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<v Speaker 1>Let's say good morning now to the host of How

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<v Speaker 1>to Money on KFI. It's Joel Larsgard. Okay, Joel, Yeah,

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<v Speaker 1>markets for you and me, what is the practical effect

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<v Speaker 1>of these wild swings and drops that we're seeing heartburn.

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<v Speaker 2>I'm going to say, is at least one of them, right?

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<v Speaker 2>I think the like the whip sawing nature. If you're

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<v Speaker 2>the kind of person who pays attention to what's happening

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<v Speaker 2>with the stock market most days, it probably has you

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<v Speaker 2>kind of pulling your hair out a little bit, which

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<v Speaker 2>I totally get, which is why one of the suggestions

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<v Speaker 2>I make to people who are in the wealth building

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<v Speaker 2>phase of their life. They are sticking money in like

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<v Speaker 2>clockwork every two weeks dollar cost averaging or maybe even

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<v Speaker 2>more than that. But if you are kind of on

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<v Speaker 2>the front end of your investing timeline, don't pay attention.

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<v Speaker 2>Like I have not looked at my portfolio balance because

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<v Speaker 2>I know that if I do, then it's just going

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<v Speaker 2>to unnerve me in a way that I don't need

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<v Speaker 2>to be unnerved because I have so much time on

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<v Speaker 2>my side before I need to access those funds. So yes,

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<v Speaker 2>it is frustrating as an investor to see but in

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<v Speaker 2>particular for people who are, hey, I've got a decade

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<v Speaker 2>plus before I start tapping my retirement funds, then I

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<v Speaker 2>think this is more noise that you don't need to incorporate.

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<v Speaker 2>You don't really need to do anything with it as

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<v Speaker 2>an investor, You don't need to make any changes.

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<v Speaker 1>Okay, so stay the course.

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<v Speaker 2>Yes, I mean, it's easier said than done. I think right,

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<v Speaker 2>it's because when you see market strop as much as

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<v Speaker 2>they have. The end of last week was insane, and

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<v Speaker 2>then you see even what happened yesterday, where a tweet

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<v Speaker 2>can send the stock market soaring by eight percent, and

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<v Speaker 2>then it's like, wait a second, that was fake news,

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<v Speaker 2>and then the stock market considers investors start pulling out again.

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<v Speaker 2>All of that stuff kind of if you're riding the wave,

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<v Speaker 2>the day to day wave, the minute to minute wave,

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<v Speaker 2>you are going to be freaking out and you're going

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<v Speaker 2>to be making changes. And the truth is, when we're

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<v Speaker 2>just doing the boring, slow and steady passive investing approach

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<v Speaker 2>in index fund just what I talk about most of

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<v Speaker 2>the time, or target date funds, then all those little machinations,

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<v Speaker 2>the minute to minute moves shouldn't matter very much to

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<v Speaker 2>you at all, and in fact, you don't have to

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<v Speaker 2>pay attention to any of it.

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<v Speaker 1>Okay, so just just ignore it. This is we're in

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<v Speaker 1>this for the long term. Yeah, okay, So I know

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<v Speaker 1>I'm going to get that an answer to this question.

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<v Speaker 1>But we were talking with Courtney Donaho from Bloomberg a

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<v Speaker 1>minute ago, and one of the topics we didn't get

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<v Speaker 1>to was that people are rating their four oh one

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<v Speaker 1>k's for emergency cash. I think I know your answer,

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<v Speaker 1>but is that okay?

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<v Speaker 2>Well, so now there's recent legislation that allows people to

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<v Speaker 2>take a thousand dollars out of their four to oh

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<v Speaker 2>one k, you know, essentially no questions asked. And I

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<v Speaker 2>you know, a thousand bucks is one thing, I guess,

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<v Speaker 2>But when we're talking about taking more than that out

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<v Speaker 2>of our four oh one k, I don't think it's

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<v Speaker 2>a good idea. And what happens so often in crazy

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<v Speaker 2>market spells like this. I still remember in two thousand

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<v Speaker 2>and eight talking to friends that I worked with right

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<v Speaker 2>who were like, I'm really scared about how much the

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<v Speaker 2>market stopping. I am going to take some money out

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<v Speaker 2>put it on the sidelines. Well, that has multiple impacts. One,

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<v Speaker 2>it's hard to know or you take like, if you're

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<v Speaker 2>taking money out now after a big drop, you're locking

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<v Speaker 2>in those losses and then you have a really hard

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<v Speaker 2>time to know when you should be putting that money

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<v Speaker 2>back in, on top of the potential tax consequences of

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<v Speaker 2>pulling money out of a four roh one k early.

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<v Speaker 2>And so I think your best to leave your retirement

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<v Speaker 2>accounts alone. And if at the end of this whole saga,

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<v Speaker 2>when the market has steadied a little bit, you say

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<v Speaker 2>I don't I was emotionally incapable of handling that, then

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<v Speaker 2>you need to have a different approach to your investments.

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<v Speaker 2>Let's say you're eighty percent invested in stocks, Well, you

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<v Speaker 2>probably need to smooth out the right a little bit

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<v Speaker 2>and have a more diversified portfolio, because you realize, at

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<v Speaker 2>least for yourself emotionally, it's too difficult to handle that

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<v Speaker 2>much stock exposure in your life. So that's one thing

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<v Speaker 2>to consider. But you don't want to make any massive

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<v Speaker 2>changes kind of when all the turmoil is happening.

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<v Speaker 1>Okay, So yeah, I think that's kind of the message

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<v Speaker 1>that I'm hearing from a lot of people is, you know,

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<v Speaker 1>don't have a knee jerk reaction to this, because I

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<v Speaker 1>know that we all feel like, oh my god, what's

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<v Speaker 1>happening to all my money? But just it's gonna We're

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<v Speaker 1>gonna have to write it out. It might be a

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<v Speaker 1>little tough, but eventually we should be okay, we hope.

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<v Speaker 2>Yeah, And we're starting to see signs at least that

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<v Speaker 2>hopefully this tariff regime isn't going to stick around long term,

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<v Speaker 2>that this is a negotiation tactic. It's hard to tell though, right,

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<v Speaker 2>Like it's hard to know what the end game is

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<v Speaker 2>here and how this all shakes out and what sort

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<v Speaker 2>of you know, deals we come to with trading partners

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<v Speaker 2>around the world. But I think the great thing is

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<v Speaker 2>American capitalism of any place in the world, Like we

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<v Speaker 2>are the most resilient country. We have incredible businesses that

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<v Speaker 2>will find ways to prosper even in a tough environment

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<v Speaker 2>like this.

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<v Speaker 1>All Right, the host of how to Money on KFI

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<v Speaker 1>Jewel Guard. You can listen to him every Sunday from

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<v Speaker 1>noon to two, and just like this morning, he's gonna

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<v Speaker 1>have more great financial advice for you. Thank you so much, Joel.

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<v Speaker 2>Thanks Amy,