Lars Staack started selling his index funds in January, moving them into bond and Treasury funds. He had invested his retirement savings in S&P 500 index funds after the dot-com bubble burst in the early 2000s. This strategy brought him peace of mind for more than two decades until the election of President Trump.
As he reviewed Mr. Trump’s comments in support of sweeping tariffs, Mr. Staack, 62, who retired two years ago, grew uneasy about the savings set aside for his retirement.
These concerns led him to start selling his index funds in January, moving them into bond and Treasury funds, seen as safe havens in times of volatility. About a third of his savings are still in stocks. The recent market fluctuations, which included the market’s worst single day in months, have made him consider moving even more of his assets into bonds.
Retiree’s shift to conservative investments
I’m fumbling about, trying to figure out the best way to preserve my retirement savings from a volatile economy and upcoming inflation,” Mr. Staack said.
Many financial advisers are reiterating their usual advice during moments of market angst: Do nothing and stay the course, assuming your financial plan is diversified and aligned with your goals. However, the tumultuous trading rounds have jolted people like Mr. Staack, who immediately need their investments.
He perceives that stock market index funds are no longer safe for people close to or in retirement individuals who intend to use their assets in the near future and do not have the luxury of time to wait for a market reversal. What Trump and Musk have done is unprecedented, so it seems like nothing is safe anymore,” Mr. Staack said.
He lives in Poway, California, outside San Diego, and was a Republican voter until 2016, when he started voting for Democrats.
Photo by Huy Phan on Unsplash
