With the 2024 presidential election around the corner, many Americans are wondering how the results might impact their finances. A recent survey reveals that half of Americans believe the election outcome will directly affect their personal financial situation, with nearly a quarter saying it could determine whether they “get rich or not.” From taxes and Social Security to stock market fluctuations, the election has sparked a range of economic concerns.

To provide insight, local financial expert Barry Bigelow of Great Waters Financial joined Good Morning Northland to discuss the potential economic implications of the upcoming election.

Do Elections Really Impact Finances?

“Not as much as people might hope,” said Bigelow, highlighting that while political policies can influence interest rates and economic strategies, the American worker and entrepreneur have always thrived despite political shifts. “The endorsement is this: have faith in the American worker and the American entrepreneur,” he added.

Historically, stock markets tend to perform well in election years and the year following, regardless of the controlling party, Bigelow noted.

Investment Strategies for Election Years

Bigelow recommended approaching investment in election years with a well-defined plan, similar to non-election years. “When the stock market goes up, have a plan in place, and when it goes down, have a plan in place,” he advised.

For younger workers, that plan might involve consistently investing, even during market downturns. For those nearing retirement, Bigelow emphasized the importance of maintaining a safe, liquid reserve for spending during market declines and capitalizing on high returns when markets are favorable.

Changes in Tax Rates on the Horizon

One major financial concern for many Americans is taxes. With the Tax Cuts and Jobs Act set to expire at the end of next year, Bigelow pointed out that current tax rates are at historic lows. This shift presents an opportunity for those nearing retirement to consider moving funds from a pre-tax 401(k) to a post-tax Roth IRA, paying taxes at the current lower rate to potentially save on higher future taxes.

A Final Note: Get Out and Vote

Bigelow closed the segment with a reminder that economic stability and opportunities are not solely determined by elections. “We’ve won the lottery in America every day that we wake up,” he said, encouraging viewers to exercise their right to vote and embrace unity, regardless of political affiliations.

As the election approaches, financial experts like Bigelow urge Americans to focus on long-term financial strategies and stay informed.