Mental Health & The Economy

 

We all know that COVID-19 has significantly affected both the domestic and global economies through widespread contagion, the closure of businesses, job losses, scaled-back operations and lost revenues. Also, whenever a new variant is identified, the investment markets tend to react negatively.¹ Therefore, it’s easy to connect the dots between the physical health of the nation’s population and the health of the economy.

 

But what about mental health? In recent years, there has been a much greater focus on the breadth and depth of mental illness in America, including anxiety, depression, burnout and substance abuse. The pandemic has exacerbated these issues as people suffer from fear of job instability, isolation and worry about their physical health.²

 

On top of that, we are experiencing what economists are referring to as “The Great Resignation.” New insights and observations reveal that people aren’t just tired of their jobs due to poor wages, but they also suffer from long-term mental fatigue related to working a job that provides no joy and adds stress.³

 

Insurance companies previously classified mental illness as a pre-existing condition and would charge higher premiums or even deny health coverage for a patient with such a diagnosis. However, the Patient Protection and Affordable Care Act (ACA) of 2010 was the first substantial legislation that recognized mental illness as a physical ailment and mandated that health insurance companies cover it under their policies. Millions of Americans have benefitted from the diagnosis and treatment of conditions that have traditionally been treated as taboo. Through therapy, medication, behavior and lifestyle modifications, many Americans are able to recover or manage their mental health, which improves their quality of life and engagement in jobs and allows them to contribute to a stronger economy.⁴

 

Worry is a big contributor to mental health issues, and we know that people spend a lot of time worrying about their finances. What if this happens, or what if that happens? A good way to provide some sense of relief is to be properly insured against large financial losses. We can help you prepare for retirement by setting up an insurance-backed source for a stream of income. Please give us a call if you’d like to learn more.

 

Unfortunately, the pandemic changed the working landscape and thus uncovered many of the ongoing flaws in both the health care industry and labor force that either contribute to or at least fail to mitigate factors that contribute to mental illness. This, in turn, continues to hurt the health of our economy as much as our personal health. For example, since the beginning of the pandemic, 60% to 75% of health care workers have reported symptoms of exhaustion, depression, sleep disorders and PTSD. One in five have quit their jobs. Even before COVID-19, burnout cost the U.S. health care system about $4.6 billion a year.⁵

 

A recent survey by The Economist Intelligence Unit revealed that company executives view fatigue, burnout and stress as the top barriers to business growth. It also found that eight in 10 workers feel emotionally drained by their jobs. As for coping with the added stress of the pandemic, today’s workers are having to deal with isolation, disconnection and the blurred line between work and home life.⁶

 

Content prepared by Kara Stefan Communications.

 

¹ Reuters. Nov. 26, 2021. “What investors are saying about the new virus variant.” https://www.reuters.com/markets/europe/what-investors-are-saying-about-new-virus-variant-2021-11-26/. Accessed Dec. 6, 2021.

² Marius Brülhart, Valentin Klotzbücher, Rafael Lalive and Stephanie K. Reich. Nature. Nov. 17, 2021. “Mental health concerns during the COVID-19 pandemic as revealed by helpline calls.” https://www.nature.com/articles/s41586-021-04099-6. Accessed Dec. 6, 2021.

³ Yasmin Gagne. FastCompany. Dec. 6, 2021. “Prince Harry says quitting can be good for your mental health.” https://www.fastcompany.com/90702784/prince-harry-says-quitting-can-be-good-for-your-mental-health. Accessed Dec. 6, 2021.

⁴ Steve Pitman. Cal Matters. Aug. 26, 2021. “Pandemic brings extra need for mental health care resources.” https://calmatters.org/commentary/2021/08/pandemic-brings-extra-need-for-mental-health-care-resources/. Accessed Dec. 6, 2021.

⁵ David Levine. U.S. News & World Report. Nov. 15, 2021. “U.S. Faces Crisis of Burned-Out Health Care Workers.” https://www.usnews.com/news/health-news/articles/2021-11-15/us-faces-crisis-of-burned-out-health-care-workers. Accessed Dec. 6, 2021.

