Don't play politics with your investment decisions - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

Don't play politics with your investment decisions

Print
Font Size:
Default font size
Larger font size

Related Stories

Posted: Wednesday, January 25, 2012 4:00 pm

While the election season heats up, you will hear more and more promises, claims and counter-claims from the candidates. As a citizen, you may or may not enjoy this "political theater," but as an investor, you might be concerned over all the talk about taxes, Social Security, Medicare and other financial topics. Will you need to adjust your savings and investment strategies? If so, how?

Before you think about adjusting your investment strategy in anticipation of any actions coming from Washington, keep a couple of facts in mind. First, few campaign promises become reality. And second, due to our system of government, radical shifts in direction are difficult to implement - which is why so few of them occur.

Still, we may see some smaller-scale - yet not insignificant - changes in the near future. In light of this possibility, what investment decisions should you make? Here are a few suggestions:

• Consider owning investments that are taxed in different ways. No one can predict what will happen with income tax rates or the tax rates that are applied to capital gains and dividends. Consequently, it may be a good idea to seek "tax diversification" by owning investments that are taxed in different ways. For example, when you sell appreciated stocks, you pay capital gains taxes, whereas interest payments from bonds will be taxed at your individual tax rate. And it's always a good idea to take advantage of tax-advantaged vehicles, such as an IRA and your 401(k) or other employer-sponsored retirement plan.

• Stick with quality. It's a good idea, when owning stocks, to invest in quality companies with diversified businesses. These companies are usually less dependent on a particular government program, and they typically have a global reach, so they may be better able to handle any changes implemented in Washington.

• Stay focused on your long-term goals. Politicians come and go, and our political parties seem to take turns holding the reins of power. Yet your long-term goals - such as college for your children, a comfortable retirement and the ability to leave a legacy to your family - don't really change. By realizing that you are largely responsible for achieving your goals, and by following an investment strategy that's suitable for your individual risk tolerance and time horizon, you can make gradual, but still meaningful, progress toward those goals - no matter what's happening in Washington.

• Review your strategy regularly. With the possible approach of changes in tax policies and in government programs that can affect your retirement security, you'll want to review your investment strategy regularly to make sure it's still on track toward helping you meet your objectives. As part of this review, you may want to seek out more "tax-smart" investment opportunities, while always looking for ways to supply the asset growth you'll need to enjoy the retirement lifestyle you've envisioned.

Aside from voting for the candidates who best represent your interests, you may not have much influence over what goes on in Washington. But by "electing" the right moves to help meet your goals, you can have plenty of control over your investment strategy.

This article was written by Edward Jones for Cyndi Newburn, an Edward Jones financial advisor in Ahwatukee Foothills. Reach her at (480) 460-1149.

More about

More about

More about

  • Discuss

Bundy Militia Bro Charged With Trying to Detonate a Bomb at a Government Facility in Arizona

Yet another member of the Bundy militia is in trouble with the law. Yet another member of the Bundy militia is in trouble with the law again. …

Published: June 26, 2016 - 9:24 am @ http://www.alternet.org/news-amp-politics/bundy-mi…

5 Jarringly Idiotic Right-Wing Moments This Week: Not Just About the Brexit

Trump spews nonsense while O'Reilly makes perfect sense as the embodiment of white supremacy. Immediately after his conspiracy theory- and lie…

Published: June 26, 2016 - 9:23 am @ http://www.alternet.org/right-wing/5-jarringly-idi…

The Brexit Vote made this 'Yes Minister' video go viral

Driving in Canada Canada - a home away from home Canada, it's time to change! Living with a disability in Indo-Canadian society The empire str…

Published: June 26, 2016 - 8:54 am @ http://timesofindia.indiatimes.com/world/uk/The-Br…

How Trump accidentally exposed the longtime NRA fantasy of 'a good guy with a gun'

Occasionally when Donald Trump misspeaks, he accidentally points the way to a larger truth; a kind of Kinsley gaffe born less of momentary con…

Published: June 26, 2016 - 8:53 am @ http://www.businessinsider.com/trumps-gun-gaffe-2016-6

Live. Work. Play: Dave’s Diabetes Story

Working for the American Diabetes Association® means making a difference for millions of people and working toward a future free of diabetes a…

Published: June 26, 2016 - 8:36 am @ http://diabetesstopshere.org/2016/06/24/daves-diab…

Shots fired in Phoenix neighborhood during drive-by

Shots were fired in a downtown Phoenix neighborhood early Sunday morning near 15th Avenue and Interstate 17.  Police say this was a drive-by. …

Published: June 26, 2016 - 8:36 am @ http://www.abc15.com/news/region-phoenix-metro/cen…

Hank Paulson Endorses Hillary for Globalist Platform

Paulson also posits that Clinton would be more likely to cut Americans’ medicare and social security, which Paulson cites as a top priority fo…

Published: June 26, 2016 - 8:22 am @ http://www.breitbart.com/2016-presidential-race/20…

Arizona Says It Is Unable To Carry Out Executions Due To Lack Of Drugs

By Ian Simpson June 24 (Reuters) - Arizona has run out of execution drugs, including a sedative implicated in botched lethal injections, accor…

Published: June 26, 2016 - 8:06 am @ http://www.huffingtonpost.com/entry/arizona-execut…

The lonely lives of Latinos for Trump

MIAMI – Lifelong friends unfriend them on Facebook. Siblings and parents refuse to talk politics. Their kids are home from college stoked abou…

Published: June 26, 2016 - 8:02 am @ http://www.politico.com/story/2016/06/donald-trump…

Syria's civil war: 'Dozens killed' in Deir Az Zor raids

Fighting began in 2011 after government crackdown on protesters Over 250,000 Syrians killed and even larger number wounded so far Almost 11 mi…

Published: June 26, 2016 - 7:35 am @ http://www.aljazeera.com/news/2016/06/syria-civil-…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…