As Americans adjust their spending habits in a rapidly changing economy, they are building cash reserves at an unprecedented rate.
The Bureau of Economic Analysis reported on May 29th that the personal savings rate hit a historic 33% in April. To put that into perspective, it’s the highest number since the Bureau started tracking personal savings in the 1960s.1
Economists are struggling with the question, “When will consumers be confident enough to start spending some of that cash stockpile?”
Optimists say the stockpile was due to “forced savings.” Staying home has led to less spending overall, on everything from clothes to commutes. As soon as restrictions loosen, that money could flow back into the economy.
On the other hand, pessimists may say that until virus fears drop and the unemployment rate improves, consumers will continue to conserve cash as a response to tremendous economic uncertainty.
We believe there is some merit in both schools of thought. We will be watching the personal savings rate alongside other economic indicators to see what, if any, long-term trends emerge.
If you’d like to discuss your personal savings rate, please give us a call. At Epic Capital, we’d welcome the chance to hear about any changes you have made in recent months and how to adjust your plan for the future.
Recently, the Internal Revenue Service (I.R.S.) announced that tax season will start a little later than usual. This year the I.R.S. will begin accepting and processing 2020 tax filing returns on Friday, February 12, 2021.1
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When you think about your estate, you may think about your personal property, real estate, or investments. You also have other, less-tangible assets – and they deserve your attention as well. We consider these your digital assets. A digital footprint of your life – and you need to consider them within your estate planning.
Pursuing your retirement dreams is challenging enough without making some common, and very avoidable, mistakes. Here are eight big mistakes to steer clear of, if possible. No Strategy. Yes, the biggest mistake is having no strategy at all. Without a strategy, you may have no goals, leaving you no way of knowing how you’ll get … Continue reading “Eight Retirement Mistakes to Avoid”
When you lose a spouse, partner, or parent, the grief can be overwhelming. In the midst of that grief, life goes on. There are arrangements to be made, things to be taken care of – and in recognition of this reality, here is a checklist that you may find useful at such a time. If … Continue reading “Estate Planning Checklist for When a Spouse or Parent Passes”
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