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Fresno Retirement Advisor News: Recovery: COVID-19 First, Then the Economy

By Soutas Financial | September 28, 2020 | Comments Off on Fresno Retirement Advisor News: Recovery: COVID-19 First, Then the Economy
Fresno Retirement Advisor News: Recovery: COVID-19 First, Then the Economy

The World Health Organization recently reported that while some countries have made effective inroads to contain COVID-19 within their borders, the pandemic is still well on the rise throughout the world.1 Perhaps one of the most debilitating impacts of today’s global economy is that one country’s problem is now every country’s problem. Because business and personal travel is so pervasive today, it appears the only answer to economic recovery is to contain and eradicate the virus – everywhere.

Fortunately, the medical news on the COVID-19 front is starting to look up. In early June, the nation’s top infectious disease expert, Dr. Anthony Fauci, announced that the U.S. government was helping fund and conduct research for three different coronavirus vaccines and hopes to have at least one available early 2021. The World Health Organization reports that, globally, 10 vaccines are currently undergoing human trials with 126 others in development.2

Then later in June, researchers in the UK reported that a very common, affordable drug available worldwide has been found to be effective for hospitalized coronavirus patients on ventilators. Apparently, dexamethasone has no impact on milder symptoms of coronavirus, but it has been shown to help reduce mortality for some higher-risk patients.3

These recent advancements are a big step in the fight against the pandemic, but it’s important to realize that it will take time to get control of it. However, these words from Dr. Fauci may provide comfort, “Don’t despair. This will end, and we will get control over it.”4

In the meantime, it’s important that we each plan for a future in which medical conditions and economic downfalls are more common. If you’d like help to reassess your portfolio with the goal of generating a higher sense of financial confidence for the future, please give us a call.

It is understandable that long-term investors want to look beyond the pandemic for economic recovery and glean ideas on how to invest in the future. Clearly, one industry that’s hard at work is the health technology market. Digital health has taken off as a means of coping with patients who are better off staying at home, and health innovation funding is rapidly expanding.5

Bank of America Global Research, Israel anticipates several global megatrends that will have the greatest impact on the post-pandemic recovery. These include: 6

  • A further shift away from reliance on Chinese manufacturing, particularly in the tech and pharma industries
  • A greater focus by consumers on technology and digital media – a lingering influence borne out of today’s stay-at-home recommendations
  • Bigger government influence at all levels, particularly in relation to tracking and preventing health crises, business models with a higher emphasis on worker benefits and more aggressive action for climate-friendly environmental initiatives

Speaking of the environment, some leaders are predicting that the pandemic may lead to more sustainable business practices. Initially, business owners are expected to be more focused on the short-term health and welfare of their businesses and employees. However, some industry leaders and policymakers insist that future investment should be channeled toward real change for a low-carbon, more sustainable future.7

Fresno Retirement Advisor Takeaways 

Fresno portfolio advisor– Soutas Financial appreciated these points: Perhaps one of the most debilitating impacts of today’s global economy is that one country’s problem is now every country’s problem. In the meantime, it’s important that we each plan for a future in which medical conditions and economic downfalls are more common. Speaking of the environment, some leaders are predicting that the pandemic may lead to more sustainable business practices. Initially, business owners are expected to be more focused on the short-term health and welfare of their businesses and employees. However, some industry leaders and policymakers insist that future investment should be channeled toward real change for a low-carbon, more sustainable future.7

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 IRA, 401(k) & 403(b) Rollovers as well as Life Insurance 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, Fresno financial planner, Fresno financial planning consultant, Fresno portfolio advisor, Fresno retirement planning advisor, 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 Planning 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 Scott Neuman. NPR. June 29, 2020. “WHO Chief On COVID-19 Pandemic: ‘The Worst Is Yet To Come.’” https://www.npr.org/sections/coronavirus-live-updates/2020/06/29/885049691/who-chief-on-covid-19-pandemic-the-worst-is-yet-to-come. Accessed July 2, 2020.

2 Jim Sciutto, Jamie Gumbrecht and Chandelis Duster. CNN. June 10, 2020. “US government to fund and conduct studies on three possible coronavirus vaccines, Fauci says.” https://www.cnn.com/2020/06/10/politics/vaccine-trials-funding/index.html. Accessed June 16, 2020.

3 Michelle Roberts. BBC. June 16, 2020. “Coronavirus: Dexamethasone proves first life-saving drug.” https://www.bbc.com/news/health-53061281. Accessed June 16, 2020.

4 Moira McCarthy. Healthline. June 8, 2020. “Dr. Anthony Fauci: COVID-19 Will End and We Will Get Control Over It.” https://www.healthline.com/health-news/dr-anthony-fauci-this-will-end-and-we-will-get-control-over-it#1. Accessed July 2, 2010.

5 Heather Landi. Fierce Healthcare. July 1, 2020. “Investors double down on health technology as funding reaches $9.1B in 2020.” https://www.fiercehealthcare.com/tech/investors-double-down-health-technology-as-funding-reaches-9-1b-2020. Accessed July 2, 2020.

6 Merrill/Bank of America Global Research. May 22, 2020. “5 Trends That Could Define Our Post-Coronavirus Lives.” https://www.ml.com/articles/post-coronavirus-life-investing-opportunities-5-trends.html. Accessed June 16, 2020.

7 Knowledge@Wharton. June 8, 2020. “How the Pandemic Can Lead to a More Sustainable Future.” https://knowledge.wharton.upenn.edu/article/how-the-pandemic-can-lead-to-a-more-sustainable-future/. 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. 659682 – 6/20 

Fresno Financial Consultant News: Dealing with Financial Hardship

By Soutas Financial | September 21, 2020 | Comments Off on Fresno Financial Consultant News: Dealing with Financial Hardship
Fresno Financial Consultant News: Dealing with Financial Hardship

A recent poll found that nearly one out of every five Americans are experiencing financial hardship due to the COVID-19 outbreak and subsequent lockdowns.1 With reported infections soaring in recent weeks, financial stress could affect even more citizens as various areas of the country struggle to contain the pandemic.

