DAVIE, Fla. – A Nova Southeastern University economist joined the personal finance experts who believe 401(k) retirement savings accounts will recover.
President Donald Trump’s tariff blitz has stock markets retreating. This has raised fears about a recession or Wall Street heading for a bear market.
Albert Williams, the chair at the NSU H. Wayne Huizenga School of Business and Entrepreneurship, said it’s important not to panic.
“My advice to all people who have assets in 401(k)s please leave it alone,” Williams said adding that he doesn’t anticipate a doomsday scenario.
Just as in previous downturns, Williams said the economy will eventually bounce back.
“If you need the money this month or next month or this week, then it’s a very major concern, but if you can wait for a year, the prices will go back up after we resolve some of the global challenges that we’re facing,” Williams said.
Shock and fear shouldn’t prompt long-term investors to rush any decisions that risk missing out on the rebound, Williams said.
“If you’re investing for the short haul and you need the money then perhaps you need to move it out and put it into bonds,” Williams said.
Other options to consider include a tax-advantaged retirement account. With Roth IRA conversions, the lower your balance, the lower the tax bill on the converted amount.