With every presidential election, the United States undergoes a significant event that has ripple effects across the globe. While politics may feel distant to many, the outcomes of these elections can profoundly impact the everyday economy of Americans, influencing job security, market stability, taxes, healthcare costs, and consumer prices. As the expert financial advisor team with Keystone CPAS, has witnessed firsthand how political shifts can translate into tangible economic changes for individuals and families. In this blog post, we will explore the immediate impact of presidential elections on Americans’ finances and provide tips for financially preparing yourself for potential changes.

The Immediate Impact

Market Volatility

Market volatility is one of the most immediate and visible effects of U.S. elections. The uncertainties surrounding political outcomes can lead to significant fluctuations in financial markets, making investors and retirees concerned about their portfolios. With the help of a financial advisor, we can provide reassurance and a long-term perspective, emphasizing the importance of staying the course despite short-term market turbulence.

Policy Changes

Taxes and Spending

Elections determine not only who occupies the White House but also the legislative agenda, which can lead to significant policy changes with financial implications. For example, the Tax Cuts and Jobs Act of 2017 lowered tax rates for many Americans, benefiting small-business owners. However, it’s essential to consider the long-term impacts of such changes and how they may affect the national debt, public services, and potential future tax hikes.

Employment And Wages

Different administrations prioritize different sectors, influencing job creation and wage growth. For example, policies focusing on renewable energy or traditional energy sources can impact job prospects in these sectors.

Healthcare Costs

Changes in healthcare legislation can have widespread effects on household budgets. Policies such as the Affordable Care Act had varying impacts on individuals, as experienced by my client Lisa, who benefited from affordable health insurance but also faced uncertainties.

Trade Policies and Consumer Prices

Trade policies enacted by a president can directly influence consumer prices, as seen during the trade war with China, which led to higher tariffs on products and impacted household budgets.

Preparing For Election Outcomes

Given the potential economic impact of elections, it’s vital to prepare for potential changes. At Keystone CPA’s, we recommend the following strategies:

1. Stay informed: Understand the candidates’ policies and how they might affect your finances. Knowledge is power, so being informed allows for better planning.
   
   
2. Diversify investments: A well-diversified portfolio can better withstand economic shifts and mitigate risks associated with market volatility and policy changes.
   
   
3. Build an emergency fund: Having a financial cushion is essential, especially during uncertain times. Aim for at least six months’ expenses in a readily accessible account.
   
   
4. Review and adjust budgets: Regularly review your budget to account for changes in taxes, healthcare costs, and consumer prices.
   
   
5. Seek professional advice: Your financial advisor can provide personalized guidance tailored to your unique situation and goals, helping you navigate complex economic landscapes and make informed decisions.

Conclusion

U.S. elections can profoundly impact the everyday economy, influencing everything from market stability and employment to healthcare costs and consumer prices. By staying informed and proactive, you can better navigate these changes and secure your financial future, regardless of the political landscape. Our team of financial advisors and wealth advisory experts at Keystone CPA’S are committed to helping individuals and families prepare for and navigate potential financial impacts of presidential elections, ensuring their long-term financial well-being.