Fee-Only financial advisors have long counseled patience with investments and stock portfolios and presidential elections do not change that advice. As an election season progresses, you hear lots of experts give their thoughts on how a certain candidate may affect the stock market…and this past election season was no exception. Now that the election has taken place, there will be many people in the coming days sharing their recommendations on how to adjust your investments in response to the election.
However, history has shown that people who make sudden moves base on politics or other factors may find themselves disappointed. It has also shown that investments grow over time, no matter what political party is in office. When you make investment changes based on an election, you are taking a financial risk based on short-term fluctuations. As a President-Elect prepares to take office, no one really knows exactly how the next administration will function.
Yet, because we tend to think (and hear in the media) that one political party is better for the stock market than another, it is hard to not want to act after an election.
At Clarity Financial Planning, we take a holistic approach to our clients’ financial goals. We are not just looking at numbers; those numbers are tied to your life and well being and the future of your family. Instead of anxiously taking in news about how the market is changing, concentrate on what you can control: your own saving and spending. No matter what the economy and the markets look like, you can be sure that you are being responsible about your financial life.
It is also important to spend your time and resources in ways that benefit you most: doing work that is meaningful to you and spending time on what matter to you. Making the most of the resources you have now is just as important as engaging in financial planning for the future.
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