⁶ Charlotte Business Journal. Dec. 6, 2021. “Workforce health: A business imperative to achieve economic prosperity.” https://www.bizjournals.com/charlotte/news/2021/12/06/workforce-health-a-business-imperative-to-achieve.html. Accessed Dec. 6, 2021.

 

 

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.

 

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.

 

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

The U.S. is in the emergent stages of the omicron variant of the coronavirus. However, we now have some experience in what this could mean moving forward, both for the health and economic impact of the U.S. and our global neighbors.

 

To continue fighting COVID-19 without shutting down schools and businesses, the Biden Administration recently announced new guidelines to help contain the virus. The initiatives include free booster shots for all adults, new quarantine and testing policies in schools, vaccination or weekly testing requirements by businesses, free at-home COVID test kits, more resources allocated to areas with hotspot flare-ups, and greater global distribution of vaccines to help stop the spread.¹

 

Regardless of where individuals stand on the debate of mandated vaccines, it is important to recognize the long-term effects of the continued spread of the virus. The stock market had a strong negative reaction after the omicron variant was identified in the U.S. If the virus continues to spread, we will continue suffering these setbacks. For many, the pandemic is less a health issue than a financial one. If you are looking for ways to shore up your investment portfolio to weather the ongoing volatility presented by COVID-19, please give us a call.

 

The following are key economic questions associated with omicron — or any new variant that develops in the future: 1) What is our capacity to prevent and contain its spread;² 2) How susceptible is it to various demographics; and 3) How will it affect our current vaccination levels and waning immunity?³

 

A recent study of the phenomenon presents a variety of possible scenarios. One positive outcome of omicron is that it motivates more people — and countries — to higher vaccination levels. If the new variant proves more easily transmitted than the delta variant, we may need to step up masking and social distancing measures; even sending workers back to working from home. If the strain proves to be vaccine-resistant, more resources will need to be dedicated to modifying messenger RNA vaccines and getting them out to the public as quickly as possible.

 

What about rising inflation? Some economists believe higher prices are directly linked to global shortages and higher demand — which would abate if omicron constrained the economy again. However, if inflation is due to monetary and fiscal stimulus policies, prices could further increase regardless of the direction of the pandemic.⁴

 

Finally, since vaccine hesitancy appears to be emanating from a lack of trust in the government, the U.S. may be jeopardized by the threat of growing civil instability. This has the potential to land us in the same high-risk category of countries that experience ongoing civil unrest and attempts to overthrow the government.⁵

 

For America’s health, safety, economic prospects and our own financial portfolios, let’s hope the issues surrounding COVID-19 do not manifest in these ways.

 

Content prepared by Kara Stefan Communications.

 

¹ The White House. Dec. 2, 2021. “President Biden Announces New Actions to Protect Americans Against the Delta and Omicron Variants as We Battle COVID-⁠19 this Winter.” https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/02/fact-sheet-president-biden-announces-new-actions-to-protect-americans-against-the-delta-and-omicron-variants-as-we-battle-covid-19-this-winter/. Accessed Dec. 3, 2021.

² Andrew Sheets and Matthew Harrison. Morgan Stanley. Nov. 30, 2021. “Omicron Variant Causes Concern.” https://www.youtube.com/watch?v=8iJNYWeslf8. Accessed Dec. 3, 2021.

³ Mick Costigan. World Economic Forum. Nov. 30, 2021. “The Omicron variant is here – what comes next? Here are 5 possibilities.” https://www.weforum.org/agenda/2021/11/omicron-whats-next-5-scenarios-to-help-business-leaders-make-the-right-decisions/. Accessed Dec. 3, 2021.

⁴ Jeff Cox. CNBC. Nov. 27, 2021. “The current inflation run is similar to other episodes in history, but with important differences.” https://www.cnbc.com/2021/11/27/the-current-inflation-run-is-similar-to-other-episodes-in-us-history-but-with-important-differences.html. Accessed Dec. 3, 2021.

