SPARTANBURG, SC (WSPA) — The past week has been a tough one for most investors on Wall Street but the effects are also felt in most people’s retirement funds.
Noel Swain, a certified financial planner with ProVest in Spartanburg, told 7News Friday that 401Ks have likely seen a 15% to 20% decrease in value since the stock market’s historic high in February.
“The stock market has been absolutely horrible,” he said.
Swain said his company has withdrawn clients’ wealth from the stock market until it levels back out. He said the reaction on Wall Street to the coronavirus is like none he has seen before.
The turbulence of the stock market has caused anxiety for many about retirement funds.
“I looked at [my 401K] once a few weeks ago when there were talks of everything downshifting there,” Dania Beck said. “I had checked it once and that’s it. I’m a little scared to check it again.”
Beck said she is confident the market will bounce back.
WSPA wanted to find out how 401K-holders should approach the rocky investment market. The advice from Swain is different for people at different ages.
For younger investors – in their 20s and 30s – he recommends continuing to invest in aggressive stocks.
For investors near retirement age, though, he recommends a different approach: caution.
Whether caution means withdrawing funds from the stock market until it levels out or a different approach, Swain recommended consulting with a financial adviser before making any moves.