NASHVILLE, Tenn. (WTVF) — Recent tariffs under the Trump administration have, in part, led to fluctuations in the stock market, as reflected in indexes like the Dow Jones, NASDAQ, and S&P 500.
Because stock investments are tied to your 401K, you may have seen the same shifts in your retirement plan.
Hank Parrott, president of Estate & Financial Strategies and host of the Retirement Report on NewsChannel 5+, says volatility in the market is normal, and it's best to stay invested.
"When you're pre-retirement and you're putting money in, and the market goes down, I just keep feeding it," he explained. "Right? Because the shares are going down in price, so I get more shares for the same amount of money. So now, when the market turns and it always does...so when it turns, now I've got more shares. I'm actually going to advance even faster, recover faster from that down market."
Parrott adds that if you're close to retirement, you can also refine your strategy, like choosing bonds over stocks to reduce risk.
If you need money now, he still says you should refrain from withdrawing your 401K. Instead, consider options like an annuity to ensure a steady flow of income. It's a contract where you pay a lump sum to an insurance company and, in return, get regular income payments.
"When you look at investing, in particular investing in retirement, you're long-term investors. So we want to think long-term, not worry too much about the little static we're seeing right now," said Parrott, adding he predicts an upswing in the coming months.
If you live in Davidson County, you can get free financial advice through the RESET program.
Do you have more information about this story? You can email me at nikki.hauser@newschannel5.com.
The line ''see something, say something" took on new meaning recently in Bowling Green. Two alert neighbors helped tip police to stolen Corvettes from the nearby assembly plant. That led law enforcement to find 8 stolen Corvettes worth over $1 million. We may all be able to learn a little lesson from this.
-Lelan Statom
