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.
Applications for the Free Application for Federal Student Aid (FAFSA) are now open for the academic year 2021-22. Applying for the FAFSA allows you to qualify for grants, scholarships, and other federally-sourced aid, such as work-study or student loans. The applications opened on October 1, 2020, and will be accepted until the deadline, June 30, … Continue reading “FAFSA Applications Open”
America’s debt is now nearly as large as its economy. On September 2, the Congressional Budget Office announced that by the end of the 2020 fiscal year (September 30), the federal government is projected to owe debt equaling 98% of the nation’s gross domestic product.
It should come as no surprise to hear the economy is the top issue for voters in the 2020 election. Nearly 8 in ten voters say that the economy will be very important to them when they cast their votes at the ballot box in just over two weeks.
When training to become a CERTIFIED FINANCIAL PLANNER®, much of our course work centers on the six critical areas of creating a financial strategy. Some recognize October as Financial Planning Month, so it’s an excellent opportunity to review those six personal finance areas.
With one year ending and a new one on the cusp of starting, many people will consider their resolutions—not their estate planning strategy. But the end of the year is a great time to sit down and review your preparations, especially when you’re spending more time with your loved ones; even more important if you … Continue reading “Estate Planning Strategies for Year-End”
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