We are now approaching the one-year anniversary of what we thought was a two-week quarantine. What have the financial implications been of the COVID-19 pandemic? Fiduciary wealth management advisor Mike Reeves of Strategic Wealth Designers joined us on the newscast to discuss. A major impact includes roughly 50% of non-retired adults saying the pandemic has made it harder for them to reach their financial goals.
“Pew Research Center released survey data on how the pandemic has impacted individuals’ financial situation,” Reeves says. “The pandemic hit people very differently. Lower income adults are among those that felt the most financial strain due to lost jobs or pay cuts that resulted from the pandemic.”
Many people are spending less than they usually would in the last year. This is partly due to the lack of travel and entertainment occurring. I do expect a extreme surge in travel once the all-clear is given to get going again. Daily activities look far different now than they did one year ago, and consequently, so does spending. This also is caused by people being more cautious with their spending because of the uncertainty.
“Even though it has been a rough year, many are saying their financial situation is the same or better than a year ago,” Reeves says. “30% of those that participated in the survey say their financial situation is better. We’ve seen many people continue to save in the same capacity as before.”
The country will continue to feel the effects of the pandemic for years to come but it appears that many have started to recover from the initial impact. To see additional stories surrounding business and economic news for the Indianapolis area, visit https://CBS4Indy.com/Strategic-Wealth and if you have a question for Mike send an email to email@example.com.