MONROE, La. (KNOE) - The coronavirus economic impact is projected to lead to a global recession, according to the International Monetary Fund. Monroe financial consultant Darren Oglesby said people should begin preparing for the worst.
The coronavirus economic impact is projected to lead to a global recession, according to the International Monetary Fund. Monroe financial consultant Darren Oglesby said people should begin preparing for the worst.
Olgesby said his clients have asked for help in protecting their assets in the recent weeks. He told them if they have enough money to get by, then this is the time to invest. But if not, he said it’s important to start building an emergency reserve fund.
Last week, the Labor Department reported a record-breaking 3.3 million unemployment claims. Oglesby said this will particularly affect people in the entertainment, food, and beverage industries.
For parents who have plans of sending their children off the college, he said this is the time to re-evaluate your options.
Oglesby said, “We’ve had large enough changes in our economy in the U.S., and are about to see those where they can change some long-term and some intermediate-term planning; my advice there would be to take a look at your situation what you had planned to do, over the next 6 to 9 months, with you and your family, and ask yourself are those plans still on track? Are they feasible?”
The Senate just passed a $2.2 trillion coronavirus relief package that Oglesby said will hopefully help small business owners and low-income workers over the next couple of weeks.
Through the bill, individuals earning a gross adjusted income of up to $75,000 annually will be eligible to receive a check of $1,200. Married couples earning up to $150,000 annually will be eligible to receive $2,400. This includes an additional $500 per child under the age of 16 to heads of households and married couples.
Oglesby said this relief is necessary because our current economic state will be different than the last recession.
“The last recession we were in, the layoffs were a slow bleed, for lack of better phrases. Where people across all pay spectrums were laid off. Right now this is hitting immediately the people that can least afford to be laid off which is lower income workers,” he said.
The House of Representatives is expected to reconvene on Friday morning to pass the legislation by voice vote. Oglesby said he is hoping people will begin feeling the relief of this bill over the next couple of weeks.