Last weekend, Treasury Secretary Scott Bescent appeared on television and said that those who want to retire now don't pay attention to the stock market.
In the NBC program Meet the Press, he said, referring to people who “have cleaned up their savings accounts for years,” “we've had a lot of trouble with them.”
Is that true? I would like to share with your money newsletter readers whether they are looking at the market and, if so, why?
About 400 people answered. Over 90% of them said they were looking for. They listened to me.
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“I have Parkinson's disease and I can't work with any abilities. Naturally I'm closely watching how the market works on a daily basis.”
– Nancy London, Plain City, Ohio
“I'm not interested in normal market fluctuations, but what's happening right now is something other than normal. So, yes, I'm looking for it.” – Edward M. Kenny, Brooklyn, NY
“They don't know how normal people live.” – Barbara Costanzo, Milwaukee
“Of course I'm watching. It seems he and President Trump are dealing with my hard-earned savings in that kind of Cavalier way.” – Cleolaru, League City, Texas
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The word “cavalier” was the adjective that came most in emails from readers, and Costanzo's feelings — the people in the Trump administration had not been in contact with them — was common.
President Trump is not the first to appoint someone like Bescent, a former hedge fund manager worth hundreds of millions of dollars, to run the Treasury Department. When Bill Clinton was president, he was responsible for former Goldman Sachs Bunker Robert E. Rubin.
But be aware that when such a person is doing their job this way, you have, or at least, empathy, for the struggles of others.
“Secretary Becent is very engaged in financial literacy and encourages all Americans to invest in the long term,” according to a Treasury spokesperson. He told me in the past that his father started working at the age of nine when he was struggling to fall.
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“We are definitely seeing fluctuations and could add time to our 'work needs' timeline. Mr. Becent is wrong. ” – Becky O'Hara of Harbortown, Pennsylvania.
“I wanted to retire, but I waited until 70 to collect Social Security. If the value of the investment drops significantly, it's a delicate balance.” – Karen Walras, Beaverton, Ore.
“I'm currently facing retirement from the federal workforce and re-entering the job market at age 59¼, I have to take a very different approach to finances. How the market behaves now can have a devastating effect on me.” – Sue Zwicker, Greenbelt, MD.
“I take a little while to check the market most days, not just out of curiosity, but also to see if I need to readjust it.” – Jeff Schmiller, Brookfield, Connecticut.
“I just retired 18 months ago and sequence risk is the financial problem I'm most concerned about.” – Dennis Shoal, Miami Beach
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So about that “sequence risk”: that is, if you start resigning while the market is declining, your entire portfolio is decreasing, so you are selling assets. And when that balance falls (the market decline and the assets for payment of daily spending if there is no work), there is less money to profit from the final market recovery. All of that increases the chances of running out of money before you die.
That's a big deal – when someone who runs the Treasury Department suggests that recent retirees don't look at “savings accounts” carefully, they'll probably take that into consideration.
“Besten should be a smart guy, so I don't think he believes what he's saying,” wrote Douglas Frasier of Savannah, Georgia.
When you have to stand up in public and defend a decline in the stock market, what your boss (the president who likes to fire people) has caused can be really difficult to believe everything you might be forced to say.
But it doesn't excuse to ignore the questions that many people at the pinnacle of retirement have to consider. And how difficult it is to answer them when people leave their “savings” accounts that contain stocks.
Bessent is correct that at least some people don't see it every day. That was less than 10% of my 400 correspondents.
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“Why do you make yourself sick and sick? We have an investment plan. I stick to it and I will continue to work for a while. I love the job. It will hurt my head. – Teresa Mainders Burkett, Tulsa, Oklahoma.
“We don't check the daily fluctuations. It's too frustrating and scary. At this point, there's nothing we can do.” – Mindy Evanter, Marblehead, MA.
“I don't look at my portfolio every day, but I certainly monitor the market and, like most people over 60, I am amazed at the market's response to Trump's tariffs. While Secretary Bescent's comments may have historical significance, investors are concerned when the administration takes action that will affect the global economy and lead to great uncertainty.” – Patrick Gram, Atlanta
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In a perfect world, I did everything right while preparing for retirement.
You wanted them and did a good job with good health and good luck along the way. I saved more than I needed to pay for my 30-year retirement. While awaiting a substantial stock market slump, it hides places where years of money can be safely used. You can help prevent your investment from panic or panic at the wrong time.
However, most people tend to worry about not being so lucky or running out of luck when they want to quit their job. For now, some of those people have at least been able to maintain their sense of humor.
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“Yes, I'm checking. It's an obsessive action right now, but I haven't seen it today yet. Why, I don't know. There are no customs duties on Xanax.” – Gene Teague, Austin, Texas
“The variation looks like this: www.
I don't pay much attention.
What's happening now is not changing.
It looks like this:
I'm paying attention. ” – Lynne Carmichael, San Anselmo, California.
