Imber Wealth Advisors

Tuesday, October 6, 2020

Potential Changes in Health Care

Health care innovations that were slow to take root have suddenly taken off during this pandemic. Working from home used to be a luxury enjoyed by relatively few workers. Now it is seriously being considered as a workable, cost-saving, long-term solution for many companies. The same goes for what they call “digital health.” Things like virtual office visits were not exactly the norm pre-COVID. That’s all changed, and potentially for the better.

Health care industry experts say the exposure digital health has received in recent months has helped practitioners truly understand and embrace its value. Moving forward, advocates see this as a way to create customized, patient-centric and value-based care plans by maximizing technology and ensuring a patient’s entire medical team is on the same page. Some predict that telehealth will become the norm for initial point-of-care visits for many non-emergency ailments, and in some cases enable providers to decide if a situation calls for urgent or emergency care. Telehealth could even lead to increased provider calls, considering how long people often wait to see a doctor because they don’t feel well enough to leave home.¹

In other words, greater willingness to use — and incentivize — telehealth can help people get diagnosed and treated earlier, which can help prevent conditions from worsening before a patient sees a doctor. While digital technology alone may not reduce the cost of providing health care, it is a good first step to improving the health of millions of Americans.² This can be particularly beneficial for the elderly, who for mobility reasons or cognitive decline may not seek the help they need. As we prepare for retirement, consider how to position your insurance plans to help maximize what technology, telehealth and digital medical equipment have to offer. If you’d like guidance on ways to help pay for future medical care, we can share ideas on what’s available.

Digital health isn’t without its challenges, including privacy and fraud concerns, as well as how to reach patients without access to or knowledge of available technology. And while there are definitely times when a physician needs to conduct a hands-on examination, telehealth is starting to be viewed as today’s answer to yesteryear’s house call.³

The future of digital health may see more widespread use through remote patient monitoring (RPM), such as wearable devices like smartwatches. This type of technology can even be helpful in predicting future virus outbreaks through early-warning detection of individuals with symptoms, as well as contact tracing to prevent further exposure and spread.⁴

The problem of universal health insurance coverage has been exacerbated by today’s pandemic. A recent study by the Kaufman Family Foundation found that as people lost jobs in the early days of the country’s lockdown, nearly 27 million also lost health insurance due to unemployment. The good news is that about 80% of those people are eligible for Medicare or subsidized insurance via the marketplace. However, even with this opportunity, research shows that not everyone understands that they can apply for coverage while out of a job, meaning there is still an education gap to be addressed. As for the rest of 2020, an Urban Institute report estimates that 48 million nonelderly people reside in a household in which someone will lose a job by the end of the year.⁵

In an effort to address universal coverage, the U.S. Labor Department recently proposed pooled employer plans to begin in January 2021. However, even if such a move does gain traction in the future, it will apply only to those who are employed and work for an employer that participates in a pooled plan.⁶

With a strong financial plan in place, we can help you prepare to leave the workforce and live comfortably. Take control of your financial future and give us a call at (734) 769-1719 today!

¹ Mike Matteo. BenefitsPRO. Aug. 20, 2020. “Why health care should not ‘return to normal’ post COVID.” https://www.benefitspro.com/2020/08/20/why-health-care-should-not-return-to-normal-post-covid/. Accessed Sept. 2, 2020.

² AHIP. July, 2020. “Telehealth Growth During COVID-19.” https://www.ahip.org/wp-content/uploads/Telehealth-Infographic-2020.pdf. Accessed Sept. 2, 2020.

³ Ricardo Alonso-Zaldivar. Martinsville Bulletin. Aug. 31, 2020. “Fad or future? Telehealth expansion eyed beyond pandemic.” https://martinsvillebulletin.com/news/national/govt-and-politics/fad-or-future-telehealth-expansion-eyed-beyond-pandemic/article_791a579e-bc8c-55df-8a60-8d4e0568e012.html. Accessed Sept. 2, 2020.

⁴ Lucienne Marie Ide. Medical Electronics. Aug. 31, 2020. “Disrupting Healthcare Through Tech: The Next Wave of Health IT Innovation.” https://www.medicaleconomics.com/view/disrupting-healthcare-through-tech-the-next-wave-of-health-it-innovation. Accessed Sept. 2, 2020.

