It’s time for retirees to prepare for war, inflation, and stock market losses

by Shannon HicksFebruary 28, 2022February 25, 2022

ukraine war inflation retirement stock market reverse mortgage

<span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span></p> <h2 class="p1"><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span>Without audience targeting are Google Ads Dead? Think again…</h2> <p class="p1"><span class="s1">Early this month Google announced new restrictions for targeting specific audiences. The restrictions apply to content related to housing, employment, credit, and those who are disproportionately affected by societal biases. The news of these restrictions created quite a stir among industry brokers and lenders who heavily rely upon targeted Google ad campaigns.<span class="Apple-converted-space"> </span>All which may have you asking if these changes will kill future reverse mortgage advertising on the world’s most popular search engine. In just a moment we’ll hear from our online SEO expert Josh Johnson to find out.<br /> </span></p> <p class="p1"><span><a onclick="read_toggle(726174929, 'Read More', 'Read Less'); return false;" class="read-link" id="readlink726174929" style="readlink" href="#">Read More</a></span> <div class="read_div" id="read726174929" style="display: none;"></p> <p class="p1"><span class="s1">Google’s restrictions are not necessarily novel nor unexpected. It was just over two years ago Facebook faced scrutiny from federal regulators for allowing those offering credit or housing finance to restrict ad audiences by race or religion among other questionable metrics that would violate HUD’s fair housing rules. An investigation by ProPublica broke this news in October 2016. It was nearly two years later in August 2018 that HUD filed a formal complaint against the social media giant for discriminatory advertising practices. Seven months after HUD’s complaint Facebook announced sweeping changes. Both Facebook and later Google, took a blunt approach much to the chagrin of lenders and service providers.</span></p> <p class="p1"><span class="s1">What ad filters are going away? In its official release Google revealed, “credit products or services can no longer be targeted to audiences based on gender, age, parental status, marital status, or ZIP code.” </span></p> <p class="p1"><span class="s1">Is this the end of Google ads for reverse mortgages? To answer that question I reached out to Josh Johnson who heads up Reverse Focus’ Online Dominance SEO program and Google marketing. Here’s his explanation.</span></p> <p class="p1"><span class="s1">Here’s what makes Google unique from other platforms and why reverse mortgage Google ads will continue to reach the intended audience. </span></p> <p class="p1"><span class="s1">To summarize, older homeowners are intentionally seeking out reverse mortgage information on Google which means, yes-your ads will be seen by your target audience, even though you can no longer target specific age groups.<br /> </span></p> <p><img class="wp-image-21372 alignnone" src="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-300x169.jpeg" alt="" width="691" height="389" srcset="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-300x169.jpeg 300w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-768x432.jpeg 768w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-1024x576.jpeg 1024w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-960x540.jpeg 960w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-711x400.jpeg 711w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.004-585x329.jpeg 585w" sizes="(max-width: 691px) 100vw, 691px" /><img class="alignnone wp-image-21373" src="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-1024x576.jpeg" alt="" width="681" height="383" srcset="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-1024x576.jpeg 1024w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-300x169.jpeg 300w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-768x432.jpeg 768w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-960x540.jpeg 960w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-711x400.jpeg 711w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.001-585x329.jpeg 585w" sizes="(max-width: 681px) 100vw, 681px" /></p> <p><img class="alignright size-large wp-image-21374" src="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-1024x576.jpeg 1024w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-300x169.jpeg 300w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-768x432.jpeg 768w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-960x540.jpeg 960w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-711x400.jpeg 711w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.002-585x329.jpeg 585w" sizes="(max-width: 1024px) 100vw, 1024px" /> <img class="alignright size-large wp-image-21375" src="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-1024x576.jpeg" alt="" width="1024" height="576" srcset="https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-1024x576.jpeg 1024w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-300x169.jpeg 300w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-768x432.jpeg 768w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-960x540.jpeg 960w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-711x400.jpeg 711w, https://hecmworld.com/reverse-mortgage-news/wp-content/uploads/2020/09/In-post-pix.003-585x329.jpeg 585w" sizes="(max-width: 1024px) 100vw, 1024px" /></p> <p class="p1"></div> <p> </p> <p><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span><br />

Geopolitics and global unrest to impact retirees’ standard of living

Inflation is here and likely to worsen before it improves. A hot war is escalating as Russia’s invasion of Ukraine increases the likelihood of NATO forces engaging with Russian troops. European markets are on the edge and last week the U.S. Dow Jones Industrial Average and S&P 500 indexes fell now verging on the edge of correction territory being 10% down from their recent highs. War brings a host of challenges, especially for those nearing retirement or living on a fixed income during their non-working years.

The world can be a frightening place for savers and non-savers alike. Those who’ve diligently saved for retirement are typically invested in equities, stocks, or mutual funds. Each brings average returns that outperform safer investments. Each brings the risk of a loss of principal should the markets turn south before or during retirement. Most investors plan to reduce their risk exposure the closer they get to retirement, but in reality, many get hammered by market losses by chasing higher returns. It’s going to be a bumpy ride.

“Heightened volatility on the escalation of the conflict shows markets had not fully priced in the likelihood of deeper conflict,” said Mark Haefele, the chief investment officer at UBS Global Wealth Management. “We expect continued volatility in the near term as leaders calibrate and announce their response to this escalation.”

In a March 2003 working paper, the National Bureau of Economic Research noted the following on war and its impact on stock markets. “We find large effects in equity markets: and war lowers the value of U.S. equities by around 15 percent. This effect is concentrated in the consumer discretionary sector, airlines, and IT; the prospect of war bolsters the gold and energy sectors. Should such a scenario play out Americans could be looking at another period of stagflation similar to that experienced in the 1970s. Stagflation occurs when consumer prices rise as the economy contracts.

Another factor roiling the equities markets is the Federal Reserve’s planned series of interest rate hikes in the attempt to rein in inflation.

All things considered, inflation, war, and a fragile stock market stand to disproportionately impact older Americans. Some will have to make difficult choices; return to work, reduce spending, or tap into available assets. The latter are faced with selling investments at a loss in a down market, continuing fixed withdrawals as the underlying returns fall or go negative, or considering the one solution that’s been hiding in plain sight- their home.

Wars and global financial markets will touch each one of us retired or not. First, more dollars are required to fill your tank or grocery cart. Second, with lower returns or losses in your investments and savings. In times such as these prudence and preparation are worth their weight in gold. Your mission, should you choose to accept it is to help older homeowners understand their options and how to implement them.

Resources cited:

[CNBC] Global markets roiled as Russia invades Ukraine

What do financial markets think of war in Iraq?

Shannon Hicks

Shannon Hicks - Shannon is the President of Reverse Focus, Inc. He draws from his experience as a reverse mortgage originator and prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he began podcasting and in 2010 with weekly video updates. He has spoken nationally at industry events and is host of the nation’s only weekly podcast for reverse mortgage professionals “Reverse Focus Weekly”. For more information, call 1.800-805-9328 x 3-3 or visit www.ReverseFocus.com .

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guy schwartz February 28, 2022 at 10:14 am

This war is scary and sad, hopefully it will be resolved quickly

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