I guess members of Congress aren’t getting along. Who would have thought?
While they’re playing chicken with the budget, the government officially shut down as of midnight on Tuesday. Of course, it’s natural to wonder how all of this mess will affect all of us who are in (or planning for) retirement.
Here’s a breakdown:
What Stops and What Doesn’t?
Social Security benefits and federal pensions will continue to be paid. So, if you’re retired and drawing any of those benefits, you can breathe a sigh of relief.
That being said, some support services will slow down or stop completely, including the processing of any new applications, verfication of benefits, or the ability to replace your Medicare card.
So, if you’re already retired, the direct impact on you should be pretty minimal. Just note that you’ll likely not be able to talk to anyone about your benefits anytime soon.
“Excepted” (a.k.a. “essential”) Federal employees, such as our active duty military personnel, air traffic controllers, TSA agents, Federal law enforcement, and critical staff at VA hospitals, will contine to work, but without pay.
Anyone in the “Non-Excepted” category, such as those that work for our National Park system, the CDC, Social Security, or Medicare, will be furloughed without pay.
So all of you who don’t pay for parking at the Chattahoochie National Recreation Area can still get away with it for a while longer. The annual pass is only $40, so come on.
As I’m writing this, the market is… flat-ish? And market volatility is staying within its normal range. That being said, don’t be surprised if there’s some market volatility as this drama continues to play out in Washington.
When it comes to your investments, we expect that there are going to be events like these that are chaotic along the way. Remember, it was just this spring that the market was down over 18%.
Now, the S&P 500 is up over 14% for the year.
So there’s no need to change anything right now.
Other than that, just prepare for a reduction or stoppage in Federal services, so expect delays if you were planning on getting in touch with Social Security or Medicare anytime in the near future.
That and turn off the TV.
I’m sure there will be wall-to-wall coverage on all the news networks as our elected representatives go through round after round of brinksmanship.
Of course, if you’re a Federal employee, I’m sorry you’re dealing with this… again.
Let’s hope that this gets settled quickly.
That’s all for this month. See you next time.
