many employees wouldn't receive matching funds, at least for a while.

Reach Wiles at russ.wiles@arizonarepublic.com or 602-444-8616.

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New changes in law will help those near retirement and others weather coronavirus's financial storm - USA TODAY

For most of us, the reality of growing older means that medial issues will likely become a more common concern. As a result, health care can become a prominent expense in retirement. Medicare typically serves as the foundation of your health insurance later in life as it starts at age 65. If you retire prior to age 65, youll find insurance coverage to be expensive, with significant potential out-of-pocket costs.

A major category of expenses in retirement

For most, health care expenses become greater as they grow older. According to statistics compiled by the Kaiser Family Foundation, annual health spending for the average woman is $11,694 for those ages 65 and up. This compares to average annual expenditures of $8,343 for those age 55-64, and $5,775 for women ages 45-54. Spending patterns are similar when comparing costs for those different age groups among men.

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At the same time, changes in health care costs in general tend to outpace the standard rate of inflation. According to the U.S. Bureau of Labor Statistics, over the 15-year period ending in 2019, the cost of living for all goods and services rose by 2.0% annually. During that same period, medical services costs rose by an average of 3.5% annually. Rapidly rising health care costs can quickly eat away at your retirement savings as you grow older.

A challenge even with Medicare

The reality is that while Medicare helps make health insurance much more affordable for older Americans, it is far from free. You will pay premiums for Medicare Part B (doctors visits and other care services). In 2020, the base premium for Medicare Part B is $144.60 per month per person, but it could be higher depending on your income level. The premiums typically rise each year. If you choose, Medicare Part D (prescription drug coverage), there is an additional premium, but that should be offset by lower drug costs. You may also choose to purchase a Medicare Supplemental Insurance plan that could add hundreds of dollars to your monthly budget but limit other out-of-pocket expenses.

Steps to take before you retire

Good planning can help you prepare for the challenges posed by medical costs in retirement. Potential steps to address this issue include:

Be sure to consult with your financial advisor to learn more about the potential financial challenges you face with healthcare in retirement and to explore steps you should take today.

Carlos F. Arias,CRPC ,CLTCPrivate Wealth Advisor

Arias &Partners Wealth Advisors A private wealth advisory practice of Ameriprise Financial Services, Inc.

An Ameriprise Private Wealth Advisory Practice

Carlos F. Arias, APMA, CRPC , CLTC, is a Private Wealth Advisor and Business Financial Advisor with Arias andPartners Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, Inc. in Berkeley Heights, NJ. He specializes in fee-based financial planning and asset management strategies and has been in practice for 20years.

To contact him, (908) 272-0188 https://www.ameripriseadvisors.com/carlos.f.arias

100 Connell Dr Ste 2300 RM 233 Berkeley Heights, NJ 07922-2737

Investment advisory products and services are made available through

Ameriprise Financial Services, Inc., aregistered investment adviser. Ameriprise Financial Services, Inc. Member FINRA and SIPC.

2020Ameriprise Financial, Inc. All rights reserved.

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