GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you might read more about oureditorial guidelinesand our products and servicesreview methodology.
But dont stop there ensure youre prioritizing your retirement and other tax-advantaged accounts.
Take full advantage of retirement accounts such as 401(k)s and IRAs, Shirshikov said.
If tax rates rise, maximizing contributions now can providesignificant tax savings.
At the same time, look into municipal bonds and other tax-advantaged accounts.
These will also reduce your tax burden and help combat any tax policy changes.
Market fluctuations are common around election periods, Shirshikov said.
Its a good time to rebalance your portfolio to ensure it aligns with your risk tolerance and investment goals.
Rebalancing helps maintain your desired risk level and investment strategy.
This starts by creating a financial plan, ideally with aqualified financial advisorwhos also a fiduciary.
All investors should establish what is called an Investment Policy Statement (IPS) and follow it.
Investing without a plan is like driving without a roadmap or GPS, Johnson said.
Investors should not concern themselves withbroad market movesor the crisis du jour.
It sets the ground rules for the investment process and guides theoverall investment plan.
It also includes your target asset allocation and any changes at different stages of your life.
It is best to develop an IPS in a rather calm market, Johnson said.
Developing an IPS in a volatile market or during major stories is problematic.
The whole point of an IPS is to guide you through changing market conditions.
It should not be changed as a result of market fluctuations.
It only needs to be revised when your individual circumstances change perhaps a divorce or other unanticipated life change.
If you dont have an IPS already, nows a good time to make one.
Just dont base it on the fear or uncertainty of the changes that might come with the next election.
Dont forget about your emergency fund either.
Given the economic uncertainties that can accompany election years, bolstering your emergency fund is prudent, Shirshikov said.
Staying informed about economic trends and policy changes is crucial, Shirshikov said.
But its equally important to avoid makingimpulsive financial decisionsbased on short-term market movements.
More From GOBankingRates
Share This Article:
