Framing decision-making about your money amid political uncertainty

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Framing decision-making about your money amid political uncertainty

Voters wanting to cast an early vote line up outside the Elena Bozeman Government Center for a polling station to open in Arlington, Virginia, on September 20, 2024.

– | Afp | Getty Images

Decision-making around the November election isn’t limited to who voters plan to choose at the ballot box. Americans’ feelings about which candidate may win are also driving people’s decisions about their own finances.

Nearly two-thirds of Americans, 63%, are deferring financial decisions about vacations, car and home purchases, and remodeling projects until after the November election, according to a

This is the hidden content, please

• Sign In
• or
• Sign Up

of 1,005 Americans conducted in early August. 

But waiting for election results may not be the best move.

Experts advise evaluating if a financial decision should be made sooner, and considering the cost of waiting.  Remember, major policy changes requiring legislation take time, with the president and members of Congress in agreement.

How to frame decision-making ahead of the election

Milos Dimic | E+ | Getty Images

Financial advisors say the election or its results

This is the hidden content, please

• Sign In
• or
• Sign Up

Ask yourself: “If Candidate A won or Candidate B won, would they really do something different?” said Michael Liersch, head of advice and planning at Wells Fargo.

It’s more important to consider your personal financial plan and how a big purchase relates to it. Often, the political outcome generates uncertainty over a purchase or investment decision, but it probably won’t change the outcome of whether it’s a smart move.  

More from Your Money:

Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

“When I’m talking with a client who thinks they’re going to put something off, we go back to that plan,” said certified financial planner Liz Miller, founder and president of Summit Financial Advisors in New Jersey. Often, she said, they find that there’s no need to delay.

Map out the scenarios 

Consider a best-case scenario, worst-case scenario and something in between. “Within that framework, you can test it,” said Liersch. “Don’t wait for the outcome to be known. Look into it now, map out those possibilities, and see if it would even change your decision in any way, shape, or form.”

Take, for example, concerns about Social Security benefits

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

survey.

Absent action from Congress, the trust fund Social Security relies on to pay retirement benefits is

This is the hidden content, please

• Sign In
• or
• Sign Up

in 2033. At that time, just 79% of benefits will be payable.

There are steps you can take to give you some perspective, including getting your Social Security benefit estimate and looking at where you can boost savings.

Figure what a benefit cut might mean for you: Can you budget differently in coming years to help make up for that shortfall? Paying down debt, building an emergency fund, and sticking with your investment strategy are solid moves right now, experts say.

“As you see all of these different things, these headlines, in a very uncertain world, you can feel more at peace that number one, you are doing the right things, and that you’re on solid financial footing,” said CFP Stacy Francis, president and CEO of Francis Financial in New York City. She is also a member of the CNBC Financial Advisor Council.

Francis is spending time with clients now updating their financial plans and mapping it out to age 95. Many are considering Roth conversions ahead of tax policy changes, for example.

Be proactive with your plan

Candidate pitches around

This is the hidden content, please

• Sign In
• or
• Sign Up

“We are proactively talking about what is the ability to take some capital gains this year, when we know the capital gain tax rates are stable and we know what to expect,” said Miller, who is 2024 Chair-Elect of the the CFP Board.

While waiting to take action until after the election results are known, consider if it’s necessary. “Ask yourself, is delaying this decision just to see the outcome of the election, Is that really worth the distance in delaying that decision or would making the decision sooner provide a greater benefit,” said Wells Fargo’s Liersch.

This is the hidden content, please

• Sign In
• or
• Sign Up

#Framing #decisionmaking #money #political #uncertainty

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up