⁵ Greg Land. BenefitsPRO. Sept. 2, 2020. “COVID-19 and the uninsured rate: What’s the deal?” https://www.benefitspro.com/2020/09/02/covid-19-and-the-uninsured-rate-whats-the-deal/. Accessed Sept. 16, 2020.

⁶ Melanie Waddell. BenefitsPRO. Aug. 21, 2020. “DOL issues proposed rule on pooled employer plans.” https://www.benefitspro.com/2020/08/21/dol-issues-proposed-rule-on-pooled-employer-plans-412-102825/. Accessed Sept. 2, 2020.

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

Thursday, October 1, 2020

Employers: Lessons From the Pandemic

We’ve learned a lot about infectious diseases this year, as well as how to adapt our lifestyles in response to a pandemic. It will be interesting to see if and how U.S. businesses adjust their operational models to account for the potential for future pandemics or other catastrophic events.

According to the employment-population ratio, nearly half of the U.S. population was out of work (which includes those no longer actively looking for work), with economists predicting 30 million jobs must be created to return the ratio to its 2000 peak.¹

If your household has suffered a job loss or reduced income and you need assistance with creating a budget, or if you’re just not sure about your future retirement income and want to create an income plan, please contact us. We’re happy to evaluate your financial circumstances and provide guidance.

Work-life balance was a problem before the pandemic, but now that issue is being experienced in another context. Many employees have been able to migrate seamlessly to working from home using software to stay connected with colleagues and clients. However, with children home from school and now responsible for online learning, work-life balance can be even more difficult.

Many white-collar professionals have discovered the need for one — or two — in-home offices for spouses who are working professionals. While many are able to get their work completed independently, it is important to still be accessible to colleagues at certain points of the workday. Despite these challenges, some companies may increasingly find remote working to offer lower-cost, higher-productivity benefits if they can overcome some of the issues they currently face.²

As for working from home this year, it will be interesting to see if tax laws change before filing season next April. After all, according to a recent report from the Federal Reserve Bank of Dallas, more than 35% of Americans employed in May of this year were working entirely from home — up from just over 8% in February. Unfortunately, the Tax Cuts and Jobs Act disallowed W-2 employees from being able to deduct home office expenses.³

A work-from-home business model could also expand the net for recruiting talented employees. After all, many top companies are located in big cities where real estate sells for a premium. This is a tough life for young adults saddled with student loan debt. With a mobile workforce that allows employees to live wherever they want, companies can offer a competitive advantage when it comes to attracting top talent. In turn, Millennials and Gen Zers can move away from big city life and buy homes in less expensive areas.⁴ This could potentially help them save more money and turn around the fortunes of the country’s more rural areas.

It would be nice to keep your job, move somewhere with a lower cost of living and be able to keep your salary level. However, some economists claim that’s not going to be the case moving forward. Because many businesses have lost revenues due to reduced consumerism throughout this pandemic, wages are likely to stagnate for several years. Then again, the cost of living isn’t expected to increase dramatically in the near-term either.⁵ By moving to a less expensive locale, employees may be able to save more money even if they don’t get a salary bump in the foreseeable future.

Unfortunately, that means that any wage cuts employees received this year may not recover anytime soon. According to economists at the Federal Reserve Board, businesses initially cut wages by nearly two times as much due to the pandemic than they did during the Great Recession.⁶

With a strong financial plan in place, we can help you prepare to leave the workforce and live comfortably. Take control of your financial future and give us a call at (734) 769-1719 today!

¹ Yung Li. CNBC. June 29, 2020. “Nearly half the U.S. population is without a job, showing how far the labor recovery has to go.” https://www.cnbc.com/2020/06/29/nearly-half-the-us-population-is-without-a-job-showing-how-far-the-labor-recovery-has-to-go.html. Accessed Aug. 12, 2020.

² Knowledge@Wharton. May 4, 2020. “Working from Home: Navigating the Pandemic’s New Normal.” https://knowledge.wharton.upenn.edu/article/working-from-home-navigating-the-pandemics-new-normal/. Accessed Aug. 12, 2020.

³ Kelly Phillips Erb. Forbes. Aug. 12, 2020. “The Ultimate Forbes Guide to Working from Home.” https://www.forbes.com/sites/kellyphillipserb/2020/08/12/taxes-vpns-and-office-hours-the-ultimate-forbes-guide-to-working-from-home/#90a042442e7e. Accessed Aug. 12, 2020.

