Our current economic situation is complex and, in some ways, unprecedented. Because of the pandemic, we have seen changes in how the market behaves and may consider re-adjusting how we approach retirement strategizing.
- Government Spending and Bailouts
In recent months, the US economy experienced banking turmoil due to the ripple effects of inflation and the subsequent interest rate hikes. The banks experiencing turmoil, specifically Silicon Valley Bank, received support from the government in the form of providing liquidity for depositors even if their funds weren’t covered under FDIC insurance rather than saving the bank directly. Regardless, banking sector turmoil could spell further risks to the economy and markets.
- Changes in the Global Economy
For many years leading up to the pandemic, the US and much of the world had been growing economically. Due to easy economic environments, capital availability, and low-interest rates, some economies and markets boomed. We were, for a long time, in a period where economic growth was constantly present, virtually everywhere you turned.
However, that time seems to have ended. Nations are now moving away from open-door trade policies. Plus, geopolitical conflict and the inflationary aftermath of pandemic policies couple to cripple many of the world’s strongest economies.
- Changes in the Workforce
Since the pandemic, the workforce of the country has been unconventional. Wage increases are not keeping up with inflation, so even if you see a yearly rise, it may not have raised your purchasing power. If workers aren’t making enough money, they likely won’t stimulate the economy by spending the way they used to.
What This Means for You
The economy is in an uncertain place right now. Inflation is a concern for retirees and pre-retirees because it affects how much mileage they may get out of their saved money. An uncertain economy also means that your investments require extra stewardship, with an eye on all the current factors influencing the market.
Sources:
- https://www.axios.com/economy-business/svb-silicon-valley-bank,
- https://www.pewresearch.org/social-trends/2022/02/16/covid-19-pandemic-continues-to-reshape-work-in-america/
- https://www.cnbc.com/2022/12/14/why-salaries-in-the-united-states-dont-keep-up-with-inflation-.html
- https://www.nytimes.com/2023/03/16/business/economy/interest-rates-silicon-valley-bank.html
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.