The U.S. economy has been severely impacted by the coronavirus, and Americans’ retirement savings have not been immune.
According to a report by Fox Business last week, Fidelity Investments released the results of its analysis of retirement savings trends for the first quarter of 2020. The financial services company analyzed more than 30 million 401(k), IRA and 403(b) retirement accounts, according to the report that concluded the coronavirus-led economic downturn did indeed lead Americans’ retirement savings to drop.
According to the report, the average 401(k) account balance had $91,400 during the first quarter, while the average IRA had $98,900 and the average 403(b) had $75,700.
For the average 401(k), that was a drop of 19 percent from the record high of $112,300 last quarter. Meanwhile, the average IRA balance dropped 14 percent from last quarter and the average 403(b) balance dropped by 19 percent from last quarter.
Helping us sort out this “retirement apocalypse” is economist Jack Hanney of Patriot Gold Group.
Q&A:
- Question: What are the best and worst-case scenarios for American retirement account owners during the Covid19 crisis?
Answer: The reality is most retirement accounts will lose 40% – 60% of their value over the next 24 months not only due to the Coronavirus but the underlying foundational structural issues in our economy exposed by the Coronavirus. The slowdown of the supply chain, the massive discrepancy in health care and economic security in our country, technological advances, AI and now a divided country that has been fueled with incendiary rhetoric on both sides.
- Question: How long would the average American need to wait to see their retirement accounts get back to pre-crisis levels?
Answer: There are some Economists that are forecasting a lost decade like we have seen in the past especially due to the over stretched egregious valuations and QE infinity by The FED.
- Question: Many experts were calling for a mild correction in stocks before the crisis. Is that opportunity still in play? If so, where should Americans look for safety?
Answer: We had your initial collapse in March like we saw in 1929 and 2000 now we’re at the tail end of a bear market rally just like we saw in 1930 and 2000 the retracement like we saw in both previous cases will be catastrophic. The only play is safe haven assets at this time and rotating out of paper denominated assets and into physical Gold & Silver.
4. Question: Many Americans have the bulk of their wealth in their housing. How will the housing market impact American retirement plans?
Answer: Economists anticipate a wave of mortgage delinquencies similar to 2008, some are forecasting 20-30% of mortgages going into delinquency. Americans unfortunately forgot 2008 and again taken advantage of lower interest rates, fairy tale “equity” accrued in their homes, taken on more debt than ever before and are now faced with declining values, burdened with massive debt and 33M find themselves unemployed and not receiving a paycheck.
5. Question: What are the bright spots on the horizon in terms of asset classes, stocks and companies. Where are you investing your funds?
Answer: We are going to see a “Biblical Wave of Bankruptcies” and right now we see demand for safe haven assets reaching unprecedented levels. When you have American brands like Disney losing 40%+ of its value and then you have a company like Tesla’s market cap being more valuable than Ford & GM combined you see something very, very wrong with the market. And honest financial forecasters mustn’t paint red flags white.
6. Question: Where may we get more info on you and your financial advice?
Answer: PatriotGoldGroup.com
ABOUT JACK HANNEY…
Jack Hanney has been in the financial markets for 20+ years and is widely heralded as an expert in his field.
Born and growing up in Westchester County, NY where his father was a successful politician and owner of an Insurance Brokerage Firm. Jack began subscribing to The Wall Street Journal at the age of 14 and moved to California in his early 20’s to study under William O’Neill, arguably the single most successful investor in the history of the markets and founder of Investor’s Business Daily and author of How to Make Money in stocks.
Jack Hanney went on to be the General Manager and Director of Sales at several algorithmic automated trading companies trading the futures and commodities markets working with Introducing Brokers out of Chicago, Geneva and NYC. Jack was recruited by several tech startups and made a name for himself at Infosearch Media, Virtumundo and The Design People before returning to Finance. Jack passed on Morgan Stanley and other reputable, prestigious Brokerage firms to be a CFP in their Wealth Management Divisions and opted for a position as Senior Executive Trader with MG Private Client Services where he spent 4 years 2010-2014.
Jack Hanney had spent two years as Director of Trading, Executive Vice President of WDM overseeing the Retail Division before collaborating with two other prominent experts in his field and opening Patriot Gold Group a collective of Industry-Leading Experts bringing their clients Investor Direct Pricing and superior customer service.
Jack has written over 200M in business and trades maintaining outstanding relationships with his clients at Patriot Gold Group (PGG), where he is a senior partner, who he refers to as dear friends and family and now … welcoming them to the PGG family of investors. Jack resides in Los Angeles, California and is the proud father of his two daughters, Kate age 10 and Luna age 18.
