Navigating Financial Concerns in an Election Year
As we approach another presidential election this fall, it’s crucial to address the financial uncertainties that often accompany such events. At Johnson Brunetti, we understand that the political landscape can create concerns for many, especially those nearing or in retirement. Joel Johnson, CFP® joins Better Money on WFSB with Kara Sundlun to share insights and strategies to help you navigate these challenges effectively.
The State of Social Security
One of the most pressing concerns during election years is the future of Social Security. Rest assured, no politician wants to risk cutting Social Security benefits. It’s a significant voting issue, especially for those over 65, who tend to vote in higher numbers. While reform measures may be necessary down the line, for now, those promises made regarding Social Security are likely to remain intact. If you’re approaching retirement age, you can feel more confident about your benefits.
Market Stability Amid Uncertainty
Financial markets thrive on predictability and stability. Interestingly, a divided government—where one party controls Congress and another holds the presidency—can lead to less drastic changes in policy. This political stalemate typically helps maintain a stable market environment, which can be beneficial for investors. While uncertainty can create volatility, a divided government often results in a balanced approach to legislation that can promote market stability.
Potential Changes in Tax Policies
Tax policy is another area to watch. With the Trump tax cuts set to sunset in 2026, we can expect some shifts, regardless of the election outcome. It’s essential to consider your tax strategy now. Taking advantage of the current low tax rates can position you favorably, especially when planning for retirement.
Advising for the Future
At Johnson Brunetti, we encourage our clients to assess their retirement savings and consider how current tax rates will impact their long-term financial health. Sometimes, it might be wise to pay more in taxes now to lessen the burden in the future. Our goal is to help you reduce your lifetime income taxes, ensuring you have the resources you need throughout your retirement.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
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