Almost every person who had a job in January has had their job status changed.
Either they are working from home, or they have had their job furloughed for the time being, or they have lost their job due to the impact of the coronavirus.
Employment status is a major concern for affluent investors even in good times. In the time of the coronavirus, employment status takes on a whole new level of concern, even among the most affluent investors.
Through 2020, Spectrem is conducting research related to the presidential choice they get to make in November. Tracking the Election 2020 asks investors who they plan to vote for, who they think is going to win, and how the election results will impact the economy.
They are also asked questions about their current employment status, with an eye toward how employment today and in the future will impact investment decisions.
According to the study, while only 1 percent of investors with a net worth of at least $100,000 (not including the value of their primary residence) have lost their job, 7 percent are concerned about losing their job and 9 percent have had their employment furloughed for the time being. In each of those cases, that investor is now reconsidering many of the decisions they have made regarding investments as future financial needs have probably been altered.
Also, 29 percent of investors have been forced to work from home. While such a change may not alter income projections, it can change costs related to working and could also alter tax situations, since the investor’s workplace has been moved into their home. Advisors who work with their clients’ accountants should consider a conversation about future expenditures related to work requirements as well.
If working from home becomes permanent for many businesses, there is also going to be a new and very different market for commercial real estate, and that could alter investment decisions around that product going forward.
There are numerous questions that investors are going to have about how they proceed in light of the coronavirus attack on the economy, and work environment is going be one of the topics that raises such questions.
Keywords: election, employment, investors, advisors, Spectrem, unemployment, location