MADISON (WKOW) – The stock market dip has many wondering what this means for their retirement plans.
Peggy Daluge is one of those concerned Wisconsinites.
"My husband retired from the University of Wisconsin," Daluge said. "He has a pension but that is in jeopardy because all investments are going down. It is just a time of great concern that's all."
The Dow closed below 11,000 on the first trading day since Standard and Poor's downgraded the nation's credit rating.
Some experts predict more problems if oil prices rise or the European debt crisis worsens, but Brent Lindell, financial advisor at Savant Capital Management, is not convinced this is a sign of another recession.
"This is not like the mortgage fiasco back in 2007-2009 where you had mortgage instruments made upon fluff," he said.
In fact, he says there are some good signs.
"There is lots of cash with corporate entities, productivity has been getting better. What is still bad is unemployment," Lindell said. "That's usually one of the last things to catch up coming out of recession."
So, what is his advice to those worried about their 401(k)?
"Ride it out," he says. "See what happens. Stay with your investment portfolio. If you had good asset allocation that addressed how much risk you want to take on the front end, there shouldn't be any need to do much of anything more than you should always do on portfolio."
That is exactly what Daluge says she and her husband plan to do.
"Right now we are just holding on," she said. "It is hard to sell now when we put money in at higher rates and it has gone down so much."