Elections Come and Go—Sound Financial Management Remains

I have the challenge of writing this one week from election day. Some of our clients have expressed concern about the impact of the election on the stock market. The attached chart confirms our perspective that we have had good and bad economies and stock markets under both political parties and that patient, long-term investors are rewarded. Regardless of the election, we will continue to manage your investments soundly. [Tweet "We can manage what’s within our control, or not. Which way do you vote?"]

The words “Financial Management” in our company name were not chosen by default. In personal financial management, we emphasize managing what is within our control.

We cannot manage the world economy or U.S. politics or legislative or judicial decisions beyond our control.

We can manage individual decisions and actions to plan for the future and be good stewards of our financial resources, whatever they may be.

We can manage to get a good education to enable productive employment.

We can manage to live within our means or beyond our means.

We can manage to be adequately insured for auto and property risk, liability, disability, health, life and long-term-care risks or choose to accept those risks without insurance.

We can manage our income and investments to minimize income taxes.

We can manage a strategically designed, broadly diversified, low-cost, tax-efficient investment portfolio, or we can assume unnecessary risks and taxes.

We can implement an estate plan to prepare for the potential inability to act or make decisions during our lifetime and to distribute our assets at our death to the people we want and when and how we want, or we can let the laws and courts decide.

We can identify short-term and long-term financial goals that are consistent with our lifestyle and values and priorities, or we can drift along an uncharted course.

We can manage what’s within our control, or not. Which way do you vote?

Remember, your financial peace of mind is always our primary goal.

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Source: Dimensional Fund Advisors.

As always, please contact us with any questions, news or comments.