What 401(k) and IRA Moves to Make Before a Nail-Biter Presidential Election

Key Considerations for Your 401(k) and IRA Before the Election

As the intensity of political campaigns ratchets up, the effects on the financial markets may also escalate. Understanding how potential election outcomes can impact your retirement accounts is essential.

1. Evaluate Your Investment Allocation

• Consider adjusting your portfolio to decrease exposure to volatile sectors.
• Focus on stable, defensive investments that typically weather storms better.
• Examine international investments that may perform well regardless of U.S. election results.

2. Increase Cash Reserves

Having liquidity can provide flexibility in uncertain times. More cash on hand can allow for quick adjustments as market conditions shift.

3. Keep an Eye on Candidates’ Economic Policies

1. Research the potential implications of policies proposed by candidates like Trump and Harris on your investments.
2. Evaluate how their economic views might influence market reactions.
3. Stay informed about future regulatory changes that may arise post-election.

4. Consult with a Financial Advisor

Before making any significant adjustments to your 401(k) or IRA, it’s wise to seek professional advice tailored to your financial situation.