NYONE WHO LOOKS AROUND IN 2024 COULD BE FORgiven for thinking that whatever world the stock market is living in , it isn ’ t occupied by most humans . In mid-May , I happened to watch an interview with former defense secretary and CIA director Robert Gates , who noted there were four separate wars in the Middle East alone . He wasn ’ t counting the deadliest , Russia and Ukraine .

Yet against this backdrop , the Dow Jones Industrial Average recently climbed past 40,000 for the first time . Fourteen of the world ’ s 20 largest markets , including those in Canada , Brazil , Australia and many European nations , also approached or reached all-time highs .

Research from market strategist Ed Yardeni , who predicted in the early days of the 2020 pandemic that this decade would turn into the Roaring Twenties , puts the U . S . returns in perspective . Since 1982 , equities have climbed 40-fold while nominal GDP is up eight-fold .

That gain was matched by the market capitalization of the S & P 500 , which rose “ from $ 1.0 trillion in 1982 to over $ 40.0 trillion currently ,” says Yardeni . This period of more than 40 years represents the working years of most adult baby boomer households . During that period , standards of living improved — these are measured by Yardeni as real personal income expenditures , which doubled from $ 55,000 annually to $ 119,000 a year at the start of 2024 . What a four-decade bull market has done for expectations remains to be seen .

Strong markets and a sound economy have left many clients feeling ready for retirement , but that doesn ’ t mean they are prepared to enjoy a life of purpose and meaning .

All this remarkable wealth creation hasn ’ t been accompanied by similar gains in the quality of life , however . In the early days of this 40-year boom , Americans got to see some tangible benefits from the early days of globalization , from the outbreak of democracy in South America to the fall of the Berlin Wall . Eventually , some negative trends emerged , too — hollowed out industrial communities and teens psychologically scarred by social media .

In this month ’ s cover story , contributors Steve Gresham and Suzanne Schmitt examine the opaque issue of financial wellness . Strong markets and a sound economy have left many clients feeling ready for retirement , but that doesn ’ t mean they are prepared to enjoy a life of purpose and meaning .

Advisors certainly can ’ t control developments like deglobalization , and they have only limited ability to help clients structure their non-financial lives . But , as Gresham and Schmitt write , they can make clients aware of the problems

they are likely to confront in retirement and how some people successfully address them .

To prepare , one of the first steps clients can take is to draw up retirement budgets , a process senior writer Ben Mattlin dives into on page 49 . Experienced advisors warn their clients not to underestimate the healthcare costs they and their families are likely to confront .

Attitudes toward education have also changed . There ’ s been a wholesale re-examination of the value of college , for instance , after the abrupt pause of in-class teaching during the Covid-19 pandemic , which happened at a time when tuition costs have been rapidly rising and many colleges are closing . Everyone has read about the protests over Israel and Gaza , which prompted some universities to return to virtual learning . But there are other problems hampering freshmen : On page 47 , senior writer Jennifer Lea Reed examines the troubled revamp of the Free Application for Federal Student Aid , or FAFSA . Technical problems with the new form ’ s rollout have wreaked havoc for next year ’ s incoming class . According to college advisors , the picture for applicants isn ’ t any prettier than those on campus .

Hopefully as the year proceeds , the markets won ’ t be the only source of good news .

Evan Simonoff

Email me at esimonoff @ famagazine . com with your opinion .

8 | FINANCIAL ADVISOR MAGAZINE | JUNE 2024 WWW . FA-MAG . COM