Financial markets worldwide have taken a hit after President Trump’s latest tariffs, sending shockwaves through the economy and causing concern among retirees like Don Herneisen and his wife Cathy. With their pension, Social Security, and IRA, they’re living on a tight budget, but aren’t cutting back just yet.
“We’re not reducing our spending,” said Herneisen, 77. “But we are being more careful with our grocery budget.” His wife added that while prices are higher, they’re sticking to their plan, even if it means buying products in bulk and preparing meals themselves.
Portfolio managers like Chad NeSmith of Tobias Financial Advisors say retirees are increasingly worried about the impact of tariffs on their portfolios. “Fear is really picking up,” said NeSmith. “But we’re taking a call-by-call approach, checking each client’s risk tolerance and financial plan to help them navigate this volatility.”
Colleen Power, a 57-year-old payroll specialist, shares her clients’ concerns. “None of this surprises me, but I’m worried for the country.” However, she believes that with proper planning and diversification, retirees can ride out market fluctuations.
Paul Brahim, president of Wealth Enhancement Group, emphasizes the importance of having cash reserves in place during uncertain times. “It’s good to take a breath and pause through uncertainty before making adjustments,” he said. By staying calm and taking a step back, retirees can make informed decisions about their finances and minimize losses.
With global trade tensions continuing to escalate, retirees like Herneisen and Power are facing an uncertain future. However, with proper planning, diversification, and risk management, they can mitigate the impact of market volatility and navigate this challenging economic landscape.
Source: https://apnews.com/article/trump-tariffs-stock-market-retirees-4c24e01677190b86b6ec1bb66c409eae