However, what may happen in the future matters little to those who are experiencing financial difficulties today. If you’d like guidance on building a sustainable budget or strategies for future retirement income, we can help. It’s important to delay any unnecessary purchases and save any financial windfalls you may receive as long as the economic future remains unclear.

The following is a primer on some of the financial issues you may be facing and what to be aware of as you plan for tomorrow.

Paying Bills

If possible, pause payments on all but essentials, like food, housing and utilities. This means tracking down expenses you may automatically pay on a monthly basis, such as streaming services and subscriptions. If you’re stuck at home, carefully consider what you may need to retain (like Netflix) versus what you do not (gym membership). Also, many utility providers — including phone, internet, auto lenders and insurance — are willing to work with customers to extend payment plans. When in doubt, call. It’s better to discuss options than miss payments and hope for the best.2

Borrowing

Use what resources you have, but try to avoid ratcheting up debt. Some credit card companies offer hardship programs designed to help cardholders through difficult times. According to NerdWallet, 16% of U.S. cardholders applied for hardship assistance in March and April of this year. These programs include options like reduced minimums, deferred payments and/or reduced or waived interest payments. Be aware, however, that entering such a program may result in a negative mark on your credit report. However, this option is better than missing or making late payments.3

Consider other options for borrowing money as well, such as tapping your home equity for a line of credit or refinancing your mortgage.4

Housing

The federal government has enacted a couple of protections for people who can’t pay their rent or mortgage. The first prevents lenders and landowners from foreclosure or eviction — a provision that was recently extended until Aug. 31.5 The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a provision for homeowners with federally backed mortgages. Homeowners who have experienced financial hardship due to the coronavirus pandemic can request a forbearance for up to 180 days. Forbearance permits the borrower to suspend or reduce mortgage payments for a limited period of time, but it does not forgive amounts owed. Those amounts may be tacked onto future payments or extend the life of the loan.6

Student Loans

The CARES Act also provided a provision to suspend principal and interest payments on federal student loans until September 30, 2020. Be aware, however, that this provision does not apply to older Federal Family Educational Loans not owned by the Department of Education, parent and Perkins loans, and loans issued by state agencies.7 However, these lenders may be willing to work with borrowers who call to request an amended payment plan.

Fresno Financial Consultant Takeaways 

Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again. A recent poll found that nearly one out of every five Americans are experiencing financial hardship due to the COVID-19 outbreak and subsequent lockdowns.1 If possible, pause payments on all but essentials, like food, housing and utilities. This means tracking down expenses you may automatically pay on a monthly basis, such as streaming services and subscriptions. Use what resources you have, but try to avoid ratcheting up debt. Some credit card companies offer hardship programs designed to help cardholders through difficult times. The federal government has enacted a couple of protections for people who can’t pay their rent or mortgage. The CARES Act also provided a provision to suspend principal and interest payments on federal student loans until September 30, 2020.

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 Legacy Planning as well as Tax Planning 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 Planning, 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 Fred Backus and Jennifer De Pinto. CBS News. June 4, 2020. “Nearly one in five say coronavirus has caused financial hardship.” https://www.cbsnews.com/news/coronavirus-pandemic-financial-hardship-cbs-news-poll/. Accessed June 25, 2020.

2 Yuliya Rzad. Consumer Finance Protection Bureau. April 17, 2020. “Tools to help when you can’t pay your bills.” https://www.consumerfinance.gov/about-us/blog/tools-to-help-pay-bills/. Accessed June 25, 2020.

3 Erin El Issa. NerdWallet. June 25, 2020. “2020 Consumer Credit Card Report.” https://www.nerdwallet.com/blog/credit-card-data/consumer-credit-card-trends-study/. Accessed June 25, 220.

4 T. Rowe Price. June 3, 2020. “7 Steps to Take When Facing Financial Hardship.” https://www.troweprice.com/personal-investing/resources/insights/7-steps-to-take-when-facing-financial-hardship.html. Accessed June 25, 2020.

5 Renee Rodriguez. Miami Herald. June 17, 2020. “COVID-19 foreclosure ban for homeowners extended through Aug. 31. But there’s a catch.” https://www.miamiherald.com/news/business/real-estate-news/article243598727.html. Accessed June 25, 2020.

6 Consumer Finance Protection Bureau. April 24, 2020. “Guide to coronavirus mortgage relief options.” https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/. Accessed June 25, 2020.

7 Sheryl Nance-Nash. Newsday. April 27, 2020. “Money Fix: Lenders offering relief on student loans during pandemic.” https://www.newsday.com/business/coronavirus/coronavirus-student-loans-relief-1.43949927\. Accessed June 25, 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. 659682 – 6/20 

Fresno Retirement Consultant News: Rerouting Your Summer Vacation

By Soutas Financial | September 14, 2020 | Comments Off on Fresno Retirement Consultant News: Rerouting Your Summer Vacation
Fresno Retirement Consultant News: Rerouting Your Summer Vacation

All is not lost. If you planned a multicity tour across Europe or Asia this summer, you’ve probably already rethought those plans. But that doesn’t mean you have to abandon the idea of a vacation altogether. Perhaps a domestic destination, a little ingenuity and a lot of family unity are just what you need.

