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

Can Money Buy Happiness

In 2010, a study was published by two Nobel prize-winning economists purporting that people with more money feel better about their lives. However, that held true only up to an annual salary of $75,000 ($90,000 in today’s dollars). Past the $75k threshold, people weren’t necessarily any happier.

That scenario has apparently changed in the ensuing decade. A recently updated version of the study now concludes that happiness continues to increase with income – without a cap.1

How do you define happy? The way we quantify happiness during our working years may be different from retirement. That’s largely because some of us define ourselves by our work or career status – how much we earn and whether we’ve reached our professional goals. Once we retire, the focus is put less on these things – our happiness can be shifted towards other things.

It may be family, travel, improving our golf or tennis game, pursuing hobbies, or checking off that bucket list. When we are in the retirement planning stage, it’s important to think about what will make you happy in retirement. From there, you can establish a number – your total assets – that support those concrete goals. That’s different from coming up with a random number and then living whatever lifestyle you can with it. If you’d like to discuss your retirement goals in more depth, feel free to contact us.

The 2020 World Happiness Report promises to be an interesting read because it’s the first in which data was collected during a global pandemic. While you would think the responses would be dreary, there are some positive patterns to consider. Across 12 countries, people affected by lockdowns developed stronger relationships with friends, neighbors and even the front-line workers at their local stores. In fact, 62% reported that living under a lockdown made them feel more connected to their community. More than half (58%) determined that those human connections are what make them truly happy.2

If you speak with retirees from earlier generations, there has long been a common theme that the important factor affecting a happy retirement is health – not wealth. More than 80% of today’s retirees agree. According to a recent Merrill Lynch study, regardless of wealth, Americans age 50 and older say that their biggest worry in preparing for retirement is being able pay for health-care expenses.3

Everyone’s ideal retirement is different. Your actual plans are what can change the goalposts for “the number” you need to have saved by retirement. While traditional retirement advice recommends we save anywhere from 10 to 15% of current income for retirement, you may be able to save less – or need to save more – to achieve the specific lifestyle you want in retirement. In other words, budget for the lifestyle you plan to enjoy, not the income that you presently earn.4

It’s one thing to scale your annual retirement income to your lifestyle – but what about the big-ticket risks? The Society of Actuaries (SOA) has identified a number of post-retirement risks that can affect income, such as the need for long-term or nursing care.5 By unbundling the income and insurance elements of your plan, you may be better able to afford the retirement lifestyle that will make you happy.6

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 Alex Ledsom. Forbes. Feb. 7, 2021. “New Study Shows That More Money Buys More Happiness, Even For The Rich.” https://www.forbes.com/sites/alexledsom/2021/02/07/new-study-shows-that-more-money-buys-more-happiness/?sh=561c2ff770d5. Accessed March 1, 2021.

2 World Happiness Report. Feb. 24, 2021. “Let’s Build Back Happier!” https://worldhappiness.report/blog/lets-build-back-happier/. Accessed March 1, 2021.

3 Kathleen Coxwell. New Retirement. Jan. 9, 2020. “65 Retirement Tips for a Healthy, Wealthy and Happy Retirement!” https://www.newretirement.com/retirement/retirement-tips-healthy-wealthy-happy-retirement/. Accessed March 1, 2021.

4 Paula Pant. The Balance. Feb. 11, 2021. “Plan for Retirement Based on Lifestyle, Not Current Income.” https://www.thebalance.com/plan-for-retirement-based-on-lifestyle-not-current-income-453919. Accessed March 1, 2021.

5 Ken Hawkins. Investopedia. Jan. 4, 2021. “Common Post-Retirement Risks You Should Know.” https://www.investopedia.com/articles/retirement/08/post-retirement-risks-outlive-assets.asp. Accessed March 1, 2021.

6 Jerry Golden. Kiplinger. Nov. 4, 2020. “Find the Income to Insure Against Retirement Risks.” https://www.kiplinger.com/retirement/601671/find-the-income-to-insure-against-retirement-risks. Accessed March 1, 2021.

