After another tough day on Wall Street, a finance expert says now is not the time to panic, but maybe now is the time to make some changes to your finances to weather the storm and prepare for your retirement.
“It’s scary. I would say a lot of investors and people planning their retirement are very nervous right now,” said Jeff Segelke, president of Segelke Financial Group. things keep going down, down, down.”
Segelke says the S&P 500 is down 18% year-to-date. The Nasdaq is down 27%. An uncertain future adds to the anxiety. Not knowing how long the stock market decline will last.
“And if it continues? Will my pension just run out and all of a sudden half of it is gone? “And so, I think there’s a lot of worry and concern that this could be the start of a 2008-type scenario.”
Sgelke says there are “a number of things going against us right now,” including high prices for things like gas, groceries and housing, rising interest rates, supply chain issues, the ongoing war in Russia and a volatile stock market.”
“Well, none of that is really good right now. None of that,” he said. “Everything happening at once is creating this huge mess.”
But there are things you can do when it comes to finances. Segelke says if you’re a few years away from retirement, you should be more careful about the amount of money you invest and consider taking money out of the market.
If you’re nearing retirement, he advises you to have enough money to pay your bills and live on for a few years.
“The stock market is in a position where it could very easily be 15-20% higher than it is now in six months or 15-20% lower than it is now,” he said. he declares. “And we really don’t know which direction it’s going to go at this point.”
If retirement is more than 10 years away, Segelke says you could move money to safer places, but you can rest assured things will bounce back eventually.
If retirement is a long way off and you’re wondering if you should change your contribution to your 401k or your IRA, Segelke points out that the new money coming in now is low, and when things bounce back, your money will go up.
“I would even say you should increase the amount of money you invest,” he said.
“It’s really important that investors, that people in general, that we don’t panic. Let us not be too depressed.
Whether you invest or not, Segelke says everyone should try to reduce their debt and build up a three to six month emergency fund and build up food storage.
“Just do the basic things to make sure your finances are stable. So that you are prepared for all the storms to come,” he said.
The future is uncertain. But economists say Utah’s economy remains strong, the strongest in the nation. And it’s not too late to adapt our behaviors to deal with what’s happening now and prepare for something worse.
Segelke says we don’t know if a recession is in the near future, but added: “We find out we’re in a recession after we’re already in it. We’re not told, ‘oh there’s a recession coming next month. It’s always, ‘oh it started 3 months ago and we’re already there’.