As far as COVID-19 restrictions go, federal guidelines still do not recommend travel, especially internationally. The CDC advises that if you decide to travel domestically, be sure to take precautions against catching the virus, including washing hands often, socially distancing and wearing a mask.1

In addition, tourism experts recommend avoiding large crowds and choosing outdoor destinations. The key may be to find destinations that fewer people know about.2

Before you go too far down the road, decide how much you can spend. If previous travel plans have been canceled, consider whether you want to use a voucher to rebook in the future or be reimbursed now.3 If you choose the latter option, you might be sitting on cash you are itching to spend. But before you do, it’s a good idea to research where the U.S. is in terms of “flattening the curve” and what the economy — and your job situation — could potentially look like in the future. Many economists are concerned about the effects a possible second wave of COVID-19 infections could have on the economy, so consider whether it’s smart to hold back some that cash you haven’t spent yet.4

If you are concerned about the effects of the coronavirus pandemic on your retirement income, we may be able to help. Please feel free to contact us to discuss creating retirement strategies through the use of insurance products that can help you work toward your retirement income goals.

If you are up for rerouting your vacation plans, consider these ideas. On the high end of travel, an upscale hotelier, Auberge Resorts Collection, and a luxury travel company, Black Tomato, have partnered to host “Take the Open Road with Auberge and Black Tomato.” Packages offer the use of a Mercedes-Benz to take you on multiple destinations with unique experiences in a particular area, with options ranging from lobster fishing in Kennebunk, Maine, to hiking, horseback riding and fly fishing in Park City, Utah. All packages feature award-winning hotel accommodations.5

A more budget-friendly option could be a vacation rental. To minimize your risk of exposure to coronavirus, consider renting an all-in-one party house, complete with swimming pool and other kid-friendly accommodations. The extra expense of renting may be offset by preparing meals at home and limiting other excursions. Research to make sure that you don’t choose a “hotspot” experiencing a COVID-19 outbreak and that you’ll have access to stores, restaurants and any other venues you plan to visit.6

Fresno Retirement Consultant Takeaways 

Soutas Financial your Fresno financial planner would like to remind you of the following points: If you planned a multicity tour across Europe or Asia this summer, you’ve probably already rethought those plans. But that doesn’t mean you have to abandon the idea of a vacation altogether. The key may be to find destinations that fewer people know about.2 Before you go too far down the road, decide how much you can spend. If previous travel plans have been canceled, consider whether you want to use a voucher to rebook in the future or be reimbursed now.3 A more budget-friendly option could be a vacation rental. To minimize your risk of exposure to coronavirus, consider renting an all-in-one party house, complete with swimming pool and other kid-friendly accommodations. The extra expense of renting may be offset by preparing meals at home and limiting other excursions.

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 Asset Protection 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 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 Planning, 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 David Oliver. USA Today. May 20, 2020. “Weighing whether to travel this summer during the coronavirus pandemic? What to consider.” https://www.usatoday.com/story/travel/news/2020/05/20/coronavirus-travel-summer-vacation-what-cdc-state-department-say/5198927002/. Accessed June 9, 2020.

2 Ibid.

3 Lisa Milbrand. Real Simple. May 14, 2020. “How to Handle Vacation Plans (Including Your Summer Vacation) During COVID-19.” https://www.realsimple.com/work-life/travel/travel-planning/travel-vacation-planning-covid-coronavirus. Accessed June 9, 2020.

4 Carmen Reinicke. Business Insider. June 8, 2020. “A 2nd wave of COVID-19 infections poses the biggest threat to the US economy this year, economist survey shows.” https://www.businessinsider.com/economy-biggest-threat-second-wave-coronavirus-infections-us-covid19-survey-2020-6. Accessed June 9, 2020.

5 Lauren Mowery. Forbes. June 9, 2020. “Four Ways You Should Hit America’s Roads This Summer With Black Tomato.” https://www.forbes.com/sites/lmowery/2020/06/09/four-road-trips-with-auberge-mercedes-and-black-tomato/#66e874be71f3. Accessed June 9, 2020.

6 Claire Ballentine. Bloomberg. May 21, 2020. “Considering a Vacation Rental? Here’s What to Know Before You Travel.” https://www.bloomberg.com/news/articles/2020-05-21/considering-a-vacation-rental-what-to-know-before-covid-travel. Accessed June 9, 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. 659682 – 6/20 

Fresno Financial Advisor News: How Might the Economic Downturn Affect Dividends?

By Soutas Financial | September 7, 2020 | Comments Off on Fresno Financial Advisor News: How Might the Economic Downturn Affect Dividends?
Fresno Financial Advisor News: How Might the Economic Downturn Affect Dividends?

If a large allocation of your retirement portfolio is invested in dividend-paying stocks, you might see your household income reduced this year. During the Great Recession, dividend payouts dropped by 25% and didn’t fully recover for at least four years. Today’s financial crisis brought on by the worldwide COVID-19 outbreak has once again created a potential reduction in some dividend payments.1

U.S. dividend payers are in a sticky situation. Banks and other lending institutions saw profits drop by 50% by the end of March. These losses are expected to continue as millions of Americans continue to lose jobs and struggle to make rent, mortgage and credit card payments. Other reliable dividend payers include airlines, auto manufacturers and large retailers — also companies that have been hammered by drastically reduced consumer demand. The Chicago Mercantile Exchange recently predicted that S&P 500 index dividends will fall from 2019’s $58.24 to $47.55 this year, and even further ($42.05) in 2021. The impact on retirees could be a 27% reduction in income.2

Dividend payments — or the lack of them — may have an impact on how a company is viewed by investors. Historically, a company that paid out dividends has been considered financially stable with management that was confident about future earnings.3 Conversely, investors may interpret a reduction or halt in dividend payouts as a sign that a company is in trouble.4

Given that it took four years for dividend stocks to recover from the last recession, current retirees may want to start looking at alternative income stream ideas. However, traditional alternatives may also have drawbacks in the current economy. For example, investors may consider turning to master limited partnerships (MLPs). An MLP is a company organized as a publicly traded partnership in the natural resources or real estate sector. Historically, MLPs have been considered low-risk, long-term investments that provide a steady stream of tax-sheltered distributions to investors.5 However, the combination of falling oil prices and falling transportation demand due to the COVID-19 pandemic has put many MLPs under financial stress.6

Today’s crisis has demonstrated that some traditional sources of retirement income are vulnerable to disruption. Now more than ever, it’s important that retirees and pre-retirees develop a financial plan that takes into account their need for asset preservation strategies, growth and reliable income. If you have any questions or concerns about your own financial plan, give us a call. We’ll be happy to talk.

Fresno Financial Planner Takeaways 

As your Fresno financial advisor we thought this was a good takeaway: Today’s financial crisis brought on by the worldwide COVID-19 outbreak has once again created a potential reduction in some dividend payments.1 Dividend payments — or the lack of them — may have an impact on how a company is viewed by investors. Historically, a company that paid out dividends has been considered financially stable with management that was confident about future earnings.3 Given that it took four years for dividend stocks to recover from the last recession, current retirees may want to start looking at alternative income stream ideas. However, traditional alternatives may also have drawbacks in the current economy. Now more than ever, it’s important that retirees and pre-retirees develop a financial plan that takes into account their need for asset preservation strategies, growth and reliable income.

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 Retirement Income Strategies as well as Wealth Accumulation 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 Planning, 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 William Baldwin. Forbes. April 16, 2020. “How Much Will Your Dividends Get Cut?” https://www.forbes.com/sites/baldwin/2020/04/16/how-much-will-your-dividends-get-cut/#17263d3319cf. Accessed June 9, 2020.

2 Ibid.

3 Amy Fontinelle. Investopedia. May 15, 2020. “Companies That Pay Dividends — And Those That Don’t.” https://www.investopedia.com/ask/answers/12/why-do-some-companies-pay-a-dividend.asp. Accessed June 9, 2020.

4 Chad Langager. Investopedia. June 4, 2020. “Why Would a Company Drastically Cut Its Dividend?” https://www.investopedia.com/ask/answers/06/dividendpaymentcut.asp. Accessed June 22, 2020.

5 James Chen. Investopedia. Aug. 28, 2019. “Master Limited Partnership – MLP.” https://www.investopedia.com/terms/m/mlp.asp. Accessed June 9, 2020.

6 Pensions & Investments. March 24, 2020. “Pipeline funds imperiled with end of MLPs in sight.” https://www.pionline.com/private-equity/pipeline-funds-imperiled-end-mlps-sight. Accessed June 9, 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. 659682 – 6/20 

Fresno Financial Consultant News: What Might Be Next — Inflation or Deflation?

By Soutas Financial | August 24, 2020 | Comments Off on Fresno Financial Consultant News: What Might Be Next — Inflation or Deflation?
Fresno Financial Consultant News: What Might Be Next — Inflation or Deflation?

Consumer prices fell by 0.8% on a seasonally adjusted basis in April, the biggest drop in more than a dozen years, the Bureau of Labor Statistics reported. Conversely, prices for grocery items jumped 2.6%, the highest one-month increase in 46 years, with eggs rising by 16%.1

What’s going on here? Well, the devil is in the details, an important lesson to learn about interpreting data. It’s true that supermarket prices are rising, mainly because of two factors: The coronavirus pandemic has disrupted supply lines, and more Americans are eating at home and buying more groceries. Together, these factors have contributed to the tight food supply, and per the economic theory of supply and demand, when supply is low and demand is high, prices rise.2

As for the drop in consumer prices, that’s the other side of the coin. With the nationwide efforts to close businesses and shelter in place, people are simply buying less. They may be out of a job or worrying about that prospect, so they’ve been hanging onto every last dollar — buying only the necessities.

The thing about falling demand is that it requires retailers and manufacturers to drop prices to entice sales. If they can’t sell what they are producing, then they cut back production, and people lose jobs. It’s a vicious circle, and one that can lead to deflation.3

Let’s face it, both inflation and deflation can have negative effects on investment portfolios, so it’s important to take steps to help protect against those risks.4 We have strategies that can help mitigate the effects of volatility on your retirement plan. Give us a call, and we’ll help tailor a plan for your personal circumstances.

Inflation usually gets top billing when discussing the economy because rising prices over the long term cut down on how much a dollar can buy. However, a little inflation, around 2% to 3%, isn’t a bad thing. It’s usually an indicator that people have jobs, spending demand is high and companies can afford to raise prices. Deflation, in contrast, can be more concerning, as it can lead to an economic recession or depression.5

The Federal Reserve, as part of its efforts to shore up the economy during the pandemic, appears just as intent on mitigating deflation as it is inflation. In early May, Fed Chair Jerome Powell said, “As long as inflation expectations remain anchored, then we shouldn’t see deflation. Needless to say, we’ll be keeping very close track of that.”6

Fresno Financial Consultant Takeaways 

As your Fresno retirement plan consultant we felt the following ideas were top notch: Consumer prices fell by 0.8% on a seasonally adjusted basis in April, the biggest drop in more than a dozen years, the Bureau of Labor Statistics reported. Conversely, prices for grocery items jumped 2.6%, the highest one-month increase in 46 years, with eggs rising by 16%.1 It’s true that supermarket prices are rising, mainly because of two factors: The coronavirus pandemic has disrupted supply lines, and more Americans are eating at home and buying more groceries. The Federal Reserve, as part of its efforts to shore up the economy during the pandemic, appears just as intent on mitigating deflation as it is inflation. In early May, Fed Chair Jerome Powell said, “As long as inflation expectations remain anchored, then we shouldn’t see deflation.”

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 the following…Medicare long term care and risk management strategies that can help you accomplish those goals. 

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 products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, 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 Anneken Tappe. CNN Business. May 12, 2020. “Prices are tumbling at an alarming rate.” https://www.cnn.com/2020/05/12/economy/consumer-prices-april/index.html. Accessed May 21, 2020.

2 David Goldman. CNN Business. May 14, 2020. “Grocery prices are soaring. Here’s what’s getting more expensive.” https://www.cnn.com/2020/05/13/business/grocery-prices/index.html#:~:text=That%20was%20the%20biggest%20increase,demand%20for%20groceries%20shot%20up%20. Accessed June 5, 2020.

3 Anneken Tappe. CNN Business. May 12, 2020. “Prices are tumbling at an alarming rate.” https://www.cnn.com/2020/05/12/economy/consumer-prices-april/index.html. Accessed May 21, 2020.

4 Paulina Likos. U.S. News & World Report. May 14, 2020. “How Inflation and Deflation Impact Your Investments.” https://money.usnews.com/investing/investing-101/articles/how-inflation-and-deflation-impact-your-investments. Accessed May 21, 2020.

5 Troy Segal. Investopedia. March 25, 2020. “Inflation vs. Deflation: What’s the Difference?” https://www.investopedia.com/ask/answers/111414/what-difference-between-inflation-and-deflation.asp. Accessed May 21, 2020.

6 Paul Davidson. USA Today. May 3, 2020. “Besides millions of layoffs and plunging GDP, here’s another worry for economy: Falling prices.” https://www.usatoday.com/story/money/2020/05/03/coronavirus-us-deflation-falling-prices-new-economic-risk/3070084001/. Accessed June 5, 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. 659682 – 6/20 

Fresno Retirement Advisor News: How the Pandemic Is Affecting the Real Estate Market

By Soutas Financial | August 17, 2020 | Comments Off on Fresno Retirement Advisor News: How the Pandemic Is Affecting the Real Estate Market
Fresno Retirement Advisor News: How the Pandemic Is Affecting the Real Estate Market

Research has found that over a 150-year period (1870 to 2015), owning a home has proved to be one of the most stable and secure holdings compared to other types of investments. While offering the added benefits of providing shelter and leaving it as a legacy, residential property is generally viewed as a financial asset able to withstand most crises — even a pandemic.1

For years, homeowners in many areas of the country have benefited from sustained high prices in the residential real estate market, largely due to the low sales inventory of existing homes. In early March, the housing market appeared poised for a solid spring, particularly in light of high demand and low mortgage rates.2

But all that quickly changed once the coronavirus broke out in the United States. In almost no time, the busy spring season for purchasing and selling homes was cut short by buyers hesitant to venture out — or risk their savings should they lose their jobs — and homeowners not wanting strangers traipsing through their homes. Open houses were canceled, and virtual tours became virtually the only way to check out an occupied property. Some in the industry expect this disruption and its subsequent impact on the economy to shift housing prices into a downward trend.3

For retirees, or workers planning for their retirement, owning your home can be an asset. You can sell it if you need the equity for retirement, assuming you find a cheaper place to live. Or you can draw from that equity if need be while remaining in your home. During this complex time, you have options, and it’s important that you consider all of them before taking any significant financial action.

One of the biggest problems brought on by the pandemic is that business closings, bankruptcies and job losses mean that millions of Americans do not have the money to pay their mortgage or rent. To help provide relief, some states including California, Texas, New York and Florida have temporarily banned evictions. On the federal level, a provision in the $2.2 trillion coronavirus relief package passed in March allows homeowners with government-backed mortgages to defer payments for up to a year.4

However, that doesn’t help the long-term plight of renters — or their landlords, for that matter. According to the National Apartment Association (NAA), the profit margin for many landlords is very thin, around 9 cents for every $1. Furthermore, about two-thirds of residential rental properties don’t qualify for the federal mortgage deferral because they were purchased outright or through private loans. If landlords can’t make their payments, they may lose the property and tenants could still get kicked out. And in the end, cities and counties lose property tax revenue.5

On the commercial side, the real estate market could be impacted by shelter-in-place workspaces. After all, even if things do return to normal, now that employers and employees have sampled remote work as a viable option, it could become more commonplace. This means companies may need less office space. Is it possible we could see a glut of empty office parks and skyscrapers in the future? The same could apply to brick-and-mortar retailers, as quarantining has exposed the value and convenience of online shopping to even the most diehard mall rat.

But, as usual, where there are holes in the market, there are opportunities for investors willing to take a risk. Well-capitalized commercial real estate owners may look to acquire some of these distressed buildings at bargain prices.6

Fresno Retirement Advisor Takeaways 

As your Fresno financial advisor we thought this was a good takeaway: In early March, the housing market appeared poised for a solid spring, particularly in light of high demand and low mortgage rates.2 But all that quickly changed once the coronavirus broke out in the United States. In almost no time, the busy spring season for purchasing and selling homes was cut short by buyers hesitant to venture out — or risk their savings should they lose their jobs — and homeowners not wanting strangers traipsing through their homes. One of the biggest problems brought on by the pandemic is that business closings, bankruptcies and job losses mean that millions of Americans do not have the money to pay their mortgage or rent. But, as usual, where there are holes in the market, there are opportunities for investors willing to take a risk. Well-capitalized commercial real estate owners may look to acquire some of these distressed buildings at bargain prices.6

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 the following…strategic wealth management and retirement annuity strategies to help accomplish those goals. 

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 products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, 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 Ivan Anz. Utah Business. May 4, 2020. “Here’s what real estate investors should expect after COVID-19.” https://www.utahbusiness.com/real-estate-investors-covid-19/. Accessed May 29, 2020.

2 Jacob Passy. MarketWatch. April 6, 2020. “America’s housing market is showing the first signs of trouble from the coronavirus pandemic.” https://www.marketwatch.com/story/americas-housing-market-is-showing-the-first-signs-of-trouble-because-of-the-coronavirus-pandemic-2020-04-02. Accessed June 2, 2020.

