After the latest round of tariffs from the Trump administration sent the Dow Jones tumbling more than 1,600 points Thursday, some investors are wondering whether they should adjust their retirement portfolios.
Financial experts say the answer is simple: Don’t panic.
Stay focused on the long-term
Charles Sachs, a certified financial planner, advises against making knee-jerk changes to a 401(k) based on short-term market fluctuations.
“The more you’re mucking around with it, the worse it’s going to be,” Sachs said. “Retirement is a long-term investment plan, and short-term swings shouldn’t dictate major changes.”
Ashley Touissant, an investor from Little Haiti, follows that philosophy. He avoids checking his retirement investments daily, preferring to analyze trends over the course of a quarter.
“I like to look at it over a few months,” Touissant said. “That way, I can see the trajectory.”
A learning opportunity
For those concerned about market volatility, Sachs suggests taking this time to review their portfolio instead of reacting emotionally.
“What percentage of your investments are in stocks versus bonds, cash, real estate? This is a great time to break that out and look at it,” he said. “Probably not a great time to make changes, but a perfect time to get educated.”
Touissant, for one, plans to take a closer look at his investments after this latest dip.
“By tomorrow, I’ll definitely check it out,” he said.
Seek professional guidance
Sachs recommends that if investors feel compelled to make changes, they should consult a certified financial professional rather than making impulsive decisions.
“If you want adjustments made, have someone who’s trained and not emotionally attached to your money handle it,” he said.
For now, he advises patience: Market dips come and go, but retirement planning should always be a long-term strategy.
