Election Year Impacting Finances

Election Year Impacting Finances

Welcome back-- election day is sapienza...thanks fo joining us nick!1.

How can someone prepare financially--- for an election outcome they ca't means that it's it would ba former speculation for me to say otherwise i think the answer really the bottom line answer here is just to be diversified so explaining what that means is that you can invest outside of u.

S.

You can invest outside of.

The tech sector which is.

Difficult to do i know because the returns have been great what is this thing that you can so it not sound the most the smartest most complex answer but that's really the simplest and best what's the right one is to be diversified across stocks and bonds sectors and asset classes and- and it's a i guess quote that argues the case for.

It's really much better to be vaguely right than precisely wrong so you're kind of playing that game if you're if you're the success of your portfolio is predicated on a collection but- i came out here a couple months ago and i talk about swear the bullish case as to why remain invested or just really not do anything.

To your portfolio not play short term gains with long term money but when you double that for just a second.

The market will go down no matter who's president okay.

We just don't know when or by how much what themarket does come off it what the data shows us and you can do a quick google search you can see everything that i'm talking about here there's an enormous amount of studies and blog posts and articles and podcasts and videos about exactly this- that has data back in historical context for it.

But the market does sell it 26% the time is in a downtrend but that means 4% times internet trend i think the other side of this equation is people are validly concern about a higher tax rate coming into the fold and if i might have the stock market's a reasonable concern.

Let me take you back to the nineteen eighties when tax rates were above 50% we are the best markets in history let me take you back to post world war two were the top marginal tax bracket was 91% okay.

Over the next ten years the market went up a hundred and 13% of speaking of the s.

And p.

Specifically so the last thing i would say there is to add context to see quite.

Yet remain diversified it check out are you to channel.

The kats.

Show which really out.

Out.

This topic in greater detail.

Doesn't matter they're- not to sound lazy fair about this it is it is a good question is an important question to get technical spending as much time in the market matters more to your long term success than timing the market.

I can show you study after study if you'd invested at the top of the market the bottom of the market we're just invested for as long as possible the one that always wins is the person i was invested for as long as possible so.

Psychologically though it can feel much better sort of spread out that risk and it kind of bled into the market maybe one week or one month at a time and i would say that's the most important thing is implementing a plan that you can actually stick with so it feels better.

To invest before and after weight then they do it but largely the biggest impact that's going to have on your finances on your long