⁴ Parag Khanna and Kailash K. Prasad. Politico. May 13, 2020. “How Coronavirus Could Make People Move.” https://www.politico.com/news/magazine/2020/05/13/how-coronavirus-could-upend-human-migration-251715. Accessed Aug. 12, 2020.

⁵ Jessica Peres. TheDenverChannel.com. June 30, 2020. “Economists say wages will stay stagnant amid pandemic.” https://www.thedenverchannel.com/news/national/coronavirus/economists-say-wages-will-stay-stagnant-amid-pandemic. Accessed Aug. 12, 2020.

⁶ Carmen Reinicke. Business Insider. June 26, 2020. “Pandemic wage cuts are roughly double what they were in the Great Recession, study shows.” https://www.businessinsider.com/wage-cuts-coronavirus-pandemic-twice-great-recession-fed-study-shows-2020-6. Accessed Aug. 12, 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.

Friday, September 11, 2020

What's Going on in Real Estate?

Overall, the U.S. residential real estate market has held up fairly well so far during the global pandemic. Industry experts say that the current economic decline is expected to affect retirement a bit differently than the Great Recession, largely due to housing prices remaining strong in many areas of the country.¹

One reason is because, early on, the CARES Act mandated forbearance relief for homeowners with federally backed mortgages (eg., FHA, VA, USDA, Fannie Mae and Freddie Mac).²

According to McKinsey & Company, the housing and construction industry has suffered from problems ranging from reduced demand to supply-chain issues. However, the firm believes that the real estate industry can emerge from the economic decline even stronger after the coronavirus crisis. The problem — as it is for most other industries — is how long will it take to contain the virus and re-energize the economy.

The McKinsey Global Institute estimates that in the current circumstances, the economy could be back on track by 2021. However, additional lockdowns and restrictions could mean that the economy may not return to 2019 levels until 2023 at the earliest.³

From a demographic point of view, pandemic or not, the housing cycle is on tap to experience new demand throughout the next 10 years. Many Millennials have finally hit their stride in the work world after holding off on buying a home until they were on stronger financial footing. In some cases, they are wanting to leave large metropolitan areas, looking instead at smaller, rural areas for affordability.⁴

Speaking of Millennials, they are now largely considered a driving force in the residential real estate market. In 2018, young adults represented the largest share of home buyers at 37%. High-earning Millennials are even dipping their toes into the luxury market. As part of this trend, they favor luxury condos, communities that promote healthy living and technology-enabled home offices.⁵

The home office is another influence of the pandemic that is impacting commercial real estate as well. Now that many companies recognize that their white-collar employees can simply work from home, this changes how they view the necessity of expensive office buildings and corporate headquarter campuses. In the future, we may see corporations cut their overhead dramatically in a move that could have long-term repercussions in commercial real estate.⁶

At Imber Wealth Advisors, we help individuals and families of Southeast Michigan plan for retirement.

With a strong financial plan in place, we can help you prepare to leave the workforce and live comfortably. Take control of your financial future and give us a call at (734) 769-1719 today!

¹ Kim Blanton. Center for Retirement Research at Boston College. July 21, 2020. “Pandemic Puts More Retirements at Risk.” https://squaredawayblog.bc.edu/squared-away/pandemic-puts-more-retirements-at-risk/. Accessed Aug. 5, 2020.

² Consumer Financial Protection Bureau. July 1, 2020. “Learn about mortgage relief options and protections.” https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/mortgage-relief/. Accessed Aug. 5, 2020.

³ McKinsey & Company. May 8, 2020. “How construction can emerge stronger after coronavirus.” https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/how-construction-can-emerge-stronger-after-coronavirus. Accessed Aug. 5, 2020.

⁴ Merrill Lynch. May 2020. “Welcome To Phase II — The Bridge.” https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/Viewpoint_May20_Merrill.pdf. Accessed Aug. 5, 2020.

⁵ Diane Hartley. RISMedia. July 15, 2020. “Millennial Home-Buying Trends in the 2020 Luxury Real Estate Market.” https://rismedia.com/2020/07/15/millennial-home-buying-trends-2020-luxury-market/. Accessed Aug. 5, 2020.

⁶ Andrea Felsted. Advisor Perspectives. July 28, 2020. “Working From Home Is Terrible News for Landlords.” https://www.advisorperspectives.com/articles/2020/07/28/working-from-home-is-terrible-news-for-landlords. Accessed Aug. 5, 2020.

