CFP Board Ambassador Explains What the Presidential Election Means for Your Finances
Washington, D.C., January 27, 2016 (PDF) – Republican and Democratic presidential hopefuls have dominated our television screens, radios and social media channels for months in preparation for the 2016 election, discussing their proposed policies on macroeconomic issues such as job growth, income distribution, tax reform and immigration. Diverse political agendas and polices can leave consumers anxious about the U.S.’s financial future under a new leader and how that will impact their investments.
CFP Board Ambassador Robert Schmansky, CFP®, discusses how to properly prepare your finances for any election outcome.
“While we won’t know the outcome of the election for some time, we can plan for how we will react,” said Robert. “Instead of giving into the hype we hear from others – whether it be those claiming they may ex-patriate, or otherwise devote too much to the political conversation – we can look rationally at past elections, and realize the world did not end. No president alone has as much control as we may think from listening to the hype.”
In the latest contribution to LetsMakeaPlan.org, CFP Board advises consumers to stay focused on the major drivers of the markets and carefully consider how the election may impact these variables:
Consumer confidence: Markets do not like uncertainty. Given political factors, it may be worth doing some extra portfolio volatility-proofing. Consider dividend-paying stocks rather than aggressive growth, and modest increases to high quality bonds and cash.
Business cycle: It’s hard to foresee any short-term impacts a new president’s agenda will have on the investment markets. Savvy investors should nevertheless pay attention to the candidates’ proposed tax policies and consider possible impacts in their personal wealth and portfolios.
Interest rates: Investors should remain “independent” when it comes to interest rates and take their direction from the Federal Reserve when making adjustments in the quality, currency and duration of their portfolios.
Unforeseen events: There will undoubtedly be sudden events in 2016, but these often have the effect of propelling a flight to the safety of U.S. securities. If anything, the regularity and stability of our electoral process testifies to our leadership as a global economic power and bolsters confidence in our financial markets.
One’s personal finance goals, rather than the agendas of political candidates, are the most important determinant in creating a portfolio. Consult a CFP® professional who can help you stay diversified and maintain a sufficient liquidity to meet your financial needs.
ABOUT CFP BOARD The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes nearly 74,000 individuals to use these marks in the U.S.
CONTACT: Jessica Lewis, Communications Specialist P: 202-379-2256 E:jlewis@cfpboard.org Twitter: @cfpboardmedia
ABOUT ROBERT SCHMANSKY, CFP®
Robert Schmansky is the founder of Clear Financial Advisors of Metro-Detroit. Rob has over a decade of experience helping individuals and families meet their financial goals and overcome money concerns. He is frequently quoted in the media on issues regarding personal financial planning, and has been a contributing writer for U.S. News & World Report, Forbes and Yahoo!Finance, and an investment expert for FiLife, a former Dow Jones/IAC joint Internet venture. He has been an adjunct instructor of economics and the required courses for candidates to sit for the CFP® exam. Investment News selected Rob as a 2015 40 Under 40 financial planning professional and he is the 2013 PlanPlus Global Financial Planning Awards North American finalist.
CONTACT: Robert Schmansky, CFP® P: 248-677-1762 E: rob@clearfinancial.net W: www.clear.financial Twitter: @moneyclarity
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