KANSAS CITY, Mo. (AP) — Retirees like Don Herneisen, a former school counselor, frequently discuss the economy during their weekly breakfast gatherings at a local restaurant. The recent turmoil in financial markets, triggered by President Donald Trump’s latest tariffs, has intensified these discussions.
“There’s political uncertainty, there’s economic uncertainty, and if you’re retired, you don’t much like uncertainty at this point,” said Herneisen, 77, while visiting Union Station in Kansas City, Missouri. Stock markets globally plummeted further on Friday after China retaliated with matching tariffs, escalating the trade war. These tariffs are expected to raise prices for everyday items.
Herneisen, residing in Lancaster, Pennsylvania, and his wife Cathy, a 74-year-old retired Verizon worker, rely on a combination of pension, Social Security, and an IRA. While they aren’t drastically cutting back yet, Cathy noted that maintaining their current spending means reducing prepared food purchases, impacting small businesses.
Living in a Republican-leaning area of a swing state, neither voted for Trump, who justified the tariffs as a means to bring manufacturing jobs back to the U.S., despite acknowledging potential short-term pain for Americans.
Chad NeSmith, a portfolio manager in Florida, reported an increase in client calls amid market fears, especially following China’s retaliatory tariffs. NeSmith reassured clients by emphasizing the importance of understanding their risk tolerance and financial plans.
Colleen Power, a 57-year-old payroll specialist from Kansas City, remains hopeful the market will recover before her retirement. Despite personal confidence, she finds the situation frustrating politically.
Paul Brahim, an advisor in Pittsburgh, highlighted the fear caused by uncertainty, particularly for recent retirees dependent on asset cash flow. However, he advised having cash reserves to weather market volatility.
Brahim, president of the Financial Planning Association, noted that most clients with diversified portfolios have seen positive returns over the past year. He urged patience before making portfolio adjustments.
— new from AP News