In the crucible that is COVID-19, there are lessons to be learned. We have collectively faced many challenges over the last 12 months, but the focus of this piece will be using the pandemic as an opportunity to reevaluate one’s finances.
In 2020, we can use local sales tax collections as a way to evaluate consumer spending. The good news was that Saratoga County’s sales tax revenues declined by just 1.3% in 2020 versus 2019. The bad news is that sales tax collections in the City of Saratoga Springs dropped by 27%. The hope is that we’re now reopening many businesses and vaccinating more people every day. This should mean we are poised for an increase in consumer spending locally, in 2021.
Saratoga Springs - A common risk to investments that is typically an afterthought is the risk that your money will lose purchasing power in the future. Why is it an afterthought? Its symptoms are mostly imperceptible from day-to-day, so we focus on more pressing things like the potential loss in value caused by a March 2020-style crash. In our hopefully-soon-post-COVID environment, we will be forced to grapple with the effects of the massive efforts taken by both the government and Federal Reserve to keep our economy afloat. Where will we feel the effects? What can be done to protect your investments?
SARATOGA SPRINGS — Continuum Wealth Advisors was established in 2010 by Timothy Smith with the goal of providing more than just investment management.