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As of the end of July, the stock market was still performing relatively well and the Federal Reserve had announced no near-term changes to interest rates.1 However, other economic news was not as rosy. According to the Bureau of Economic Analysis, the U.S. economy contracted by nearly a third (32.9% annual rate) in the second quarter of this year.2
The pandemic has taken quite a toll on the U.S. economy. While eventually the economy will recover, individuals may want to re-assess their retirement portfolios going forward. Long term, it’s important to consider what types of permanent changes may take place post-pandemic, and how to anticipate them for long-term retirement planning.
For example, one of the issues with employer-sponsored 401(k) plans is that they are designed to take advantage of tax-deferred growth. However, given today’s historically low tax rates, that is less of an advantage than it was when the idea was first introduced. Consider a median-income married couple with two children:3
- In 1980, the marginal federal income tax rate was 43%. Today, it is 12%.
- In 1980, the capital gains tax rate was 28%. Today, it is 0%.
- In 1980, interest rates were around 15%. Today, they are 0%.
Tax rates could be adjusted upward in light of the debt America continues to accumulate through COVID-19 stimulus efforts. However, they may not rise as high as tax rates were back in the early ’80s.
A leading professional in retirement income research, Olivia Mitchell, executive director of the Wharton School’s Pension Research Council, recommends that more employer retirement plans incorporate an annuity option, and even mandate a 10% allocation to that annuity.4 This would establish a larger pool of insured annuitants to help fund income for retirees who live longer. Until this happens, bear in mind that anyone can incorporate an annuity into his or her personal financial strategy to receive insurer-guaranteed income during retirement. If you’d like to learn more, please contact us.
Another long-term consideration is the status of Social Security. A recent study concluded that potential cuts to benefits could come faster than expected, thanks to COVID-19. Researchers discovered the Social Security Trust Fund may be depleted up four years earlier than previously predicted — as early as 2032. This highlights the importance of saving more toward retirement.5 Post-pandemic, there may be significant changes that could impact investor portfolio opportunities. For example, this type of disruption in business models often leads to new innovations, so keep an eye on sectors and industries coming up with new ideas. Also, the newly accepted remote model for both work and school poses interesting opportunities in terms of people living much further away from their employers and colleges, even in different states. This means people could be less inclined to move to urban areas for jobs. Rural regions may see an uptick in populations where young people could purchase homes and start building equity at a younger age.6
Fresno Retirement Advisor Takeaways
Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again: The pandemic has taken quite a toll on the U.S. economy. While eventually the economy will recover, individuals may want to re-assess their retirement portfolios going forward. For example, one of the issues with employer-sponsored 401(k) plans is that they are designed to take advantage of tax-deferred growth. However, given today’s historically low tax rates, that is less of an advantage than it was when the idea was first introduced. Bear in mind that anyone can incorporate an annuity into his or her personal financial strategy to receive insurer-guaranteed income during retirement. If you’d like to learn more, please contact us.
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 advisor 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 Joseph Woelfel. TheStreet. June 29, 2020. “Stocks Close Higher as Fed Vows Continued Support for Economy.” https://www.thestreet.com/markets/stock-market-dow-jones-industrial-average-general-electric-072920. Accessed July 30, 2020.
2 Anneken Tappe. CNN. July 30, 2020. “US economy posts its worst drop on record.” https://www.cnn.com/2020/07/30/economy/us-economy-2020-second-quarter/index.html. Accessed July 30, 2020.
3 Aaron Brown. Bloomberg. July 21, 2020. “401(k) Plans No Longer Make Much Sense for Savers.” https://www.bloomberg.com/opinion/articles/2020-07-21/401-k-plans-no-longer-make-much-sense-for-savers. Accessed July 28, 2020.
4 Knowledge@Wharton. July 14, 2020. “Post-pandemic Retirement: Can We Build More Resilient Systems?” https://knowledge.wharton.upenn.edu/article/post-pandemic-retirement-can-build-resilient-systems/. Accessed July 28, 2020.
5 Lorie Konish. CNBC. June 28, 2020. “What you need to know if you’re planning to claim Social Security retirement benefits during Covid-19.” https://www.cnbc.com/2020/06/28/coronavirus-what-to-know-if-you-plan-to-claim-social-security.html. Accessed July 28, 2020.
6 CapTrust. July 18, 2020. “Planning a Post-Pandemic Portfolio.” https://www.captrust.com/planning-a-post-pandemic-portfolio/. Accessed July 28, 2020.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 8/20-1294954C
Competitive edge is a real factor. Here in the U.S., we boast that capitalism is the key to our success. Unfortunately, that key has gotten a little rusty lately thanks to the rampant spread of COVID-19 throughout the country. Some areas have locked down or experienced slowed economic growth because of safety protocols that prevented business as usual.
