The CARES act is now passed so let’s go over some of the details.

Download the transcription here:

Episode 020 – CARES act

Thank you for joining us at Southwest Investments for Market Insights. Joining me today is Bart Schannep. Bart, welcome to the show.


Bart:                 Thank you, glad to be here.


Rick:                 Today, or I should say in the past, we’ve talked a little bit about how the CARES act has affected companies and the overall economy. Let’s dig into individuals.


Bart:                 Yes. Let’s focus on individuals. There are a lot of moving parts in a lot of the legislation talking about loans, both forgivable, non-forgivable, different taxes that may be forgivable, what industries might be focused on, that sort of thing. Let’s dig into what does it mean to the average person.


Rick:                 Awesome.


Bart:                 There are a lot of numbers. Let me just read over what we’re looking at. Obviously people know about the recovery checks for U.S. individuals with adjusted gross income of under 75,000 each or 150,000 in joint returns. They’re going to get money. They’re going to get money per person. They’re going to get including money for kids, covering kids.

There is a phase out where if you make too much money you start to get less of it. Sure enough, if you’re over 99,000 per person or 198 filing joint, it fades out completely, and nothing’s coming.


Rick:                 Typical with all taxes that we deal with, there are rules upon rules that are going with this, how many kids you have, how much income you make. I don’t think that’s terribly difficult to understand, but you just need to be watchful.


Bart:                 It’s also approximated. What you’ve got is the government’s doing the best guess they can. Adjusted gross income based on what they think your 2019, whether you filed or not, your 2019 taxes. If they don’t have that, they’ll look at your 2018 tax return.


Rick:                 That’s been a really prominent question that I have heard from a few people calling in.


Bart:                 How do they know?


Rick:                 How do I know? I lost my job.


Bart:                 Right.


Rick:                 What do we do? Our response has been, “File as quickly as you can for your taxes.”


Bart:                 Right, right. The other thing has to do with required minimum distributions. Now, we’ve talked before about how required minimum distributions got pushed back to age 72, but now regardless, everyone is free to not have to take a distribution in this year, 2020.

What really affects more people is the waiving of the 10 percent penalty for early withdrawals, assuming, and this is a broad base, assuming you need the money either because you contracted the virus, your spouse or a dependent contracted the virus or you experienced financial consequences because of the virus. This—


Rick:                 That could be maybe a hospital bill. Is that what we’re thinking?


Bart:                 It could have been your income went down because you were quarantined, that you were furloughed, that you were laid off, that you’ve had reduced hours, that your business closed. It starts getting pretty broad based there, that’s right.

Any money you do take out, you can spread the tax payments on it over a three-year period. That’s going to be another confusing thing that people are going to have to keep track of. What is nice is over that three-year period, if you’re able to put money back in, you can redeposit it back in.


Rick:                 Kind of like a rollover. Is that what we would consider it?


Bart:                 It’s almost like it’s against the law to have a loan against an IRA, but it’s pretty much if you can put it back over a three-year period, it’s like borrowing the money.


Rick:                 Got it, got it.


Bart:                 From businesses, defined benefit plans are able to push back into next year. These are all changes that affect the average person, that are worth noting. It is the government trying to help. My guess is it’s going to help a lot of people.


Rick:                 Well, I think that’s going to be, like you said, helpful for a vast majority of the people that are out there. For us, at least we now have this information to relay to not just our existing clients, but also I think it’s important for this to get out to as many people as possible because it is a lot of different rules that have come about in a very quick time period. They changed it quite a few times as it went through.


Bart:                 These are unprecedented times. Everyone’s trying to do the best they can.


Rick:                 You got it. Well, thank you so much, Bart, [music plays] for joining us and explaining some of these things. If you do have more questions, feel free to go onto our website. Our email address is on and [Inaudible] [05:25]. Give us a call. Let us help you. Thanks so much for joining us.


Sarah has been working at Southwest Investment Advisors since October of 2017.

Hers is the first friendly face you will encounter when visiting the office.

Sarah’s responsibilities include assisting clients with online access, processing account documents, scheduling meetings and assisting in all aspects of client services.

When she is not working here you may find Sarah on the shooting range serving as an assistant instructor and safety coach.

She has two children, son Zach is a graduate of the University of Arizona and daughter Paige who will graduate in 2019.


Kataya has been with Southwest Investment Advisors since January of 2017.

She assists Alix with portfolio construction, rebalancing, and trading.