3 Ana Durrani. Realtor.com. April 29, 2020. “What Your Real Estate Agent Wants You To Know About the Housing Market Right Now.” https://www.realtor.com/advice/buy/real-estate-agent-wants-you-to-know-housing-market-coronavirus/. Accessed May 29, 2020.

4 Prashant Gopal and Oshrat Carmiel. Bloomberg. May 12, 2020. “If Landlords Get Wiped Out, Wall Street Wins, Not Renters.” https://www.bloomberg.com/news/articles/2020-05-12/if-landlords-get-wiped-out-wall-street-wins-not-renters. Accessed May 29, 2020.

5 Ibid.

6 Ariel Maidansky. MarketWatch. April 29, 2020. “The future of commercial real estate – the weak get shaken out and the strong take over whole new markets.” https://www.marketwatch.com/story/the-future-of-commercial-real-estate-the-weak-get-shaken-out-and-the-strong-take-over-whole-new-markets-2020-04-29. Accessed May 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. 659682 – 6/20 

Fresno Retirement Consultant News: The Future of Retail Raises More Questions Than Answers

By Soutas Financial | August 10, 2020 | Comments Off on Fresno Retirement Consultant News: The Future of Retail Raises More Questions Than Answers
Fresno Retirement Consultant News: The Future of Retail Raises More Questions Than Answers

Will we learn to live with less? Some lessons were learned when the U.S. initially closed up shop and told everyone to stay home. For example, we can live without extra-soft, double-ply toilet paper and go a whole weekend without shopping at a store or eating at a restaurant — but we’d rather not.

Yet the question remains: Will the lessons of the pandemic be far reaching? For some American companies, yes. Stay-at-home orders hit many retailers in every direction: loss of foot traffic, loss of manufacturing and goods from China, workers who refused to go to work, less things consumers needed to buy and less money with which to buy them. The fallout has impacted brand-name retailers ranging from J. Crew and Neiman Marcus to Nordstrom and Victoria’s Secret.1

What about you? Are you living on less? Or did you spend your days sheltered-in-place shopping online and ordering take-out food? In some cases, people may have spent more than usual in their efforts to buy in bulk and support local restaurants. It’s a good time to calculate your retirement budget to see if it’s worth keeping any frugal habits you adopted for the long term. After all, if you can reduce your basic expenses in retirement, you don’t have to save as large a nest egg. If you’re looking for ideas to optimize your assets and secure reliable income for retirement, please give us a call.

Retail trends are expected to affect more than retailers themselves. While cashless transactions have been around for decades, they may become more prevalent as consumers try to reduce exposure to “dirty money.” Drones may become more predominant in those last few miles for deliveries to your home. Now that people know they can live with less, they may want the things they do buy to last longer, so sustainable goods may become an enduring trend.2

What about the country as a whole? With restaurants shuttered nationwide, farmers had to destroy millions of pounds of perishable food due to lack of demand.3 As the economy shuffles back into existence in a manner of fits and starts, will farmers and food manufacturers adjust their levels of production to avoid the potential for such waste in the future? If so, are we prepared to eat less, pay more or find alternate ways of producing our own food, like baking bread and cultivating backyard gardens?

How will the coronavirus impact where we meet, shop, eat, and how we travel? At least for a while, it’s reasonable to expect that some people will avoid crowded trains and buses, bars,  restaurants, theaters and stadiums in an effort to be mindful of health risks.4 Will only the young and healthy venture out in full-fledged support of the economy, and will their relatively low salaries and net worth be enough to sustain it? Will urban dwellers flock to rural environs to avoid the masses and seek a simpler life?

How about global trends? The goodwill of globalization and cross-trade agreements had already soured in the face of nationalism long before the pandemic left every country to fend for itself. According to the World Trade Organization, global consumer trade is expected to fall between 13% and 32% in 2020.5 The wide discrepancy is largely based on how quickly the outbreak can be contained and whether trade will return to pre-crisis levels. The concern is that current populist trends will take advantage of the opportunity to lay blame on China (a major manufacturer and labor market for most developed countries) which could curb the path back to growth.4 Without intercontinental trade, travel and investment, experts say the recovery will be slow. Poor cooperation will likely result in low economic growth as each country tries to rebuild alone.6

Fresno Retirement Consultant Takeaways 

Soutas Financial your Fresno financial planner would like to remind you of these points: Will the lessons of the pandemic be far reaching? For some American companies, yes. Stay-at-home orders hit many retailers in every direction: loss of foot traffic, loss of manufacturing and goods from China, workers who refused to go to work, less things consumers needed to buy and less money with which to buy them. It’s a good time to calculate your retirement budget to see if it’s worth keeping any frugal habits you adopted for the long term. After all, if you can reduce your basic expenses in retirement, you don’t have to save as large a nest egg. How will the coronavirus impact where we meet, shop, eat, and how we travel? At least for a while, it’s reasonable to expect that some people will avoid crowded trains and buses, bars,  restaurants, theaters and stadiums in an effort to be mindful of health risks.4

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 the following…stop spend down and long term care strategies to help accomplish those goals. 

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 products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, 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 Knowledge@Wharton. May 8, 2020. “How COVID-19 Will Change the Way We Shop.” https://knowledge.wharton.upenn.edu/article/covid-19-will-change-way-shop/. Accessed May 29, 2020.

2 Knowledge@Wharton. May 5, 2020. “From Apocalypse to Supernova: How the Pandemic Is Changing U.S. Retail.” https://knowledge.wharton.upenn.edu/article/apocalypse-supernova-pandemic-changing-u-s-retail/. Accessed May 29, 2020.

