Although our nation is not in a financial storm, experts are struggling to formulate an economic forecast. In fact, they can’t even come up with a consensus on where the economy stands today. There are just too many crosscurrents creating a variety conflicting views.

Have tariffs led to higher inflation? Which way are interest rates headed? Is the economy growing as fast as the numbers indicate?

Something we do know is that our national debt surpassed $37 trillion earlier this month. That means we now spend more on loan interest than we do on both national defense and Medicare.

The bottom line is that all the uncertainty adds up to more questions than answers. But despite all that, the American consumer appears to keep rolling along, albeit with a bit more caution.

Take a certain large restaurant conglomerate, for example. The traffic at their upscale steak house has slowed a bit, but their mid-scale steak house chain is maintaining heavy traffic. That seems to be an indication that consumers are trading down somewhat.

And it’s in the same vein as grocery store brand sales increasing while national brand sales are falling. In other words, consumers are being more selective with their spending.

From an investor’s perspective, it may be tempting to reach for some of the exotic and flashy investments that are dominating the financial headlines. But I seriously question if now is the time to be chasing returns.

Regular readers know that I’m a big believer in diversification, which means having a variety of quality positions in a variety of asset classes. It may not be the flashiest or most glamorous approach, but historically, it has stood the test of time. I’m aware that what happened in the investment world in the past is not guaranteed to repeat. Nonetheless, long-term diversification has proven to be an effective strategy.*

There have recently been some subtle changes in the investment world. One is significant. Private equity has been given the green light to be among the investment choices for retirement programs. Private equity tends to be higher risk and can be illiquid. I’m speculating that the firms that administer these retirement programs are scrambling to upgrade their investment choices to include a menu of private equity offerings. As a financial advisor, I’m a bit concerned about the decision to make riskier investments more readily available to almost everyone.

SA few years ago, an investment firm advertised that, if you wanted to invest like the wealthy, they were your firm. They offered choices beyond traditional stocks, bonds, mutual funds and ETFs. Unfortunately, many of those who thought they were investing like the wealthy have lost significant money.

Such losses could mean working beyond their intended retirement date for many investors. What’s just another day in the market for the ultra-wealthy is often a catastrophic loss for everyday investors. And in many instances these significant losses came about when investors were swinging for the fences. But they played the game without a scouting report, commonly known as research.

With economic forecasts and projections all over the map and private equity firms now trying hard to get a slice of the retirement pot, it’s time for investors to be levelheaded. Be wary of overreaching by taking on unnecessary risk.

*A diversified portfolio does not assure a gain or prevent a loss in a declining market. There is no guarantee that any investment strategy will be successful or will achieve their stated investment objective.

Email your questions to kenmorris@lifetimeplanning.com

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial.com/disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.

The number of senior communities springing up across the landscape is an indication of an aging society. These communities provide a safe living environment for seniors, with social activities, meals and minor medical care.

They also provide a sense of relief for those with aging parents. Knowing that mom and dad are being fed and that someone is keeping an eye on them is comforting.

But there’s a downside. The criminal element knows exactly where to find these vulnerable seniors.

It’s common that a person’s mental sharpness declines at some point in life. For example, I have a longtime client who was a top auto executive. After retirement, he was in high demand by auto suppliers. But time began to catch up with him, and as so many retirees eventually do, he moved into a senior community.

Everything was going just fine until the day he answered a phone call from an unscrupulous individual pretending to be from his bank. Believing the impostor’s story, he was swindled out of nearly $10,000. During the conversation, he was told not to answer his phone under any circumstances unless it was from the phony banker himself.

After being unable to reach him by phone all day, his family drove to the facility. It didn’t take long for them to determine that he had been taken. He was unable to provide a good explanation to his family, to the investigating police or to me, his advisor. In short, a slick talking criminal, posing as a banker, stole from a senior. Sadly, my client is not alone.

I am well aware that stealing from seniors is becoming quite prevalent. Nonetheless, I was surprised to learn that scammers cost older people $700 million in 2024. That’s according to the FTC, which defines older people as those beyond the age of 60.

In 2024, 8,269 seniors lost more than $10,000 to impostors. Quite a jump from 2022, when it was slightly under 1,800. Total losses to scammed seniors was $122 million in 2020. Last year, it was more than $700 million.

Scammers use made-up crises to trick seniors, often pretending to be someone of authority, as in my aforementioned client’s “banker.” Or maybe it’s a law enforcement officer with a cockamamie story about a grandchild who desperately and immediately needs money to get out of a dangerous situation. Using today’s technology, a scammer can make almost anything seem real, and senior citizens with money in the bank make ideal targets.

Financial advisors go to great lengths to protect vulnerable clients. We do not act on emails requesting money. Phone calls are made to clients prior to executing any withdrawal requests. If senior financial abuse or fraud is suspected, there are steps advisors can take to make certain everything is in good order before any money is withdrawn.

When opening an account, advisors document a trusted, client-designated person to whom we have permission to contact if any concerns arise.

Nowadays, there are numerous ways investors can directly manage their own funds. That may be fine, but as they age and become more vulnerable, they may lack the time, desire or ability to oversee their finances the way a financial advisor does. Having a financial advisor provides one more set of eyes on the lookout for con artists.

Email your questions to kenmorris@lifetimeplanning.com

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Society for Lifetime Planning is not affiliated with Kestra IS or Kestra AS. https://kestrafinancial.com/disclosures

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation. Comments concerning the past performance are not intended to be forward looking and should not be viewed as an indication of future results.