What the credit rating means for your 401K - KLTV.com - Tyler, Longview, Jacksonville |ETX News

What the credit rating means for your 401K

TYLER, TX (KLTV)- The downgrade has several folks worried about their investments, especially 401Ks and retirement plans, but experts said the downgrade isn't necessarily all bad news.

The country's financial state has most people keeping a very close eye on their investments...specifically their 401k.

"I'm afraid that it's going to disappear. Every quarter when I get my statement it seems that I'm loosing more money than I'm putting in," said Bill Martin, a Tylerite concerned about his 401k.

While the market took another tumble today, experts say it's nothing alarming.

We believe this could possibly be an over-reaction to what is going on but again the markets tend to over react when things like this happen," said Wells Fargo Advisors First Vice President Brandon Johnston.

Experts said the U.S. credit downgrade will likely cause interest rates to go up.
And America could be seen as a less safe place to keep your money.

"You just need to have your money invested to whatever tolerance of risk you can take. If you're laying awake at night and not able to get sleep you're probably too aggressively invested," said Johnston.

Congressman Louie Gohmert said the credit rating down grade doesn't come as a surprise.

"S&P had told us if we don't cut at least 4 trillion dollars they were going to down grade us," Gohmert said.

"There is no family, no business no country who deserves the highest credit rating when they're going to continue to spend that much more than they bring in," he said.

While people can't help but fear the uncertainty the future brings, "I'm not even treading water. I'm drowning here and this is my retirement," said Martin.

Experts still remain optimistic, "I believe this is shaping up to be a good opportunity for people to make money. It's just a matter of when it happens," said Johnston.

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