Yahoo Finance 3 Money Moves To Put Off Until After the Election (and 3 To Make Anyway)
While any change of presidential administration can bring uncertainty to both voters and the financial markets, President Joe Biden mixed it up in a whole new way when he pulled out of the 2024 race and endorsed Vice President Kamala Harris on Sunday, July 19.
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What does election uncertainty mean for your finances? It could mean volatility in the stock market, interest rates and even tax laws, according to David Fritch, an attorney CPA and owner of Fritch Law.
As a result there may be some financial moves you want to hold off on making until after the election dust has settled.
Administration changes can affect any number of financial laws, regulations and policies, Fritch said. “For example, proposed changes to capital gains or estate tax rates may or may not come to fruition,” he said.
Once the results are in and the dust settles, you’ll have a clearer picture of where things stand financially and legally, he explained. “It’s best to wait and see before making big moves,” he said.
Check out which money moves you want to put off, and which ones to make.
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Don’t Change Your Investment Strategy
During such times as this, it may be wise to hold off on making significant financial decisions that could be heavily impacted by the changing political climate, said Justin Godur, a financial advisor, CEO and founder of Capital Max.
“For instance,” Godur continued, “altering your investment portfolio or making large real estate purchases could expose you to risk if market conditions shift unexpectedly due to new government policies or economic measures post-election.”
If you’ve got an investment strategy that’s working for you, there’s no reason to mess with a good thing until you know how things will change.
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Don’t Try and Predict the Market
As a case in point about staying the course, Abid Salahi, the co-founder of FinlyWealth, shared one client’s experience during the 2016 election, which he said, “serves as a stark warning.”
As Salahi explained, because this client anticipated Hillary Clinton winning, he invested heavily in renewable energy stocks before the election.
“The unexpected [election] result led to a policy shift, causing his portfolio to plummet by 28% overnight,” Salahi continued. “This catastrophic loss could have been avoided by postponing major investment decisions until after the election results were clear.”
Don’t Rumble With Real Estate
Beyond investments, real estate transactions also demand careful consideration in uncertain times. Because housing market dynamics are inextricably linked to economic policies, they can shift dramatically with new leadership.
“In the months following the 2016 election, the National Association of Realtors reported a 2.8% drop in existing home sales,” said Salahi. “This underscores the wisdom of delaying significant property decisions until the political landscape stabilizes.”
Do Review Estate Planning Docs and Pay Down Debt
That said, there are still good financial habits you should practice year-round, Fritch said.
“Review your estate planning documents like wills and trusts to ensure they’re up to date,” advised Fritch. “Contribute enough to get any employer match in your retirement accounts. Pay off high-interest debts to avoid fees. And check your insurance policies to ensure proper coverage.”
Election years certainly bring uncertainty, but staying focused on long-term financial health will serve you well no matter the outcome. “The most prudent money moves are often the boring, responsible ones you should be doing anyway,” Fritch said.
Do Strengthen Your Financial Base
Additionally, if postponing financial decisions doesn’t work for your situation, Godur said it’s always beneficial to focus on strengthening your financial base.
“This involves maintaining a robust emergency fund, reducing high-interest debts and consistently contributing to your retirement plans,” he said.
“These steps ensure that you are well-prepared to handle any market condition, helping stabilize your financial future irrespective of political changes.”
While nobody can predict the future, your best bet is to stick with what’s already working and not make big changes to your financial picture until you know how things will change.
Do Apply Caution
In general, Godur recommended approaching your financial strategy with caution during election seasons. This allows you to navigate potential upheavals more smoothly, keeping your long-term financial goals on a steady path.
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This article originally appeared on GOBankingRates.com: 3 Money Moves To Put Off Until After the Election (and 3 To Make Anyway)