The principles of capitalism – such as competition and supply and demand – have been crippled.1 On the other hand, countries that were hit early on with the pandemic have managed to control the contagion and reopen their economies.2 Market analyst Carl Kawaja believes this comparative advantage gives way to more global opportunities than the U.S. can currently pursue. In his words: “I like to compare it to basketball – a sport where the U.S. historically has been fairly dominant. But then Argentina started getting better, and Greece started getting better, and Spain started getting better. And, the next thing you know, the U.S. lost the Olympics.”3
The good news is U.S. investors can take advantage if international companies pull ahead in the near-term while we struggle to flatten the curve of contagion. If you would like to consider ways to incorporate more global equity opportunity within your asset allocation, we’re happy to work with you. Don’t hesitate to reach out to schedule a consultation.
Regardless of the state of the pandemic, it’s important to recognize that not all the best investment opportunities are in the United States. According to the World Bank, in 2018 the nation represented only 44% of world stock market capitalization.4
Investing internationally does have its risks. But there are ways to do it strategically, such as investing in global mutual funds or ETFs, leaving the day-to-day stock picking to a professional money manager, whose job it is to weigh those risks, such as currency fluctuation, lack of government regulation, economic instability and the disruption of civil unrest. This means professional market analysts do the research and move assets in and out of geographic regions on your behalf.5
In recent weeks, Blackrock commented Europe has a “leg up” over the U.S. as well as other parts of the globe, citing the EU’s health care infrastructure and policy response to the pandemic. The money manager noted the region’s monetary and fiscal support provided a cushion during the pandemic that left many countries able to recover faster economically.6
Investors seeking income may consider global bonds, which have historically outperformed during short-term periods of market turmoil. They also offer the opportunity for long-term diversification benefits to U.S. investor portfolios.7
Fresno Financial Consultant Takeaways
Soutas Financial your Fresno financial planner would like to remind you about the following points: The principles of capitalism – such as competition and supply and demand – have been crippled.1 On the other hand, countries that were hit early on with the pandemic have managed to control the contagion and reopen their economies.2 The good news is U.S. investors can take advantage if international companies pull ahead in the near-term while we struggle to flatten the curve of contagion. Investing internationally does have its risks. But there are ways to do it strategically, such as investing in global mutual funds or ETFs, leaving the day-to-day stock picking to a professional money manager, whose job it is to weigh those risks, such as currency fluctuation, lack of government regulation, economic instability and the disruption of civil unrest.
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 strategic wealth management as well as retirement annuity designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno retirement planning advisor 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 Jim Chappelow. Investopedia. April 6, 2020. “Capitalism.” https://www.investopedia.com/terms/c/capitalism.asp. Accessed July 20, 2020.
2 Ferdinando Giugliano. Bloomberg. July 6, 2020. “Why Europe’s in Better Shape Than the U.S.” https://www.bloomberg.com/opinion/articles/2020-07-06/coronavirus-recovery-why-europe-s-in-better-shape-than-the-u-s. Accessed July 20, 2020.
3 Capital Group. June 24, 2020. “Midyear Outlook: International markets on the comeback trail.” https://www.capitalgroup.com/advisor/insights/articles/international-midyear-outlook-2020.html. Accessed July 20, 2020.
4 James D. Peterson. Charles Schwab. Nov. 13, 2019. “Why Global Diversification Matters.” https://www.schwab.com/resource-center/insights/content/why-global-diversification-matters. Accessed July 20, 2020.
5 Tinesh Bhasin. LiveMint. July 24, 2020. “What to keep in mind if you want to invest in global markets.” https://www.livemint.com/money/personal-finance/what-to-keep-in-mind-if-you-want-to-invest-in-global-markets-11593015469209.html. Accessed July 20, 2020.
6 Callum Keown. MarketWatch. July 20, 2020. “Risks are mounting for U.S. stocks. Here’s where BlackRock says investors should look instead.” https://www.marketwatch.com/story/risks-are-mounting-for-us-stocks-heres-where-investors-should-look-instead-says-blackrock-2020-07-20. Accessed July 20, 2020.
7 David Wakefield. Pensions & Investment. July 13, 2020. “Investing during a pandemic: Three results a global fixed income strategy can deliver.” https://www.pionline.com/Mondrian_globalfixedincome. Accessed July 20, 2020.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 8/20-1290763C
The health care industry has been trying to contain expenses through technology offering medical services to people at home. Some insurance plans offer a 24-hour nurse line, allowing you to call a nurse for advice in the middle of the night about a child’s high fever rather than rush to the emergency room. Some providers promote telemedicine for chronic care patients, using a quick video conference to update patient information and allow for a cursory visual exam.
This growing trend has accelerated in light of the coronavirus, which may well be a silver lining. In recent months, virtual care has skyrocketed in use as consumers quickly adopt technology-enabled physician visits as a safer option. Before the pandemic, an average 13,000 Medicare beneficiaries received telemedicine in the span of a week. By the end of April 2020, nearly 1.7 million a week engaged in telemedicine calls.1 On average, a telemedicine call costs $79 versus $146 for a doctor’s office visit.2
This has been particularly key for elderly patients who tend to need more health care but are also more vulnerable to the devastating effects of COVID-19. In fact, seniors who receive in-home assisted living have avoided the rampant contagion that has been occurring in nursing homes.3 To further assist the at-home elderly, the Centers for Medicare & Medicaid Services proposed a rule in June that would permanently allow reimbursement of administrative expenses for home-health agencies registered with Medicare. Today, about 6 million older Americans receive some form of home-health care, such as skilled nursing, physical therapy, speech-language pathology, occupational therapy, home health aides and medical social services. The Trump Administration is also recommending upping payment rates for home-health providers by 2.6% starting in 2021.4
The reality is that people are living well into old age and most people in their late 80s and 90s do need in-home care assistance, whether medical or otherwise. It is very expensive. If you would like to explore ways to help leverage your retirement assets in the event you need to pay for in-home care during your later years, please contact us.
