KANSAS CITY, Mo. — With bills due on the first day of the month, that brings further financial uncertainty for those feeling the strain of the coronavirus pandemic. Local financial advisers shared tips and insight with 41 Action News.
Peter Mallouk is president and CEO of wealth management firm, Creative Planning, and he says, "You have this threat your health, which is people's number one priority which is having a financial impact which for many people is their number two priority."
Mallouk recommends that renters in a financial bind due to a layoff or other pandemic-related reason look into refinancing car or student loans. For those without a 401k, he offers this tip.
"You can buy stocks and bonds and other investments in that account and to open an IRA. You just have to have some earned income. So even if your earned income, just a few thousand dollars this year."
If you do have a 401k, advisers say touching it should be a last resort. Al Chingren of American Century Investments says "a hardship distribution out of that retirement plan or they're taking a participant loan out" is an option.
"You might be able to tap into home equity," Chingren said. "If you have a home equity line of credit that might be an opportunity to have a source of income."
The volatility of the markets makes decision making difficult, but financial advisers are preaching patience to say they don't want you to make a decision with the changing headlines, rather thinking five or ten years down the road.
"Trying to time this is a fool's errand," Mallouk said. "It's a big mistake that a lot of people are going to make."
Chingren agrees.
"Evaluate what your long term goals are, what you're trying to accomplish with those investments, and then make decisions accordingly," he said.