(3 minute read)
Did you know you can sell all or a portion of a life insurance policy, even term insurance?
The 2022 financial forecast is one of slow-but-continued growth and recovery from the economic downturn of 2020—at least, for now. With COVID-19 still complicating the world, new regulations around everything from technology to travel to emissions, and the challenges of the supply chain, you might wonder how this optimism is possible! We’ve collected expert opinions to share with you in this summary of what’s ahead for the economy in 2022, and what variables can still change the predictions.
US Economic Forecast 2022
According to The Conference Board, the US economy will grow by 3.5% in 2022. In addition, it’s expected we will learn that US Real GDP growth has nearly tripled between Q3 of 2021 and Q4, thanks to strong economic growth in October and November. That means we have plenty of growth momentum going into the New Year. At the same time, growth expectations are being somewhat downgraded for Q1 of 2022 because of the emergence of the Omicron variant of COVID-19, carrying with it the possibility of a winter wave of COVID-19 infections and policies to prevent the spread.
With optimism and uncertainty in balance, many people have two questions:
Will There Be a Recession in 2022?
Issues with the supply chain are certainly contributing to the likelihood of a recession in coming years, but economists predict this to come in 2023 or beyond. Sometime in 2022, the Federal Reserve will taper off stimulus to individuals and businesses, while at the same time raising short-term interest rates. The timing of this decision to tighten the purse strings could impact the timing of a recession or may enable us to avoid it altogether. Another unknown element that could accelerate a recession is the timing and magnitude of job losses and resignations due to vaccine mandates for employees. With 31 million unvaccinated workers currently on the job, it just depends on how many choose to get the shot and how many choose not to.
Will There Be Inflation in 2022?
Yes, there will be inflation in 2022, but it is currently predicted to be low compared to the historic highs of 2021. In November 2021, US inflation rose to 6.8%, the highest since 1982. By contrast, 2022’s inflation is expected to peak around 2.2%. However, the Federal Reserve must plan for strategies like raising interest rates and making credit more difficult to access in order to keep inflation low, so the success of those tactics may cause this prediction to be off the mark in any direction.
Stock Market Predictions for 2022
Experts suggest approaching the stock market in 2022 with cautious and prudent optimism. Updated forecasts predict another year of double-digit growth for the S&P, but the easy gains of the mid-pandemic boom in Summer and Fall of 2021 are behind us. Gains are especially predicted in bond yields and cyclical assets. The overall index will remain strong, but the wins at the top and losses at the bottom are poised to become more extreme and more unpredictable, while growth in the middle slows to a steady pace.
Housing Market Predictions for 2022
For those wondering, “will the housing market crash in 2022,” the answer still looks like a resounding “no.” According to Realtor.com chief economist Linda Hale, home sales are expected to grow another 6.6% in 2022, with a 2.9% increase in home values to match. The demand among first-time home buyers is expected to be accelerated by a projected 7.1% increase in rent prices. Though demands for higher wages are making headlines, average income is only expected to increase by around 3.3% overall, meaning the need for affordable housing is going to become even more complicated and pressing in 2022. Some experts like President and CEO of the National Apartment Association Bob Pinnegar even predict more regulations like rent control or another eviction moratorium to provide a quick solution to these woes.
Sell Insurance Assets to Gain Liquidity Against the Future
Amid all these economic uncertainties, a life insurance policy is a secure and tangible investment that it might be time to cash in on so you can enjoy the benefits while you are still living. If you have an unwanted or unneeded life insurance policy, you can sell it for far more than the surrender value in a life settlement, and also save yourself the expense of monthly premiums. This immediate nest egg could be invaluable to you in the year ahead.
Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home, or any other valuable asset that will create immediate cash. Contact us today to learn more.
Life Settlement Advisors