What Election Day Means for Your Financial Future

[Michelle Matson]

What does the result of the 2012 presidential election have to do with your financial security? The candidates and special interest groups are all trying to tell you how the election will affect your future both financially and socially for years to come.

Chances are you know who you are going to vote for and you have multiple reasons why it’s the right choice for you. So, my job here is not to tell you what to do based on the outcome of this election; it is to tell you that this election is just one of many that will happen between now and your retirement and your investment strategy doesn’t need to be affected by its outcome.

If you are planning for retirement or even in retirement, when it comes to your investments, you need to stay focused on your particular objectives and what it takes to reach them. Will the economic policies of the government affect you? Yes. Does it mean you should alter your investment strategy based on the outcome of this one election? No.

No matter which administration is in office, the government is not going to make you any guarantees about giving you the life you want in retirement. If they do, you should be very wary of believing them. The only entity you can count on to deliver the financial future that you want is yourself. Hoping that some magical miracle is going to be there to take care of you is not only naive, but irresponsible.

Only you know how you want to live your life in retirement. Only you can take the steps that are appropriate to make that happen. Is everyone going to retire a millionaire just because they want to and it would be really nice? No. Those who retire with millions have to do the work to get there. They have to take the risks and have the discipline to both save and invest their money wisely.

You need an investment strategy designed to withstand the political cycles of our country, one that will help you achieve your long-term goals. The political barometer does not change the three simple rules of investing, that I have mentioned here before:

1) Own equities

2) Diversify globally

3) Rebalance regularly

The most important first step any investor can take to getting on track to the financial future they want is to find a coach they trust who will educate and support them in reaching their goals. Once you have a solid strategy in place, it’s all about working the plan and maintaining discipline over the long-haul.

While every American has a stake in the outcome of this election, and we all have our opinion on how it will affect our country, any attempt to change investment strategy based on relatively short-term or temporary circumstances is likely to do more harm than good for your financial future.