How can I protect my portfolio from a post-election drop in stocks?

How can I protect my portfolio from a post-election drop in stocks?

Concerned about how this election will come out? You are not alone. Unfortunately, the prevalence of negative campaigning can add to our angst and uncertainty. Fortunately, market history is clear – trying to maneuver a portfolio based on how an election proceeds and how we feel about its outcome is speculative and not something a prudent investor needs to do.

To help you reconnect with the prudent investor inside you and push away the speculator that is trying to divert your attention to the short term, we share below some past posts related to this topic. This time really is different but every time has been different too. What has never changed is that your odds of having a successful investment experience over your lifetime are better as an investor than a speculator.

Our clients are appropriately positioned for their long-term goals and their investments are managed by a MFT team that knows how to handle news, noise, and both good and bad market behavior.

Our clients are appropriately positioned for their long-term goals and their investments are managed by a MFT team that knows how to handle news, noise, and both good and bad market behavior. 

Posts about elections and markets

Will the election cause a market crash (2019) Seeing that emotions would be especially high in 2020, this was our attempt to nip election angst in the bud. It includes a brief history of negative campaigning and market behavior around elections.

Should I prepare my portfolio for a post-election drop?  (2012) Describes how betting on “patterns” about how various parties holding the presidency or the houses of Congress has been costly in the past.

Which presidential candidates will be good, or bad, for the markets? (2016) Explains how almost every president in modern times saw tough times in the market and the economy, suffering bear markets and recessions.

Assessing the “Trump Bump” – What to Do Now (2017) Describes the futility of market timing and describes differences between how investors and speculators answer fundamental questions about market behavior.

Posts about good plans and making them work

For successful investing, control your intake of news (2012) Most successful investors have learned to focus on what can be controlled. You can control your intake of news or, it can control you. This posts describes five points that can help you take control of your news intake.

Easing stress during uncertain times (2011) How sound financial planning can keep you making good decisions. Memorize the seven guidelines.

Will a stock market correction ruin my financial plan? (2014) Why good plans can make stock market corrections inconsequential and a bear market should be something you can weather.

Making News…


We continue to help the Orlando Sentinel with reader questions by participating in a free call-in hotline and its Ask An Expert feature. Some links require a subscription to view.

fee-only financial advisor OrlandoMike Salmon, CFP® answered a question about the tax filing deadline and contributing to a Roth IRACharlie Fitzgerald, CFP® gave guidance to a woman deciding between receiving a lump sum payout to her IRA and a monthly check from a pension plan.  Derrick Chandler, CF discussed how to reduce capital gains taxes when selling a second home.

Dan Moisand,CFP® wrote the cover article of the Journal of Financial Planning‘s June issue. It covered some of the things Dan has learned over the years through many bad market environments and how good financial planning is critical to financial security. “When I see someone made a bad financial decision, I can usually trace the problem back to a lack of a plan, a bad plan, abandoning a good plan, or failing to revise a plan as needed.”

Dan also continues to write for MarketWatchFlorida Todayand Financial Advisor:

I want to take money out of my Roth IRA tax-free — when can I do that?

Should everyone invest in a Roth?

How does dollar-cost averaging protect against losses?

My dad left me his IRA when he died, is there a way to share it with my siblings?

Can I use tax-loss harvesting to offset my required IRA withdrawal?

What should I be doing now with my investments?

Can you help me find a tax-smart way to finance my retirement?

In the News…


Moisand Fitzgerald Tamayo, LLC again made Financial Advisor magazine’s list of America’s top Registered Investment Advisory firms, and was again awarded a top rating and named one of Florida’s 12 Top Financial Advisors and Wealth Managers by independent rating firm Advisor HQ. The Financial Advisor list is based upon assets managed while Advisor HQ‘s uses other qualitative criteria.

Charlie was a source for a special feature on financial literacy produced by Investment News. Charlie was instrumental in a succesful six-year campaign to get public high schools in Florida to offer a financial literacy course as an elective. “As financial planners, we get it,” Fitzgerald said of financial literacy. “We see the benefits of smart money decisions. We see the consequences of bad money decisions. You’ve got to start this education before young people go into the adult world.”

Daniel B. Moisand, CFP with Moisand Fitzgerald TamayoDan had a few thoughts to share with CNBC about how the coronavirus crisis differs from the Great Recession.

 

Things We Found of Note


 

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Moisand Fitzgerald Tamayo, LLC is an Orlando, FL and Melbourne, FL based fee-only financial planner serving central Florida and clients across the country. Moisand Fitzgerald Tamayo, LLC specializes in providing objective financial planning, retirement planning, and investment management to help clients build, manage, grow, and protect their assets through all phases of one’s life and the many transitions in between.

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Important Additional Information & Disclosures


Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Moisand Fitzgerald Tamayo, LLC-“MFT”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. 

Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from MFT. 

Please remember that if you are a MFT client, it remains your responsibility to advise MFT, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. MFT is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. Tax advice is given only to clients and only when agreed to by MFT. A copy of the MFT’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request.

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Please Note: Limitations:  While MFT does NOT pay for recognition, awards, or publicity, neither rankings and/or recognition by unaffiliated rating services, publications, or other organizations, nor the achievement of any designation or certification, should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if MFT is engaged, or continues to be engaged, to provide investment advisory services. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized adviser. Rankings are generally limited to participating advisers. No ranking or recognition should be construed as a current or past endorsement of MFT by any of its clients.  ANY QUESTIONS: MFT’s Chief Compliance Officer remains available to address any questions regarding rankings and/or recognitions, including providing the criteria used for any reflected ranking.

Historical performance results for investment indices, benchmarks, and/or categories have been provided for general informational/comparison purposes only, and generally do not reflect the deduction of transaction and/or custodial charges, the deduction of an investment management fee, nor the impact of taxes, the incurrence of which would have the effect of decreasing historical performance results.  It should not be assumed that your MFT account holdings correspond directly to any comparative indices or categories. Please Also Note: (1) performance results do not reflect the impact of taxes; (2) comparative benchmarks/indices may be more or less volatile than your MFT accounts; and, (3) a description of each comparative benchmark/index is available upon request.

 

About Dan Moisand

Dan Moisand is a fee-only financial advisor with Moisand Fitzgerald Tamayo, LLC. He is a regular contributor for multiple outlets, including Florida Today, MarketWatch, and The Wall Street Journal. His writing and financial advice have also been featured in Financial Planning, Investment Advisor, Wealth Manager/Advising Boomers, Forbes, Smart Money, and The New York Times, among other publications. He is the only two-time winner of the Journal of Financial Planning’s “Call for Papers” competition and has been named a top financial planner and advisor by multiple publications. Investment News named Dan one of the “twenty most influential men and women” in the history of financial planning. He currently serves on the Board of Directors for the CFP (Certified Financial Planner) Board.

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