VO - Coronavirus Bailout: Why You Should -- and Shouldn't -- Cash Out Retirement Savings
America is almost certainly already in a deep recession. Major economic drivers including air travel, cruise lines, concerts, and conferences came to a halt weeks ago, cutting tens of billions of dollars in consumer spending out of the economy.
In the weeks since, other massive swaths of the economy have shut down. Factories across the country are closed. Retailers have closed. Many restaurants have shifted to take-out and delivery only, while millions more have been forced to close their doors entirely.
We saw the first clue of how bad things could get on March 26, when a record number of people -- almost 3.3 million -- filed for unemployment benefits. Congress acted quickly to provide relief, passing a $2 trillion economic aid package. But for many people, that won't be enough to make ends meet. Congress also added a provision allowing for people to access their retirement accounts early, without having to pay the usual penalty, with the caveat that those funds must be paid back.