We start 2021 with hopes and prayers that it will be much better than 2020. But in the absence of psychic (psychotic?) ability and with absolutely no assurance that we will be correct, what are we to anticipate of the financial and economic landscapes in 2021?
A reasonable person might expect:
- Vaccines to continue to be rolled out helping to reopen our country and economy
- Jobs to continue to be created and furloughed workers continue to return to work
- Our economy (measured by GDP) to grow at above average rates
- Interest rates to increase – modestly at first before accelerating
- Inflation rates to increase – modestly at first
- Stock markets growing
- Bond markets challenged by increasing interest rates pushing values down
A reasonable person might be concerned by:
- The negative impact of rising rates on the real estate market
- The declining strength of the dollar
- U.S. federal government debt at historic levels – and climbing
- Projected federal budget deficits that could double our debt in eight (8) years
- Government policy changes that could slow/stop our economic recovery
- Rising inflation that could foreshadow future inflationary pressures
- China/Iran/others who wish America ill
A reasonable person might wish to make adjustments to their investment portfolio strategy or structure. Some of the tools they might consider are:
- Fixed Annuities
- Fixed Indexed Annuities
- Variable Annuities with Guaranteed Lifetime Income Riders
- Buffered Annuities
- All the flavors of Fixed Income Assets
- Life Insurance as a Guaranteed Source of Capital
- Hedged Exchange Traded Funds
- Individually issued bonds
- REITs (of very specific flavors)
- Gold, silver, and/or broad baskets of commodities
This is not intended to be a comprehensive list of your options. It is intended to alert you that there may be options for you that you haven’t yet considered or explored.
Most certainly, meet with a financial advisor you trust. An advisor who has no interest in what investment approach you take – other than it’s the right one for you and your goals. Get the information you need to make an informed decision that best fits you.
Should you wish to consult with a More than Money advisor on any of these options, please call our office to schedule some time.