Florida retirees are paying attention to their savings following Trump’s tariffs

Over 4.5 million residents are over 65, and Florida has long been welcomed with retired land. That’s where seniors across the country come to enjoy a slower pace of life in warmer climates.

However, the stock market turmoil brought about by President Donald Trump’s tariffs disrupt the peace of many Florida retirees who rely on 401(k) and other investments as their main source of income.

“Everything has been unprecedented since Covid,” said 60-year-old Leslie Mitrick. …It can just keep getting worse. ”

She quit her job in 2020 and moved from Pittsburgh to Clearwater Beach with her husband. He retired last year and since then they have lived in a combination of her 401(k), another nest egg that he invested, and his monthly Social Security payments.

Prior to that, I rarely paid attention to the stock market. Now she can’t look away.

“I understand that when the market dives, it’s scary, but it’s important to try to maintain a long-term perspective,” wrote Sam Taube, an investment spokesman for personal finance company Nerdwallet, in an email. “This slump is not as severe as the Covid-19 crash five years ago, for example. Even if it gets worse, the market can recover from the set-off incredibly quickly.”

According to 2024 data from Invesco and Bloomberg, it took an average of three months for the Dow Jones industrial average to recover from a 5%-10% drop, and an average of eight months for the Dow Jones to recover from a 10%-20% drop.

Things were already beginning to look up by the time the market closed on Wednesday after Trump announced a 90-day suspension on mutual tariffs in most countries. The S&P 500 has surged 9.52%, the largest daily profit since 2008. By Thursday, most markets had seen modest dips. The S&P 500 was soaked in 3% and NASDAQ 4%.

Peter Imredy, 66-year-old Clearwater Beach resident, saw some of his investments fall this week. It’s not the first time he’s lost money on the stock market. He still regrets selling shares in Apple stock he bought during the Great Recession of 2008.

He plans to keep his money in the stock market for now, but he is considering switching to another financial manager who earns fees based on how well his portfolio is working instead of flat rates.

Dave Sanderson, 77, is a snowbird who divides time between Ontario, Canada and Venice, near Sarasota.

He recalled when the market plunged in the 1980s. Paniced, he rushed to sell in an attempt to get a broker, but his line was busy straight for three days. By the time he caught him, his portfolio had already recovered.

When did he see the stock market immerse this time? “I at least don’t want to sell,” Sanderson said. “When it’s down, don’t sell, or you’ll guarantee your losses.”

He said he was confident no matter what happened, things would come back.

The investment he made has helped him feel safer even amidst the turbulence this week. As he ages, he is moving away from riskier high-growth stocks in favor of dividend paying companies.

“I’ve seen long-established cash,” he said.

Rather than panic sales, Taube suggested that retirees consider alternative investments that are tax-resistant.

“Oddly, international stocks can be relatively safe, because many publicly traded foreign companies do most of their domestic business and are not exposed to trade with the US,” he writes.

He also recommended a series of bonds with shifted maturities that can be paid monthly or annually and that can be withdrawn or reinvested.

“These can provide valuable income, especially for retirees, and prevent them from having to sell stocks at a low price if they need money,” he writes.

He was encouraged by the market rise on Wednesday, but Imredy said he would remain cautious as long as Trump is in office.

He retired last summer and moved to Clearwater Beach, where he helped care for his 91-year-old mother. Now he lives in her condo for free. But as she passes, he needs to find somewhere to live.

Faced with such unexpected costs during a recession, he could force him to change his strategy.

“I’ll probably put more money in the bonds and take it out of the stock market,” he said. “I might even need to get a job to supplement, maybe Uber or Lyft.”

Others like Mitrik refrain from making big purchases. She was considering buying a car, but she objected to it once the tariffs were announced. Even cutting back on small things like groceries has become a priority these days.

“My husband just said today, we’re not buying anything that’s not for sale,” she said.