Home-health care is now advancing to a point that addresses one of the elderly’s greatest fears: hospital visits. Because some older people end up dying while in the hospital, it is often associated with dying rather than healing. Unfortunately, it’s true that many older people risk contracting infections and other debilitating effects as a result of entering the hospital for an unrelated ailment. This is particularly true for patients who are frail, cognitively impaired or have other vulnerabilities.5
This reality has prompted Medicare to allow hospital providers to be reimbursed for acute care services delivered in surgery centers, hotels or other non-hospital facilities. The Veterans Health Administration has even funded its own hospital-at-home program. For example, a physician assistant or nurse practitioner may be able to administer lab tests, X-rays and other treatments in the home of a patient, whereas an emergency medicine physician can make diagnosis and treatment decisions via virtual consultation.6
Fresno Retirement Consultant Takeaways
As your Fresno financial advisor we thought this was a good takeaway: In recent months, virtual care has skyrocketed in use as consumers quickly adopt technology-enabled physician visits as a safer option. This has been particularly key for elderly patients who tend to need more health care but are also more vulnerable to the devastating effects of COVID-19. The reality is that people are living well into old age and most people in their late 80s and 90s do need in-home care assistance, whether medical or otherwise. It is very expensive. If you would like to explore ways to help leverage your retirement assets in the event you need to pay for in-home care during your later years, please contact us.
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 Medi-Care long term care as well as risk management designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno portfolio advisor 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 Mia Jasper. NextGov. July 17, 2020. “Early data shows patients quickly embraced telemedicine options agencies expanded during the coronavirus pandemic.” https://www.nextgov.com/it-modernization/2020/07/lawmakers-push-make-telehealth-options-permanent/166965/. Accessed July 17, 2020.
2 Himanshu Kansal. Highpoint. July 14, 2019. “Telemedicine: The cost effective future of healthcare.” https://www.highpointsolutions.com/telemedicine-cost-effective-future-healthcare/. Accessed July 15, 2020.
3 Bailey Bryant. Home Health Care News. July 14, 2020. “UnityPoint Health Developing New SNF-at-Home Model, Seeking Home Care Partner.” https://homehealthcarenews.com/2020/07/unitypoint-health-seeks-home-care-partner-for-new-snf-at-home-model%EF%BB%BF/. Accessed July 15, 2020.
4 Rebecca Pifer. HealthCareDive. June 26, 2020. “CMS wants to make home health telemedicine permanent.”
https://www.healthcaredive.com/news/cms-wants-to-make-home-health-telemedicine-permanent/580615/. Accessed July 15, 2020.
5 Martha Hostetter and Sarah Klein. The Commonwealth Fund. July 7, 2020. “Has the Time Finally Come for Hospital at Home?” https://www.commonwealthfund.org/publications/newsletter-article/2020/jul/has-time-finally-come-hospital-home. Accessed July 15, 2020.
6 Ibid.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 7/20 – 1252133B
Fresno Financial Advisor News: Feeling Financial Stress? Here’s How to Cope
When the coronavirus first began to reveal its ugly head in America, people were concerned. Not just about their health, but about their finances. Nearly nine out of 10 people (88%) surveyed by the National Endowment for Financial Education said they were worried about their financial situation.1
Financial stress is not exclusive to lower-income workers. In fact, during this particular crisis, many lower-income jobs are deemed “essential services” and are in high demand. Professionals employed in other industries, such as physicians, dentists and many small-business owners, have had to reduce their client base and/or temporarily close shop altogether. Nearly eight out of 10 (79%) people with a household income of more than $100,000 a year report being at least somewhat concerned about their finances.2
Take Charge
One way to handle financial stress is to deal with it head on. Take stock of the resources you do have; this may or may not help you feel better. Either way, knowledge is power. We may not be able to control the virus or its toll on the U.S. economy, but knowing what we have gets us one step closer to developing a plan for financial sustainability. For example, your personal financial assets may include: Savings accounts, Investment accounts, Retirement accounts, Health savings accounts, College savings accounts, Whole life insurance, Real property, Structured settlements, Vehicles (auto, boat, motorcycle, recreational), Art, jewelry, wine or other high-value collectibles, Expensive furnishings and household items.
Fresno Retirement Consultant News: Policy Issues, Stock Market Performance and the Election
The 2020 election presents an interesting distinction between candidates. While historically, the incumbent president has offered a certain stability for another four years, Donald Trump’s style of governing could be considered unorthodox and unpredictable at times. In contrast, former Vice President Joe Biden served for eight years under President Obama, and many feel his track record and style of governing may actually be the more predictable of the two.
Putting personal characteristics aside, each candidate’s stance on the policy issues can offer some clues as to how the country may respond under the next president — and the nation’s potential for economic growth in the future.
