Tariffs could put your 401(k) at risk - Here's what you can do
Your 401(k) could be at risk. It's a result from the added tariffs on foreign imports.
But experts say there are ways to help make sure you are not affected.
WSBT 22 spoke with a financial adviser today. He says this is all because of the volatility of markets.
He says as new tariffs are introduced, you will see markets move up and down.
Just today President Trump announced the doubling of steel and aluminum tariffs on Turkey.
But as long as you think long-term with your 401(k), you should be okay.
Tariffs are becoming more popular at the White House. President Trump is imposing them on everything from solar panels to washing machines.
“What our analysts are telling us is that he is using it as a negotiation tactic to try and negotiate better trade deals more favorable to the US,” said Matt Carroll, financial adviser.
But with these trade deals can come economic downfalls. And with that, people's 401(k)'s are affected.
“As taxes are imposed, it’s obviously going to cause market volatility that causes issues for businesses and impacts the cost of their goods,” says Carroll.
As the cost of goods rise, people may not spend as much.
“So that is going to affect the profits of these companies, potentially, and that is going to affect how much their stock value is over time.”
Carroll says the best thing to guard against this is make sure you own a good mix of balanced investments.
“The good news is we are seeing most Americans are doing just that, they aren’t making those quick snap decisions based on politics or anything like that.”
Carroll says although the U.S. economy is only 30 percent affected by trade, people still need to make sure they are investing for the long-term.
“It certainly could slow growth if the tariffs are imposed, but if people are investing properly and they are looking at a good bunch of long-term investments, then they are going to be fine.”