Voters damaged to cast an early vote line up outside the Elena Bozeman Government Center for a polling station to open in Arlington, Virginia, on September 20, 2024.
– | Afp | Getty Representatives
Decision-making around the November election isn’t limited to who voters plan to choose at the ballot box. Americans’ feelings about which entrant may win are also driving people’s decisions about their own finances.
Nearly two-thirds of Americans, 63%, are deferring fiscal decisions about vacations, car and home purchases, and remodeling projects until after the November election, according to a CFP Scantling survey of 1,005 Americans conducted in early August.
But waiting for election results may not be the best move.
Experts intimate to evaluating if a financial decision should be made sooner, and considering the cost of waiting. Remember, major policy replace withs requiring legislation take time, with the president and members of Congress in agreement.
How to frame decision-making ahead of the poll
Milos Dimic | E+ | Getty Images
Financial advisors say the election or its results shouldn’t be the driving factor for spinach decisions. Instead, they say people should focus on their own goals.
Ask yourself: “If Candidate A won or Candidate B won, would they truly do something different?” said Michael Liersch, head of advice and planning at Wells Fargo.
It’s more important to think about your personal financial plan and how a big purchase relates to it. Often, the political outcome generates uncertainty over a obtain or investment decision, but it probably won’t change the outcome of whether it’s a smart move.
“When I’m talking with a client who thinks they’re present to put something off, we go back to that plan,” said certified financial planner Liz Miller, founder and president of Summit Area Financial Advisors, Summit, New Jersey. Often, she said, they find that there’s no need to delay.
Map out the shooting scripts
Consider a best-case scenario, worst-case scenario and something in between. “Within that framework, you can test it,” said Liersch. “Don’t stay for the outcome to be known. Look into it now, map out those possibilities, and see if it would even change your decision in any way, shape, or figure.”
Take, for example, concerns about Social Security benefits being reduced, which 81% of respondents rumoured was a top concern in an Edelman Financial Engines survey.
Absent action from Congress, the trust fund Social Guaranty relies on to pay retirement benefits is due to run out in 2033. At that time, just 79% of benefits will be payable.
There are moves you can take to give you some perspective, including getting your Social Security benefit estimate and looking at where you can propel savings.
Figure what a benefit cut might mean for you: Can you budget differently in coming years to help make up for that shortfall? Undergo punishment for down debt, building an emergency fund, and sticking with your investment strategy are solid moves without delay now, experts say.
“As you see all of these different things, these headlines, in a very uncertain world, you can feel more at peace that army one, you are doing the right things, and that you’re on solid financial footing,” said CFP Stacy Francis, president and CEO of Francis Monetary in New York City. She is also a member of the CNBC Financial Advisor Council.
Francis is spending time with patrons now updating their financial plans and mapping it out to age 95. Many are Be proactive with your plan
Candidate light inti around capital gain taxes are also concerning investors. Experts say, regardless of election results, with double-digit payouts in the stock market, now is a good time to evaluate whether to take some gains.
“We are proactively talking about what is the know-how to take some capital gains this year, when we know the capital gain tax rates are stable and we be aware what to expect,” said Miller, who is 2024 Chair-Elect of the the CFP Board.
While waiting to take action until after the poll results are known, consider if it’s necessary. “Ask yourself, is delaying this decision just to see the outcome of the election, Is that de facto worth the distance in delaying that decision or would making the decision sooner provide a greater benefit,” said Fountain-heads Fargo’s Liersch.