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

 

Vaccines & the Stock Market

 

If there’s one thing that can move the economy and stock market forward, it’s hope. This year, that hope is being presented in the form of COVID-19 vaccines. Economists and Wall Street analysts have long proclaimed that comprehensive economic recovery is not possible until we have contained the virus. The prospect of wide distribution of effective vaccines and herd immunity by the end of the year has put recovery in our crosshairs.¹

 

What does this mean for investors? Review your investment portfolio and get your financial house in order. If we are due for improvement, it could be beneficial to get into the market when prices are low, rebalance often and take advantage of market dips for additional investment opportunities. As always, we are here to help guide on the best way to meet your financial goals.

 

This hopeful sentiment was echoed by CNBC’s ever-enthusiastic “Mad Money” host, Jim Cramer. He recently proclaimed that the U.S. stock market will be poised for even greater heights if President Biden is successful in forging a plan to quickly and widely distribute the COVID vaccinations.²

 

Phil Orlando, Federated Hermes’ chief equity market strategist and one of Wall Street’s bullish market analysts, advocates a combination of vaccine rollout and additional fiscal stimulus. He believes one of the surefire ways to boost economic growth is to help lower-skilled unemployed people find work. He predicted that by July 4, the U.S. will be coronavirus-free, setting the stage for a “monster market year.”³

 

Unfortunately, European stocks continue to struggle despite market exuberance in the U.S. over a new presidential administration. Part of this concern may be that many EU countries have suffered setbacks due to subsequent and more virulent strains of the coronavirus. As before, the U.S. continues to lag on the worst of the effects of the virus as they occur.⁴ This foreshadowing makes it all the more important that vaccines get into as many arms as possible in the next few months.

 

Market sectors that have suffered terribly from calls for lockdowns and social distancing are likely to benefit the most from widespread distribution of the COVID-19 vaccine. This includes the aviation and hospitality sectors, as well as the office and retail property market in Europe and the U.S. Of course, the opposite could be true: Pandemic beneficiaries could see a loss in revenues once people get out and about — for example, Amazon, Netflix and Zoom Video.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 Robin Wigglesworth. Financial Times. Dec. 2, 2020. “The ‘everything rally’: vaccines prompt wave of market exuberance.” https://www.ft.com/content/d785632d-d9a0-45ae-ae57-7b98bb2fb8d6. Accessed Jan. 25, 2021.

² Kevin Stankiewicz. CNBC. Jan. 20, 2021. “Jim Cramer says the stock market could ‘explode’ if Biden improves Covid vaccine rollout.” https://www.cnbc.com/2021/01/20/jim-cramer-stocks-could-explode-if-biden-improves-covid-vaccine-rollout.html?recirc=taboolainternal. Accessed Jan. 25, 2021.

³ Stephanie Landsman. CNBC. Jan. 20, 2021. “Covid-19 vaccines will end pandemic in U.S. by early summer, Federated Hermes’ chief equity market strategist predicts.” https://www.cnbc.com/2021/01/20/covid-19-vaccines-will-end-pandemic-in-us-by-early-summer-federated.html. Accessed Jan. 25, 2021.

⁴ Jim Armitage. Evening Standard. Jan. 25, 2021. “FTSE 100 rises slightly as investors balance surging Wall Street with Covid worries.” https://www.standard.co.uk/business/ftse-100-rises-covid-joe-biden-quarantine-b900967.html. Accessed Jan. 25, 2021.

