The Year to Talk About Money

5. Changing Income, Property and Estate Taxes

At some point this year the reality that all the pandemic related and projected stimulus spending and tax revenue shortfalls will need to be repaid will set in. This will likely result in many jurisdictions proposing increased taxation of higher income, estate and asset households. How should consumers act to minimize these increased tax burdens?

6. Changing Product Landscape

Consumers may be looking for product solutions that will no longer easily exist. Many companies are exiting lines of business that provide long-term guarantees. Many consumers could use these guarantees in their planning efforts. Where will consumers find alternatives?

7. The Scope and Health of Government Social Programs

The financial state of Social Security, Medicare, Medicaid and the Affordable Care Act will move to be front and center. Either through the political process or just plain necessity our country will need to address solvency and benefit issues for these programs. How should households prepare for these changes?

8. The Need to Upskill or Reskill

Households are beginning to realize that they get paid for their skills today. How should they invest in improving their skills or in skills that will qualify them for a position in an entirely new field? How should they fund this need? What employment opportunities will yield the best return for the investment?

9. Adapting to Technological Change

The pandemic brought forward the need to digitalize business models by a number of years. We are also just beginning to see impacts of the Fourth Industrial Revolution, including artificial intelligence technologies. These new technologies are and will continue to change how business is conducted and what worker skills they will need. How should households embrace these changes on how they conduct their financial lives?

10. Changing Focus to Income Versus Accumulation

The time is now to help consumers near or in retirement with how to generate protected or guaranteed lifetime income. They are finding that they cannot live on interest received on their savings at their local bank. For the most part households have been almost fully focused on accumulation. They now need help in generating income. Where do they go to find expertise to help them?

You Can Help

If you consider all of the above areas that will impact money in 2021 and look at them against the reality that most Americans have little financial literacy, they scream out the need for consumers to talk more about money and get financial advice.

Americans need to talk to financial professionals about their financial needs, challenges and long-term goals. We, as an industry, need to highlight all that has happened to create financial uncertainty and collectively reach out with our services and solutions.

The time could not be better for this initiative. We need to talk more about money in 2021. The financial futures of millions of Americans can benefit from our services.

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Harry N. Stout has been the president of Fidelity & Guaranty Life, deputy chief executive of Old Mutual Financial Network, and managing director of Insurance Insight Group. He is also the author of The FinancialVerse personal finance books and of a new book, Today's Annuities — A Tool to Create Protected Lifetime Income.