The Election and Your Financial Plan

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 the election or any other major event usually is not a good idea. For example, many investors who panicked and sold off investments during the market drop of 2008-09 are generally behind those investors who stuck with their investment plan, at least based upon 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 should be reviewed on a periodic basis and adjusted when appropriate. As with the end of every year, there are some areas you might consider looking at before December 31.