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Omaha financial planner says throw money into retirement accounts

Posted at 6:20 PM, Feb 28, 2020
and last updated 2020-02-28 19:20:14-05

OMAHA, Neb. (KMTV) — David Brooks, who owns retirement planning company 'Retire Smart,' says his clients are usually out of the stock market.

"This has absolutely been a precedent setting week for sure," says Brooks.

But he has some advice for millennials.

Many may be worried because it's been a rough week for the market, going down more than 10 percent in the past 7 days.

Despite that, Brooks says don't ditch your 401K, quite the opposite in fact.

"If they have a 401K, it might be a great time to actually increase the amount of money they're referring into their workplace retirement accounts," says Brooks.

Even more specifically, the Roth version of your 401K, or Roth IRA.

"The money that you put in there now and everything it grows to, will be yours completely tax free," says Brooks.

Some of the biggest players like Facebook and Google have taken sharp drops. For some companies with a local presence, fears about the coronavirus have helped their stocks.

"3M, great company, guess what they sell? Masks. Those are obviously going to be high buyers and sellers for awhile so some companies are going to benefit from this," says Brooks.

Brooks says the market has made similar moves during disease outbreaks in the past, eventually recovering back to normal in a matter of months.

"Will that happen here, nobody can guarantee it. Nobody has a crystal ball, but certainly we know longer term, it's probably not going to be as big a deal as some people are making it out to be,” says Brooks.

This has been the worst week for the S&P 500 since the financial crisis in 2008.