Financial planners and wealth advisers are urging their clients with 401(k) accounts to remain calm despite their anxiety over market volatility triggered by President Trump’s on-again-off-again tariffs, The Post has learned.
Many have seen their retirement accounts whipsawed over the past week as Wall Street convulsed from Trump’s “Liberation Day” tariffs rollout last week, before skyrocketing Wednesday after he announced a 90-day pause on the stiff reciprocal tariffs against all nations except China.
Experts who spoke to The Post said those hesitating before taking a peek at their 401(k) accounts should stay invested, and keep their long-term plan front and center.
“One key advantage of 401(k) plans is automatic, consistent investing, typically through payroll contributions,” said Cody Moore, a partner and wealth advisor at an Alpharetta, Ga., wealth management firm.
“This strategy, known as dollar-cost averaging, allows you to buy more shares when prices are low during market downturns. To make the most of this, ensure your account is well-diversified.”
Moore suggests investors less experienced with market volatility consider target-date funds, which automatically rebalance based on retirement dates.
“Avoid the temptation to move your investments to cash during market drops, as this can lock in losses and cause you to miss out on the rebounds that have followed every historical downturn,” he said.
Moore also cautioned investors to expect ongoing volatility until the tariff situation stabilizes.
“If you’re not planning on using your 401(k) soon, continue your payroll contributions, knowing you’re buying in at lower prices.”
Ted Jenkin, a certified financial planner at Exit Wealth Advisors, echoed the sentiment.
“If you’ve got more than five years until you retire and especially more than 10 years, there is no reason to hit the panic button,” he told The Post.
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“Over the long haul, stocks have been the best performing asset class, and the ones most likely to outpace inflation.”
Brian Copeland, a partner at Hightower Wealth Advisors in St. Louis, also urged investors to remain calm.
“The big overarching message is it’s very important not to get too wrapped up in the flavor of the week and to focus on the longer term,” he said.
Copeland warned against trying to time the market, highlighting historical data showing that market recoveries can be swift and unpredictable.
“Timing the market is very hard because the market doesn’t go straight down during times like these,” he explained.
“We get big moves down and then big moves up. If you look at the 20 best trading days over the past 50 years, half of them happened during big moves down in the market. Investors who sit on the sidelines risk missing crucial rebounds, leaving them worse off.”
Lawrence Fuller, an asset management expert, noted that Wednesday’s rebound — with the Dow soaring nearly 3,000 points — suggests the worst-case scenario might be off the table.
“After yesterday’s 10% rebound in the major market indexes, I think it is safe to take a peek at your retirement account, but the volatility will continue over the coming 90 days as the Trump administration replaces tariffs with trade deals,” Fuller said.
“We may give back half of yesterday’s gains, as bottoms are processes and not events, but recent lows should hold.”
Fuller further emphasized the necessity of patience.
“The upside will be limited until we see more productive trade deals and easing tensions between the US and China. Tariffs effectively shut down trade, which isn’t sustainable long term.”
Ken Mahoney, CEO of Mahoney Asset Management, noted his firm had warned clients about volatility linked to Trump administration policies, although the recent swings surpassed expectations.
“We knew this could be the case, but the historic volatility of this level was not exactly on the bingo card,” Mahoney admitted.
Mahoney detailed how reactions among clients varied widely, from frustration to steadfast optimism.
His advice for investors with longer horizons remains consistent.
“We have told longer-term investors that they should be excited to see the market in a corrective period. They are getting more shares at lower prices and shouldn’t stop contributing to their 401(k)s. Volatility is part of the investing process.”
However, Mahoney pointed out that older or retired clients need more caution.
“For our retired clients, or close to it, we have to be much more tactical, taking some money off the table into this bounce in case of further downside,” he explained.
