The financial news media and social media have been buzzing about the election results and the potential impact on your pocketbook. There has been much speculation about taxes, healthcare, and certainly which stocks and stock sectors might benefit from the Republican gains.
What should you do financially in the wake of the election? Nothing!
The election is a big story for the likes of CNBC, The Wall Street Journal, and others. There is a lot of speculation and uncertainty. This creates interest and hopefully attracts viewers/readers.
Those of you who read my blog or follow me on social media know that I advocate the use of a financial plan as the basis of most financial decisions. Reacting to elections or other big events is usually not a good idea. For example, many investors who panicked and sold investments during the 2008-09 market decline were generally behind investors who were stuck with their investment plans, at least based on my experience.
In all likelihood there will be some changes in the coming months in areas such as income taxes and hopefully on the estate tax front. These changes may well impact the way in which investment gains are taxed, they may favorably or unfavorably impact certain industries, and could impact the rules for passing your assets on to the next generation. All of this is, however, speculation and should not be the basis of any financial planning decisions at this point.
Clearly some of these potential changes might create the need to adjust some strategies for some clients down the road. I know that I monitor these types of developments with an eye towards which of my clients might be impacted.
For now my suggestion is to monitor the news and to stick with your financial plan. As always, your financial plan must be reviewed periodically and adjusted if necessary. As with every end of the year, there are some areas that you might consider before December 31.