Our topic on this episode of the Ready for Retirement podcast is the myth that investments are negatively impacted during election years. Many people shift their portfolios to less risky investments or pull out their funds entirely during election years because of this belief, but is it true? 

While there may be some residual effects of elections, particularly presidential elections, on the stock market and other investments, the data shows that these effects are not substantial enough for investors to need to take drastic steps. 

Every year has volatility and variance, but the long-term returns are optimized by staying the course regardless of the political party that is in power. In fact, the stock market seems to do best when there is some level of political gridlock in Washington. 

 If you want to ensure that your investments are going to provide you with adequate returns for your retirement goals, your best bet is to diversify your portfolio and include international investments as well as the typical US-based stocks, bonds, real estate, and business investments. 

Have an overall investment strategy, perhaps with the assistance of a financial planner, and don’t make your decisions out of the fear of what could happen if a certain person or party gets elected.

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