Tuesday, September 1, 2020

Is it Time to Go Global?

Competitive edge is a real factor. Here in the U.S., we boast that capitalism is the key to our success. Unfortunately, that key has gotten a little rusty lately thanks to the rampant spread of COVID-19 throughout the country. Some areas have locked down or experienced slowed economic growth because of safety protocols that prevented business as usual.

The principles of capitalism – such as competition and supply and demand – have been crippled.¹ On the other hand, countries that were hit early on with the pandemic have managed to control the contagion and reopen their economies.² Market analyst Carl Kawaja believes this comparative advantage gives way to more global opportunities than the U.S. can currently pursue. In his words: “I like to compare it to basketball – a sport where the U.S. historically has been fairly dominant. But then Argentina started getting better, and Greece started getting better, and Spain started getting better. And, the next thing you know, the U.S. lost the Olympics.”³

The good news is U.S. investors can take advantage if international companies pull ahead in the near-term while we struggle to flatten the curve of contagion. If you would like to consider ways to incorporate more global equity opportunity within your asset allocation, we’re happy to work with you. Don’t hesitate to reach out to schedule a consultation.

Regardless of the state of the pandemic, it’s important to recognize that not all the best investment opportunities are in the United States. According to the World Bank, in 2018 the nation represented only 44% of world stock market capitalization.⁴

Investing internationally does have its risks. But there are ways to do it strategically, such as investing in global mutual funds or ETFs, leaving the day-to-day stock picking to a professional money manager, whose job it is to weigh those risks, such as currency fluctuation, lack of government regulation, economic instability and the disruption of civil unrest. This means professional market analysts do the research and move assets in and out of geographic regions on your behalf.⁵

In recent weeks, Blackrock commented Europe has a “leg up” over the U.S. as well as other parts of the globe, citing the EU’s health care infrastructure and policy response to the pandemic. The money manager noted the region’s monetary and fiscal support provided a cushion during the pandemic that left many countries able to recover faster economically.⁶

Investors seeking income may consider global bonds, which have historically outperformed during short-term periods of market turmoil. They also offer the opportunity for long-term diversification benefits to U.S. investor portfolios.⁷

At Imber Wealth Advisors, we help people in the Ann Arbor area plan for retirement. With a strong financial plan in place, we can help you prepare to leave the workforce and live comfortably. Take control of your financial future and give us a call at (734) 769-1719 today!

¹ Jim Chappelow. Investopedia. April 6, 2020. “Capitalism.” https://www.investopedia.com/terms/c/capitalism.asp. Accessed July 20, 2020.

² Ferdinando Giugliano. Bloomberg. July 6, 2020. “Why Europe’s in Better Shape Than the U.S.” https://www.bloomberg.com/opinion/articles/2020-07-06/coronavirus-recovery-why-europe-s-in-better-shape-than-the-u-s. Accessed July 20, 2020.

³ Capital Group. June 24, 2020. “Midyear Outlook: International markets on the comeback trail.” https://www.capitalgroup.com/advisor/insights/articles/international-midyear-outlook-2020.html. Accessed July 20, 2020.

⁴ James D. Peterson. Charles Schwab. Nov. 13, 2019. “Why Global Diversification Matters.” https://www.schwab.com/resource-center/insights/content/why-global-diversification-matters. Accessed July 20, 2020.

⁵ Tinesh Bhasin. LiveMint. July 24, 2020. “What to keep in mind if you want to invest in global markets.” https://www.livemint.com/money/personal-finance/what-to-keep-in-mind-if-you-want-to-invest-in-global-markets-11593015469209.html. Accessed July 20, 2020.

⁶ Callum Keown. MarketWatch. July 20, 2020. “Risks are mounting for U.S. stocks. Here’s where BlackRock says investors should look instead.” https://www.marketwatch.com/story/risks-are-mounting-for-us-stocks-heres-where-investors-should-look-instead-says-blackrock-2020-07-20. Accessed July 20, 2020.

⁷ David Wakefield. Pensions & Investment. July 13, 2020. “Investing during a pandemic: Three results a global fixed income strategy can deliver.” https://www.pionline.com/Mondrian_globalfixedincome. Accessed July 20, 2020.

