This week I’m talking about investing in an election year. A lot of people are nervous about investing during an election year, but there are actually several reasons why election years are great for the stock market and great for your retirement portfolio! 

Yesterday, I focused on the likelihood of higher taxes in 2021 if Biden is elected president. This has implications for tax planning now, but also for gifting and estate planning and wealth transfer if you are wealthy. So it’s important to pay attention to these changing winds and take action in 2020 to help insulate yourself from higher taxes in the future, especially if you are wealthy. 

As seen in the civil unrest, wealthy individuals and business owners are increasingly vilified, with law enforcement having little incentive or little power to protect property rights. 

Aside from higher taxes, another likely change, if someone new is in the White House next year is increased regulation. This will likely impact certain industries. Healthcare and energy come to mind. With continued pressure to fix healthcare in America though government intervention and the popularity on the left of initiatives like the green new deal, certain industries are more likely to be impacted in a negative way in a democrat-controlled Washington. 

If you have a heavy concentration in a particular industry or you have a concentration in a particular stock, you’ll need to understand how changes in policy, taxes, and regulation may help or harm that particular company or industry, so you can take steps now to minimize any potential future losses. 

The bottom line here is that while presidential years are generally no different than any other year for the stock market, it’s important to listen to what each party is campaigning on to give you a sense of how the policy, tax, and regulatory environment may change and impact you no matter who controls Congress and who is in the White House for the next 4 years. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip.

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