611 Druid Rd E • Suite 105 • Clearwater, FL 33756 • 727.441.9022
Meridian One Building • 4350 West Cypress Street • Suite 225 • Tampa, FL 33607 • 813.405.4846
The ProVise Advisor Team
CORONAVIRUS-WHAT NOW?
We trust that you and your family remain safe and well.
COVID-19’s lasting effects will be felt for years - perhaps
decades. Now we have to think about how we rebuild our lives,
keep our families safe, and shore up our net worths.
The CARES Act will pump $2.2 trillion into the economy
through a variety of methods including unemployment
benefits that last longer and are higher, billions to businesses
of all sizes, and perhaps biggest of all, direct payments to
many Americans. It is much more than $2.2 trillion. How is
that possible?
Because the money will circulate and move through the
economy more than once. Under the Payroll Protection
Program, the money will mostly cover payroll and other major
expenses like rent. When the employees get this money, they
will use it, which means someone else gets it and they in turn
use to pay expenses, including payroll, and their employees
spend it. Some have said that it might travel through the
economy seven times before its positive effects dissipate. The
bad news is that it will take time for this to happen, but it is
good news too as it will be like an IV drip.
Required Minimum Distributions (RMDs) are suspended this
year, so unless you need the money, do not take it. While the
CARES Act allows for generous withdrawals from retirement
accounts, generally we discourage you from doing so. It is
better to borrow money given low interest rates. Consider a
Home Equity Loan.
Life will take time to get back to “normal”. It will be different.
Many who resisted technology have been forced to embrace
it and have found it easier than they thought. This will lead
to more consumer use for many products and services. Thus,
retail businesses who do not adapt may go out of business.
Businesses also discovered the use of video conferencing as
a substitute for face-to-face meetings, which will likely mean
savings on travel, which in turn will be bad for the airlines,
hotels, restaurants, etc. Further, they learned that people could
work from home productively which could mean a lower need
for physical offices and less pollution. Those working from
home will likely purchase fewer clothes and save commuting
About ProVise Management Group, LLC: ProVise is a financial planning and investment management firm registered with the Securities and Exchange
Commission (SEC) and has been in business since 1986. Our 15 professional advisors serve approximately 1100 clients in over 30 states. As of 12/31/19 we
were managing approximately $1.5 billion for our individual, corporate, not-for-profit and 401k retirement plans. Please visit our website at: provise.com.
Investment Advisory Services offered through ProVise Management Group, LLC. The information herein is general and educational in nature and should
not be considered legal or tax advice. Tax laws and regulations are complex and are subject to change.
90 TAMPA BAY MAGAZINE | MAY/JUNE 2020
costs and time, etc. On the negative side, is a reduction of
physical interaction with others, which many yearned for while
separated.
It will take time for people to gain the courage to return
to traveling for business and pleasure. In addition to TSA
screening, airlines may begin screening for health issues.
Restaurants will try to attract diners with specials, while
airlines, hotels and sporting events will offer unbelievable
deals.
More education will move on-line which at first blush seems
positive until the loss of the “experience” is considered. In
addition, small schools may have to close because of a lack of
funding and reserves.
Globalization will slow as companies look for suppliers that
are homegrown. Business consolidation will take place as wellheeled
companies acquire the weak. They will also acquire to
shore up the supply lines.
Expect inflation to remain low even if oil prices rise. Other
commodities will likely remain inexpensive. The Fed may have
to fight deflation while trying to stimulate the economy at the
same time.
The government will look for ways to create jobs and our
well-worn infrastructure may benefit the most. But it may take
years before things actually get started. Remember “shovel
ready”?
During these past few months, we have learned the value of
the American spirit to help others. We recognized new heroes
in those working in the healthcare arena. Our lessons are many,
but perhaps most important is having a good supply of toilet
paper and disinfectant products and a proper hand washing
technique.
In the good times, we all do well. In the tough times we
learned that it can be lonely doing things on our own. If you
are ready for some professional help, or if you have become
disillusioned by your former advisor, then consider taking
advantage of our one hour complimentary consultation to learn
more about working with us on a fiduciary basis. We always
put your interest ahead of our own.