Are you worried the next presidential administration will impact your overall retirement plan?
Regardless of who you supported in the election, chances are that you may believe the new inhabitant of the White House will have a significant impact on your investment portfolio. And, as it turns out many Americans feel this way.
A recent study of about 60,000 investors shows that people generally take greater market risks when their party controls Washington. This same study also discovered that people affiliated with the party out of power tend to feel uneasy about the market and trade stocks more often.
Not surprisingly, this impatient approach to investing led their investment portfolio to underperform when compared to when their party was in charge. This suggests that making investment decisions based solely on who is in office and how you feel about them is not always a good idea.
History further reinforces this notion. Since World War II, stocks have seen gains under every president except Nixon and George W. Bush. And those downturns can be attributed largely to global economic factors rather than policies directed from the President.
In actuality, stocks have been shown to generally rise over time no matter who (and what party) is in charge of the White House. But this won’t stop many Americans from still choosing erroneously to make moves in their investments based solely on who our President is.
If this sounds like you, I would like to invite you to take a deep breath. As we start the new year together your resolution for 2017 should be to avoid “Politicizing Your Portfolio”. By this, I mean you should never let who is in office drive the investment strategy for your retirement.
Your investment strategy should be based on the goals you have set for your retirement not who is in office. It should be about protecting you from large market drops first, while still positioning you to make an adequate return.
The good news is that if you are a client of ours, we are working hard every day to keep your retirement investment portfolio in good shape. And if you are not already a client of ours, I would like to invite you to come in for a free, no obligation strategy session so that we can get your retirement plan on the right track.
CALL 952-460-3260 TO SET UP YOUR FREE STRATEGY SESSION TODAY
I truly want you to feel like that you have a sound retirement plan in place. So during this time you will receive actionable ideas and concrete steps towards a more secure retirement and a better financial future for yourself and your family.
CALL 952-460-3260 TO SET UP YOUR FREE STRATEGY SESSION TODAY
P.S. If your new year’s resolution was to put a plan in place for your retirement, now is the time to act. We offer a free, no obligation Strategy Session for you to walk away with valuable ideas on how you can best secure your future in retirement. Many people make resolutions but rarely follow through with them. Having a good coach is the best way to make sure you stick to your goals for the year and don’t fall off the bandwagon.
