KALAMAZOO, Mich. — The trade between the U.S. and other countries does not show many signs of slowing down. It’s resulted in a historic downfall in the stock market since last week.
It’s uncertainty has many Americans worrying about their finances which for a lot of people include long-term investments.
“Right now, we’re trying not to live paycheck to paycheck but it almost seems like that’s the case especially with our mortgage, insurance, everything,” Shelby Laidler, an Allegan County resident, said.
Per analysts, it’s too early to tell where things will go during such an unpredictable time.
“The biggest advice I have for people who have money in the market is do not panic. This is short-term and we’ve seen different market downturns in 2022, COVID, the market crashed in 2008, but the market has come back each time,” Jordan Marchewka, certified financial planner with HFG Financial Group, said.
According to Marchewka, it’s important to note that investing is a long-term goal. It should be done on a month-to-month basis regardless of what the market looks like.
If you only invest when the market is up then you could make less money overall, Marchewka told News Channel 3, adding that a high-yield savings account is a great way to allow your money to continuously grow while, at the same time, avoiding the risk that comes with the larger market.
“It can be stressful especially with not really being on my own lately. I’m think more about what I’m spending and where I’m going especially with gas because I drive a Jeep,” Nikita Smith, a Kalamazoo resident, said.
Nikita Smith is friends with Shelby Laidler. They’re both in the veterinary industry and are both homeowners. Though, they both did not obtain a home solely on their own income.
Laidler bought a foreclosure with her husband and Smith teamed up with her mom. They also both have 401k plans, which Marchewka stated is a great way to ensure a stable retirement.
“I tried building my credit as soon as I could and tried to be responsible with finances but ultimately life got in the way,” Laidler said.
Laidler admits that because of the economy and unstable stock market it has been hard to save. It’s why she and her husband bought a foreclosure as a first home.
Unfortunately, that came with some much-needed cosmetics, such as a 30-year-old furnace and water heater.
Laidler is hoping President Trump’s tariffs on certain material won’t impact any new renovations.
As for Smith, she has found new ways to save money.
“I have just started to put a portion away that automatically comes out of my paycheck, so I don’t even see it because if I don’t see it I know it’s getting saved away,” Smith said.
In the meantime, Marchewka shared a few tips, including what he says are the biggest mistakes he sees people make.
For younger people, it’s not taking the initiative to educate themselves on the importance of investing.
For older people it is assuming that reaching a certain age guarantees you a cushy retirement plan.
According to Marchewka, Michiganders should have plans because there are different dates and circumstances for securing social security, Medicare and Medicaid.