People concerned shutdown will affect financial futures - News, Weather & Sports

People concerned shutdown will affect financial futures

Edward Boehm Edward Boehm
Betty Boehm Betty Boehm
Tony Walker Tony Walker

LOUISVILLE, KY (WAVE) - A CNN poll found nearly 70 percent of Americans believe a government shutdown is a bad thing. That may be, because no matter who you blame, a shutdown will cost taxpayers money.

People we talked to want to know: When the shutdown is said and done what is it going to cost me? They also took notice Monday when stocks tumbled wondering: How will it affect my financial future?

"It's a shame, it's like crying wolf to scare people," said Edward Boehm, a senior citizen who believes politicians should have their own pay cut.

A looming government shutdown is scary for many Americans, like Ed's wife Betty Boehm.   "There's a lot of other elderly people that depend on every penny that comes in and having it come in on time," she said.

The two Social Security recipients who will get their checks on time still worry about eventual delays that could happen if a shutdown lasts more than a couple of weeks. Ed Boehm said of lawmakers on Capitol Hill, "They're playing games with the older people's money."

Financial Advisor Tony Walker agreed the concern is the long term. A drop in the stock market Monday shows the shutdown was factored in, Walker said. 

As for your 401(K)? In 1995, the shutdown cost the average 401(K) a loss of $7,000, but that was recovered. Walker said his advice is ride it out again, but he said, "Let's say they shut the government down long term. I do think things like bonds and even certain stocks will eventually be affected."

Walker explained, "I would tell people don't panic and if you're a saver and you are really worried about your money and your 401(K) you may want to move it into a money market."

A shutdown could cost tax payers an estimated $2 billion.  Walker said there will be a ripple effect on the economy. For example, in Kentucky, it's not just staffers at Abraham Lincoln's Birthplace in Larue County that will be affected. Closures of National parks cause tourists to stay home, affecting gas stations that sell tourists fuel and restaurants that feed them.

And that has taxpayers like the Boehm's upset with lawmakers on both sides of the aisle. "It seems like they are children in a play yard or something and they want to fight about everything and it's really supposed to be about the people," Betty said.

Walker said the shutdown is a reminder to all of us that it's important to have short term cash on hand.

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