How will the upcoming election affect your retirement? This has been the most urgent and frequent question our clients have been asking us recently. You may be wondering too! Find out the answer in this week's Arista Advice.
Hello, welcome to Arista Advice. Hope you're well.
Question of the week is: "Paul, how will the upcoming election affect my retirement?" My dear friends and associates this question I'm getting asked almost every hour when I speak with clients, and when I meet people on the airplanes, and at restaurants, and throughout the conversation in the course of my daily activities.
What's going to happen?
Let me first say this: turn the TV off. We are overconnected to this election. We are overanalyzing and overestimating what's going to happen in this election.
As you'll see on this graph, whether it's blue or red, the market historically is positive. This graph shows you that the red and the blue historically returns a positive rate of return. Even though these elections happen every four years, they breed anxiety, overconfidence, depression, and other emotions that really aren't necessary for our health.
While the White House has enormous influence on economic policy, ambitious policies frequently find challenges in the legislative and judicial branches.
It's also important to keep in mind that in the wake of COVID-19, there are other factors that can influence the financial markets. The simple take-away is that your investment strategy is built to go through many different political parties. Your financial plan is also built to withstand the ups and the downs of the political system that this great country is known for.
Please go to AristaWealth.com to look at and get additional tools, tips, and videos, and give us a call to discuss this and any other important topics to you. We look forward to talking to you soon.