(WWLP) – Financial markets have taken a hit this year. Couple that with rising interest rates and you have a difficult situation for those with retirement plans on the horizon.
According to data from the federal reserve, falling stock markets have wiped out more than $9 trillion in wealth from U.S. households.
However, the financial experts we spoke with said now is not the time to lose hope.
We are the in the middle of a bear market, and that’s not the place to make changes. Sooner or later the markets will recover, you’ll be back hitting new highs, and you will be disappointed that you set a low goal for your retirement.
Financial experts say don’t let this economic downturn delay your retirement. In fact, it’s a good time to make some additional investments if you can.
Mark Teed, senior vice president of investment at Raymond, James, and Associates told 22News, “But I think over the long haul what I am telling people is this is basically a buyer’s market right now. You know, if you really like a certain stock and it’s now 20% or 30% cheaper, it’s on sale. You really should think about it, unless something dramatically has changed, you should think about buying now.”
And if you had plans to sell your home and downsize to something smaller, now may not be the right time to buy as interest rates will continue to climb, making mortgages the highest in decades.
Looking for a safe investment idea, Teed suggests buying a one-year treasury bond at 4%.