The New Delta Variant and its Impacts on American's Finances

With the Delta variant causing a major rise in cases, we can see how COVID-19 is once again affecting our finances.

In spring of 2021, many Americans were beginning to feel hopefully that the COVID-19 crisis was coming to an end. With emergency vaccine approvals, seniors were finally able to be protected from the virus and could start living their lives (somewhat) normally again. Little by little, the economy opened up, mask mandates went away, and people were able to get back to work. But, with the more infectious and dangerous Delta variant causing a major rise in cases, we can see how COVID-19 is once again affecting our finances.

Could the Delta variant cause another economic shutdown?

If COVID-19 continues to spread, it is possible that another shutdown could happen. The Delta variant has been proven to be more lethal than the original virus and so far there are no cures for this particular strain of COVID-19. With a lack of jobs available (due to some not being able to come into work because they have been sick or others being laid off due to a bad economy), and higher unemployment rates, a shutdown from COVID-19 could be catastrophic.

How does the Delta variant affect the stock market?

The Delta variant has caused the Net Value of US stocks to drop by $400 Billion in just a week. Many are speculating that there will be inflation due to COVID-19, which would cause prices on groceries and other goods and services to rise. It is projected that if COVID-19 continues at this rate with no cure, then Americans could see financial insecurity for many years to come.

The shutdown has already had a major impact on America's finances, and another shutdown could be disastrous for our economy.

Will my retirement accounts be affected with the ongoing pandemic?

Your retirement accounts could be affected by COVID-19 for the following reasons:

• Social Security payments may experience delays or reductions due to the shutdown of agencies and departments that support these programs. This includes retirement benefits for veterans as well as disability insurance.
• Investment losses on stocks during COVID-19 could put you off track for a retirement plan.
• Continued lack of government investment could mean less money for infrastructure and the future growth of the economy, which impacts all Americans.
• Your 401(k) or Roth IRA may be affected by COVID-19 if the market stays low.
• COVID-19 could mean higher inflation rates and a decreased standard of living for all Americans.

Will the COVID-19 Vaccine Help the Economy?

The COVID-19 vaccine has helped stem the tide of financial hardship caused by the Delta variant. In some cases, it was able to keep people from becoming infected with COVID-19 altogether. Because of the number of Americans receiving the vaccine, mask mandates started to end and restaurants opened back up. But, the Delta Variant proves to be a financial burden on Americans. The best way to help the economy is by getting vaccinated (if recommended by your doctor) and supporting local businesses in your area.

How Can I Protect Myself Against Economic Insecurity Caused By the Pandemic?

The financial hardship that COVID-19 has caused is evident by the high unemployment rate. In order to protect your financial security, it's important to have savings in place for emergencies and a plan for how you will manage debt if faced with unemployment or other financial hardships.

A few things you can do now include getting a second job or side gig, cutting out unnecessary expenses, and developing financial goals to work toward.

A financial advisor may help get you through this difficult time

A financial advisor can help you get through the financial hardship that COVID-19 has caused. They are able to offer financial advice and will guide you on how to manage debt if faced with unemployment or other economic difficulties. A financial advisor may be an investment banker, a retirement planner, or an accountant. Find a fiduciary financial advisor today for information about how COVID-19 can impact your financial situation and what resources are available to help.

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• Don't Panic: Retirement Planning Amid (Coronavirus) Fears