Trump or Biden? Does It Matter With a Well Thought Out Financial Plan?

With the upcoming presidential election just over three months away, the rhetoric is sure to ramp up. Whatever side of the aisle you reside on, you are bound to have concerns about the incoming president and the effect on the economy. However, making financial decisions based on your political views or election expectations can be detrimental to your long-term investment success.

As the chart below indicates, trying to make investment decisions based upon the outcome of presidential elections is unlikely to result in reliable excess returns for investors. At best, any positive outcome based on such a strategy will likely be the result of random luck. At worst, it can lead to costly mistakes. Accordingly, there is a strong case for investors to rely on patience and portfolio structure, rather than trying to outguess the market to pursue investment returns.

 

At Soundmark we continue to stress the importance of a well-structured and diversified portfolio in conjunction with a long-term financial plan. We firmly believe that is the best course during these challenging and turbulent times.

 

 

This report is intended to be used for educational purposes only and does not constitute a solicitation to purchase any security or advisory services. Past performance is no guarantee of future results. An investment in any security involves significant risks and any investment may lose value. Refer to all risk disclosures related to each security product carefully before investing. Soundmark Wealth Management, LLC, its advisors and its affiliates do not provide tax or accounting services. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax or accounting advice. Please consult with your tax advisor prior to engaging in any transaction.

Helping Governments and Businesses Go Back to Work Safely

Soundmark advisor, Liz McQueen, CRPC® and her husband, John, are volunteering their talents to Restart Partners, a Seattle based nonprofit organization that works to develop partnerships with states, cities, and universities throughout the world with the goal of enabling people to resume life in a post COVID-19 environment. Restart Partners newest initiative, “WearAMaskWA,” is a … Continued

What Happens to Stocks After a Recession?

  As an investor, it would be understandable to abandon ship and sell off equities because of perceptions of a recession and its impact. However, history tells us another story. Dimensional Fund Advisor’s Q2 market report shares data covering the last 15 recessions in the U.S in the past century. Across the two years that … Continued

Preparing Heirs for Their Inheritance

Inheriting money comes with plenty of benefits. From being less worried about paying for life’s necessities to enjoying the luxuries affluence can bring, inheritors often find that many of life’s key stumbling blocks are no longer in their paths. That said, an inheritance doesn’t automatically mean a worry-free life of ease. Inheriting wealth can actually … Continued

How to Prepare for Uncertainty

Our common-sense investment approach allows us to focus on straight-forward financial planning. During times of market volatility, like what we’re experiencing now, a well-thought-out plan is critical. In his latest column for 425 Business, Soundmark Principal Bill Schultheis reminds investors of the importance of creating and updating financial plans that prepare us for the uncertainty … Continued

Soundmark Advisors Become CERTIFIED FINANCIAL PLANNER™ Professionals

We are thrilled to add two more CERTIFIED FINANCIAL PLANNER™ professionals to our firm. Soundmark advisors John D’Amelio and Taylor Vance have completed the multi-year program including 4,000+ hours of financial planning experience. We are very proud of the hard work and determination both advisors displayed. Congratulations!            

Now Is an Excellent Time to Review Life and Disability Coverage

Key Takeaways COVID 19-extended grace periods on premium payments may be available During these challenging times, many insurance carriers are being very flexible with their current and prospective policyholders. Now is a great time to consider obtaining, or supplementing, life and disability coverage. Much of the application can be done virtually and may not require … Continued

Volatility in First Quarter

It has been an interesting first quarter, to say the least. When reviewing Dimensional Fund Advisor’s market report, the stock market is responding as quickly as the news travels. Dimensional Fund Advisors reminds us that markets are designed to handle uncertainty, processing information in real-time as it becomes available. This happens when markets decline sharply, … Continued

Rebalancing in Good Times and Bad

Key Takeaways Losses in the stock market are temporary. The combined total of the thousands of companies within our clients’ portfolios will continue to innovate, generate profits, and provide value over the long-term. In rising markets, we may sell some stocks and buy bonds. In declining markets, we may sell bonds and buy stocks. Research … Continued

Has COVID-19 Derailed Your Exit Plan?

  For most business owners, I’m guessing your strategy is off track and any exit planning is on the back burner given our minds are on the ramifications of the COVID-19 virus. What is probably on the minds of many is, “How and when can I get out as I don’t want to rebuild it … Continued