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President Trump's tariffs are kicking in. The stock market has been a roller coaster and that causes a lot of worry about personal finance. So NPR's Laurel Wamsley asked financial experts for their advice on how to navigate unpredictable times.
LAUREL WAMSLEY, BYLINE: When the markets are down and up and down and up, it can make even the most cautious investor worry about their money. A recent survey from Gallup found that a record-high 53% of Americans believe their personal financial situation is getting worse. So what should you do with your portfolio? Here's what one financial expert recommends.
CHRISTINE BENZ: The best thing you can do is tune things out to the extent that you possibly can.
WAMSLEY: That's Christine Benz, director of retirement planning at Morningstar. She recommends not paying too much attention right now.
BENZ: So if you're in there less, if you're not making changes as the market is volatile, that tends to leave you with a bigger balance in the end.
WAMSLEY: That's the first takeaway. Don't be too reactive. Though, that advice assumes you already have a sensible mix of stocks and bonds and cash assets, which many people don't. Michael Liersch, head of advice and planning for Wells Fargo, says this isn't a time to put your head in the sand. He says it is a good time to get organized. So think about where you're at and where you're going.
MICHAEL LIERSCH: Let's look at my goals. Let's look at my assets and liabilities. Let's look at the money coming in, the money going out, and let's make some strategic decisions.
WAMSLEY: And that brings us to the second piece of advice - stay invested. When stocks are volatile, it can be nerve-racking, but as Liersch points out, the market's best days and worst days often come very close together.
LIERSCH: Imagine you see the best day. So then you think, OK, that's the time to invest. And then the next day is the worst day. And then you say, oh, my gosh, this is the time to pull out.
WAMSLEY: Which is a quick way to deplete your hard-earned investments. And then there are some special considerations for those reaching retirement age. That brings us to takeaway 3 - assess your portfolio to make sure that you have enough cash accessible when you need it. You want to start shaving away some of your riskier investments as you get closer to retirement.
BENZ: People leave their portfolios undisturbed for long periods of time, and that can be a good thing. But it can also mean that as you get closer to needing to spend your money, you've got too much risk in that portfolio.
WAMSLEY: Stocks are, of course, more risky, but Benz says stocks have their place in retirement - as a hedge against inflation. And for those who are recently retired, financial experts say be careful of spending too much money too soon in a down market. So in a time when planning can seem impossible, stick to some basics. Don't be too reactive. Stay invested. And take extra care if you're close to retirement.
Laurel Wamsley, NPR News. Transcript provided by NPR, Copyright NPR.
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