Get in touch
Call or Text:
937-404-5180
Email:
dwiedmeyer@kldwealth.com
The 2024 Election and Your Finances
July 3, 2024
As the 2024 U.S. presidential election approaches, many are wondering how the outcome will impact their financial future. At KLD Wealth Management, we understand these concerns and are here to offer insights and advice on navigating this uncertain period. Let’s dive into how the election might influence your personal finances and what you can do to stay prepared.
Historical Perspective: The Market and Elections
First, it's essential to understand that market fluctuations are normal around election times. Since 1928, the S&P 500 Index has had an average annual return of 9.8% through various administrations and global events. While elections can cause short-term volatility, the long-term market trend has been upward regardless of which party is in power.
Focus on the Long Term
Instead of fixating on the election results, concentrate on your long-term financial strategy. Historically, the market has rewarded patience and resilience. Companies adapt to political changes and continue to strive for profitability, which ultimately benefits shareholders.
Key Areas to Consider
Taxes
Election outcomes often bring changes in tax policies, which can affect your investment returns and overall financial strategy. Both major parties have different approaches to taxation, which can influence tax rates on income, capital gains, and dividends.
What to Do:
- Stay informed about proposed tax changes and consult with a financial advisor to adjust your strategy accordingly.
- Consider tax-diversifying your portfolio by utilizing tax-deferred, taxable, and tax-free accounts.
Government Spending and Economic Policy
Different administrations prioritize various aspects of government spending and economic policy. These priorities can impact sectors such as healthcare, technology, and infrastructure, thereby influencing your investments in these areas.
What to Do:
- Diversify your investments across different sectors to mitigate risks associated with policy changes.
- Review and rebalance your portfolio regularly to ensure it aligns with current economic conditions and your long-term goals.
Practical Steps to Secure Your Financial Future
Live Within Your Means
One of the most significant factors within your control is managing your cash flow. Living within your means ensures that you are prepared for any financial changes that may come with new government policies.
Tip: Create a clear budget that allocates funds for saving, spending, and giving according to your goals and values.
Establish an Emergency Fund
Having an emergency fund is crucial for handling unexpected expenses, which can be more likely during periods of economic uncertainty.
Tip: Aim to save at least 3 to 6 months’ worth of expenses in a dedicated account.
Diversify Your Portfolio
Diversification is a time-tested strategy to protect against market volatility and unforeseen changes in government policy.
Tip: Spread your investments across various asset classes and geographical regions.
Schedule Annual Financial Check-Ups
Regular financial reviews help you stay on track with your goals and adjust to any new changes in the economic landscape.
Tip: Meet with your financial advisor annually to review your investment strategy and make necessary adjustments.
Manage Your Risks
Understanding and managing the risks associated with your investments can help you stay the course during volatile times.
Tip: Avoid trying to time the market. Instead, focus on maintaining a balanced portfolio that aligns with your risk tolerance and financial objectives.
While the presidential election will undoubtedly impact various aspects of our lives, you can mitigate financial anxiety by focusing on what you can control and staying informed. Remember, the key is to "keep your eye on the ball" and maintain a disciplined approach to your financial strategy.
Schedule a Consultation
If you’re concerned about how the upcoming election might affect your finances, don’t hesitate to reach out. Schedule a consultation with KLD Wealth Management today to discuss your financial plan and ensure you’re prepared for any outcome. Together, we can navigate this election year with confidence and clarity.
This blog explores the critical aspects of incapacity planning and why it’s essential for Millennials and Gen Xers. It explains what incapacity means in estate planning and discusses key documents like Durable Power of Attorney, Healthcare Power of Attorney, and Living Wills. The blog highlights common pitfalls, such as failing to update documents and overlooking digital assets, and provides practical steps to create a comprehensive incapacity plan that protects your health, finances, and loved ones. For more guidance, contact a financial planner in Dayton, Ohio.
This blog provides Millennials and Generation Xers with a comprehensive guide to tax-efficient asset management strategies. It covers topics like tax-loss harvesting, Roth conversions, charitable giving, and estate planning, highlighting how these approaches can reduce taxes and preserve wealth during the historic $68 trillion wealth transfer from Baby Boomers. By integrating these strategies into a personalized financial plan, readers can optimize their investments, minimize tax burdens, and build a long-term legacy. Ideal for anyone seeking to protect their wealth through smart tax planning.
