Anxiety Over The Upcoming Election
Anxiety over the upcoming election may impact retirement plans. How? When people make investment decisions based on emotions it usually leads to bad outcomes, and the financial decisions we make today affect our future. The Nationwide Retirement Institute found that most investors make decisions before getting professional guidance. They also discovered that nearly one-third of investors are planning to change their investment strategy based on election results. The media has increased the level of anxiety by broadcasting a mix of biased or slanting stories, inaccurate news, and accurate reporting. And political posts on social media platforms add fuel to the fire.
What can be done to mitigate the knee-jerk reaction to the results of the upcoming election? We need to educate others on the importance of long-term planning and remind them that neither political party will make or break the stock market. Historically, stock market fluctuations have been about the same regardless of who was in office. The crashes that occurred in 1929, 1987, 2001, 2008, and 2020 were caused by overinflated shares, panic selling, the rapid growth of the subprime mortgage market, and a world-wide pandemic. Education is key in understanding that elections and presidents will come and go but the stock market will always remain. Will there be fluctuations and downturns? Absolutely, they are inevitable. Investing requires strategy and the knowledge and expertise to mitigate risk.
The best way to mitigate risk and avoid making a bad investment decision is to team up with an experienced investment manager. By getting professional help, you will get expert advice on investing and retirement planning and have a partner in your financial journey. Your fiduciary will consider your income and timeline for retirement, and plan for taxes, healthcare, the potential need of long-term care, and advise you on Social Security before helping you create a retirement plan. They will also be there to prevent you from making hasty investment decision based on emotions and remind you of your primary goal; to