

Financial Planning for the Election
On November 3rd we as a nation will determine who will lead our country for the next four years, Donald Trump or Joe Biden. Regardless of your thoughts on either candidate, this election feels different. The world is different. Naturally, you may be asking yourself, if everything else is different right now, what should I do about my portfolio, or my financial plan? Our answer is that the election should not influence your portfolio or your financial plan.
Regarding presidential elections, many articles have been written attempting to decipher whether there are any correlations between political parties and market performance. Most reach the conclusion that there isn’t a great deal of compelling evidence to suggest that one political party is associated with better market returns than another. The research is robust, so rather than generate our own analysis, we’d recommend looking at the following links which summarize the data in a digestible format:
When it comes to your investments, instead of worrying about who will be in the White House for the next four years, we encourage you to focus on your own financial circumstances. Are there any major changes that you expect in your life? Do you want to retire? Is there a major expense, or purchase on the horizon? Are you looking to move to a new state? These are things to build a plan around. Whether we are in a Bear or Bull Market, or have a Republican or Democratic President, it should be your financial needs that drive your investment decisions. The election is almost upon us. While the US stock market will likely continue to reward long-term investors, and while the outcome of the election will not change the way we provide advice, it will determine how our communities, states, and our country are run. If you’re wondering how to make your vote count in the 2020 election, we recommend checking out FiveThirtyEight’s Voting Map for rules and guidelines for your state. If you’re wondering what our investment advice is at this time, we recommend remaining diversified, keeping an eye on the long-term, and staying in touch regarding changes in your life. Be safe, stay informed, and make your voice heard. |