As stock prices continue to fall due to countries and corporations responding to President Donald Trump’s recent tariffs, many people are questioning whether it’s a good time to keep funding their retirement accounts.
The stock market opened Wednesday morning with an upswing, following Tuesday’s continuation of a recent decline.
In the midst of investment uncertainty, many people are concerned about their retirement accounts. Should you contribute money to your account(s)?
Maurie Backman, a writer at the Motley Fool financial services website, says everyone should keep calm and continue their contributions for their retirement IRA or 401(k) and long-term investments.
“It’s not easy to avoid panicking when the stock market plunges. But one thing to remember is that if you’re years away from retirement, events like these should not change your long-term strategy,” Backman wrote.
The financial writer stressed that right now, while stocks are plunging, is the best time to invest. “If you keep saving and investing for retirement now, you’ll give yourself more time to enjoy the benefits of an eventual market recovery,” Backman wrote.
Trump’s tariffs against China, Mexico, and Canada have frightened many investors. A Bank of America survey reported by the Wall Street Journal showed a record drop in investors allocating money to U.S. stocks.
The financial turmoil has escalated to a concerning level, prompting the Federal Reserve to convene later on Wednesday to discuss interest rates. WSJ reporters indicated that the Fed is expected to keep interest rates on hold during the meeting.
