Election Year Investing? Hint: Don’t Panic

It’s that time again—election season. And if you’re like many people, you’re probably wondering what the outcome might mean for your investments. Maybe you’re even thinking about shifting or pulling your money depending on who wins in November. Sound familiar?

You’re definitely not alone. According to CNBC, 57% of investors are feeling the election jitters, and about 40% are actually planning to move their investments based on the election results.

But here’s the thing—most financial experts will tell you: don’t make investment decisions based on who wins a presidential election.

Don’t Panic: Stick to Your Game Plan

Look, we get it. Elections stir up a lot of emotions, and it’s easy to feel like the stakes are incredibly high—especially when you think about how a particular candidate might impact the economy. But before you start reworking your portfolio or pulling your investments, take a breath.

The truth is—as BlackRock puts it—markets don’t vote. They’re non-partisan, and historically, they’ve continued to rise no matter who’s in the White House.

In fact, if you jump to the sidelines and sit out because of political concerns, you could miss out on some serious growth. Over the last decade, investors who stayed the course have earned nearly twice as much as those who only invested when their preferred party was in office. Think about that: bipartisan investors earned 31x more in the long run compared to party-faithful ones.

That’s some serious cash!

Stay the Course: Diversification Is Key

Now, more than ever, it’s important to keep a diversified portfolio—especially during an election year as heated as this one. Instead of betting on certain companies or industries tied to political parties, focus on a broad mix of high-quality investments that have shown resilience no matter who’s in power.

A well-diversified portfolio is like a financial safety net. It spreads your risk, which is crucial when emotions (and the markets) are running high.

Boost Your Savings Too

Still feeling uneasy? That’s okay! Another smart move is to build up your cash reserves. High-yield savings accounts or fixed indexed annuities are great low-risk options that are benefiting from the current interest rate environment. Or, if you want something that gives you guaranteed income, you could look into an income annuity.

Final Thoughts: Focus on Long-Term Goals

It’s no secret that presidential elections can create a lot of noise and stress. But if history has taught us anything, it’s that your financial plan shouldn’t be thrown off course by political events. Trust in the strategy you and your financial advisor have put together. It’s built to withstand times like this.

Want more tips on navigating the election year? Check out our post on Tips for Investing in an Election Year.

So if you’re preparing for retirement in Cedar Rapids, consider working with a trusted financial professional at Iowa Retirement Benefits & Solutions who can help you navigate these challenges and keep your investment strategy on track

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Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.