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

Homeschool Week and Scout Week {SEA LIFE Arizona & LEGOLAND Discovery}

Attention all Homeschool Families and Arizona Scouts! SEA LIFE Arizona has exciting events coming this August. Two great locations and two gre…

Published: July 26, 2016 - 4:06 pm @ http://scottsdale.citymomsblog.com/2016/07/26/home…

Racist Sheriff Joe Arpaio’s legal case is costing Arizona taxpayers millions of dollars

Residents of Arizona’s Maricopa County may once again foot the bill for a court case against Joe Arpaio, the county’s notorious sheriff whose …

Published: July 26, 2016 - 4:04 pm @ http://www.rawstory.com/2016/07/racist-sheriff-joe…

VIDEO: 8 famous movie stars you didn't know were from Arizona

PHOENIX - They say everything's hotter in Arizona, and that includes the talent! Before they were big-name performers, many of the industry's …

Published: July 26, 2016 - 3:44 pm @ http://www.abc15.com/news/state/video-8-famous-mov…

Suns Issue Statement on Amar’e Stoudemire's Retirement

The Phoenix Suns issued the following statement on Tuesday regarding the retirement of former Suns forward Amar’e Stoudemire:

Published: July 26, 2016 - 3:38 pm @ http://www.nba.com/suns/press-release/suns-issue-s…

Former Phoenix Suns star forward Amar'e Stoudemire announces retirement

Former Phoenix Suns NBA Draft pick and Amar'e Stoudemire announced his retirement Tuesday, making the decision to do so as a member of the New…

Published: July 26, 2016 - 3:13 pm @ http://www.abc15.com/sports/sports-blogs-local/for…

ISIS Jihadists, Mass Shooters: What’s Happening to the World?

Every day, there’s a fresh atrocity, from jihadists attacking a church in France to gun rampages in the U.S.—but there are patterns to the mad…

Published: July 26, 2016 - 3:14 pm @ http://www.thedailybeast.com/articles/2016/07/26/i…

AZ doctor indicted on felony fraud, drug charges, attorney general says

MESA, AZ. - An Arizona doctor was indicted Tuesday on dozens of felony charges related prescriptions he gave out to people who went to his med…

Published: July 26, 2016 - 3:04 pm @ http://www.abc15.com/news/region-southeast-valley/…

PD: Ahwatukee woman takes $130,000 from business, focing it to close

PHOENIX - An Ahwatukee woman is allegedly to blame for the closing of a Valley company after she embezzled $130,000 from the business. Police …

Published: July 26, 2016 - 2:44 pm @ http://www.abc15.com/news/crime/pd-ahwatukee-woman…

Group steps up to help Arizona foster children get the education they deserve

Tens of thousands of Arizona's children are in foster care, and one of the biggest issues they face is getting a good education. Maria Rodrigu…

Published: July 26, 2016 - 2:35 pm @ http://www.abc15.com/news/region-phoenix-metro/cen…

These Are the Best Cities to Become a Real Estate Mogul on a Budget

These days everyone wants to be the next big-time real estate mogul. And why not? It entails a lifetime of partying with the Hollywood elite, …

Published: July 26, 2016 - 2:14 pm @ http://www.realtor.com/news/trends/invest-in-real-…

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…