Imber Wealth Advisors: December 2020

Monday, December 21, 2020

China's Rebound

In mid-November, China signed an important and symbolic free-trade agreement with 14 countries, including Japan, South Korea, New Zealand and Australia. The deal, which represents 30% of the world’s population, eliminates tariffs and quotas on 65% of goods traded in the Asia-Pacific region. Global economists say the deal is further evidence of Asia’s growing power, particularly considering China’s feuding tariffs with the U.S. throughout the past four years.¹

According to data from the International Monetary Fund, in 2019, China represented 40% of global economic growth – more than the global growth contributions of the U.S., Europe and Japan combined. This year, China’s economy has proven quite resilient, particularly when compared to other developed countries in the wake of the global financial crisis, Trump tariffs and even the coronavirus.²

How about you? Has your household proven to be as resilient in the wake of this global pandemic as your friends, family and colleagues? If so, what was the key? Perhaps it could be because you were able to maintain your level of income. Consider whether your spending levels as the same as before. Perhaps not the same types of expenses, but has your financial status given you confidence to spend without interruption? These questions can be helpful when assessing your situation.

We should continue to engage in intentional, goal-driven financial planning to keep our household on track. If you’ve been able to maintain your financial state through the global pandemic, keep doing what you’re doing. If the global pandemic has affected you, assess your financial state and devise a plan to help get back on track. As always, we are here to help assess investment opportunities for your family’s financial future.

In China, the coronavirus seems to be mostly under control. Consequently, the economic recovery has been V-shaped, led by strong domestic consumer demand. This trendline demonstrates a direct correlation between “flattening the curve” and economic recovery. Chinese revenues continue to trend upward in auto sales, residential real estate, and even restaurants and bars – although the latter are not fully restored to pre-pandemic levels due to continued caution with large indoor gatherings.³

The lesson here can be that containing COVID-19 is the key to any country’s economic recovery. The evidence doesn’t lie solely with China. Other countries that have successfully controlled the spread of the virus, such as Taiwan, South Korea and Lithuania, also experienced lessened economic effects.⁴

Like every other country in the world, the Chinese economy will likely not be able to recover completely until a safe and effective vaccine is widely available. However, because it acted quickly and aggressively to contain the virus within its boundaries.⁵

We take pride in assisting our clients with incorporating all aspects of their life into their Retirement Roadmap 360®. Take control of your financial future and give us a call at (734) 769-1719 today to see how we may be able to help you!

¹ Jill Disis and Laura He. CNN. Nov. 17, 2020. “China signs huge Asia Pacific trade deal with 14 countries.” https://www.cnn.com/2020/11/16/economy/rcep-trade-agreement-intl-hnk/index.html. Accessed Nov. 17, 2020.

² Andy Rothman. Matthews Asia. July 16, 2020. “China’s Economic resilience.” https://global.matthewsasia.com/resources/docs/global.matthewsasia.com/pdf/Sinology/071620-Sinology.pdf. Accessed Nov. 16, 2020.

³ Andy Rothman. Matthews Asia. Aug. 14, 2020. “Four China Trends.” https://global.matthewsasia.com/resources/docs/global.matthewsasia.com/pdf/Sinology/081420-Sinology.pdf. Accessed Nov. 16, 2020.

⁴ Joe Hasell. Our World in Data. Sept. 1, 2020. “Which countries have protected both health and the economy in the pandemic?” https://ourworldindata.org/covid-health-economy. Accessed Nov. 16, 2020.

⁵ Andy Rothman. Matthews Asia. Oct. 19, 2020. “China After COVID.” https://us.matthewsasia.com/perspectives-on-asia/sinology/default.fs. Accessed Nov. 16, 2020.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Investment Advisory Services are offered by Imber Financial Group, LLC., a Registered Investment Adviser firm. Insurance services are offered through Imber Wealth Advisors, Inc. Imber Financial Group, LLC. and Imber Wealth Advisors, Inc. are affiliated companies

Monday, December 14, 2020

Open Enrollment: Health Care Insurance Takes Priority

The Patient Protection and Affordable Care Act (ACA) – passed in 2010 and known colloquially as “Obamacare” – has experienced quite a ride. Initially, it was embraced by millions of Americans for whom it afforded tax-subsidized health insurance without access to employer-sponsored coverage. At the same time, it was derided for increasing government sharing costs to provide that coverage.

However, throughout the years, the ACA has become more embraced by a wider audience. As workers lost jobs, they discovered an affordable insurance option and, today, most know someone who has benefited from health reform legislation. Perhaps the most popular benefit is banning insurance companies from declining coverage – or charging more – for pre-existing conditions.

