Adapting to Today’s Economic Environment
- Mike McGlothlin
- 11/15/2020 09:29 AM
The presidential election caused lots of uncertainty in the markets. And even though the election’s over, nothing has actually changed. We’re most likely going to hear news about litigation and challenges from now to Inauguration Day in January.
From a retirement income standpoint, we’re in the same circumstances we were a week ago. Regardless of who ultimately wins the election, there are more questions. Who controls the Senate? Who controls the House of Representatives? What happens with the Supreme Court?
There are three major things to consider regardless of the answers to those, and other, questions.
- Americans are going to retire every day through 2030, and that’s not going to be affected by who the president is or who controls Congress. In addition, there are about 75 baby boomers for every financial advisor today. In just five short years, there will be 176 baby boomers for every financial advisor. We must adopt the mindset that there is an unbelievable number of prospects needing our products, needing our services and needing our advice to make sure that they retire successfully.
- We’re likely looking at some additional stimulus in the beginning of 2021, which will add to our national debt. The federal government has already said that they really can’t afford additional interest rate hikes, so interest rates are going to remain lower for longer. These are all realities that we need to think about for those currently retired or nearing retirement. We need to figure out how to find alternative income and to find it in a more efficient way.
- Our tax burden is likely to increase over the course of the next three to five years. Stimulus payments and additional debt mean that we will have to get tax revenue to pay down the national debt. Whether that’s in three years, five years or 10 years, we cannot sustain a healthy economy without managing our debt, the same as we do on an individual basis. That means that we’re going to have to look for more tax-efficient ways not only to save and invest but also to generate income.
We can help you figure out how to use these challenges to create a High Performing Practice. We’ll partner with you to find proper prospects, become more efficient and remain relevant in the greatest shift from the workforce to retirement that we’ve ever seen.
Adapting your retirement strategies to our current economic environment is the going to be essential if you want to remain relevant in the biggest shift from workforce to retirement our country has ever seen.