A Biden Victory – What Does That Mean for Me?

All 50 states and the District of Columbia have now certified their presidential election results, and President-Elect Joe Biden will drive our next four years. What does that mean for your investments as you move closer to retirement? Unfortunately, an election taking place at the height of an unprecedented global pandemic doesn’t exactly lend itself to historical comparisons, but we can make a few assumptions.

A political party doesn’t historically have a considerable impact on market performance. The truth is, presidents don’t operate in a vacuum, and a few major corporations have the most influence  on the markets.

More impactful is that we’re headed into a Democratic-controlled government. As an investor, you’re most likely concerned with the impact this leadership will have on your taxes. While, a divided government would likely have resulted in more moderate tax law changes than a fully Democratic leadership, the Biden proposals still need the nod of a substantial number of Republicans in order to make any major changes.

One of the great lessons from a year that has been a whirlwind of historic hurdles and uncharted territory is that only time will tell. Time will tell us if this new administration will positively or negatively impact the markets; time will tell if we’re at the end or the height of the pandemic. But if time has told us one thing: your best bet is to stay true to your long-term strategy.

If you’re concerned about how any of these shifts may affect you, now is a great time to contact us at (540) 720-5656 and determine how you can prepare to face these changes with certain tax-advantaged vehicles.