OMAHA, Neb, (KMTV) – Reporter Greta Goede sat down with a financial planner to ask what neighbors should be doing with their finances.
- David Brooks, CEO Retire Smart says the US is halfway to a bear market
- He says it's critical for neighbors to start saving
- Younger people should create emergency funds
BROADCAST TRANSCRIPT:
More layoffs are likely in 2025. Reporter Greta Goede spoke with a financial planner about what neighbors should prepare for.
According to David Brooks, CEO of Retire Smart, the US is about halfway to a bear market.
That's when investment prices drop 20% from the latest high.
“We know markets come back we know the economy comes back so the lesson is don't panic,” Brooks said.
Neighbors shouldn't make long-term decisions on short-term data, according to Brooks, but they should start expanding their portfolios, especially those that are closer to retirement.
“The last five or six years it's been less than 10 stocks that have been carrying over 40 percent of returns of the marketplace, and these are big tech names like Google, Facebook, and Amazon, so what you want to do is de-risk your portfolio so diversify your assists, you should have commodities, real estate, bonds and stocks,” he said.
But what’s the best decision for younger people financially?
“The first thing for younger people is to make sure you have an emergency fund, at least three months but preferably 6 months of your monthly expenditures in a saving account,” Brooks said.
He also encourages them to start investing in a Roth IRA.
Brooks said that all neighbors must have a plan or start creating one now. He always encourages those who aren't sure what they should invest in to get a financial plan.