⁵ Maneet Ahuja. Forbes. Nov. 29, 2021. “Ray Dalio Says America’s Decline Will Upend Lives, Not Just Portfolios.” https://www.forbes.com/sites/maneetahuja/2021/11/29/ray-dalio-says-americas-decline-will-upend-lives-not-just-portfolios-the-billionaire-investor-paints-a-dire-scenario-in-his-new-book/?sh=4961c9b3c4f0. Accessed Dec. 3, 2021.

 

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.

 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

How to Help Prevent Aging

There is no magic pill that will keep us from getting older. Trendy fashions, dancing like no one’s watching and laughing with friends can make you feel young and invincible, but it won’t stop the process. Aging is biological, and inevitable.

And yet, something many people fail to learn until they get older is that inflammation is one of the body’s fastest aging processes. In our youth, we may twist an ankle or have some other injury that causes swelling. Acute inflammation is the body’s way of fighting off infection by enabling white blood cells to flood the affected area to protect and heal. Throughout time, however, chronic, low-grade inflammation leads to a plethora of old-age conditions, such as cardiovascular disease, cancer and dementia. Researchers refer to this type of persistent, low-level inflammation associated with aging as “inflammaging.”¹

To make matters worse, chronic inflammation can be exacerbated by bad habits we can pick up as we get older. These behaviors include:

·         Smoking

·         Poor diet

·         Drinking alcohol

·         Not getting enough physical activity

·         Too much stress

·         Weight gain

·         Not getting enough sleep

Inflammation can remain in the body long after we start feeling better. Even if you hate taking pills, and don’t necessarily feel the benefits, anti-inflammatories work hard to reduce inflammation in the body. One of the key ways to prevent the ailments of old age is to reduce inflammation on an ongoing basis. It’s like exercising and maintaining a healthy weight – a lifelong effort that only gets tougher as we age. The types of medications physicians often prescribe for inflammatory diseases include corticosteroids, immunosuppressants and biologics.²

However, there are trade-offs that accompany getting older. For all the frustration that comes with physical changes, complicated relationships and money woes, there is wisdom, experience, and, at some point – the lucky ones – start caring more about how they feel than what other people think. Please feel free to contact us if you are looking to expand your horizons for your financial future.

Our internal organs aren’t the only ones affected by inflammaging. Research shows that chronic, low-grade inflammation contributes to the aging of our skin. As we get older, our skin loses epidermal pH, hydration and the permeability barrier that helps retain water and protect against bacteria and other pathogens. This loss of moisture causes the skin to release inflammatory signals that eventually reach the blood. Scientists are looking at ways to use topical creams to reverse age-related skin damage to prevent the development of downstream diseases caused by inflammation.³

Much like our financial situation, there are things we can do to help ward off the effects of inflammaging. Fortunately, many are the same tactics that enable a healthier lifestyle, like aerobic and resistance exercise, which can help reduce weight problems strongly associated with a pro-inflammatory state. Dietary supplements such as amino acids or protein, vitamin D and polyunsaturated fatty acids are known to have anti-inflammatory and antioxidative properties. That age-old advice of adopting the anti-inflammatory Mediterranean diet turns out to be the only behavioral factor that is consistently associated with a lower risk of frailty in old age.⁴

Other components of an anti‑inflammation diet include brightly colored fruits and vegetables, such as cooked tomatoes, carrots, squash and broccoli. They contain substantial amounts of antioxidants, which are believed to reduce the effect of free radicals that damage cells. Other inflammation fighters include high-fiber foods, such as legumes and whole grains (e.g., barley, oats, bran) and fish rich with omega-3 fatty acids (e.g., salmon, mackerel, sardines, tuna).⁵

In short, diet and exercise can help control inflammaging so that our internal organs retain youthful qualities as well as our external appearance. 

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! 

 

 

Content prepared by Kara Stefan Communications.

 

¹ James Kingsland. Medical News Today. 2021. “Immune aging and how to combat it.” https://www.medicalnewstoday.com/articles/immune-aging-and-how-to-combat-it. Accessed May 17, 2021.

² WebMD. March 18, 2021. “How to Reduce Inflammation as You Age.” https://www.webmd.com/healthy-aging/how-to-reduce-inflammation-as-you-age#1. Accessed May 17, 2021.

