The U.S. reached its national debt ceiling on Thursday, and a local Reno financial advisor says he hopes people take the opportunity to plan for their financial futures.
“It seems like every five to seven years we go through some financial catastrophe,” Brian Loy said. “And the markets just sell off, but over long periods of time the markets tend to rise, and things will be better in the future.”
Loy is the president of Sage Financial Advisors, recently acquired by Weathspire Advisors. When he was born, the S&P 500 was at 41. Today the index is close to 3,900. Loy said that planning takes hope.
“When you’ve got this kind of uncertainty … it scares the bejesus out of people,” Loy said. “Part of our job is to help people give just have confidence in the future, just ride these things out to diversify portfolios, keep saving.”
Historically, the U.S. has never defaulted on its debts due to congress failing to raise the debt limit. But according to national reports, ongoing negotiations in congress to raise the debt limit could have a negative impact on the economy as investors loose trust.
“It highlights the importance of planning because people tend to put planning on the back shelf when things are good,” Loy said. “But that’s the best time to be addressing issues instead of trying to switch horses midstream.”