⁵ Sumathi Bala. CNBC. Nov. 23, 2020. “Hopes for a coronavirus vaccine are creating market winners – and losers.” https://www.cnbc.com/2020/11/23/investing-coronavirus-vaccine-creates-market-winners-and-losers-.html. Accessed Jan. 25, 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. 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

 

When To "Buy Low"

 

The beginning of the year is typically full of hope. We make New Year’s resolutions, and it may take a few months for our enthusiasm (and vigilance) to wane. There’s also the “January Effect,” when the stock market generally gets a performance boost thanks to tax harvesting in December and subsequent reinvestments. But even that phenomenon tends to fade.¹

 

When it comes to investing in the stock market, we recommend a strategic approach. First, you want to consider your big picture — which includes how you ultimately want to use accumulated assets (e.g., college tuition, retirement) and when you’ll need them. You also want to make sure you don’t take on too much risk, so that requires a strategic asset allocation across a diverse group of investments. Finally, one of the basic tenets of stock investing is to buy low and sell high. We can help you with all of these tactics.

 

We expect 2021 to be an interesting year. Assuming wide distribution of COVID-19 vaccines and successful containment of the virus, the economy should get back on track. But as we saw in 2020, even the coronavirus didn’t have a long-term impact on the stock market.

 

With that said, Merrill Lynch sees a broad market uptrend in 2021. In equities, the money manager sees upside in cyclical sectors (e.g., financials, materials, industrials), U.S. small-cap value stocks and emerging markets — which are supported by the continued downtrend in the U.S. dollar.² Bear in mind that while some of these investments pose higher risk, they also follow the tenet of buying low and selling high. The key is to find stocks that are currently selling at low prices but have the potential to rise given (1) the current economic environment, (2) market trends and (3) individual company fundamentals.

  

When rebalancing, if prices seem too high to reinvest, don’t be hesitant to hold cash for a short time. Investment legend Warren Buffett maintained a highly liquid allocation over the past year, but he did so in preparation to pounce on good buying opportunities when they surfaced.⁴

 

On the other hand, there are times when buying low may not be advisable. For example, airline stocks continue to struggle despite congressional relief. Industry experts predict that revenues are unlikely to return to pre-pandemic levels for several years.⁵

 

Note that stocks tend to rise on positive news, especially if that news shows some promise of economic growth. A good example of this is when, on Jan. 19, Treasury Secretary nominee Janet Yellen advised Congress to “act big” with regard to increased coronavirus stimulus relief. Following her remarks, the Dow Jones Industrial Average rebounded from a recent losing streak and both the S&P 500 and the Nasdaq made significant gains.⁶

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 Eric Reed. The Street. Jan. 17, 2021. “January Effect: What Is It and Why Does It Occur?” https://www.thestreet.com/investing/what-is-the-january-effect. Accessed Jan. 20, 2021.

² Merrill Lynch. January 2021. “Weak Periods May Be Buying Opportunities.” https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/Viewpoint_January_2021_Merrill.pdf. Accessed Jan. 20, 2021.

³ Sachin Nagarajan. Morningstar. Jan. 15, 2021. “A Responsible Version of Market-Timing.” https://www.morningstar.com/articles/1017362/a-responsible-version-of-market-timing. Accessed Jan. 20, 2021.

⁴ Theron Mohamed. Business Insider. Jan. 18, 2021. “Warren Buffett advised NFL linesman Ndamukong Suh to be ready to buy when bargains appear.” https://markets.businessinsider.com/news/stocks/warren-buffett-advises-ndamukong-suh-be-ready-buy-bargains-2021-1-1029977459. Accessed Jan. 20, 2021.

⁵ Alan Farley. Investopedia. Dec. 22, 2020. “Wrong Time to Buy Airline Stocks.” https://www.investopedia.com/wrong-time-to-buy-airline-stocks-5093391. Accessed Jan. 20, 2021.

⁶ Joseph Woelfel. The Street. Jan. 19, 2021. “Stocks End Higher as Yellen Tells Congress to ‘Act Big’ on Stimulus.” https://www.thestreet.com/markets/stock-market-dow-jones-industrial-average-banks-yellen-011921. Accessed Jan. 20, 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. 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

The Coronavirus & Other Oddball Risks to Retirement

One of the reasons investing never gets boring is because it is an ever-changing, never-sleeping industry that presents new opportunities — and new risks — every day.

