KNOXVILLE, Tenn. (WATE) — The Director of the Boyd Center for Business & Economic Research with the University of Tennessee joined WATE 6 On Your Side News at Midday to discuss what people can do to best prepare for retirement as inflation soars to levels not seen in four decades. He also spoke about what those who are planning to retire in the next year should do, as well as advice for those already retired.
“Last week we were talking about 9% inflation, how the prices of goods we buy every day have gone up by almost 10% on a year-over-year basis,” Don Bruce began. “It’s quite the opposite with retirement assets, stock markets more specifically are down over the last couple of months.”
We asked what this economy means for the average person who’s looking at retiring 10, 20, 30 years down the road and how they should be responding.
“When you are at least ten years out from retirement you have to always take a long view of this,” said Bruce. He also stated he always advises people work with a trusted financial planner.
“This volatility comes with the turf, if you are going to invest in the stock market you are going to have ups and downs.” Bruce also spoke about some of the perks when the stocks are down. “When the market’s down the prices of stocks are cheaper, so you can buy more with the same dollar.”
As for those who are on the cusp of retirement in the next couple of months or within the year, he said it might be wise to continue working a little longer. He said there are two reasons this may be a good choice. He also had a message for current retirees.
“Take a really deep breath and realize that the long-run trend is positive in these wealth portfolios,” he said. “If you can just make your money work as well as you can for these next few weeks and months, you may luck up in a few more months and things will be back to normal.”
The WATE 6 On Your Side ‘Money Talks’ segment airs every Thursday at Midday. All articles can be found online. Viewers can submit topics or questions about the economy or finances to Midday Anchor Lexi Spivak via email at firstname.lastname@example.org and she will work to bring you answers.