HARRISONBURG, Va. (WHSV) – Prices at the grocery store and at the gas pump continue to rise.
One local financial advisor said that the current state of the market can impact your long-term plans, especially for retirement.
“Once the money started getting printed, people got stimulus checks and interests rates dropped, institutions could borrow money to buy more stocks and stuff like that so we saw a quick recovery in the market,” Dalton Campbell, a financial advisor at Anchor Financial Group, said about the 2020 market. “But we can’t do that in this scenario because we’re actually having to fight back from having printed all that money.”
Campbell said it’s going to take a while for things to get back to normal. That can be tough for those considering retirement in the next few years.
”They know whether or not they’re contributing enough or whether or not they’re on pace to actually have enough at a certain point in time for them to create the income they need. That stuff really matters when markets are down,” Campbell said.
For those already retired, Campbell said don’t draw off your funds if you don’t have to.
“That can be problematic for people who are really close to retirement. They need to make sure that their math is right, make sure they’re working with their advisor or an advisor or someone who can help ensure that this is not really gonna derail their overall plan or delay their retirement four to five years.”
If you do have to take your required distributions take the absolute minimum.
”They say I want 50 grand or 60 grand in retirement that’s just not… we can’t do that. You’re gonna need a larger amount of money than that to really have a significant lifestyle in your retirement years,” Campbell said.
He said it’s best to have short-term and long-term strategies and to keep consistent with what you’ve been doing to save all along because this won’t last forever.
“One thing that I consult a lot of clients with is how much things are gonna cost in the future,” Campbell said.
Campbell said opportunities and benefits can come as a result of the current inflation once those prices finally drop.
“We think it’s gonna just take some time for things to normalize,” Campbell said.
Campbell said it’s best to reach out to a financial advisor if you have any questions, need help, or just want reassurance.