One of the most recent threats to the global business economy, and therefore investors, is the coronavirus and its far-reaching impact. China, home to much of the world’s manufacturing, has been hard hit by the epidemic. In its wake, travel has been one of the first casualties. This is bad news not just for tourists, but for the thousands of business representatives who fly in and out of the country each day. The virus outbreak among Chinese workers threatens business trade and supply chain production for markets throughout the world.1

The outbreak of coronavirus is but one example of the types of unexpected risks that can disrupt a wide variety of industries — and one example of why financial advisors recommend diversification. While all investments involve risks, there are additional risks associated with foreign investing, such as currency fluctuations, economic instability and political developments. Building an investment portfolio that includes uncorrelated asset classes can help defend against the wide range of both anticipated and unanticipated risks that investors face. We’re happy to review your portfolio to assess how much market risk you might be exposed to; just give us a call.

If you don’t think the coronavirus has impacted U.S. companies, think again. McDonald’s, Starbucks and H&M have all had to shutter stores in China. Disney closed its Shanghai and Hong Kong theme parks. The Marriott, Hyatt and Hilton hotel companies have suspended some operations in areas most affected by the virus. Carnival and Royal Caribbean Cruises have been forced to cancel scheduled voyages to help curb the spread from one country to another.2

The problem isn’t isolated to retail stores, either. Technology companies like Apple and Google have restricted employee travel either completely or only for “business-critical situations.” Additionally, General Motors, Honda and Nissan have suspended auto production.3

According to Wilbur Ross, the U.S. Secretary of Commerce, there is perhaps a silver lining to the crisis. In a recent interview, he intimated that if U.S. manufacturers returned many of their offshore operations to America, they could better control such risks.4

However, risk is risk — and it takes on many different guises, even domestically. Some investment analysts warn that political campaigns heading toward the November elections may be a primary source of market volatility throughout the year. The two major political parties appear as divided as ever with policies that offer both positive and negative components. Regardless of party affiliation, both offer platforms that seem likely to increase spending and expand our nation’s debt.

This dynamic is likely to stretch U.S. Treasury valuations even further, while the relationship between the Federal Reserve and the investment markets may continue to be strained. While the Fed altered monetary policy in 2019 to accommodate markets, there could be less wiggle room now to combat any further risks to the economy such as rising asset price inflation.5

And then there’s the problem of trade wars promulgated by aggressive 140-character tweets — an approach that tends to pain Republicans and Democrats alike, not to mention Wall Street.6

1 Franklin Templeton. Jan. 24, 2020. “Monitoring China’s Outbreak and Other Potential Market Shocks.” https://www.franklintempleton.ca/en-ca/investor/article?contentPath=html/ftthinks/common/blogs/monitoring-chinas-outbreak-and-other-potential-market-shocks.html. Accessed Feb. 5, 2020.

2 Sergei Klebnikov. Forbes. Jan. 28, 2020. “Coronavirus Hits Big Business: These Companies Are Cutting Operations And Restricting Travel To China As Disease Spreads. https://www.forbes.com/sites/sergeiklebnikov/2020/01/28/coronavirus-hits-big-business-these-companies-are-cutting-operations-and-restricting-travel-to-china-as-disease-spreads/#509d69381264. Accessed Feb. 5, 2020.

3 Megan Cerullo. CBS News. Jan. 30, 2020. “China coronavirus causing chaos for U.S. companies.” https://www.cbsnews.com/news/coronavirus-brings-business-operations-in-china-to-standstill/. Accessed Feb. 5, 2020.

4 BBC News. Jan. 31, 2020. “Wilbur Ross says Coronavirus could boost US jobs.” https://www.bbc.com/news/business-51276323. Accessed Feb. 5, 2020.

5 Sonal Desai. Franklin Templeton. Jan. 14, 2020. “On My Mind: Will the US Survive the Politics in 2020?” https://www.franklintempletonnordic.com/investor/article?contentPath=html/ftthinks/common/cio-views/on-my-mind-will-the-us-economy-survive-the-politics-in-2020.html. Accessed Feb. 5, 2020.

6 Ibid.

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