With every presidential inauguration comes a change in economic policy. How will interest rates change? Which economic sectors will flourish? Most of all, what – if anything – will happen to your money? Know the risks, the safe spaces, and how this national shift could impact financial planning, no matter your political affiliation.
Assess Risk Management
The political landscape is forever in flux, though the changes can be small or large depending on who is calling the shots. All you can do is focus on your resources, what could happen to them, and make choices to secure your financial health for yourself and your family.
If you don’t know where to start, that’s what financial advisors are for. Risk management recommendations often begin with smart insurance choices, but be open to discussing all possible threats to your financial plan.
Aim for Balance
Smart investors balance and rebalance their portfolio with the help of a financial advisor so they feel safe about decisions regarding savings and investments. There are many potential areas to explore for a balanced portfolio:
- High-yield savings accounts
- High-performing stocks
- Existing portfolio choices
- Diversifying international holdings
Review Retiree Status
Retirees are often seen as the demographic with their ducks in a row, but political shifts can impact a carefully plotted future, especially when it comes to taxes. Talk to your financial advisor about:
- Tax-deferred dollars
- Standard deductions
- Part-time income
- Roth IRA contributions
- Tax-free growth opportunities
- Smart choices at age 50+
Budget, Budget, Budget
It doesn’t matter if you’re a retiree, business owner, or young professional, universal baseline tariffs could come down the line shortly. This change drives up the cost of goods and services which affects everyone, not just older adults on a fixed income. Financial experts are eager to discuss matters with their clients to keep them secure in their money choices:
- Streamline weekly and monthly budgets
- Conserve savings
- Update retirement plans
- Reallocate estate planning choices
Keep Emotions Out of It
You have your political leanings for reasons that make sense to you, but when administrations change, try to keep a nonpartisan view on your finances. Take in the knowledge of what’s happening, what could happen, and how political changes are likely to affect your portfolio. The best resource for this information is your financial planning expert who is impartial and remains dedicated to delivering the most effective financial strategy.
Think Long-Term Defense
Should you sell? Buy? Cash out? There are many questions in the short-term that can influence financial planning choices, but it’s wise to also think intermediate and long-term to reduce the volatility of your portfolio. This might include conversations with your financial advisor about:
- Taking profits in certain stock sectors
- Buying bonds to protect investments from inflation
- Potential growth based on advertised administration plans
Saving, Spending, and Financial Planning
Life is longer than any presidential term or duo of terms, but it can be difficult to think conservatively about money choices in the present when so much change is occurring. Rely on the guidance of your financial planner at Hollander Lone Maxbauer in Southfield, MI, to guide you now and in the future. Contact us to schedule a meeting.
