“We've got to remember that although trends change and the epicenter of where the most people are in the world keeps shifting, that doesn't necessarily affect what we do from a financial standpoint for our clients.”
Looking ahead and anticipating changes can be an intriguing and important part of financial planning. In this episode, Matt Stead, Eric Sachetta, and Mike Callahan, Sachetta Callahan financial advisors, discuss 2030: How Today's Biggest Trends Will Collide and Reshape the Future of Everything by Mauro F. Guillén, a guide to the global economic and cultural changes to come.
Guillén anticipates that the shift in global populations by the year 2030 will be one of the biggest changes with far-reaching economic effects. The U.S. population is on the decline and will likely continue downward through the next 10 years. Other non-western populations are expected to grow, especially in Africa where nine babies are born for every one in the U.S. Developing and emerging markets will have to greatly expand agriculture, infrastructure, and the job market to meet their growing populations. These growths have a significant effect on the global economy.
Without taking immigration into consideration, the US population is shrinking based on families' decisions to have fewer children. This could be due to the high cost of raising a child (now about a quarter of a million dollars per child) and women who have entered the workforce are deciding to have fewer children. This decrease in the population will adversely affect our economy, however many economists suggest that legal immigration could be a saving grace for the economy and help to keep the Social Security system afloat as populations decrease.
With these population shifts and their economic effects to consider, investing with diversified portfolios is one way to have a greater sense of security. Big companies closely monitor population trends and where people are buying products and services. For these large companies, an increasing population in non-western countries could provide a new pool of customers to service in the future. Diversifying a portfolio with large companies could potentially take the burden off of individuals to follow the global market on their own, through what could be a tumultuous decade of change ahead.
2030: How Today's Biggest Trends Will Collide and Reshape the Future of Everything by Mauro F. Guillén
Social Security Benefits and Retirement Planning
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At Sachetta Callahan, we consider the financial road ahead through whatever economic changes head our way. If you’re looking for guidance when it comes to planning for the next 10 years and beyond, our advisers are here to help. Contact us today.