Policy Issues
According to recent surveys conducted by Pew Research, nearly 80% of registered voters report that the key to their vote will be the candidates’ policy direction for the economy.1 This is particularly important right now given this year’s rapid decline in growth and employment due to the COVID-19 pandemic.
Fresno Financial Consultant News: College Disrupted
Colleges all over the country have introduced incoming freshmen to orientation online, an entirely different experience. The online format offers several advantages in that more information can be presented and web pages bookmarked for future reference. This may be preferable to the barrage of information students normally receive during a seemingly rushed one-to-two-day orientation. However, many students have expressed concerns about not getting to tour the campus and get a feel for where their classes will be held.1
The economic impact of the coronavirus has likely affected everyone in one way or another. If you having been paying or saving for a child to attend college this fall, you may want to reconsider your options. Many students take a gap year before or during college either for another type experience or just to grow up a little more before living on their own. The pandemic makes this a more viable option. One of the benefits is a gap year could give families a little more time to save and potentially earn more from their investments. If you’d like help assessing your situation and exploring ways to help protect or potentially maximize your savings, we’re here to assist you.
One of the biggest concerns is the possibility that students won’t be able to attend college campuses in the fall, given the current rise of outbreaks in different parts of the country. Fortunately, most colleges finished out their spring semester by moving to an online format as students returned home. With many of these logistics already worked out, it’s possible online classes will be far more prevalent for the rest of 2020 and even beyond.
Fresno Retirement Advisor News: The Highs and Lows of Dollar-Cost Averaging
Investors who defer the same amount of money from their paycheck into a 401(k) plan at regular intervals are practicing dollar-cost averaging. By investing the same fixed dollar amount each time, the investor buys more shares when prices are low and fewer shares when prices rise.1 The long-term effect is that the average cost of each share purchased will be lower than the average share price.2
This strategy can work great when you are trying to accumulate assets for your retirement. But what happens when you withdraw from your investments for retirement income? While dollar-cost averaging reduces the risk of investing a lump sum of money when prices peak, it increases your risk of losing previous gains if you withdraw money when prices have dropped. If a retiree receives automatic systematic withdrawals for a fixed level of income, then in months when share prices drop, he or she will likely have to sell more shares to raise the needed money. Once those shares are sold, they never have the ability to recover lost gains.3
To create a more prudent income distribution plan, you may consider incorporating some solid, reliable income in your portfolio, in addition to Social Security benefits. This could mean government-backed bonds or an insurance-backed annuity.4 If you’d like to discuss how to position your assets to combine both guaranteed income and growth opportunity, please contact us.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial planner 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!Schedule Your Tele-Visit!
Other Fresno Financial Advisor Articles
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 722736 – 9/20
If the U.S. health-care sector was a separate country, it would be the fourth largest economy in the world when measured by gross domestic product. Currently, the nation spends an average of $3.5 trillion annually on health care, more than Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Spain and the United Kingdom combined.1
If you break that down by how much we spend per capita compared to other countries, it looks like this:2
- U.S.: $10,246
- Australia: $5,331
- Germany: $5,033
- Canada: $4,754
- Japan: $4,168
- United Kingdom: $3,858
- Singapore: $2,618
It’s also worth noting that more Americans die by preventable and treatable medical conditions than in those countries, as well.3
This is one those expenses that can make it tough for consumers to save money. One reason is because health care pricing isn’t transparent. Even if you shop around for a low-cost procedure in a hospital, you’re still likely to get hit with other separate charges. For example, the expense of an out-of-network anesthesiologist who happened to be working on the day of your operation. Most patients do not get the bill they were expecting, and it often comes a few months down the road. Another reason we have a hard time curbing spending is that U.S. health care doesn’t benefit from the normal principles of capitalism. Without greater transparency of fees, there is very little competitive pricing that would normally help drive costs down.
Health care is expensive whether you’re still working or retired. There are several ways to help you save in case you have excessively high health-care costs in the future, such as a health savings account or a whole life insurance policy that allows you to tap into a growing cash account. If you’d like to learn more about flexible ways to save or help leverage assets for high care costs, please contact us.
The U.S. health care coverage problem is reaching its peak in the midst of a perfect storm: Among the millions of Americans who lost their jobs, 41% also lost their health insurance.4 Gilead Sciences, the maker of the remdesivir drug that has proven to be an effective treatment for COVID-19, announced it would price the medication at $3,120 per course for U.S. patients with commercial insurance. The price tag for other developed nations is $2,340 per patient.5
The growing cost of health care in this country is hardly a new issue. Little effort has been made toward reform of this divisive, partisan issue, and now that infection hot spots are continuing to pop up throughout the country, the coronavirus has exposed further flaws in America’s health care system. These range from the lack of a cohesive national plan, to poor federal stockpiles of supplies, to supply chain problems in manufacturing and distribution. America’s health care problems go far deeper than simply running out of ICU beds in hospitals.6
After the next set of elections, and once we’re hopefully beyond this pandemic, the effort to reform our national health care system will likely be a top priority in Congress.
