The market and your money: How current stocks are impacting retirement plans
WE’RE LEADING THE WAY WITH BREAKING NEWS. AFTER ANOTHER WILD DAY ON WALL STREET TODAY. THE STOCK MARKET’S WORST DAY SINCE COVID LED TO THAT MAJOR PLUMMET BACK IN 2020. THE DOW DOWN MORE THAN 2200, OR 5.5%. NASDAQ AND S&P BOTH FALLING ABOUT 6%. NOW THE MAIN QUESTION OF COURSE. NOW WHAT DOES ALL OF THIS MEAN FOR YOUR MONEY? SHOULD YOU CONSIDER MOVING YOUR ASSETS AROUND AND HOW DOES IT IMPACT YOUR RETIREMENT IF YOU’RE DOING THAT SOON? WLWT NEWS FIVE’S RACHEL WHALEN TAKING OUR QUESTIONS TO THE EXPERTS. WHAT THE MARKET HATES MORE THAN ANYTHING ELSE IS UNCERTAINTY. IT’S BEEN A BUSY WEEK FOR SPENCER FORD AT CONSERVATIVE FINANCIAL SOLUTIONS AND HARRISON. THE FACTS ARE, THE FACTS IS WE’RE EXPERIENCING THE WORST STOCK MARKET DECLINE SINCE WE EXPERIENCED IN MARCH OF 2020. THE QUESTION ON EVERYONE’S MIND HOW IS THIS GOING TO AFFECT MY MONEY? YOUR RESPONSE IS REALLY GOING TO BE DICTATED BY YOUR SITUATION THAT YOU FIND YOURSELF IN, RIGHT? IN THE FINANCIAL WORLD, THERE’S A COMMON THEORY CALLED 100 MINUS YOUR AGE RULE. FOR EXAMPLE, IF YOU’RE 30 YEARS OLD, THE RULES SUGGEST YOUR RETIREMENT ACCOUNT SHOULD HAVE 30% BONDS AND 70% STOCK BECAUSE STOCKS HAVE THE POTENTIAL TO MAKE MORE MONEY. AND AT 30, YOU DON’T HAVE TO WORRY AS MUCH ABOUT DIPS IN THE MARKET. I DON’T WANT TO MAKE LIGHT OF THE SITUATION, BUT THIS CAN BE A GREAT OPPORTUNITY. YOU’RE CONTRIBUTING TO YOUR 401 K. YOU’RE GETTING TO BUY THINGS WHEN THEY’RE AT A PERIOD OF DECLINE. HOWEVER, AT AGE 70, THE NUMBERS SHOULD FLIP WITH 70% BONDS, WHICH ARE SAFER. SO IF YOU’RE SOMEBODY WHO’S LIKE JUST A STEP AWAY FROM RETIREMENT OR YOU’RE ALREADY IN RETIREMENT, THEN YOU SHOULD HAVE A CONVERSATION WITH YOUR FINANCIAL ADVISOR AND JUST SAY, HEY, HOW MUCH IS THIS AFFECTING ME? HOW MUCH IS THIS AFFECTING MY PLAN? BECAUSE FOR SOME, IT MIGHT REALLY BE AFFECTING THEM AND FOR SOME IT MIGHT NOT. WHILE THE FUTURE IS UNKNOWN, FORD IS HOPEFUL THE MARKET WILL RECOVER SOONER RATHER THAN LATER. WE GO THROUGH THESE EVENTS ALL THE TIME. WE HAD SILICON VALLEY BANK COLLAPSE, WE HAD COVID, WE’VE HAD BREXIT IN THE PAST. YOU KNOW, ALL THESE THINGS HAVE HAPPENED. WE THOUGHT THE SKY WAS FALLING. BUT BUSINESSES ARE HIGHLY ADAPTABLE. ONCE THEY KNOW THE RULES THAT THEY’RE PLAYING BY, THEY’LL BE ABLE TO ADAPT AND WILL HOPEFULLY SEE THAT, YOU KNOW, UP INTO THE RIGHT TRAJECTORY THAT WE’RE USED TO SEEING IN THE MARKET. SO THERE ARE OPTIONS BEFORE YOU START PUSHING YOUR RETIREMENT BACK. YOU CAN MOVE AROUND YOUR MONEY TO BONDS, CDS OR CASH. ADJUSTING YOUR SPENDING, EVEN TEMPORARILY, CAN ALSO MAKE A DIFFERENCE. AGAIN, IF YOU HAVE ANY CONCERNS OR QUESTIONS, THE BEST THIN
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The market and your money: How current stocks are impacting retirement plans
It’s been a busy week for Spencer Ford at Conservative Financial solutions in Harrison. “The facts of the facts is we’re experiencing the worst stock market decline since the one we experienced in March of 2020,” said Spencer, a certified financial planner.
