Financial Analysts give advice for people panicking about their 401K amid economic uncertainty
NEW YORK CITY (WABC) — How often have you checked your 401K in the past week?
It can be unsettling to see years of retirement gains vanish as the market churns on the roiling tariff news.
How do you steady the ship through uncertain economic times? Eyewitness News reporter Tanya Rivero spoke to experts for their recommendations.
“Will I ever retire, that’s the question?!” small business owner Tommy Liakos said.
Liakos, 55, says the recent 30 percent hit to his 401K has made retirement an even more distant dream.
“Would I like to retire at 65? Sure. But I’m an old papa with young kids so I don’t think that’s going to happen. I’m just really nervous about the market and the future,” Liakos said.
While the small business owner is not yet burying gold bars in his backyard, he says he’s lost all confidence in the stock market.
Financial Analysts like Caleb Silver say the stock market, long term, is still a good bet, even if this downturn is different.
“This is extreme volatility brought on by the tariff announcement by the Trump administration that took a lot of people by surprise, a lot of economists said this was much worse than they had anticipated, but eventually stocks, and the stock market, should revert to the mean,” Silver said.
More than 60 percent of Americans have money in the stock market, including two-thirds of middle-income families and one-fourth of those with annual incomes below $40,000, according to Gallup.
So the stakes are high.
“If you are close to retirement, your asset allocations shouldn’t be as aggressive as what would keep you up at night. 57 — long-term investors, people that are not retiring in 15 minutes, but in 15 years, should feel comfortable. Volatility in the equity market is the price you pay for higher annualized returns over time versus bonds,” said financial analyst Art Hogan.
Tax strategist Lorraine Millington preaches nest egg diversification for every age.
“When you invest in something like an IRA, you’re able to invest in real estate or notes, that have the security of a hard asset,” Millington said.
Advice Liakos says he follows, slowly shifting his savings into gold and silver.
Financial advisors caution, with this volatility, now is not the time to make any major moves with your 401K.
If you get nervous, remember after each major downturn, the S&P 500 has come back to reach record highs.
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