Retirement fears grow as stock market tumbles after Trump's tariffs announcement
SEATTLE — The anxiety and fear over a bright financial future are growing amongst millions of Americans planning or nearing their retirement.
The stock market took a tumble on the first day of trading after President Donald Trump announced new tariff plans. While many take the risk of peaking at their retirement accounts, others choose to ignore it altogether.
“My plans for retirement are volunteering and helping out with charity and the programs that I enjoy and travel,” Mark Johnson told KOMO News.
His plan is all mapped out. Johnson, who’s worked as a lobbyist for the past 42 years, is retiring in June. That’s when he plans to hit the road in his RV, on a quest to see all 50 state capitals. He said he already has 25 checked off, so he’s only got 25 to go.
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Johnson told KOMO News the president’s tariff announcement did give him pause, but said he believes he’s got his nest eggs well spread.
“I hope my timing isn’t bad on my retirement plan, maybe I’ll be working a little bit longer,” Johnson said.
Many other soon-to-be retirees may not feel as confident.
“Generally, those who are most emotional are unsure if they are prepped for retirement,” Brian Duffy, with Duffy Wealth Management told KOMO News. “Do not make long-term decisions on short-term news.”
As a certified financial planner, Duffy said the key is knowing your appetite for risk.
These are things Johnson is now considering, wondering what’s next with inflation, his retirement accounts, and the housing market.
“What will this do to the value of my home which I plan to put on the market next month all of this is weighing the back of my mind,” Johnson said.
This is where timing may matter, but Duffy said he likes to remind his clients that recessions are short-term in nature, generally lasting 12 to 14 months, while bull markets can stretch out three to four years.
“Because it is anxious times for a lot of people, a lot of things happening in today’s environment. The best thing they can do is consult an advisor before they make any long-term moves,” Duffy said.
Duffy’s top tidbits of advice are:
- Know what you own
- Know your appetite for risk
- Make sure your emergency fund is larger in retirement than during your working years
Financial experts said the best way to deal with uncertainty is not to check your accounts every day.
Without the money older Americans spent years squirreling away in their 401K and other investments growing, some are fearful that they won’t be able to stay in their homes if the downward spiral continues.
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Younger investors, even those in their early 50s, have time for their accounts to bounce back, but not those who are ready or close to retirement.
Financial advisors say those closer to retirement may want to rebalance their accounts using the well-known phrase, “sell high, buy low.”
The worry over financial stability transcends Americans inching closer to retirement, to so many nowhere near retirement, given a record number of layoffs.
The number of jobs being cut across U.S.-based employers rose 60% in March, with employers announcing 275,240 job cuts, according to Challenger, Gray and Christmas, Inc.
In a new report, the global business, executive and coaching firm said these most recent cuts come in addition to 90,309 jobs eliminated in February.
The majority of the lost jobs came through the Department of Government Efficiency but the technology, retail, automotive, financial and news and media sectors also suffered large losses, leaving workers with no immediate plans for retirement, back out searching for work to keep the bills paid.
No matter what situation or stage in life, experts suggest people never make decisions based on politics. Instead, focus on the long-term.