3 Knowledge@Wharton. May 19, 2020. “Will the Pandemic Cause Food Shortages?” https://knowledge.wharton.upenn.edu/article/will-the-pandemic-cause-food-shortages/. Accessed May 29, 2020.

4 Knowledge@Wharton. May 13, 2020. “The Post-COVID-19 World Will Be Less Global and Less Urban.” https://knowledge.wharton.upenn.edu/article/post-covid-19-world-will-less-global-less-urban/. Accessed May 29, 2020.

5 DG Azevêdo. World Trade Organization. April 8, 2020. “Trade set to plunge as COVID-19 pandemic upends global economy.” https://www.wto.org/english/news_e/pres20_e/pr855_e.htm. Accessed June 10, 2020.

6 Felix Richter. World Economic Forum. May 29, 2020. “The COVID-19 economy: does it mean the end of globalization?” https://www.weforum.org/agenda/2020/05/globalisation-covid19-gdp-drop-2008-financial-crisis. Accessed May 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. 659682 – 6/20 

Fresno Financial Advisor News: Are the Stock Market and the Economy Out of Sync?

By Soutas Financial | August 3, 2020 | Comments Off on Fresno Financial Advisor News: Are the Stock Market and the Economy Out of Sync?
Fresno Financial Advisor News: Are the Stock Market and the Economy Out of Sync?

In normal times, the stock market is often a reflection of the economy. But these are not normal times. Even though April was marked by a global shutdown of businesses, rampant unemployment and low economic growth, the S&P 500 Index ended the month up 12.9%. This represented the highest one-month gain since 1987 and posted the fastest recovery of the fastest bear-market decline in 90 years.1

It’s been a difficult time for investors, faced with the question of whether they should sell or “stay the course.” A lot depends on where you are in your timeline for achieving financial goals. You may have lost money and then regained it. You may have lost money and chose to sell. If you are near or in retirement, and unsure what you should do now, give us a call. We have many different options available to help you pursue your goals, and will help you create a financial strategy designed for your individual situation.

While the stock market and economy have an enormous influence on each other, it’s important to recognize stock prices often are driven by irrational emotions. Moreover, stock prices are forward looking, meaning they bet on future corporate profits, which do not necessarily take into account a correlation with organic growth. A good example of this was demonstrated by the 2017 corporate tax cut. Many companies used the increase in corporate earnings to buy back stocks and/or pay out dividends rather than invest in growth or worker income.

Recent volatility in the stock market is largely a result of investor optimism that the economy will survive the pandemic, followed by pessimism that it may take longer than hoped. Much of this is driven by government actions, such as the unprecedented consumer stimulus and small business “grants,” as well as the various closing and reopening phases of economies on a state-by-state basis.2

Stimulus actions may provide short-term relief, but also present a long-term drag on the economy. Reduced demand of common products and services may help ward off inflation, but the risk of deflation is just as damaging. Deflation is caused by a sustained period of falling prices, in which lower spending causes businesses to reduce staff and wages — as if that isn’t already a problem. Since consumer spending is one of the key drivers of the U.S. economy, this could lead to a long road to recovery.3

This brings us back to the stock market, with its eccentric performance that appears driven more by investor superstition, optimism and uncertainty rather than actual fundamentals. Longer term, asset prices will presumably begin to reflect the future fortunes (or losses) of corporations. It’s hard to see a scenario in which a wide swath of companies will thrive in the near term, with certain exceptions (like whichever pharmaceutical companies develop a COVID-19 vaccine).

For now, it’s important to view your portfolio within the scope of your financial goals and timeline for achieving them, as well as your risk tolerance. It’s easy to fall under the spell that a high-performing stock market will continue despite occasional blips, or that we’re in for negative returns for the foreseeable future. Regardless of which side of investor sentiment you fall on, stock market data is the same for everyone. The only differentiation is your own personal view of what will happen next.4

Meanwhile, health experts warn of a potential ramp up of contagion in states that reopen too quickly and/or in the fall when flu season commences. Given this possibility, any moves you take right now may be short-term; your view may change again if and when this actually happens. It’s possible we could have a short-term recovery, and long-term investors may want to stay in the market for exposure to that. But no one can accurately predict when the stock market could drop precipitously again, so bear that in mind.5

Fresno Financial Planner Takeaways 

When it comes to Fresno retirement planning, Soutas Financial puts your future first. Don’t forget these great reminders: In normal times, the stock market is often a reflection of the economy. But these are not normal times. It’s been a difficult time for investors, faced with the question of whether they should sell or “stay the course.” While the stock market and economy have an enormous influence on each other, it’s important to recognize stock prices often are driven by irrational emotions. For now, it’s important to view your portfolio within the scope of your financial goals and timeline for achieving them, as well as your risk tolerance. It’s easy to fall under the spell that a high-performing stock market will continue despite occasional blips, or that we’re in for negative returns for the foreseeable future.

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 the following…long term care and Medi-Cal strategies that can help you accomplish those goals. 

Soutas Financial & Insurance Solutions Inc., your Fresno financial planner, are committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, 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 John Persinos. Investing Daily. May 4, 2020. “Economy Down, Stocks Up: Why The Disconnect?” https://www.investingdaily.com/55655/economy-down-stocks-up-why-the-disconnect/. Accessed May 5, 2020.

2 Barbara Kollmeyer. Marketwatch. May 5, 2020. “This is the trap awaiting the stock market ahead of a grim summer, warns Nomura strategist.” https://www.marketwatch.com/story/this-is-the-trap-awaiting-the-stock-market-ahead-of-a-grim-summer-warns-nomura-strategist-2020-05-05. Accessed May 5, 2020.

3 Paul Davidson. USA Today. May 3, 2020. “Besides millions of layoffs and plunging GDP, here’s another worry for economy: Falling prices.” https://www.usatoday.com/story/money/2020/05/03/coronavirus-us-deflation-falling-prices-new-economic-risk/3070084001/. Accessed May 5, 2020.

