Dec 31, 2020 3 min read

Today is New Year’s Eve. Year 2020 cannot end soon enough for many people.

It was a year full of bad economic news. Many longtime retailers went out of business, and many others filed for bankruptcy, including such giants as JCPenney. We’ve never experienced such widespread shutdowns ordered by the government to try to slow the spread of COVID-19.

Students missed large amounts of in-school interaction. Many events, including sports and proms, were canceled. Movie theaters, sporting events, amusement parks and other activities operated on very limited fashion. Who would have thought there could be Steelers football without 50,000 fans waving Terrible Towels inside Heinz Field?

Restaurants were restricted on indoor dinning. Many will close permanently. Small stores were shuttered for months, and cultural districts in Pittsburgh and around the country have been dark for most of the year. Airlines and hotels have seen their sales destroyed.

We had huge shortages of personal protection gear, masks, hand sanitizer, gloves, ventilators, wipes and toilet paper because the world runs on just-in-time deliveries, and we usually don’t need such massive quantities during normal times. The country invoked the Defense Production Act, which normally is used in times of warfare to alleviate shortages.

Hospitals have been overrun and food banks give out tons of needed food. The government has distributed trillions of dollars of unfunded aid, while the federal deficit has exploded. We experienced one of the most hostile elections in the history of the country.

There have been big waves of civil unrest and the country remains divided. This is not just a United States problem, but one that is affecting the world.

Yet, the stock market has reached all-time highs. Vaccines that were developed in record time are a light at the end of the tunnel.

We will come out of this. Maybe not until summer. There are still many questions that need to be answered about the virus, such as will you need a yearly vaccination and can you be infected a second time? Scientists still have a lot to learn, but they will figure it out. We need to do common-sense things to mitigate the spread. We should concentrate on what we can control.

The pandemic has shown that many people need to re-evaluate their finances. Many have not had enough emergency money or have had too much debt. The stock market is still due to have a correction, and some of the biggest growth stocks are currently valued way more than is normal or maybe reasonable.

The need for estate planning was brought into focus by the pandemic. Taxes are almost certainly going to go up dramatically. Certificates of Deposit and bonds are paying very little interest and this is not likely to change anytime soon, when you consider that 30-year government bonds are paying only around 1.5% interest.

Next week, we will discuss some things you can do to put your family in a better position. We also will talk about ways to keep New Year’s resolutions.

We’ve made it – 2020 ends today. Take a deep breath.

I wish you and your family a safe and happy New Year.

Gary Boatman is a Monessen-based certified financial planner and the author of “Your Financial Compass: Safe passage through the turbulent waters of taxes, income planning and market volatility.”

To submit columns on financial planning or investing, email Rick Shrum at rshrum@observer-reporter.com.