Sunday, August 30, 2020

Midyear Market Outlook from Wealth Managers

Lately, the economy has looked as volatile as the stock market: up for a few weeks and then back down again. This is generally attributed to the reopening of the country in early May, followed by what looks to be a gradual and sporadic reclosing due to an upswing in outbreaks of the coronavirus. In early July, Raphael Bostic, president of the Atlanta Federal Reserve Bank, observed that recent signals show the economic recovery is in danger of stalling.¹

This volatile economic environment makes it difficult for money managers who publish midyear market comments, because the outlook could change by the time those reports are published. As always, whenever you read advice and predictions from financial professionals, it’s important to view recommendations within the context of your own goals, circumstances and investment portfolio. If you’d like to discuss any potential midyear changes in your strategy, please contact us to schedule a review.

Like most industry analysts, T. Rowe Price cautions that the trajectory in the equity and credit markets will depend on containment of the virus. Most analysts agree that economic recovery is dependent on “flattening the curve” of contagion. The good news is that T. Rowe analysts believe tech companies have accelerated in both growth and market power by several years due to remote-work demands. However, much depends on how well some of our global partners respond to the health crisis. This variable could cause U.S. distributors to rethink their corporate finances and supply chains.²

Charles Schwab’s midyear outlook acknowledges that much of the market’s gains since the first outbreak of COVID-19 can be attributed to the Federal Reserve’s decision to cut interest rates and the fiscal stimulus passed by Congress. However, it is unlikely that we will see additional significant fiscal initiatives moving forward, so the market is likely to start pricing based on a real growth rate that represents lost output from consumer goods and services. With that said, high unemployment rates and low inflation are likely to continue driving quantitative easing by the Federal Reserve, which is currently increasing its balance sheet by $120 billion a month in treasuries and mortgage-backed securities.³

The chief investment officer at Merrill Lynch offers a bullish perspective for the immediate future. Their analysts believe that the markets are in the early stages of another long-term bull session with above-average valuations. They favor equities relative to fixed income and cash, as well as the prospects of global equities since many countries have rebounded from the pandemic and show signs of acceleration.⁴

Morgan Stanley also maintains a positive outlook. Based on recent market resiliency, their analysts believe a new cycle has started and that a U.S. recovery may be more “normal” than widely predicted. In fact, analysts maintain the economy will recover by early 2021, driven by global gross domestic product with 3% growth for the year.⁵

The Capital Group keeps its outlook simple: The markets will remain volatile through the rest of the year. However, it believes that investors are better off weathering the storm in the market than sitting on the sidelines, as recent downturns have demonstrated that when the market does rebound, it remains stronger, longer.⁶

At Imber Wealth Advisors, we help people in the Ann Arbor area plan for retirement. With a strong financial plan in place, we can help you prepare to leave the workforce and live comfortably. Take control of your financial future and give us a call at (734) 769-1719 today!

¹ Kanishka Singh. Reuters. July 7, 2020. “Fed’s Bostic says U.S. recovery may be ‘levelling off’: FT interview.” https://www.reuters.com/article/us-usa-fed-bostic-idUSKBN2480G0. Accessed July 16, 2020.

² Robert W. Sharps, Justin Thomson and Mark Vaselkiv. T. Rowe Price. June 30, 2020. “Managing to the Other Side.” https://www.troweprice.com/personal-investing/resources/insights/managing-to-the-other-side.html. Accessed July 16, 2020.

³ Kathy Jones. Advisor Perspectives. June 30, 2020. “2020 Mid-Year Outlook: Fixed Income.” https://www.advisorperspectives.com/commentaries/2020/06/18/2020-mid-year-outlook-fixed-income. Accessed July 16, 2020.

⁴ Merrill Lynch. July 2020. “The Reflation Triangle.” https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/Viewpoint_July_2020_Merrill.pdf. Accessed July 16, 2020.

⁵ Morgan Stanley. June 14, 2020. “2020 Midyear Investor Outlook: Unusual Times Conventional Playbook.” https://www.morganstanley.com/ideas/global-investment-strategy-midyear-outlook-2020. Accessed July 16, 2020.

⁶ Capital Group. June 4, 2020. “U.S. Midyear Outlook: From recession to recovery.” https://www.capitalgroup.com/advisor/insights/articles/us-midyear-outlook-2020.html?cid=p55731464801&ad_id=449175591351&ext_id=&gclid=EAIaIQobChMIhP_5lrLS6gIV5QiICR1QpQPREAAYASAAEgJ3UfD_BwE&gclsrc=aw.ds. Accessed July 16, 2020.