GULFPORT, MS - It has been a rough month on Wall Street, especially for investors, stock holders and soon to be retirees, like David McGuffie. He planned to retire in January at age 65, the ideal age to call working for a living quits, but more than half of McGuffie's 401K is tied up in stocks.
"You set goals with your budget and what you have to live on," said McGuffie. "I got pretty close to reaching those goals, and about three weeks ago, the bottom fell out from an investors stand point."
McGuffie said he has been watching the Dow and with his 401K ratio at 70 percent stocks and 30 percent bonds, he is concerned.
"I'm just not looking at it right now. I guess it's fear," said McGuffie
Financial expert David Lundgren says it's normal for soon to be retirees to be worried but investing in stock has always been risky.
"Everybody needs to understand," said Lundgren. "If you're invested in stocks, there's going to be volatility, meaning markets are going to move up and down, so you really need to understand what the risks are."
Lundgren says he does his best to inform his clients of the risks and prepare them for the times when the stock market isn't doing so well.
"There's a lot of different factors that can influence what the market does going forward. You can't really just kind of extrapolate," said Lundgren.
As for McGuffie's plans to retire, Lundgren advises that he continue to watch the market, because every day is different.
McGuffie doesn't plan to move away from the sandy beaches of South Mississippi when he retires, but he does hope to enjoy them sooner rather than later.
Even though the Dow Jones Industrial Average plunged early in the day Wednesday, it later stabilized and finished down 173 points at the closing bell.