Spending More

In April 2020, 45 percent of 1,008 adults surveyed said they increased their monthly spending while quarantined due in part to costs related to groceries and streaming services (source: TD Ameritrade, BTN Research).

Lots of Borrowing

By the end of fiscal year 2020, i.e., the 12 months ending Sept. 30, 2020, the U.S. Treasury anticipates it will have issued $4.5 trillion in new debt, more than triple the $1.28 trillion of new debt issued in fiscal year 2019 (source: Treasury Department, BTN Research).

A Jackson a Day

Retail sales in the U.S. in April were $403.9 billion, down 16.4 percent or $79.5 billion from just a month earlier. The monthly decline is equal to every U.S. household (124.4 million) spending $21 less per day during April than the dollar amount they spent per day in March (source: Commerce Department, BTN Research).

Mention summer and most of us picture swimming, boating, camping, backyard barbecues and scenic vacations. In contrast, the summer of 2020 evokes many challenging and painful images due to our ongoing battle with COVID-19 and rising social unrest. But even when life doesn’t feel the same, it’s important to maintain normal routines to safeguard our personal and family’s well-being.

One routine that is more important than ever is a mid-year financial review. Reviews are particularly vital when situations change. While you may not have experienced a typical life event this year – a marriage, birth, move, death or job loss – current events and circumstances in our nation and throughout the world have likely impacted your financial plans in one way or another.

Social distancing has affected supplies, and consequently, prices. Economic concerns have reduced demand for other products and services, which may have directly impacted you or your community. Increased costs or reduced income could require adjustments to your business or personal budget. Or, you might want to help a family member in need.

If market volatility has altered the ratio of your investments, you may want to think about rebalancing your portfolio. In light of coronavirus-related legislation and rules changes, you might contemplate changes in your giving, health coverage, retirement plan or estate plan. While no one knows the future, some commentators expect eventual tax hikes to recoup massive stimulus spending to prop up the economy during the pandemic. So, you might consider a Roth rollover while taxes are historically low.

Along with considering updating your will or beneficiary information, reviewing your insurance coverage now can help you protect your assets. A disability or untimely death could cause financial hardship for your family.

Taking the time to periodically monitor, and if necessary, alter your plans will leave you in a better position to build financial security. While I do not provide legal or tax advice, I can work closely with your attorney and accountant to help ensure a well-rounded plan. If you’d like to schedule a mid-year review or you have questions about the market or how recent legislation impacts you, please give me a call. I’m here to help.

Securities America and its financial professionals do not provide tax or legal advice. Coordinate with your tax advisor or attorney regarding your specific situation.

*The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright June 2020. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 3117037.1