These are trying times. Despite the strains of pandemic, home schooling, work furloughs, and entire families sitting at dining room tables on laptops… there are still BIG decisions and “leaps of faith” to be made. Namely,
Annual Healthcare Enrollment (deadlines looming)
401k contributions by year-end amidst a year of zany cash flows
Kids’ high school enrollments (these have changed for lots of people)
College semester enrollment and tuition payments
Home improvements like, “Do I add a home office?”… and more.
Don’t even get me started on – “Do I know who my beneficiaries are?” or “When do I start taking Social Security?”
Upon recently personally experiencing the multiple shocks of:
Minimal amounts of people at rush hour in one of the typically busiest cities and train stations in the world,
Open parking spaces and empty parking lots at one of the busiest train lines in the world,
No lines at Starbucks in the typically busiest city in the world…
… I started thinking bigger-picture about who will be most deeply affected in the intermediate-term by the virus pandemic and the resulting slow-downs, shut-downs, cuts, and service eliminations. Near the top of the list of business types and job types negatively affected are (obviously),
From an edition of TGIF 2 Minutes in early March 2020….
As we continue to watch both from the sidelines and the interior of the Coronavirus tragedy, there exist lessons learned and lessons yet to be learned. Mistakes made past and present. In looking at history and researching the aftermath of past global tragedies there is evidence of subsequent innovations along with lucky breaks that surpass the imagination.
From the TGIF 2 Minutes Archives earlier this year PRE-coronavirus…
Earlier this year in February things were GOOD! The economy was cranking, unemployment was low, wages were up, and it was a somewhat perfect time of the year to set goals. Think: it was pre-tax filing time and after the holidays.
Fast forward to today… the world has changed. Our savings have been tapped in the pandemic — and new savings and other goals need to be reset! While the kids may now be going back to school (followed by maybe not??) using this precious time to set just a handful of goals can pay off toward achieving those goals.
As we persevere through the coronavirus pandemic, consider the following message from the 2019 Archives of TGIF 2 Minutes….
What is your reason for saving money? Is it retirement? Or are there “mini-goals” that would feel really great to achieve today?
Of course, retirement is often a primary long-term savings goal, but not always. “Retirement” encompasses more than simply stopping work and being on a “permanent vacation.” In fact, research published in the Journal of Financial Planning* reports that quitting work cold turkey often is not reality – for a number of reasons.
As difficult as it has been to find a silver lining to the pandemic, there have been one or two recurring themes that could be classified as positive, or at least opportunistic. One theme is that a fair number of people with whom I have spoken have reported far lower overall (or at least discretionary) spending in the past couple of months compared to “normal” times. Think:
The past several weeks has seen the first pandemic in the era of social media. The last H1N1 Influenza pandemic was in 2009. In 2009, Facebook was young (founded 2004) and Twitter was in its infancy (founded 2006).
In addition to a handful of other major factors, the Covid-19 coronavirus is descending on the planet during: a US Presidential election year, a high-level fight over oil between the Saudis and Russia AND immediately following an almost 11-year UP stock market in the US.
Originally titled, “Gut Check in Rocky Markets” but with a new twist the following excerpted edition from the archives of TGIF 2 Minutes is timely on (Not So) Fat Tuesday. Please keep in mind three new factors:
The political divide currently in the US is adding to market tensions and even politicizing the Coronavirus,
Primary Elections and Debates and the policy issues being brought forth are next-to-center stage in the media,
A still very recent UP 29% equity market in 2019,
and there exist the makings of a potential market correction. A market correction is defined as a decline of 10% from a recent high; the US equity markets are down over 6% in two days and are nearing an official “market correction” in 2020.