It’s been a busy week for Spencer Ford at Conservative Financial solutions in Harrison.”The facts of the facts is we’re experiencing the worst stock market decline since the one we experienced in March of 2020,” said Spencer, a certified financial planner. The question on everyone’s mind: How is this going to affect my money?”Your response is really going to be dictated by your situation that you find yourself in, right?” said Spencer.In the financial world, there’s a common theory called the “100 minus your age rule.” For example, if you’re 30 years old, the rules suggest your retirement account should have 30% bonds and 70% stock because stocks have the potential to make more money, and at 30, you don’t have to worry as much about dips in the market.”I don’t want to make light of the situation, but this can be a great opportunity. You’re contributing to your 401K. You’re getting to buy things when they’re at a period of decline,” said Spencer. However, at age 70, the numbers should flip with 70% bonds, which are safer. “So, if you’re somebody who’s just a step away from retirement or you’re already in retirement, then you should have a conversation with your financial advisor and just say, ‘Hey, how much is this affecting me? How much is this affecting my plan?’ Because for some, it might really be affecting them, and for some, it might not.” said Spencer.While the future is unknown, Ford is hopeful the market will recover sooner rather than later.”We go through these events all the time. We had Silicon Valley bank collapse, we had Covid, we’ve had Brexit in the past. We thought the sky was falling. But businesses are highly adaptable. Once they know the rules that they’re playing by, they’ll be able to adapt,” said Ford.If you are close to retirement, other ways you can protect your money include moving it to cash, CDs, and bonds. Adjusting your spending, even temporarily, can also make a big difference. Depending on your situation, you may want to keep working a little longer than you planned. If you have questions or concerns, the best thing you can do is contact a financial advisor.
It’s been a busy week for Spencer Ford at Conservative Financial solutions in Harrison.
“The facts of the facts is we’re experiencing the worst stock market decline since the one we experienced in March of 2020,” said Spencer, a certified financial planner.
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The question on everyone’s mind: How is this going to affect my money?
“Your response is really going to be dictated by your situation that you find yourself in, right?” said Spencer.
In the financial world, there’s a common theory called the “100 minus your age rule.” For example, if you’re 30 years old, the rules suggest your retirement account should have 30% bonds and 70% stock because stocks have the potential to make more money, and at 30, you don’t have to worry as much about dips in the market.
“I don’t want to make light of the situation, but this can be a great opportunity. You’re contributing to your 401K. You’re getting to buy things when they’re at a period of decline,” said Spencer.
However, at age 70, the numbers should flip with 70% bonds, which are safer.
“So, if you’re somebody who’s just a step away from retirement or you’re already in retirement, then you should have a conversation with your financial advisor and just say, ‘Hey, how much is this affecting me? How much is this affecting my plan?’ Because for some, it might really be affecting them, and for some, it might not.” said Spencer.
While the future is unknown, Ford is hopeful the market will recover sooner rather than later.
“We go through these events all the time. We had Silicon Valley bank collapse, we had Covid, we’ve had Brexit in the past. We thought the sky was falling. But businesses are highly adaptable. Once they know the rules that they’re playing by, they’ll be able to adapt,” said Ford.
If you are close to retirement, other ways you can protect your money include moving it to cash, CDs, and bonds. Adjusting your spending, even temporarily, can also make a big difference. Depending on your situation, you may want to keep working a little longer than you planned. If you have questions or concerns, the best thing you can do is contact a financial advisor.