SECURE Act 2.0 aims to improve American’s financial security
At Nationwide, we have historically served as an advocate for the retirement security of American workers and investors. We remain committed to supporting efforts to improve the existing retirement savings system through regulatory changes that help more people achieve secure retirement outcomes.
For financial professionals and advisors, that task has become more difficult due to the COVID-19 pandemic. Over the last 12 months, many Americans experienced a drop in their financial security. In a recent Nationwide Retirement Institute® survey of 500 advisors and financial professionals, 77% said their clients had either stopped or slowed their retirement plan contributions due to COVID-19. Half of those we surveyed said their clients’ financial security had been negatively impacted by COVID-19.
By Mark Hackett
In the impressive market recovery since last March, the S&P 500® Index rallied 77%, largely in response to unprecedented monetary policy accommodation by the Federal Reserve. The FOMC cut the Fed Funds target rate to 0% on March 15, 2020 and accelerated its bond-buying program to provide liquidity and avoid a deflationary spiral. Concerns were growing that the economic shutdown and shifts in consumer behavior would keep inflation below the Fed’s 2% target. At the recent FOMC meeting, Fed Chair Powell reiterated the central bank’s commitment to a dovish monetary stance until inflation targets are achieved. The data continues to show modest inflation, with consumer price inflation (CPI) up just 1.4% from a year ago despite pressure from commodities and housing. This marked the 11th-consecutive month that CPI was below the 2% target. Since the target was first announced by the Fed in 2012, inflation has exceeded 2% in 38% of months, but only five times in the last
Women can close the financial planning gap with help from advisors
By Ann Bair, Senior Vice President, Nationwide Financial Marketing
As someone who has spent the better part of her professional career in financial services, I can attest to how important it is for women to close the financial preparation gap. Unfortunately, the ripple effects of the COVID-19 pandemic made that task more difficult last year.
Today, women are less optimistic, more concerned and less prepared in their financial lives than they’ve been in years, primarily due to the pandemic. But many of us are also feeling more empowered; last year, more women were working with advisors and financial professionals than they were five years ago.
Markets aim to begin 2021 similar to how 2020 ended
Thoughts
Markets are poised to begin 2021 similar to how 2020 ended, with a broad market rally. Last week saw a strong close to the year, with the S&P 500® Index touching its 33rd record close for 2020. The primary drivers of market strength continue to be optimism surrounding the vaccines and the benefits from the latest round of fiscal stimulus. The S&P 500 gained 68% from the March low after losing more than one-third of its value in less than a month, finishing the year with a return of 18.4%, the sixth-best performance in the past 20 years. Notable winners including the NASDAQ (+44.9%), the Russell 1000 Growth Index (+39.5%) and MSCI Emerging Market Index (+18.7%).