While the election season heats up, you will hear more and more promises, claims and counter-claims from the candidates. As a citizen, you may or may not enjoy this “political theater,” but as an investor, you might be concerned over all the talk about taxes, Social Security, Medicare and other financial topics.
Will you need to adjust your savings and investment strategies? If so, how?
Before you think about adjusting your investment strategy in anticipation of any actions coming from Washington, consider a few suggestions:
• Consider owning investments that are taxed in different ways. No one can predict what will happen with income tax rates or the tax rates that are applied to capital gains and dividends.
• Stick with quality. It’s a good idea, when owning stocks, to invest in quality companies with diversified businesses.
• Stay focused on your long-term goals. Politicians come and go, and our political parties seem to take turns holding the reins of power. Yet your long-term goals — such as college for your children, a comfortable retirement and the ability to leave a legacy to your family — don’t really change.
• Review your strategy regularly. With the possible approach of changes in tax policies and in government programs that can affect your retirement security, you’ll want to review your investment strategy regularly to make sure it’s still on track toward helping you meet your objectives. As part of this review, you may want to seek out more “tax-smart” investment opportunities.
Aside from voting for the candidates who best represent your interests, you may not have much influence over what goes on in Washington. But by “electing” the right moves to help meet your goals, you can have plenty of control over your investment strategy.
This article was written by Edward Jones for use by Evans, Edward Jones financial advisor of Richmond Hill.