4 Knowledge@Wharton. Jan. 14, 2020. “How Superstition Triggers Stock Price Volatility.” https://knowledge.wharton.upenn.edu/article/wachter-superstitious-investors-research/. Accessed May 5, 2020.

5 Matt Egan. CNN. April 16, 2020. “The stock market is acting like a rapid recovery is a slam dunk. It’s not.” https://www.cnn.com/2020/04/16/investing/stock-market-dow-jones-recession/index.html. Accessed May 5, 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. 659682 – 6/20 

Lose Home If You Use Medi-Cal?

By Soutas Financial | July 23, 2020 |
Fresno Financial Advisor Video-Will You Lose Home If You Use Medi-Cal?

Will You Lose Home If You Use Medi-Cal?

If you or a loved one uses Medi-Cal, will the state put a lien on your home? It’s true that all your benefits paid to a person 55 years old or older by Medi-Cal is like a loan and they have the right to ask it back when you’re gone. It’s also true with proper planning that all your assets can pass on to your beneficiaries and not the state.

Schedule a complementary strategy visit with us and learn what your rights and options are.

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite106 Fresno, CA 93704
(559) 230-1648
Soutas.com

Fresno Retirement Consultant News: The Perks and Pitfalls of Self-Employment

By Soutas Financial | July 22, 2020 | Comments Off on Fresno Retirement Consultant News: The Perks and Pitfalls of Self-Employment
Fresno Retirement Consultant News: The Perks and Pitfalls of Self-Employment

Sole proprietors in the U.S. caught a huge break in April. The Paycheck Protection Program, borne out of the economic hardship caused by the COVID-19 pandemic, became available to solo entrepreneurs and independent contractors on April 10, 2020.1 

According to a 2017 survey, 36% of U.S. workers are part of the gig economy.2 With so many sole proprietors contributing to today’s economy, it stands to reason that the federal government would recognize these contributions through the Coronavirus Aid, Relief and Economic Security (CARES) Act’s small-business loans and unemployment insurance provisions. 

Retirement planning can be difficult when you work for yourself, especially when it comes to navigating the various retirement plan options. If you’d like help creating a strategy for income in retirement, please give us a call. We’ll work with you to craft a plan that is designed to match both your needs and business model. 

One of the silver linings of the recent crisis may be a greater focus on the needs of independent workers. Following the lead of recent federal government legislation, individual states are getting in on the act. California, New York and Washington already offer paid family and medical leave benefit programs in which the self-employed can participate. Meanwhile, Massachusetts, Connecticut, Oregon and the District of Columbia also are working to establish family and medical leave programs.3 

Given the recent rise in unemployment numbers, it would be no surprise to see more people consider self-employment once the economy recovers. Many people don’t like having to rely on government benefits to see them through hard times, but recent experiences have shown that traditional employment may not always be reliable either. However, there are a mountain of considerations when it comes to becoming a full-time sole proprietor. 

For example, it takes a broader set of business skills. Not only do you provide the product or service that you’re good at, but you also have to learn to manage the administrative functions of your business, including accounting, marketing and sales. Some of the sad truths of self-reliance are that there are often no financial safety nets, you might work long hours — even if you are sick or caring for a sick family member — and may not be able to enjoy vacations since you are “on call” nearly 24/7, 365 days a year.4 

There are perks to being self-employed, however, such as the opportunity to earn unlimited income. There are also tax deductions that self-employed individuals may qualify for and potential household budget savings on things like professional business clothes and commuting expenses.5 

Fresno Retirement Consultant Takeaways 

As your Fresno portfolio advisor Soutas Financial appreciated these points: The Paycheck Protection Program, borne out of the economic hardship caused by the COVID-19 pandemic, became available to solo entrepreneurs and independent contractors on April 10, 2020.1 One of the silver linings of the recent crisis may be a greater focus on the needs of independent workers. Given the recent rise in unemployment numbers, it would be no surprise to see more people consider self-employment once the economy recovers. Many people don’t like having to rely on government benefits to see them through hard times, but recent experiences have shown that traditional employment may not always be reliable either. Some of the sad truths of self-reliance are that there are often no financial safety nets, you might work long hours — even if you are sick or caring for a sick family member — and may not be able to enjoy vacations since you are “on call” nearly 24/7, 365 days a year.4 

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 the following…retirement annuity and stop spend down strategies to help accomplish those goals. 

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 products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, 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 Elaine Pofeldt. CNBC. April 10, 2020. “Paycheck Protection Program aid opens for sole proprietorships and independent contractors.” https://www.cnbc.com/2020/04/10/paycheck-protection-program-opens-for-sole-proprietorships.html. Accessed April 30, 2020. 

2 Lisa Hogan. Bloomberg Law. Sept. 17, 2019. “The Gig Economy Could Change How Employers Gear for Next Recession.” https://news.bloomberglaw.com/us-law-week/insight-the-gig-economy-could-change-how-employers-gear-for-next-recession. Accessed April 30, 2020. 

3 Michelle Andrews. Kaiser Health News. March 19, 2020. “Gig Economy Workers Hurt By Coronavirus Eye New Federal Funds For Relief.” https://khn.org/news/gig-economy-workers-hurt-by-coronavirus-eye-new-federal-funds-for-relief/. Accessed April 30, 2020. 

4 Holly Johnson. The Simple Dollar. April 8, 2020. “Seven Truths About Self-Employment.” https://www.thesimpledollar.com/make-money/seven-truths-about-self-employment/. Accessed April 30, 2020. 

5 Greg Johnson. Dough Roller. Dec. 2, 2019. “11 Financial Benefits of Being Self-Employed.” https://www.doughroller.net/small-business/11-financial-benefits-self-employed/. Accessed April 30, 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 
 
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