Does Main Street Need a Wall Street Strategy?

As Wall Street pushes higher, a pandemic-weary Main Street is relearning how to manage cash flow with the hope of keeping its retirement dreams alive.

Self-employed Americans, and the people working for them, account for roughly 30 percent of the nation’s workforce.¹

In the best of times, putting aside money for retirement was a challenge for this group. Before the pandemic, just 13 percent of people who run a single-person business set aside money in a workplace retirement plan. By comparison, 72 percent of people in large companies participate in retirement plans.²

In recent weeks, the Dow Jones Industrial Average crossed 30,000 for the first time. And this year, the Standard & Poor’s 500 index has picked up more than 10 percent through November. But some self-employed Americans are just reading about the rally, not participating.^3,4

There’s no shortage of retirement plan choices and programs. But the uncertain outlook has forced many to build larger-than-normal cash reserves to help manage through any operating restrictions or shutdowns.⁵

If you’re a self-employed business owner who’s struggling with managing cash flow while keeping an eye on your future, please give us a call. We may offer some guidance on how to set priorities so both goals can be within your reach.

^{1. Pew Research Center, August 29, 2019}

^{2. CNBC.com, September 12, 2019}

^{3. The Wall Street Journal, November 25, 2020}

^{4. Yahoo Finance, November 30, 2020}

^{5. CNBC.com, September 4, 2020}