Political Unrest & Your Finances: Springfield financial expert shares advice

Published: Jan. 13, 2021 at 5:22 PM CST|Updated: Jan. 13, 2021 at 6:12 PM CST
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SPRINGFIELD, Mo. (KY3) - In the wake of all the political upheaval, we have seen lots of movement in the stock market, and with that, lots of questions about what’s to come financially. KY3 talked to financial advisors who say the real question is are you playing the long game or the short game? That depends on your life stage.

“I just turned 70,” said Danny Masters.

Masters can remember another day and time similar to now.... in that the evening news and information was a bit overwhelming.

“I remember the Vietnam War being so much more real to us because everyday you get reports,” Masters recalled.

Watching the evening headlines and numbers right now-- is enough for Masters to seek wisdom... financial wisdom in these uncertain times.

“I decided I better come check up on what I have. It’s not all that much, but I’m going to need it, I’m certain!” he said.

Local financial advisor Joe LaTour with LaTour Advisory Group says questions have been rolling in.

“Yes, for the baby boomer, if you’re in that age bracket-- then probably you need to think about getting re-balanced in your portfolio and recession proofing those dollars that you are depending upon to sustain your standard of living for retirement.”

What does the unrest mean financially, we asked, when perhaps, it’s not going away in the near future?

“I use football analogies. If you’re at the 20 yard line, you are in the red zone. You need to make sure that you have the proper balance of safety in your portfolio,” LaTour said. “The younger you are, the more time horizon that you have to ride the cycles of the market, and you can be invested in riskier positions.”

Industry experts say our last two recessions in 2000 and 2008, each lasted about two years, and it took on average 5 to 7 years just to break even from those.

“Getting positioned is critical. Making sure that you are not overbalanced in risk, especially if you are getting close to walking out the door and saying goodbye to that regular paycheck,” LaTour explained.

“I think most of us are a little concerned. When I talk about political unrest, I’m not talking one side or the other. I believe either way it is going to be that way. It’s just the uncertainty. I think most of would be wise to get some direction,” said Masters.

LaTour says given the cyclical nature of the market, we are likely due for another major market correction.

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