DENVER (KDVR) — As the global market continues its rollercoaster ride, uncertainty looms over the U.S. economy, raising concerns about the potential impact on everyday benefits like retirement and college savings.
While panic is rising among the public, Colorado State Treasurer Dave Young and financial experts are urging people to stay calm and make thoughtful decisions before touching their investments.
“I’m very concerned that he continues to gamble with the livelihoods of Coloradans,” said Treasurer Dave Young.
“That said, we are doing everything we can to minimize the harm created by the President’s reckless trade agenda.”
Tariff Policies Threaten Colorado’s Economic Stability
Young criticized the president’s ongoing tariff policies and proposed budget cuts, labeling them as detrimental to the state’s economy.
“This really puts a lot of stress on everybody and frankly, because of TABOR, we don’t have enough reserves to just backfill what we would expect to have happened, coming from the federal government,” Young added, referring to the Taxpayer Bill of Rights.
In a year marked by budget tightening, a new challenge has emerged: instability in the stock market. With $17 billion in state investments legally tied to the market, Young emphasized the importance of careful portfolio management.
No Risky Business for Colorado’s Investments
“We don’t engage in risky investments. The rule of investing is, the more risk you take on, the more volatility you face,” said Young.
“Sure, you can have great returns, but you also risk substantial losses. That’s why we avoid high-risk investments — to protect taxpayers’ dollars and fulfill our obligations.”
Retirement & College Savings Accounts at Risk?
Experts warn that benefits tied to market performance, such as 401(k) and college savings accounts, could see temporary dips, creating anxiety among beneficiaries.
“Those benefits are tied to their stock market portfolio,” said Mac Clouse, professor of finance at the University of Denver.
“So if the market goes down, the monthly payouts shrink. It’s definitely concerning.”
Treasurer Urges Patience Amid Market Swings
Young offered reassurance, stressing that long-term perspective is key.
“There may be a momentary change in what people see in their accounts,” he said.
“But over the long haul, as long as you remain patient, the markets usually come back. They always come back — typically.”
Financial experts agree that the best course of action is not to panic, but to consult a financial advisor and ride out the wave. With careful strategy and patience, they believe better returns will follow once the market stabilizes.