³ Dana Smith. University of California at San Francisco. March 13, 2019. “Skin Repair Reduces ‘Inflamm-Aging’ Factors Linked to Chronic Disease.” https://www.ucsf.edu/news/2019/03/413576/skin-repair-eliminates-inflamm-aging-linked-chronic-disease. Accessed May 17, 2021.

⁴ Luigi Ferrucci and Elisa Fabbri. National Institutes of Health. Sept. 20, 2018. “Inflammageing: chronic inflammation in ageing, cardiovascular disease, and frailty.” https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6146930/. Accessed May 17, 2021.

⁵ Harvard Medical School. May 1, 2020. “Quick-start guide to an anti‑inflammation diet.” https://www.health.harvard.edu/staying-healthy/quick-start-guide-to-an-antiinflammation-diet. Accessed May 17, 2021.

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.

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

 

 

How to Plan for Old Age

 

Thelma Sutcliffe turned 114 years old in April, making her the oldest living American and the seventh-oldest person in the world, according to the Gerontology Research Group. The Omaha, Nebraska, resident attributes her relative good health and longevity to the fact that she never had children, never smoked and made it a habit not to worry.¹
 
Not many people make it to 114, but those who do outlive their friends and loved ones. That’s why it’s important to develop passions and hobbies you can enjoy for the rest of your life, no matter how long you live. It’s also a good idea to establish a plan that provides a confident retirement. That may include living below your means and casting a wide net of friends to help ensure you have close ones to grow old with. It also may include buying insurance policies that offer reliable income. If you’d like help planning, please give us a call.

One key factor to consider is where you want to live in retirement, particularly during the later years when you may need help. Paying for full-time care in your own home can be very expensive. However, COVID-19 has caused some hesitation moving to assisted living and nursing homes due to the potential for disease outbreaks in the future. You may want to start thinking and talking with family members about the possibility of moving in with them later in life, if necessary. You could even use proceeds from the sale of your home to build an accessory dwelling unit (ADU) next to their home. Also known as a backyard cottage or granny flat, an ADU can help cut expenses to pay for in-home care – so there is less burden on family members.²
 
Some ADU floorplans even feature two bedrooms, so you could hire a full-time caregiver and provide room and board. Later, your heirs can use the ADU for rental income or to plan for their own long-term care.
Apart from financial and housing plans, consider developing hobbies you can enjoy later in life. You may cultivate a love of history, art or music early in retirement through volunteer efforts. For example, work as a docent, usher or fundraiser for a local museum, art gallery or concert hall. A heartfelt appreciation of the arts has a way of eliciting joy, even if you develop mobility or cognitive issues.
 
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 Leah Asmelash. CNN. April 29, 2021. “She just became the oldest living person in the US and all she wants is to be able to eat meals with her friend again.” https://www.cnn.com/2021/04/29/us/oldest-living-american-trnd/index.html. Accessed May 3, 2021.

² Zillow. March 18, 2021. “What is an Accessory Dwelling Unit (ADU) – and Tips for Building One.” https://www.zillow.com/resources/stay-informed/2021/03/18/how-to-build-accessory-dwelling-unit-adu/. Accessed May 3, 2021.

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.

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.

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

 

 

Updates on FSAs and HSAs

 

A recent survey found that 40% of respondents with access to a health savings account (HSA) do not fully understand how they work. Basically, HSAs are paired with high-deductible health plans to help people save money for their plan’s high deductible, copayments and other qualified expenses.

However, the real value of an HSA lies in its tax-free advantages. Contributions are made tax free (reducing your current taxable income) and can be invested for tax-free growth in a variety of mutual funds, stocks and exchange-traded funds (ETFs). Additionally, HSA withdrawals are tax free as long as they are used to pay for eligible products and services.

In 2021, the contribution limit for a health savings account is $3,600 for individuals and $7,200 for families; anyone age 55 or older can make an additional $1,000 annual contribution.¹

Throughout the past year, Congress expanded the eligible uses of these funds, further increasing their value and allowing you to purchase a wider range of personal and health-related products using tax-free income. If you have access to one of these accounts through work or purchase health insurance on the individual market, they are a good idea to include in a financial portfolio. If you’d like assistance determining how to invest your HSA savings to complement the rest of your portfolio, don’t hesitate to call us for advice.

