SOME ADVICE FOR YOUR FINANCIAL FUTURE. YOU KNOW, PANICKING ABOUT YOUR RETIREMENT ACCOUNT TODAY? QUITE UNDERSTANDABLE. BUT BEFORE YOU DO THAT, DO YOU ACTUALLY KNOW WHAT THE INVESTMENTS ARE IN YOUR 401 K? THE MORE YOU HAVE INVESTED IN STOCKS, OF COURSE, THE HARDER THE HIT YOU’LL TAKE. BUT A GOOD MONEY MANAGER WILL HAVE DIVERSIFIED THAT FUND IN BONDS AND OTHER INVESTMENT VEHICLES. SO FIND OUT WHAT YOUR REAL FINANCIAL EXPOSURE IS HERE. IT MAY NOT BE AS BAD AS YOU THINK. NEXT, KEEP IN MIND THAT MARKET CORRECTIONS ARE NORMAL. THEY HAPPEN EVERY FEW YEARS WHEN STOCKS CAN DECLINE BY UP TO 10%. BUT THE BIG QUESTION IS WHAT WE’RE SEEING NOW TO BE CONSIDERED NORMAL. EXPERTS ARE TALKING ABOUT A POSSIBLE RECESSION BECAUSE OF THESE TARIFFS. SO THAT MAKES THIS A PERFECT TIME TO REASSESS YOUR OVERALL FINANCIAL PLAN. AND ONE THING YOU DO NOT WANT TO DO RIGHT NOW IS LIQUIDATE YOUR 401 K, TAKE ALL THE MONEY, BECAUSE DOING THAT GUARANTEES YOU WILL LOSE MONEY BECAUSE OF THE MARKET DROP, AND YOU WILL HAVE TO PAY TAXES ON IT. AND THAT MEANS YOU MAY MISS OUT ON ANY POTENTIAL MARKET REBOUNDS. THE MARKETS DO HISTORICALLY BOUNCE BACK FROM HITS LIKE THIS. FROM WHAT WE’RE SEEING RIGHT NOW. BUT WILL HISTORY REPEAT ITSELF? THAT REMAINS TO BE SEEN.
Financial markets around the world reeled following President Donald Trump's latest and most severe set of tariffs, and the U.S. stock market took the worst of it.The S&P 500 fell 4.8% Thursday, more than other major stock markets. The Dow Jones Industrial Average dropped 1,679 points, and the Nasdaq composite sank 6%.After seeing these numbers, many of you are probably thinking – and maybe panicking – about your 401(k).First of all, do you know what your investments actually are?The more you have in stocks, the harder the hit you'll take.However, a good money manager will have diversified that fund, so find out what your "real" financial exposure is. It may not be as bad as you think.Next, keep in mind that market corrections are normal. They happen every few years when stocks can decline by up to 10%.The big question: Is what we're seeing now to be considered "normal?"Experts are talking about a possible recession because of these tariffs, so that makes this a perfect time to reassess your financial plan.One move you don't want to make is liquidating your 401(k).Doing that guarantees you'll lose money because of the market drop, and you'll have to pay taxes.Also, you may miss out on any market rebounds. The markets historically bounce back from hits like what we're seeing now.Will history repeat itself? That remains to be seen.
Financial markets around the world reeled following President Donald Trump's latest and most severe set of tariffs, and the U.S. stock market took the worst of it.
The S&P 500 fell 4.8% Thursday, more than other major stock markets. The Dow Jones Industrial Average dropped 1,679 points, and the Nasdaq composite sank 6%.
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After seeing these numbers, many of you are probably thinking – and maybe panicking – about your 401(k).
First of all, do you know what your investments actually are?
The more you have in stocks, the harder the hit you'll take.
However, a good money manager will have diversified that fund, so find out what your "real" financial exposure is. It may not be as bad as you think.
Next, keep in mind that market corrections are normal. They happen every few years when stocks can decline by up to 10%.
The big question: Is what we're seeing now to be considered "normal?"
Experts are talking about a possible recession because of these tariffs, so that makes this a perfect time to reassess your financial plan.
One move you don't want to make is liquidating your 401(k).
Doing that guarantees you'll lose money because of the market drop, and you'll have to pay taxes.
Also, you may miss out on any market rebounds. The markets historically bounce back from hits like what we're seeing now.
Will history repeat itself? That remains to be seen.
Dow drops nearly 1,679 in biggest wipeout since 2020 as fears of fallout from tariffs shake markets
How President Trump's tariffs could impact everyday products
