Home Radio Segments Steve's Market Commentary Money Is Coming Your Way. Here’s What You Need To Know

Money Is Coming Your Way. Here’s What You Need To Know

Steve Pomeranz, Money From The Government

Before I get started with today’s commentary, I want to mention that last week a listener wrote in with some strong feelings about comments I had made on the previous week’s show regarding the seriousness of the Covid-19 virus. She is a doctor and felt that we didn’t take the virus seriously enough, actually imparting information that might be dangerous to listeners.

As I re-listened to the segment, I agreed with her that we might have been too cavalier in our comments at the time and not taken it as seriously as we should have. By way of explanation —not as an excuse—all of our interviews are actually pre-recorded and occasionally, events evolve faster than we can get to air. This sometimes makes our facts and comments out-of-date and, in this particular point in time, events rolled out at warp speed

In this case, I don’t think we made that distinction, and I want to make sure that you all treat this deadly virus seriously, understanding that the facts strongly indicate a serious risk to life, and we should be following the specific guidelines from respected medical authorities.

I always encourage you to contact us and ask us any question, which also includes your well-expressed thoughts on anything you think we could do better.

And now getting on to today’s comments.

Here are some interesting facts:

Do you know where the word quarantine comes from?  According to the CDC, and I quote:

“The practice of quarantine, as we know it, began during the 14th century in an effort to protect coastal cities from plague epidemics. Ships arriving in Venice from infected ports were required to sit at anchor for 40 days before landing. This practice called quarantine was derived from the Italian words quaranta giorni which means 40 days”.

Also, Leonardo da Vinci survived a series of bubonic plagues that struck Milan between 1484 and 1485 killing almost 50,000 people—a full third of the city’s population,

In true Da Vinci form, he got to work designing a city of the future to counteract the conditions which caused the plague to spread so lethally.

A few years later, he redesigned the streets of Milan by widening them, the purpose being to spread people out so they weren’t so crowded and to redirect water to clean up the filthy conditions found in Milan and other medieval cities at that time.

He drew up a system of canals for business efficiency and sanitation; he even created a city built on multiple levels, each level used for a different purpose.

Of course, with so many things Da Vinci designed, it was too radical and far ahead of its time. After all, this was 500 years ago, so nothing was ever built; but as with so many of his ideas, modern thinking puts a fresh light on his genius.

Now I’m going to switch gears here because I’d like to spend some time talking about the $2.2 trillion bill which was passed by the Senate but awaiting a House vote, as I record this.  (I’m sure it will be passed by the time you hear this commentary.)

This bill will give most Americans money to put in their pocket.

Here Are The Facts As Written In The Washington Post:

  • The bill will provide $1,200 payments to adults with annual incomes up to $75,000, plus another $500 per child. Three kids—that means another $1,500.

Who Exactly Qualifies For A Payment?

  • Individuals earning up to $75,000 a year will be eligible for the full $1,200 check. As you make more money, that $1,200 is reduced until it goes to zero at $99,000. This is all based on adjusted gross income.
  • If you’re married, just double that. Married couples will get $2,400 if their adjusted gross income is under $150,000 a year. As with individuals, the check amount is reduced until you get to $198,000 when it hits zero.
  • If you are head of household, which is typically a single parent with children, you’ll get $1,200 if your income is $112,500 and below. The sliding scale reduces your payment until you earn $136,500 when it goes to zero.
  • All three groups will get an additional $500 per child.

How Does The U.S. Government Know Where To Send The Money?

The government will know where to find you if you have provided direct deposit information on your 2018 or 2019 return. If you don’t have a direct deposit option on your return, the Government will mail the check to you.

When Will The Payments Arrive?

The last time this happened was in 2008. Checks took around eight weeks to get to your mailbox. The Government is currently saying they’ll get them out sooner like April 6th but many think that is too ambitious.

What About People On Social Security?

People on Social Security will get the money too as long as their income isn’t above the limit. Even if you don’t file a tax return, the Government will credit the account your monthly payment goes into.

Are The Checks Taxable?

The checks are not taxable income. However, according to The Washington Post article, the payment will be based on your 2020 income. Since no one has filed for 2020, they will go back to 2018 or 2019 and compare what they paid you against your actual 2020 income. This means you may owe them money when the dust settles if you were overpaid. That bill will come due in 2021.

I want to remind you to join me on a free call-in event where I will discuss a lot questions you have been asking. Questions like:

  • What to do if the market keeps going down and stays down
  • How to boost your return on savings
  • How to reduce your taxes
  • How to increase your cash flow
  • How to secure a steadily rising income from investments and savings
  • If bad market conditions continue, will you have enough money to retire and will your savings be enough in retirement?
  • Techniques to stay calm and carry on

So join me at 12 noon on Thursday, April 9thSign up here and get the call-in information.

That’s Thursday, April 9th at 12 noon.

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I've been an investment strategist and adviser for over 35 years, leading with a mission of unbiased advice to educate and protect listeners on my weekly radio show on NPR affiliates nationwide. I have been named a “Top 100 Wealth Advisor” by Worth Magazine and “Top Advisor” by Reuters.