Are you financially prepared for a post-pandemic world?
It’s nice to see that people are beginning to come out of pandemic hibernation to travel, visit friends and family, dine out and attend sporting events. I suspect this summer there will be quite a few family picnics, but sadly, there will also be many toasts in memory of lost family members.
During the pandemic, Uncle Sam flooded our economy with cash to help struggling households stay afloat. It appears far too many were comfortable with those financial benefits. And for whatever reason, aren’t in a rush to re-enter the workforce.
There are help wanted signs in the windows of businesses almost everywhere you look, block after block. I recently spoke to a food services manager who anticipates a busy summer. It’s wedding season. But currently he can only get half the number employees he needs.
I also met a builder who specializes in upscale homes. Even with the inflated cost of lumber he’s in high demand. But he can’t find enough tradesmen who want to work even though he’s offering cash incentives and time-and-a-half on weekends.
After listening to scores of employers from a variety of fields, I can only conclude that if you can’t find work in this environment the problem isn’t with the economy. Rather, it’s what certain people see when they look in a mirror.
There are countless opportunities to work and collect good pay in hundreds of fields. If you’re dependable and willing to show some ambition there’s no reason why you can’t work. That is, if you want to.
With today’s longer lifespans, retirement can easily represent a third of a person’s life. For years I’ve been preaching that retirees need to be mentally prepared for steadily rising prices.
I cringe when I hear someone say that they can retire because they’re finally able to meet their monthly expenses, even if just barely. I have news for them and for everyone else. The simple reality is that it’s going to cost a lot more to maintain your lifestyle in 2021 than in previous years.
You definitely need to be prepared to pay more. When you see an exorbitant price on something it won’t do any good to complain that you’re on a fixed income. For years I, in accordance with most financial advisors, have been preaching the need to save and invest in anticipation of times likes now.
Prices in the grocery store are increasing significantly. The cost just to get to and from the supermarket, or for that matter anywhere, has jumped because it costs more to fill your gas tank. The cost to build has gone through the roof because prices of hard assets like lumber and copper have skyrocketed. Even our Postal Service wants to increase the price of stamps. Again.
I have little doubt that 2021 will be the poster child for higher prices across the board. Perhaps those rising prices will be an incentive for some to re-enter the workforce.
Every day, as we finally leave our houses and the world gets moving again, things are going to be different because everyday items will cost more than they did pre-pandemic.
For years, price increases were nominal. Not anymore. They’re spiking everywhere. Now more than ever you need to work hard, budget prudently, save regularly and invest wisely.
Know Someone?
Do you know someone who would like to meet with a financial advisor?
Ken Morris 248.952.1744
E-mail your questions to kenmorris@lifetimeplanning.com
Ken is a registered representative of LPL Financial. Securities and financial planning offered through LPL, a Registered Investment Advisor, member FINRA/SIPC. Ken is Vice-President of the Society for Lifetime Planning in Troy. All opinions expressed are those of Ken Morris. LPL and Society for Lifetime Planning are independent companies. Investing involves risk including loss of principal. No strategy assures success or protects against loss.
