With the midterm elections on November 3, it's hard to avoid the headlines. Election season can bring a steady stream of predictions about what the results might mean for the economy, taxes, and the markets, and it's understandable if this leaves you feeling uncertain about your money. Many people wonder whether they should make changes before or after Election Day. In most cases, the answer starts with your long-term plan rather than the latest news.
Why Headlines Are a Poor Guide
News coverage tends to focus on what's happening today, while a financial plan is built for the years and decades ahead. Research from several major investment firms has generally found that which party wins hasn't been a reliable predictor of long-term market performance.
Markets can be more volatile in the months leading up to an election, but short-term swings rarely give a clear picture of where things are headed over time. As always, past performance doesn't guarantee future results.
Where Policy May Matter
This isn’t to say that elections have no impact on your finances. Changes to tax law, healthcare, or retirement account rules can influence your planning, and they're important to keep an eye on. The key is to watch for policy changes that actually become law, and to talk through any changes with your advisor before making a move. Reacting to a proposal that never becomes law can create problems of its own.
Focus on What You Can Control
You can't control the outcome of an election, but you can control many of the things that shape your financial future, including your goals, your spending, your savings, your timeline, and the flexibility built into your plan.
These are the pieces our team at Tiarks Financial focuses on with every client, regardless of which party holds office. A plan built around your own priorities is designed to hold up through many election cycles, not just this one.
If the election has you feeling uneasy about your money, don’t sort through it alone. We'd be happy to sit down with you and talk through your questions.
Reach out today to schedule a meeting with our team.
