PHOENIX — As stocks tumble and many speculate a recession is imminent - some wonder if the impact could be similar to what we saw a decade earlier.
Financial Adviser Scott Aitken with Wilde Wealth Management says at that time it was a culmination of the housing bubble and bad loans on the books of major banks that caused a catastrophe.
"The financial sector at that time was not healthy. The amount of bad debt they had on their books really created that," said Aitken.
The government implemented regulations to prevent a similar collapse. Since then, investors have ridden an 11-year bull market to record highs.
"Based on today's numbers it might be the end of the bull market," said Aitken.
An end that will certainly impact 401k's and other investment accounts.
For those who aren't retiring any time soon, now may be a time to buy more at a lower price.
"Things are on sale right now, stocks are on sale," said Aitken.
As Warren Buffet says, be greedy when others are fearful and be fearful when others are greedy.
But what if your planning on retiring soon? Aitken says hopefully you've already adjusted your portfolio to something less aggressive - more bonds and fewer stocks.
"When interest rates drop, the value of bonds increases so even though the stock market has had a really rough last three weeks or so, all my clients that have half their money in bonds, have actually done quite well," said Aitken.
Speaking of interest rates, they're now at record lows, presenting yet another opportunity.
"Anyone who has debt right now whether it's a small business, whether it's an individual with a mortgage, now is as good as any to refinance that debt," said Aitken.
Refinancing would save not only money on interest but most likely reduce your payment, putting extra cash in your pocket.
This goes for refinancing that pesky school loan as well. In the end, no matter what the market does, a good financial adviser can make all the difference.