One of the more challenging provisions has been the individual mandate that requires everyone to purchase health insurance or pay a penalty. This particular clause has been challenged all the way to the U.S. Supreme Court (SCOTUS) three times, most recently in November. Even if the mandate is found unconstitutional, it’s unlikely the Supreme Court will strike down the entire ACA.¹

Regardless of the popularity or fate of Obamacare, it still doesn’t fully meet the nation’s needs. To date, 43.4% of the nation’s adults ages 19 to 64 are underinsured and 12.5% of adults remain altogether uninsured.²

This fall, Americans have engaged in yet another open enrollment period amid the backdrop of the SCOTUS hearing and the presidential election. For many, health care was a primary issue on the ballot. The enrollment period affects nearly everyone, including workers who select employer-sponsored insurance³, those in the individual market⁴, and individuals who can continue or change their Medicare plan.⁵ Health care insurance options can be confusing, mainly because they don’t always cover all of your needs. If you are looking for ways to help pay for possible uncovered health care expenses, we may be able to help. Some insurance products, such as life insurance and annuities, provide various options you may want to consider. We’d be happy to discuss your options based on your unique situation.

Because of the many jobs lost due to the coronavirus, employer-sponsored benefits are more appreciated than ever before. And because of the pandemic, benefits experts say employees are more aware of options they may not have paid attention to in the past – such as sufficient life and long-term disability insurance.⁶

With a new presidential administration taking office, it will be interesting to see how new health care reforms play out in Congress. According to a new report on the current state of our health care system, the numbers aren’t good. Presently:

· Americans are living shorter lives than they did in 2014.

· African-Americans are twice as likely as whites to die from treatable conditions.

· Health coverage gains have stalled rather than increased.

· Insurance coverage rates vary widely from state-to-state.

· Health insurance affordability and out-of-pocket costs have gotten worse.

Another insight evidenced by the coronavirus is that the U.S. health care system is far less prepared than other wealthy nations to adequately deal with a pandemic situation.⁷

We take pride in assisting our clients with incorporating all aspects of their life into their Retirement Roadmap 360 – including health care. Give us a call at (734) 769-1719 today to see how we may be able to help you!

¹ Nina Totenburg. NPR. Nov. 10, 2020. “Will Supreme Court Invalidate Obamacare A Decade After It Was Enacted?” https://www.npr.org/2020/11/10/932441334/will-supreme-court-invalidate-obamacare-a-decade-after-it-was-enacted. Accessed Nov. 13, 2020.

² Sara R. Collins, Munira Z. Gunja, and Gabriella N. Aboulafia. Commonwealth Fund. Aug. 19, 2020. “U.S. Health Insurance Coverage in 2020: A Looming Crisis in Affordability.” https://www.commonwealthfund.org/publications/issue-briefs/2020/aug/looming-crisis-health-coverage-2020-biennial. Accessed Nov. 13, 2020.

³ Maggie Germano. Forbes. Nov. 13, 2020. “Half Of Employees Believe Open Enrollment Is More Important In 2020 Than It Was In 2019.” https://www.forbes.com/sites/maggiegermano/2020/11/13/half-of-employees-believe-open-enrollment-is-more-important-in-2020-than-it-was-in-2019/?sh=21b01f6e74d5. Accessed Nov. 13, 2020.

⁴ Julie Appleby. NPR. Oct. 20, 2020. “The Affordable Care Act’s Fate Is In Flux But 2021 Health Plan Prices Are Stable.” https://www.npr.org/sections/health-shots/2020/10/20/925596125/the-affordable-care-acts-fate-is-in-flux-but-2021-health-plan-prices-are-stable. Accessed Nov. 13, 2020.

⁵ Sarah O’Brien. CNBC. Nov. 4, 2020. “Here are tips for getting your 2021 Medicare drug coverage right during open enrollment.” https://www.cnbc.com/2020/11/04/here-are-tips-for-getting-your-2021-medicare-drug-coverage-right-.html. Accessed Nov. 3, 2020.

⁶ Jessica Dickler. CNBC. Nov. 2, 2020. “Open enrollment is underway — here are 5 tips for maximizing your benefits during a public health crisis.” https://www.cnbc.com/2020/11/02/5-things-to-watch-out-for-during-open-enrollment-amid-coronavirus.html. Accessed Nov. 13, 2020.

⁷ Dan Cook. BenefitsPro. Sept. 12, 2020. “U.S. health care system on life support, say test results from new study.” https://www.benefitspro.com/2020/09/14/u-s-health-care-system-on-life-support-say-test-results-from-new-study/. Accessed Nov. 13, 2020.