The CARES Act, passed in spring 2020, expanded the types of products that can be paid for with HSA or employer-sponsored Flexible Spending Account (FSA) savings. Under the new regulations, these funds can be used to pay for over-the-counter medications, like ibuprofen and Claritin. Other products now eligible for purchase with HSA and FSA funds include:²

 

·         Facial cleansers, face wipes

·         Prescription acne medications and over-the-counter acne treatments

·         Sunscreen and medicated body lotions designed to alleviate certain skin conditions

·         Lip balms for sun protection and chapped lips

·         Hot and cold therapy packs, cooling headache pads

·         Heartburn medication

·         Allergy relief

·         Toothache relief, such as Orajel

·         Humidifiers, air purifiers and filters — with a letter of medical necessity (LMN) from a physician

·         Dietitian fees, with an LMN

·         Some mental health treatments and services

·         Prescription hormone replacement therapy

·         Birth control pills

·         Pregnancy tests

·         Fertility tests

·         Fertility treatments such as in vitro fertilization, intrauterine insemination, fertility medication, the temporary storage of eggs or sperm

·         Breast pumps, breastfeeding classes, absorbent breast pads, breast milk storage bags

·         Feminine care items, such as pads, tampons, cups, sponges

In February, the IRS published guidelines giving employers more flexibility to extend how long employees have to use their FSA funds. Normally these are “use it or lose it” by the end of the year, with a short grace period. However, due to job interruptions last year, new guidelines allow employers to extend those funding rules to carry over or extend the grace period for unused health and/or dependent care FSA funds for plan years 2020 and 2021 to the immediately following plan year. Note that the new rules permit employers to make these changes, but it’s up to the employer to decide what to do.³

FSA owners with more time and opportunities to spend their funds have many new approved items for which they can use that money – even for gift ideas (these expenses are approved for an HSA as well):⁴

 

·         Ancestry kits (a fun holiday gift for family members)

·         Baby monitors and potty-training undies (baby shower gift)

·         Birth classes and medically certified doulas

·         Prescription sunglasses (for a winter ski trip)

·         Nicotine gum, patches, lozenges, inhalers, nasal sprays (New Year’s resolution to stop smoking)

·         Moisturizers with SPF protection (such as expensive anti-aging facial lotions)

The Personal Health Investment Today (PHIT) Act is a bipartisan bill introduced in March that, if passed, would permit the use of pre-tax FSA and HSA funds to pay for healthy living products and activities, such as gym memberships, fitness equipment and sports-league fees.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 Brian O’Connell. Omaha World-Herald. March 4, 2021. “Saving For Medical Expenses With An HSA.” https://omaha.com/business/investment/saving-for-medical-expenses-with-an-hsa/article_3412a1e3-63be-51f0-8ebe-f6c49b3ddb2c.html. Accessed March 23, 2021.

² Regan Olsson. BannerHealth. July 19, 2020. “7 Things Covered by Your FSA That Might Surprise You.” https://www.bannerhealth.com/healthcareblog/advise-me/7-things-covered-by-your-fsa-that-might-surprise-you. Accessed March 23, 2021.

³ JD Supra. Feb. 22, 2021. “IRS Notice 2021-15 Provides Clarity Regarding FSA Relief Available Under Consolidated Appropriations Act Benefits Law Update.” https://www.jdsupra.com/legalnews/irs-notice-2021-15-provides-clarity-3663572/. Accessed March 23, 2021.

⁴ Megan Leonhardt. CNBC. Dec. 15, 2020. “15 surprising things you can buy with your leftover FSA dollars.” https://www.cnbc.com/2020/12/15/15-surprising-things-you-can-buy-with-your-leftover-fsa-dollars-.html. Accessed March 23, 2021.

⁵ Jody Heemstra. DRG News. March 19, 2021. “Thune, Murphy Reintroduce Bill to Encourage Healthy Living.” https://drgnews.com/2021/03/19/thune-murphy-reintroduce-bill-to-encourage-healthy-living/. Accessed March 23, 2021.

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