Fresno Financial Planner Takeaways
As your Fresno retirement plan consultant we felt the following ideas were top notch: Health care is expensive whether you’re still working or retired. There are several ways to help you save in case you have excessively high health-care costs in the future, such as a health savings account or a whole life insurance policy that allows you to tap into a growing cash account. If you’d like to learn more about flexible ways to save or help leverage assets for high care costs, please contact us.
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 long-term care as well as Medi-Cal 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 Jeneen Interlandi. The New York Times. June 29, 2020. “Employer-Based Health Care, Meet Massive Unemployment.” https://www.nytimes.com/2020/06/29/opinion/sunday/coronavirus-medicare-for-all.html. Accessed July 10, 2020.
2 Huo Jingnan and Pranav Baskar. NPR. June 13, 2020. “Pandemic Perspective: What The 20 Poorest And Richest Countries Spend On Health Care.” https://www.npr.org/sections/goatsandsoda/2020/06/13/864563401/pandemic-perspective-what-the-20-poorest-and-richest-countries-spend-on-health-c. Accessed July 10, 2020.
3 Ibid.
4 Robert Preidt. U.S. News & World Report. June 23, 2020. “Pandemic Job Losses Leaving Many Americans Uninsured: Survey.” https://www.usnews.com/news/health-news/articles/2020-06-23/pandemic-job-losses-leaving-many-americans-uninsured-survey. Accessed July 27, 2020.
5 Michael Erman, Ludwig Burger and Manojna Maddipatla. Reuters. June 29, 2020. “Gilead prices COVID-19 drug remdesivir at $2,340 per patient in developed nations.” https://www.reuters.com/article/us-health-coronavirus-gilead-sciences/gilead-prices-covid-19-drug-candidate-remdesivir-at-2340-per-patient-idUSKBN2401C8. Accessed July 10, 2020.
6 Jordan Davison. EcoWatch. July 9, 2020. “America Faces a Critical PPE Shortage, Again.” https://www.ecowatch.com/us-ppe-shortage-coronavirus-trump-2646373026.html?rebelltitem=1#rebelltitem1. Accessed July 10, 2020.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 7/20-1245958B
HOW DOES MEDICARE, LONG-TERM CARE, MEDICAID, AND MEDI-CAL WORK? MEDICARE DOESN’T PAY FOR LONG-TERM CARE. LONG-TERM CARE INSURANCE MIGHT NOT PAY ENOUGH.
MEDICAID IS MEDI-CAL IN CALIFORNIA. AND, MEDI-CAL MAY EVEN PAY FOR IN-HOME OR FACILITY CARE IF LONG-TERM CARE INSURANCE ISN’T ENOUGH.
HAVE MORE CONFIDENCE ABOUT LONG-TERM CARE OPTIONS WITH A COMPLIMENTARY 15 MINUTE VISIT WITH SOUTAS FINANCIAL.
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite106 Fresno, CA 93704
(559) 230-1648
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When things didn’t move quite so fast, and the world didn’t seem so complex? Remember that? We do. And as the world around us has continued to speed up, becoming more complicated, and still a bit uncertain, we have managed to keep things simple, providing sound, easy to understand financial advice and customized road-maps for the road ahead.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
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Investors who defer the same amount of money from their paycheck into a 401(k) plan at regular intervals are practicing dollar-cost averaging. By investing the same fixed dollar amount each time, the investor buys more shares when prices are low and fewer shares when prices rise.1 The long-term effect is that the average cost of each share purchased will be lower than the average share price.2
This strategy can work great when you are trying to accumulate assets for your retirement. But what happens when you withdraw from your investments for retirement income? While dollar-cost averaging reduces the risk of investing a lump sum of money when prices peak, it increases your risk of losing previous gains if you withdraw money when prices have dropped. If a retiree receives automatic systematic withdrawals for a fixed level of income, then in months when share prices drop, he or she will likely have to sell more shares to raise the needed money. Once those shares are sold, they never have the ability to recover lost gains.3
To create a more prudent income distribution plan, you may consider incorporating some solid, reliable income in your portfolio, in addition to Social Security benefits. This could mean government-backed bonds or an insurance-backed annuity.4 If you’d like to discuss how to position your assets to combine both guaranteed income and growth opportunity, please contact us.
It’s a good idea to develop multiple streams of retirement income. Ideally, you want to have the flexibility to stop and start withdrawals strategically from accounts that are performing well, giving others time to recoup paper losses.5 Also, maintain a healthy portion of assets in a liquid account to help pay for periodic expenses when you don’t want to tap your investments.
Another option is to be flexible with your retirement budget, such as having a Plan A budget and a Plan B budget. When the markets take a downturn, you can switch to budget B and downsize your expenses, perhaps by cutting out vacations, large purchases and eating out for a while. This shouldn’t be too hard given the way people have had to reign in their lifestyle throughout the past few months; you could call it your Pandemic Budget.6
Fresno Retirement Advisor Takeaways
Soutas Financial your Fresno financial planner would like to remind you of the following points: Investors who defer the same amount of money from their paycheck into a 401(k) plan at regular intervals are practicing dollar-cost averaging. This strategy can work great when you are trying to accumulate assets for your retirement. But what happens when you withdraw from your investments for retirement income? To create a more prudent income distribution plan, you may consider incorporating some solid, reliable income in your portfolio, in addition to Social Security benefits. It’s a good idea to develop multiple streams of retirement income. Ideally, you want to have the flexibility to stop and start withdrawals strategically from accounts that may be performing well, giving others time to recoup paper losses.5
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 Long-Term Care Strategies as well as Asset Protection 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 planner 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 James Chen. Investopedia. March 16, 2020. “Dollar Cost Averaging.” https://www.investopedia.com/terms/d/dollarcostaveraging.asp. Accessed July 10, 2020.
