If you think the economic decline due to the pandemic has been difficult for you personally, the big picture numbers may be even worse. Analysts project that the total economic disruption could eventually cost between $9 trillion and $33 trillion. Many economists are advocating that the U.S. — and the world — make a concerted effort to prevent future pandemics.1 Much like individual health care, the cost for prevention is significantly less than the cost of treatment.
In fact, the coronavirus has exposed many weaknesses in our infectious-disease surveillance and ability to respond quickly and effectively. While state governments continue to work on their current response, many in the private sector are looking toward the future.2
We advise our clients to retain that same perspective. If your retirement portfolio is built to weather an economic decline, you likely have financial vehicles that can help supplement your household income during financial difficulties. By keeping your investments focused on the long term, they can help you ride out market volatility and give your money the opportunity to continue growing. If you’d like advice in this area, we are here for you.
Government attempts to revive the economy have been mixed. The quick efforts to roll out stimulus legislation to benefit consumers and small business ran into headwinds. Many states’ unemployment programs were not built to handle so many claims at once, resulting in delays and confusion. The application system for small business loans led to haphazard benefits, wherein many small employers lost out while large corporations, such as Shake Shack and the Los Angeles Lakers, received millions (although both companies returned the money).
The pandemic has impacted nearly every household, business, organization and government agency in some way. At this point, it makes sense to evaluate how we’ve been affected and devise plans to help reduce the risks from similar situations moving forward. Even the Pentagon admits there are flaws in its system for protecting Americans. It recently began the process of rewriting its pandemic playbook for faster and more efficacious response efforts for this type of crisis in the future.4
It just goes to show that even the best-laid plans may not work when stress-tested in a real-life situation. It’s time we all take a deep breath, look at our current position, and determine where we want to be in the future. To some extent, we can rely on the investment markets to enhance our long-term financial futures, but we should set goals and make sure our portfolios remain well-diversified. Merrill recently re-assessed its portfolio models with guidance to actively rebalance back to original asset allocation targets. The wealth manager cautioned that markets tend to be more volatile during a presidential election, recommending a diversified approach and using rebalanced funds to add more global equity exposure.5
Fresno Retirement Advisor Takeaways
As your Fresno financial advisor we thought this was a good takeaway: Analysts project that the total economic disruption could eventually cost between $9 trillion and $33 trillion. Many economists are advocating that the U.S. — and the world — make a concerted effort to prevent future pandemics.1 In fact, the coronavirus has exposed many weaknesses in our infectious-disease surveillance and ability to respond quickly and effectively. While state governments continue to work on their current response, many in the private sector are looking toward the future.2 We advise our clients to retain that same perspective.
Diversifying your retirement assets among a variety of vehicles and alternatives—both insurance and investment oriented, depending on what is appropriate for your situation—may offer you a better chance of meeting your retirement income goals throughout your lifespan. We help our clients with problems sometimes associated with retirement such as stopping spend down and avoiding probate. In doing so we leverage stop spend down as well as long-term care strategies designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial planning consultant is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment strategies that focus on Asset Protection, Long-Term Care Strategies, Legacy Planning, Tax-Efficient Strategies, IRA, 401(k) & 403(b) Rollovers, Life Insurance Annuities, Medicare, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
Content prepared by Kara Stefan Communications.
1 Matt Craven, Adam Sabow, Lieven Van der Veken and Matt Wilson. McKinsey & Company. July 13, 2020. “Not the last pandemic: Investing now to reimagine public-health systems.” https://www.mckinsey.com/industries/public-and-social-sector/our-insights/not-the-last-pandemic-investing-now-to-reimagine-public-health-systems. Accessed Sept. 18, 2020.
3 Zachary B. Wolf. CNN. April 28, 2020. “What Matters: This is what coronavirus capitalism looks like.” https://www.msn.com/en-us/money/markets/what-matters-this-is-what-coronavirus-capitalism-looks-like/ar-BB13ieZ6?ocid=msn360. Accessed Sept. 18, 2020.
4 Bryan Bender. Politico. Sept. 21, 2020. “Pentagon rewrites pandemic plans.” https://www.politico.com/newsletters/morning-defense/2020/09/21/pentagon-rewrites-pandemic-plans-790511. Accessed Sept. 21, 2020.
5 Merrill. Aug. 2020. “The Grinding Recovery.” https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/Viewpoint_August_2020_Merrill.pdf. Accessed Sept. 18, 2020.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions Inc. are not affiliated companies. 719276 – 12/20