2020 has certainly been a historic year by all measures, beginning with the global pandemic, then world-wide government-mandated shutdowns followed by elevated social unrest, and most recently President Trump’s COVID diagnosis. Now, with the last quarter of the year upon us, we find ourselves on the home stretch toward the long-awaited contentious November elections. Uncertainties abound.
The COVID pandemic has raised considerable amounts of uncertainty for high-net-worth families who crave greater security within this historic event. Our Financial Uncertainty Checklist documents a compelling list of 12 aspects of wealth planning we execute/embrace to protect client wealth against future market disruptions.
As individuals approach retirement many begin shifting their portfolio composition into a conservative allocation, consisting of more bonds than stocks. Bonds have historically provided more security than stocks while generating enough income to sustain a retiree’s lifestyle. In the present economic environment however, bond yields are hovering at record lows. As longevity and the cost of living increases, the perceived safety of bonds can be negated by the insufficient returns they provide.
This unprecedented health crisis and accompanying economic shutdown threw both developed and emerging economies around the globe into a deep recession. The International Monetary Fund (IMF) is forecasting America’s Gross Domestic Product (GDP) will decline by 8% in 2020. Central Bankers and government policymakers throughout the world responded with the largest, synchronized, monetary, and fiscal stimulus our planet has ever seen.
Large portions of the U.S. and global economy remain frozen in an effort to control the spread of the Coronavirus. So far, 26.45 million Americans (out of 162.9 million total workers) have filed for unemployment over the last four weeks. As we progress further into recession, the only questions are how deep will it go and how long will it last?
With the COVID-19 environment continually evolving, your Pacific Wealth Management team has created an online library of articles and videos worthy of sharing. We will continue updating this library as we come across new information to help keep you informed. As always, please feel free to contact us if we can be a resource for you.