Kataya also plans our company’s client appreciation events and assists with the company website.

In her free time Kataya enjoys spending time with her family and her dog, traveling to new places, and getting involved with local events.


Lacey has been with Southwest Investment Advisors since 2007 and has been the Operations Manager since 2012.

Her primary duties are assisting clients, assisting Advisors, processing paperwork, and working with our back office at LPL Financial.

When she’s not working she enjoys riding horses and spending time with her husband, Dustin, her two small children, and her dogs, Tebow and Ellie.

Lacey and her family really enjoy traveling, spending time outdoors, and watching her dad, Robert Wright, play the banjo.


Robert has been an Advisor since 2012 following in the footsteps of both his father and grandfather. He holds a Bachelor’s Degree in English Literature and graduated Summa cum Laude from BIOLA. After working several years in Social Services Robert has a distinct perspective when helping people create and manage their financial goals.

When Robert is not working, life is all about family. Along with his lovely wife, Robin, four beautiful children and their dog, he enjoys traveling in the family bus, which is always an adventure. He enjoys meditating, praying, journaling and plays the guitar daily to maintain his sanity!

Meet with Robert:

Licensing and Regulatory​:

Licenses: Series 7, Series 63, Series 31 held through LPL Financial and the Series 66 is held through LPL Financial and Southwest Investment Advisors


Rob is an original co-founder, has been in the industry since 1994. He has degrees in English and Liberal Studies as well as a Teaching Certificate from California State San Bernardino.

Before becoming a Financial Advisor, Rob was a member of the New Christy Minstrels and he continues to perform with his banjos and other stringed instruments in concert as a member of the Wildcat Jazz Band throughout North America and as a guest artist with local symphonies and at various music festivals. Rob and his wife, Linda have one daughter and two grandchildren.

Rob has since retired and no longer has duties at Southwest Investment Advisors, Inc.


Original co-founder, Bart has worked as an Investment Advisor since 1983.  He was with Dean Witter/Morgan Stanley for fifteen years, serving as Branch Manager during the final four years, before moving to Piper Jaffray as Branch Manager for an additional three-and-a-half years before co-founding Southwest Investment Advisors.

In 2008, Bart become one of the first 200 professionals obtaining the industry’s newest designation, the Certified Wealth Strategist® designation, and administered by Cannon Financial Institute.

In May, 2010 Bart was selected for the distinction of Outstanding Advisor of the Year by Registered Rep Magazine, one of 10 financial advisors selected by the editors for 2010. From hundreds of nominees, the winning advisors have demonstrated both business success and leadership in serving as guides to other financial advisors and as active participants in community activities.

He is active in his church and served as President of the Board for Gospel Rescue Mission of Tucson from 2007 – 2010 and 2015 – 2018.  Bart also has served on the Board of Adjustments for the town of Oro Valley from 2002 – 2008.  Bart and his wife Marcella have three grown children and several grandchildren. Together they enjoy wine tasting, scuba diving, and travel.

Bart has since retired and has no responsibilities at Southwest Investment Advisors, Inc.


Rick is in charge of the managerial duties at Southwest Investment Advisors.  As a Financial Advisor, he meets with new and existing clients and helps with problem solving.

He has a Bachelors of Science in Business and Marketing from Purdue University and an MBA from the University of Phoenix. His past 20 years of business experience includes roles of Controller, CFO, and President of consumer goods companies with double digit growth for over a decade.  He and his wife own a local jewelry boutique, Trinity Diamonds.

Outside of the office, Rick enjoys keeping up with the latest in tech news, scuba diving, hiking, playing the electric bass guitar (well, trying to), and keeping the dogs happy with long walks.

Meet with Rick:


Alix’s primary roles in the team are portfolio management and client contact. She focuses on building and maintaining client relationships and reviewing and constructing portfolios that reflect clients’ individual goals.

Alix holds a BS in Business Administration from Pepperdine University, where she studied both in Malibu, California and Florence, Italy. She started with Southwest Investments in 2009 on the operational side of the business and has built her way to the sales side.

In 2014 Alix obtained one of the industry’s newest designations, the Certified Wealth Strategist® designation, administered by Cannon Financial Institute.

When she’s not in the office, Alix enjoys traveling and exercising with her husband Phil, singing at the Vineyard Christian Community, and meeting up for tea or a cold brew. She has a wonderful family and close group of friends and is excited to be a part of the team here at Southwest Investment Advisors.

Meet with Alix: