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GREEN BAY, WI (WTAQ-WLUK) — The changing economy has many Americans concerned about the impact it may have on their retirement savings.
In the wake of these economic fluctuations, investors are wondering if they should make changes to their 401(k) plans. However, financial experts are warning people to be patient and not to panic.
“Market corrections are normal. Just hang in there… Just be in it for the long term,” said Mark Kanyanta, associate financial advisor with Holewinski & Associates of Ameriprise Financial Services.
Kanyanta said backing out of the stock market now isn’t the answer if you’re worried about your retirement — especially since it’s so hard to predict the right time to jump back in.
It’s best to just leave your 401(k) as is, since you’re not a short-term investor in this case.
“If you go back a couple years, it was easy to get ‘carried away’ because your returns were great and you could throw the dice a little bit. But now, I think having a more diversified portfolio, being well-balanced, would be a good thing to have,” Kanyanta said.
As tariffs bring uncertainty for some, the White House says they’ll pay off in the long run, with President Donald Trump saying they’ll make the U.S. rich again.
In a press briefing Tuesday afternoon, the White House put blame on the Biden administration for the current economic challenges.
“We are in a period of economic transition. We are in a period of transition from the mess that was created under Joe Biden and the previous administration. Joe Biden left this country in an economic disaster,” White House Press Secretary Karoline Leavitt said.
An economic recession is also being discussed. When Trump was asked if he’s expecting a recession this year, he had this to say:
I hate to predict things like that. There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America.
Kanyanta doesn’t believe a recession will happen soon, but said things could always change. He advises if you are concerned about the market’s impact on your 401(k), to invest more in bonds rather than stocks.
“Overall, bonds are more of your safety net and every person should have bonds in their portfolio,” Kanyanta said.
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