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The 2024 presidential election is approaching, and many of us are concerned about what this might mean for our retirements.
While it’s natural to feel concerned about political changes, financial experts advise against making drastic moves based solely on election outcomes.
But if you’re looking for specifics about what to do – and what not to do! – read on. Here are five moves to make with your money if Trump is re-elected:
Tune Out the Noise
“When it comes to planning for retirement, turn off the television and don’t answer your phone in the next few months,” shared Paul Tyler, CMO at Nassau Financial Group.
There are going to be a lot of election-related money predictions coming at you before November, so instead of listening to them all and making big changes, it might just be smart to turn off the TV.
Stick to Retirement Basics
Tyler emphasizes that core retirement principles remain unchanged, regardless of who’s in office: “Presidential elections simply won’t impact the basic rules that lead to a safe retirement: spend less than you earn, max out your employer’s contribution to your 401(k) and regularly invest 5-10% of your income in the market.”
These are the basics and never go out of style — regardless of who’s in the White House.
Don’t Let Political Anxiety Drive Financial Decisions
Recent data from Edelman Financial Engines‘ Everyday Wealth in America study shows that many Americans are worried about the election’s impact on their finances. According to the study, nearly three-quarters (73%) of Americans are concerned about the 2024 election’s impact on their financial security.
The study also found that wealthy individuals were particularly anxious, with 90% citing the current political environment as their biggest source of stress — ranking higher than concerns about inflation or a possible recession.
All that being true, the planners at Edelman Finacial Engines don’t want Americans making rash decisions with their money from a place of fear. Again, the message is to stick with your original long-term money goals and stay the course.
Consider Historical Market Performance
To put things in perspective, Edelman Financial Engines conducted a study examining market performance under different political parties. The results are eye-opening:
If Americans invested only when a Democrat was president, starting in 1948: $10,000 would have grown to $1,200,696.
If invested only when a Republican was president over the same period: $10,000 would have grown to $309,811.
If they stayed invested the entire time, regardless of which party controlled the White House: $10,000 would have grown to $37,198,830.
In other words, if people would’ve steadily invested across administrations, they’d be in a far better financial position.
Focus on Long-Term Habits
Tyler reminds us of the bigger picture: “What laws do or don’t get passed in the next four years simply won’t put a dent in the power of good financial savings habits over a much longer time.”
Things like regular saving and investing have a bigger impact than any presidential term.
The Bottom Line
Of course, it’s natural to be concerned about the outcomes of elections for many reasons – one of them being our financial well-being. But according to these experts, the best strategy is to keep holding steady with your investments, no matter who’s in the White House.
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