After years of steady growth, the markets just slammed on the brakes. Trump’s “Liberation Day” tariffs have tanked global stocks. Gas prices are up. Recession warnings are out. And for the first time ever, Social Security payments might not make it out on time. Sound familiar? It’s 2025, and chaos is here.
So what do you do with your money when everything feels like it’s crashing?
Financial advisors say step one is: stop panicking.
Start by asking: What are you actually worried about?
Lisa Kirchenbauer, a senior advisor at Omega Wealth, told Yahoo Finance that the best way to get grounded is to figure out what’s really bugging you. Are you scared about your job? Inflation? Losing retirement savings?
“Once you identify the fear,” she said, “you can figure out if there’s something you can actually do about it.”
Build a cushion account
A cash cushion – yes, actual money you can access – is your best friend right now. Financial planner Lazetta Rainey Braxton recommends having money set aside to cover emergencies, job gaps, or even sudden opportunities.
Think high-yield savings accounts, CDs, or money market funds. It’s boring, but it’s safe.
Keep investing, especially if retirement is far off
John Anderson of Equitable Advisors says: if you’re years away from retiring, don’t stop investing just because the market is tanking.
“If you’re doing regular 401(k) contributions,” he said, “you’re actually buying shares at a discount. That’s a win long-term.”
Target-date funds do this for you automatically – adjusting between stocks and bonds as your retirement year gets closer.
Close to retirement? Time to get conservative
If you’re 3–5 years out from retiring, it’s a different story. Experts say you should have five years’ worth of expenses tucked away in safe places – think Treasuries, CDs, and high-quality bonds.
Today’s higher interest rates make that easier: you can earn 4–5% on low-risk investments while you wait out the chaos.
Rebalance your portfolio
Have you looked at your investments lately? Kimberly Stewart of Ameriprise Financial says now’s the time to do it. You don’t want to suddenly realize your “balanced” portfolio is now 80% tech stocks.
Rebalancing every time your allocations drift 7–10% off target can keep you from big surprises.
The big takeaway: Keep your knees bent
This isn’t over. More ups and downs are coming. Kirchenbauer says it’s like skiing in low visibility – keep your knees bent and look ahead.
“You might not see the next few feet clearly, but you can see further down the slope.”
Same with your money. Don’t get fixated on this week’s news. Stay focused. Stay flexible. And most of all – keep moving.