2 Dan Burrows. Kiplinger. April 17, 2020. “Dollar-Cost Averaging: How Does DCA Work, And Should You Do It?” https://www.kiplinger.com/article/investing/t052-c008-s001-dollar-cost-averaging-how-does-dca-work-should-you.html. Accessed July 10, 2020.
3 Matt Becker. The Simple Dollar. April 9, 2020. “The Truth About Dollar Cost Averaging.” https://www.thesimpledollar.com/save-money/the-truth-about-dollar-cost-averaging/. Accessed July 27, 2020.
4 Dennis Ho. The Street. July 2, 2020. “How to Use a Deferred Income Annuity to Avoid Running Out of Money in Retirement.” https://www.thestreet.com/retirement-daily/planning-living-retirement/how-to-use-a-deferred-income-annuity-to-avoid-running-out-of-money-in-retirement. Accessed July 10, 2020.
5 Jeff Rose. Forbes. Nov. 2, 2017. “5 Ways To Generate Different Sources Of Income.” https://www.forbes.com/sites/jrose/2017/11/02/different-sources-income/#42d46f7137bb. Accessed July 10, 2020.
6 Rebecca Moore. Plan Sponsor. June 22, 2020. “Clearing Up Confusion About Retirement Timing.” https://www.plansponsor.com/in-depth/clearing-confusion-retirement-timing/. Accessed July 10, 2020.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 722736 – 9/20
Colleges all over the country have introduced incoming freshmen to orientation online, an entirely different experience. The online format offers several advantages in that more information can be presented and web pages bookmarked for future reference. This may be preferable to the barrage of information students normally receive during a seemingly rushed one-to-two-day orientation. However, many students have expressed concerns about not getting to tour the campus and get a feel for where their classes will be held.1
The economic impact of the coronavirus has likely affected everyone in one way or another. If you having been paying or saving for a child to attend college this fall, you may want to reconsider your options. Many students take a gap year before or during college either for another type experience or just to grow up a little more before living on their own. The pandemic makes this a more viable option. One of the benefits is a gap year could give families a little more time to save and potentially earn more from their investments. If you’d like help assessing your situation and exploring ways to help protect or potentially maximize your savings, we’re here to assist you.
One of the biggest concerns is the possibility that students won’t be able to attend college campuses in the fall, given the current rise of outbreaks in different parts of the country. Fortunately, most colleges finished out their spring semester by moving to an online format as students returned home. With many of these logistics already worked out, it’s possible online classes will be far more prevalent for the rest of 2020 and even beyond.2
Some schools have arranged for contingency plans for students who do return to campus, such as socially distanced desks, single-room dorms, starting the semester early and ending by Thanksgiving to help reduce the virus risk during colder months. They also anticipate reducing or halting on-campus activities such as clubs and sports.3
Between the severely hampered college experience and the fact that many families have lost income due to the pandemic, researchers say there will likely be fewer students starting or returning to college this fall. One survey found that one in six high school seniors who planned to attend college in the fall has changed their plans due to COVID-19.4 Low-income families are particularly at risk, as hundreds of thousands of students nationwide neglected to complete the federal financial aid form this spring.5
Then there’s the problem of refunds for disrupted classes this past spring. While some universities provided pro-rated refunds for room and board expenses, most have not offered tuition discounts for the reduced experience of moving to online classes. This sticking point has led to approximately 100 class-action lawsuits filed by disgruntled students.6
One the positive side, some college-bound students may have a reason to celebrate a silver lining due to COVID-19: Many colleges have waived their SAT and ACT testing requirements for 2021 applicants.7
Fresno Financial Consultant Takeaways
Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again: Many students have expressed concerns about not getting to tour the campus and get a feel for where their classes will be held.1 One of the biggest concerns is the possibility that students won’t be able to attend college campuses in the fall, given the current rise of outbreaks in different parts of the country. Fortunately, most colleges finished out their spring semester by moving to an online format as students returned home. Some schools have arranged for contingency plans for students who do return to campus, such as socially distanced desks, single-room dorms, starting the semester early and ending by Thanksgiving to help reduce the virus risk during colder months. They also anticipate reducing or halting on-campus activities such as clubs and sports.3
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 Tax Planning Strategies as well as Legacy Planning designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno financial advisor 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 SaMya Overall. The State News. June 4, 2020. “Michigan State’s incoming freshmen to attend online New Student Orientation.” https://statenews.com/article/2020/06/incoming-freshmen-to-attend-online-new-student-orientation.
Accessed June 16, 2020.
