Last week I attended a Wealth Management Summit at the New York headquarters of one of the leading banking and investment management firms. I think it is fair to say their overall perspective is that the global economy and investment markets are OK but opportunities for returns on invested money are muted and are likely to remain so for a good while. This is consistent with most of the prognostications I see.
The implications are daunting for savers and even more so for those who are already depending on returns from investments for current needs. If you are saving for a future goal like financial independence, it will be wise to reconsider saving more than you probably want to. If you are currently living on investment returns as most retirees do, you can no longer invest as safely as you could have twenty years ago and earn a sufficient return. On the other hand, it is usually unwise to take on too much risk as lost money is challenging to recover in a low return environment.
A good practice is to have a tangible plan that includes both spending and income that is based on real circumstances and not on either fears or hopes.