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Consumption Isn’t Always a Dirty Word

The word consumption can take on a variety of meanings, some good and some bad. 

In the old days, consumption was an expression used to describe tuberculosis, presumably because the disease seemed to “consume” the body by drawing away its energy and weight. Today, it’s far more common to hear about the negative effects of overconsumption and its contribution to our nation’s obesity issues. 

[CLICK HERE to read the article, “Why Tuberculosis Was Called ‘Consumption,’” from TodayIFoundOut.com, March 17, 2014.] 

[CLICK HERE to read the article, “Personal Income Decelerates in February” from U.S. Department of Commerce Bureau of Economic Analysis, March 28, 2016.] 

When it comes to food and drinks, the U.S. may be going overboard on consumption, but that’s not necessarily true when the word is used in a financial sense. As an economic term, consumption refers to the purchase of goods and services by individuals — aka consumers. It’s what drives our economic growth. 

We believe what we consume reflects our lifestyles, and the amount we consume compared to what we earn can have a significant impact on our savings for the future. For some, thinking about tomorrow is a vague and difficult exercise. That’s why we offer guidance to our clients to focus on today: What can you do now that will help you in the future? 

[CLICK HERE to read the article, “U.S. Bottled-Water Consumption to Surpass Soda This Year: Chart,” from Bloomberg, April 14, 2016.] 

[CLICK HERE to read the article, “Here’s What Moderate Alcohol Consumption Really Looks Like,” at U.S. News & World Report, April 15, 2016.] 

At a national level, economic experts get a little worried when too many people are focusing on saving rather than spending. But a new study from the McKinsey Global Institute said that likely won’t be an issue in the foreseeable future. Population increases should contribute to 25 percent of the world’s economic growth in the next 15 years, but, according to the study, increased earnings for consumers will have three times as much impact. 

[CLICK HERE to read the article, “Vacations eclipse business trips as primary US air travel purpose,” from Air Transport World, April 13, 2016.] 

Urban populations are expected to drive this growth in spending. Large cities will account for 91 percent of consumption growth, and a quarter of that amount will come from just 32 cities between now and 2030. 

It may come as a surprise that the demographic most likely to contribute to global consumption is the 60+ group. Data suggests baby boomers are generally well-prepared to consume during retirement. If you want to help ensure you’re among these ranks, please contact us to discuss retirement strategies that can help you meet your long-term financial goals. 

[CLICK HERE to read the article, “Big Cities Are the Future of Global Consumption,” from CityLab, April 14, 2016.] 

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives.

The information contained in this material has been obtained from third-party sources believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.

If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 

 

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