2 Home Business. June 19, 2020. “Online Education: The New Normal?” https://homebusinessmag.com/lifestyles/education/online-education-new-normal/. Accessed July 10, 2020.
3 Michelle Fox. CNBC. June 16, 2020. “From dorm living to classes, here’s how college will be different this fall.” https://www.cnbc.com/2020/06/16/college-will-be-very-different-this-fall-and-for-years-to-come.html. Accessed June 16, 2020.
4 Lauren Aratani. The Guardian. June 16, 2020. “Universities plan for students’ return – but will US campus life ever be the same?” https://www.theguardian.com/us-news/2020/jun/16/universities-campus-life-us-college-coronavirus.
Accessed June 16, 2020.
5 Deirdre Fernandes. Boston Globe. June 4, 2020. “Fewer students are applying for financial aid for college — a worrying sign about who will show up this fall.” https://www.bostonglobe.com/2020/06/04/metro/fewer-students-are-applying-financial-aid-college-worrying-sign-about-who-will-show-up-this-fall/. Accessed June 16, 2020.
6 Andrew Keshner. MarketWatch. May 22, 2020. “At least 100 lawsuits have been filed by students seeking college refunds — and they open some thorny questions.” https://www.marketwatch.com/story/unprecedented-lawsuits-from-students-suing-colleges-amid-the-coronavirus-outbreak-raise-3-thorny-questions-for-higher-education-2020-05-21. Accessed June 16, 2020.
7 Study International. June 3, 2020. “What you should know about US universities waiving admissions tests.” https://www.studyinternational.com/news/admissions-tests/. Accessed June 16, 2020.
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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.
The 2020 election presents an interesting distinction between candidates. While historically, the incumbent president has offered a certain stability for another four years, Donald Trump’s style of governing could be considered unorthodox and unpredictable at times. In contrast, former Vice President Joe Biden served for eight years under President Obama, and many feel his track record and style of governing may actually be the more predictable of the two.
Putting personal characteristics aside, each candidate’s stance on the policy issues can offer some clues as to how the country may respond under the next president — and the nation’s potential for economic growth in the future.
Policy Issues
According to recent surveys conducted by Pew Research, nearly 80% of registered voters report that the key to their vote will be the candidates’ policy direction for the economy.1 This is particularly important right now given this year’s rapid decline in growth and employment due to the COVID-19 pandemic.
On one hand, Trump sees continued reopening of the economy as the way to move the country forward and supports additional stimulus measures, such as a payroll tax cut. He advocates spending for roads, bridges and airports but has not been able to reach agreement with Congress on infrastructure spending.2
Biden is proposing infrastructure improvements once the pandemic is under control, but he also would help the environment. His proposal would create zero-emissions public transportation, build sustainable homes and create clean-energy jobs.3
According to Pew, 68% of voters also are very concerned with health care policy.4 This was a big issue in the 2016 election season, but since Congress remains divided, very little has been achieved to move the needle on the rising cost of medical care and health insurance. Trump continues to try to dismantle the Patient Protection and Affordable Care Act (PPACA) but has yet to introduce another comprehensive national health plan in its stead.
Biden does not support a single-payer system such as the much-touted Medicare for All plan. He does favor making changes to strengthen and expand the current PPACA provisions, including adding a Medicare-like public option as another choice.5
Stock Market Performance
It is a common misconception that the stock market tends to outperform during the terms when there is a Republican president at the helm. This is because Republicans are historically more pro-business through deregulation policies and fiscally conservative spending.
By some measures, however, the stock market actually performs better when Democrats are in control. Based on the past four years, government spending has rocketed from $19 trillion in debt in 2016 to more than $26 trillion by mid-2020. During this time, the market has delivered surprisingly resilient returns, which offer a possible indicator that the stock market rather appreciates increased spending.6
This is further supported by the fact that from 1952 through June of 2020, Democratic presidents have yielded higher annualized real stock market returns than Republicans: specifically, 10.6% versus 4.8%. 7 The accompanying table provides the total percentage increase or decrease of the S&P as well as additional economic data under each president since 1945.
COVID Conundrum
Regardless of which candidate is elected and whether one political party assumes the trifecta of power in Washington, the biggest challenge to America’s economic future may well be the coronavirus. Up until the 2020 outbreak, the stock market had proved remarkably strong throughout the Trump administration, despite some short-term volatility. Even with the plunge after the early spring lockdown in many areas of the country, the stock market still managed to rebound in late March.
However, many analysts believe the market’s present sustainability is largely propped up by heavy stimulus from the government, via Congress and the Federal Reserve. Heading into the regular flu season, Americans wait to see if the two health conditions merge to plunge the country further into a health crisis, with some top economists observing that a full economic recovery may not be plausible until the coronavirus is under control.10
While economic concerns are generally the top driver in past elections, a recent Fortune-SurveyMonkey poll revealed that the primary political fear is the ongoing COVID-19 pandemic and public health. The data found that more than one-third (37%) of voters say that the pandemic is the No. 1 issue that will drive their vote.11
Final Thoughts
The historical data is clear: The stock market and economy tend to thrive more often under a Democratic president. However, the divisive political policies today tend to focus more on social issues than on economic ones — things like gun rights, equal rights, law enforcement and criminal justice reform, income disparities and immigration. As such, this year’s election could be more of a memorandum on pandemic and social fears than on economic policies or stock market performance.
