Officials from the Trump administration attempted to justify the impacts of a trade war on the stock market, prompting concerns over retirement savings. Treasury Secretary Scott Bessent stated that most 401(k) plans had a 60/40 investment ratio, without fully explaining its implications. While this mix has outperformed the declining U.S. market, the characterization does not accurately reflect many Americans' portfolios. The article emphasizes the heightened anxiety among investors and the potential negative consequences of selling investments under duress on retirement security.
Most Americans in a 401(k) have what's called a 60/40 account, he said, without explaining what he was talking about. These accounts, he added, are down 5, 6 percent on the year.
Mr. Bessent understates the risk in people's portfolios, the fear they feel and how being frightened can affect their retirement security if they sell while scared.
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