It’s common to wonder how a new presidential administration will impact your wallet. As policies and regulations change, many people are left questioning what it means for their money.
According financial professionals, here’s how to safely navigate your finances during a presidential transition:
Take market coverage with a grain of salt: Media headlines might feel overwhelming, but it’s wise to avoid making big investment decisions based solely on the 24-hour news cycle. Unlike what you may hear, U.S. market growth and resilience have historically remained steady regardless of the political climate. For investment planning and advice, always rely on trusted resources, such as the insights of your financial advisor.
Focus on fundamentals: Market volatility around election cycles is historically short-lived, so now is not the time to try to game the system, fully revamp your portfolio or reverse course on your long-term investment strategy. As always, you should stay focused on sound investment principles, like diversification and compound interest.
Examine your tax strategy: Consider whether your tax strategy will need tweaking in light of laws ushered in by the new administration. Whether it is your capital gains taxes or your small business taxes, new regulations can impact what you pay. Your financial advisor can help ensure you continue to maximize every dollar you earn.
Take a look at your savings: Policies coming out of Washington could affect healthcare costs, energy prices, Social Security income and other factors that impact your overall financial picture. Work with a professional to create a holistic financial plan that is both tailored to your needs and adaptable to change.
Navigating your finances during a presidential transition can feel tricky but with a big-picture mentality and the partnership of a qualified financial advisor, you can meet your financial goals.
By: StatePoint (Edited by d-mars.com)
