U.S. Outlook for Forbes Advisor in 2021

 

The advent of 2021 marked a highly anticipated new year, one that was met with a collective sigh of relief as the clock struck midnight. In the realm of personal finances, the significance of robust fundamentals, such as saving, budgeting, investing, debt management, and tax preparation, becomes all the more crucial during times of genuine economic turmoil. Several key themes resonate into 2021:

1. The paramount importance of financial preparedness to weather economic disruptions beyond individual control.
2. The necessity of having estate planning and insurance arrangements in place, even if they seem premature.
3. The critical value of continuous financial education to make informed decisions.

As the presidential inauguration approaches, we gain insight into the priorities of the Biden administration for its initial 100 days. Yet, numerous uncertainties persist, particularly concerning Covid-19 and the economic revival of vital sectors like transportation and hospitality. Forbes Advisor equips you with the tools needed to make 2021 a prosperous financial year for you and your family. This 2021 Outlook offers guidance across various areas, including banking and personal finance, credit cards and travel, insurance, investing and retirement, and mortgages and loans.

Banking and Personal Finance:

The start of a new year is the ideal time to assess your financial habits and consider areas for improvement. If holiday indulgence caused a financial hangover, it serves as an opportunity to realign your personal finances: The transition from one year to the next presents a chance to revisit or establish your budget. A key lesson from 2020 is the need for a flexible budget or financial habits that can adapt to unforeseen changes: In 2021, the banking landscape is unlikely to revert to its pre-pandemic state. The pandemic accelerated the shift toward digital banking, and these changes are here to stay:   Fintech played a pivotal role for many during the pandemic, with 69% of respondents in a September 2020 survey viewing it as a financial lifeline. Embracing digital interactions with your bank involves utilizing online tools for automation and alerts:   Whether you conduct your banking digitally or in person, your choices regarding checking, savings, money market accounts, or certificates of deposit significantly impact your overall financial picture. Are there changes you should make to optimize your banking?  

Credit Cards and Travel:

Each new year invites a review of your finances, including your credit card portfolio. What worked on January 1, 2020, may warrant reconsideration in 2021. Forbes Advisor offers insights to maximize your credit card usage:   The travel industry was profoundly affected in 2020. Before resuming travel, assess what your travel rewards can offer you in 2021:   Online shopping has prompted an increase in identity theft. Forbes Advisor outlines steps to protect your credit in an era of rising digital transactions:   Airlines and hotel chains extended loyalty program benefits in response to the travel standstill. However, it’s wise to reevaluate your loyalty programs to ensure they align with your future travel needs:  

Insurance:

Life insurance companies adapted to the challenges of 2020. Explore what to expect when purchasing life insurance in 2021:   The focus has shifted toward customer-centric services, comprehensive policies, and flexibility in travel insurance. Discover the anticipated changes in travel insurance for 2021:  

Investing and Retirement:

The new year brings optimism for markets, driven by Covid-19 vaccines and a new administration. While markets have positive catalysts, experts caution that volatility and surprises may persist:   2020 witnessed two bull markets with a brief bear market in between—an unusual occurrence. Examining this atypical year provides insights into market dynamics:   Predicting investing trends is challenging, but Forbes Advisor explores several significant trends that will shape the investing landscape in 2021:   Retirement tips for 2021 may resemble past advice, such as cutting expenses and making conservative investment choices. However, a recovering economy and a new administration introduce new nuances:   The passing of a second stimulus package addresses Fed Chair Jerome Powell’s plea for economic relief. The Fed’s policy will remain consistent until the economy demonstrates signs of recovery:  

Mortgages and Loans:

Mortgage rates hit record lows throughout 2020 and continue to do so in early 2021. While low rates persist, you have an opportunity to secure favorable terms for a new home loan or refinance:   Record-low mortgage rates coexist with rising home prices, impacting housing affordability. Forbes Advisor offers strategies for navigating a seller’s market:   A housing shortage driven by high demand has caused rapid price growth in many regions. Forbes Advisor provides tips to make the most of this situation:   2021 may witness significant changes in student loans, including potential extensions of loan payment suspension, debt cancellation, and simplified repayment plans:   Embrace the New Year with Confidence: 2020 demonstrated that even an ostensibly normal year can deviate significantly from expectations. The Covid-19 pandemic affected various sectors of the U.S. economy in distinct ways, from business closures to new opportunities. In both sports and personal finance, a strong offense is essential. The more you understand your financial situation and options for enhancement, the better prepared you’ll be to make informed financial decisions.

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