The garden-variety advice for portfolio management in the wake of an election year remains the same, now more than ever: Don’t base your investment decisions on who the president is or which party controls Congress. Focus on yourself: your goals, your investment time horizon, your tolerance for day-to-day market volatility. Work with your advisor to develop a diverse asset allocation strategy designed to allow for flexibility and the resilience to weather political events, economic declines and pandemics.
Keep your eye on the long term, and contact your advisor any time you could use some assistance. In short, keep your eye on your own future, and ignore the noise that accompanies this election season.
Fresno Retirement Consultant Takeaways
As your Fresno retirement plan consultant we felt the following ideas were top notch: The 2020 election presents an interesting distinction between candidates. While historically, the incumbent president has offered a certain stability for another four years, Donald Trump’s style of governing could be considered unorthodox and unpredictable at times. Don’t base your investment decisions on who the president is or which party controls Congress. Focus on yourself: your goals, your investment time horizon, your tolerance for day-to-day market volatility. Work with your advisor to develop a diverse asset allocation strategy designed to allow for flexibility and the resilience to weather political events, economic declines and pandemics.
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 Life Insurance as well as IRA, 401(k) & 403(b) Rollovers designed to help accomplish those goals.
When searching for Fresno financial advisors, look no further than Soutas Financial & Insurance Solutions Inc. your Fresno retirement plan 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!
Other Fresno Financial Advisor Articles
Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106
Fresno, CA 93704
(559) 230-1648
Soutas.com
Content prepared by Kara Stefan Communications.
1 Pew Research Center. Aug. 13, 2020. “Important issues in the 2020 election.” https:// www.pewresearch.org/politics/2020/08/13/important-issues-in-the-2020-election/. Accessed Aug. 29, 2020.
2 Jeff Mason and David Shepardson. Reuters. “Trump team prepares $1 trillion infrastructure plan to spur economy.” https://www.reuters.com/article/us-usa-trump/trump-team-prepares-1-trillioninfrastructure-plan-to-spur-economy-idUSKBN23N0D7. Accessed Sept. 15, 2020.
3 Reuters. Aug. 10, 2020. “Where Biden and Trump stand on key issues.” https://graphics.reuters.com/USA-ELECTION/POLICY/ygdpzwarjvw/. Accessed Aug. 31, 2020.
4 Pew Research Center. Aug. 13, 2020. “Important issues in the 2020 election.” https:// www.pewresearch.org/politics/2020/08/13/important-issues-in-the-2020-election/. Accessed Aug. 29, 2020.
5 Reuters. Aug. 10, 2020. “Where Biden and Trump stand on key issues.” https:// graphics.reuters.com/USA-ELECTION/POLICY/ygdpzwarjvw/. Accessed Aug. 31, 2020.
6 Kimberly Amadeo and Michael J. Boyle. The Balance. July 30, 2020. “US National Debt by Year Compared to GDP and Major Events.” https://www.thebalance.com/nationaldebt-by-year-compared-to-gdp-and-major-events-3306287. Accessed Aug. 31, 2020.
7 Sergei Klebnikov and Halah Touryalai. Forbes. July 23, 2020. “We Looked At How The Stock Market Performed Under Every U.S. President Since Truman — And The Results Will Surprise You.” https://www.forbes.com/sites/sergeiklebnikov/2020/07/23/historical-stock-marketreturns-under-every-us-president/#28b7bf13faaf. Accessed Aug. 29, 2020.
8 Ibid.
9 Ibid.
10 Jeff Cox. CNBC. Aug. 8, 2020. “Fed’s Kashkari advocates six-week economic lockdown to defeat the coronavirus.” https://www.cnbc.com/2020/08/08/feds-kashkariadvocates-six-week-economic-lockdown-to-defeat-the-coronavirus.html. Accessed Aug. 29, 2020.
11 Nicole Goodkind. Fortune. July 30, 2020. “The economy is no longer Americans top concern heading into the 2020 election.” https://fortune.com/2020/07/30/coronavirusus-economy-election-issue-gdp-trump-biden-covid-19/. Accessed Aug. 29, 2020
Our firm is not affiliated with the U.S. government or any governmental agency.
We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. 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. California Insurance License # OK48173
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. Investing involves risk, including possible loss of principal. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing company. Diversification cannot ensure a profit or guarantee against losses in a declining market. 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. 722736 – 9/20
Our firm provides links to third-party articles in an effort to assist users in locating information on topics that might be of interest to them. Information presented has not been verified and is not guaranteed, nor can we attest to the accuracy of information provided. Linking to an article or website does not constitute a representation of the services offered by our firm, nor does it constitute an endorsement by our firm of the sponsors of the site or the products presented on the site. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.
Talk to your financial professional and your tax advisor about how Social Security benefits can fit into a complete retirement income strategy. Financial professionals are able to provide you with information but not guidance or advice related to Social Security benefits. We are not affiliated with the U.S. government or any governmental agency.
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