The most recent Initial Jobless Claims Report was better than estimated; however, how much better has it really gotten? According to the Department of Labor, the US weekly jobless claims were better than expected at 1.54 million versus 1.6 million estimated, which was a decrease of 355,000 from the previous week’s report. In addition, the insured unemployment rate was 14.4%, a decrease of 0.2% from the previous week. Both of these results show some improvement, but the previous week’s initial jobless claims were still revised upward by 20,000. Though the report was slightly better than estimates, we remain cautious, more so than market thinking, as we believe the unemployment rate will likely take longer to recover to levels seen in the beginning of this year.
These numbers do not reflect the large percentage of workers who have been furloughed and do not know if they will return to work or be left jobless. We agree with the majority of economists that the true number of jobless Americans is much closer to 19%. We will continue to monitor this important data to determine the strength of the recovery going forward.
Financially, we will always have you consider four factors to determine the optimal state to choose for retirement living: 1. Health care; 2. Taxes; 3. Quality of life; and, 4. Cost of living. Most consider taxes as the number one reason to move somewhere. Our view is taxes tend to equal services if managed right. If you don’t pay taxes, don’t expect services, and retirement is the time in which you need services the most. Quality of health care should be top on your list. We are happy to have a much more detailed discussion on this, so if you are considering retirement in another state, consider these four factors to determine how your dream state will support your lifestyle. We are here to help and happy to guide you so that you have the most fun and greatest health at the lowest cost through retirement.
As proven by the recent pandemic, disability can occur very suddenly. Since an individual brokerage account can only be accessed by the account owner, there is a danger if you need to withdraw cash, write a check, or make a change to the account when you’re unable to do so. A solution to this potential difficulty is to add a Durable Power of Attorney to your brokerage account. This can be accomplished easily by completing a form provided by your account’s custodian (i.e., Charles Schwab) and doesn’t require an attorney to prepare documents. As the account owner, you grant a trusted agent (or agents) authority to act for you. This authority is in effect until you, the account owner, rescind it.
Did your business receive a PPP loan? If so, it’s important to note that there were changes to the SBA rules about the spending of that money in the new PPP Flexibility Act.
As always, we are here as a resource for those that you care about and for. If you are worried that your family and/or friends may have been given improper financial guidance or are losing their hard-earned assets, we are available for a free second opinion or guidance to make sure they stay financially safe.
Be well and have a wonderful week!