Over 40 million have been laid and tensions are high in the United States right now but somehow the stock market still rose into the green for the month of May. Mike Reeves, financial planner of Strategic Wealth Designers says that stocks continue to rise on Wall Street because the Fed is propping up the market by doing significant amounts of buying right now to try and keep things stabilized.
“There’s a saying…Don’t fight the Fed, as long as the Fed is in there buying just like you and I would buy stocks, coupled with the stimulus provided to all those who have been laid off and it’s a recipe for the market to rise despite all the economic destruction,” Reeves said.
Now is a potential opportunity for those nearing or in retirement to take some winnings off the table and to move financial investments into some safer strategies. Conversely, Reeves says if you are younger and have a dormant 401K or 403B retirement plan sitting at an employer you’ve been laid off from, now it the time to take advantage of greater options afforded to you outside of that plan.
“You always want to take that retirement plan with you when you leave your employer,” Reeves says. “You may have 10… 20 investment choices in that retirement plan at your former employer, if you roll it out into an IRA, you now have great options, potentially lower fees on the investments and if the employer ever had any legal issues the money could technically end up frozen for a while, so rolling over a dormant 401K is definitely best to do.”
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