We want to address a concern that is increasingly on our clients' minds: the impact of political fears on investment decisions. In today's highly charged political climate, it's natural to feel anxious about how political events might affect your financial future. However, it's crucial to remember that making investment decisions based on political fears is not a wise strategy. Historically, markets have proven to be resilient and capable of weathering political changes and uncertainties.
Here are a few key reasons why we advise against letting political fears drive your investment decisions:
Market Resilience: Over the long term, markets tend to recover from political events, even those that initially cause significant volatility. Diversified investment portfolios are designed to withstand these fluctuations and provide steady growth over time.
Decisions: Allowing political fears to influence your investment strategy can lead to emotional decision-making. Decisions based on fear or anxiety often result in impulsive actions that may not align with your long-term financial goals.
Focus on Fundamentals: Successful investing relies on careful analysis of market fundamentals, economic indicators, and your personal financial objectives. Political events, while impactful in the short term, do not necessarily alter the underlying value and growth potential of well-chosen investments.
Historical Perspective: History has shown that political landscapes are ever-changing. Governments and policies shift, but the principles of sound investing remain constant. Staying the course with a well-thought-out investment plan is typically more beneficial than reacting to the latest political headlines.
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Our commitment to you is to provide sound, evidence-based financial advice that helps you achieve your long-term goals. We are here to guide you through times of uncertainty and to remind you of the importance of maintaining a disciplined investment approach. For additional perspective on this subject, I have attached a client resource kit about elections and investment results and a mountain chart demonstrating the growth of the stock market despite many formidable challenges over the last 100 years. As an aside, this literature is from First Trust and for illustrative purposes only and not an investment recommendation.
If you have any concerns or would like to discuss your investment strategy or update your financial plan considering current events, please do not hesitate to reach out. We are here to support you every step of the way.
Thank you for your trust and confidence in our services.
About David
David Blount is President and CEO of Investment & Insurance Planning Services, LLC (IIPS), an independent and fee-based firm that helps clients establish their financial goals and creates custom financial plans to help them pursue those goals. They specialize in working with pre-retirees, individuals in a career transition, L3Harris engineers, and JetBlue pilots. David’s motivation comes from seeing his clients pursue their goals. He says, “It’s very rewarding to help people make successful transitions from one career to another, start a small business, or retire.”
David received his bachelor’s degree from Troy University, and before becoming a financial planner in 2000, he had a nine-year career in the United States Coast Guard. He obtained the CERTIFIED FINANCIAL PLANNER™ designation in 2007. He has served as the guest financial expert on Orange Television’s Adult Lifestyle Magazine Show and frequently provides financial and retirement planning workshops. Outside of work, he enjoys spending time with his wife, Michelle, their two kids, Ryan and Alana, their dog, Jack, and visiting with friends. An avid outdoorsman, he enjoys fishing, hiking, and exercising, and as a committed person of faith, he enjoys attending church and is passionate about helping people in his community. To learn more about David, connect with him on LinkedIn.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
This article was created with the assistance of an AI language model developed by OpenAI to provide insightful and up-to-date information on retirement planning. For personalized financial advice, please consult a qualified financial advisor.
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