WDAM 7 Report: 401K takes a hit

HATTIESBURG, Miss. (WDAM) - Inflation has created economic uncertainty, and people are seeing a big change when it comes to their finances.

After dedicating many years to the workforce, many Americans want to unwind, relax and enjoy the perks of retirement, but with the ever-changing state of the economy, people are uneasy when it comes to their 401k plan.

Courtney Payton is a financial advisor at Edward Jones and has over 11 years of experience.

“There are so many emotions that come along with a person’s finances,” said Payton, “And, no one likes to see their accounts move in an unfavorable direction.”

With inflation on the rise and stocks on a down note, people are wondering what to do if a recession occurs. The vice president of benefits at our parent company Gray Television, Keith Hildibrand, said investments are monitored closely.

“If the markets are up then that means the 401k plan investments are likely going to go up because of the performance on the stock trade and the same for when the markets are down,” said Hildibrand.

Americans are asking, “If a recession occurs and the market tanks, will all of my savings be gone? Is it best to take my money out now or should I wait?”

“My general advice is always to reach out to your trusted financial advisor and reach out to your company plan administrator,” said Payton. “You should have a partner, someone who is knowledgeable about this industry and retirement plan, to help you navigate these uncertain waters.”

Although no one has a crystal ball to say what the future may hold, Hildibrand said diversifying investments is a good way to stay afloat in these very unclear times, also.

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