Government shutdown looms; Local financial provides advice for those impacted

WRIGHT-PATTERSON AIR FORCE BASE — The looming government shutdown could have a major impact on workers in the Miami Valley. If no deal is done, a government shutdown will go into effect Sunday at 12:01 a.m., causing approximately 31,000 workers to go unpaid at Wright-Patterson Air Force Base.

Lori Gross, an Investment Advisor Representative at Outlook Financial Center in Troy said, “Some employees will be furloughed, while others will be deemed essential. Those essential employees will have to work without a paycheck. It’s just a matter of how long the shutdown lasts,” Gross said.

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Gross believes paychecks will come out eventually, it’s just going to happen in a systematic way, which is why an emergency fund is important.

63 percent of Americans live paycheck to paycheck, according to Bankrate.

Gross said, if you’re feeling the pain of a government shutdown contact your creditors, landlords, card agencies, and loan agencies, and let them know the situation. “My advice would be to be preemptive about it. Do it in advance. Don’t wait until you’re already in the crisis to do something about it,” Gross said.

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There are places to turn to that offer no interest and short-term loans, “that give you the availability of having that to pay this month’s bills. Then when the government does make them whole, they could turn around and pay that off,” Gross said.

“According to Gross, that option is much better than charging up a high-interest credit card or dipping into your retirement plan.”

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“ If you’re not 59 and a half yet you’re paying penalties on top of the taxes that you’re paying, and you’re setting your retirement back. So, if you’re doing that, how long is it going to take you to build that backup and replace those funds,” Gross said.

Historically, the average government shutdown lasts a couple of days. The last shutdown from 2018 to 2019 was a historic 34 days.

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