Today’s Puzzle:

Dan Cuprill is back on the show today to help us sort out the economic impact the election will have as we move into a new year. With talk of the Green New Deal, student debt forgiveness, and tax changes, we’ve gotten a lot of questions about what’s next for investors. Today we’ll try to ease your mind and provide some clarity.

(Click the featured times below to jump forward in the episode)

The Solution:

We are now one month removed from Election Day and results are still outstanding, although we have a pretty good idea who will be in the White House in January 2021.

So the question now becomes, ‘What does this mean for investors?’ The questions have been coming in over the past month about how the market would react to election so let’s try to provide a few answers. To do that, we brought on the political consultant in the office, Dan Cuprill.

There are a few things we’ll get into during the show. The first is the immediate reaction to the results. The common belief is that markets perform better under a certain political party, but history has shown us otherwise. So there’s no reason to worry that a Democratic presidency automatically means an under-performing market.

Our advice to everyone right now is to take a deep breath. There will be winners and losers no matter what the results are. Some companies will be in a stronger position and other won’t. That’s the way it has always been and will continue to be.

Much more than the election, the market moves based on unexpected bad news. That’s what will truly impact the market as we’ve seen this year, in 2008, and in 2001. That’s why diversification is so important and what we spend time putting in place for clients.

The next part of our conversation is getting Dan’s opinion on what Biden’s economic policies could mean for investors. Three of the biggest on the list are the Green New Deal, student debt forgiveness, and tax increases. With a divided Congress, pushing through extreme policies doesn’t appear likely, but no matter what happens in the White House, we expect taxes to go up.

That’s probably the first thing investors can be evaluating. We recommend taking advantage of the current tax rates. One thing you can look into is converting your tax-deferred assets to tax-free if you can. Those taxes will have to be paid at some point so why not pay the tax now at these historically-low rates and be done with it.

Ultimately though, stay positive. This country has made it through some very difficult and dark periods and we’ll move past 2020 as well. If you want to discuss anything further with us, get in touch with us and let’s start planning for 2021 and beyond. Thank you for listening and enjoy the holidays.

Listen to the entire episode or click on the timestamps below to hop around to different topics.

[0:42] – Dan Cuprill back with us today

[2:13] – What does the election mean for investors right now?

[7:15] – Dan’s advice to everybody

[9:04] – Unexpected bad news is what impacts the market

[11:56] – Over time it doesn’t really matter

[13:31] – This is why diversification is so important

[14:33] – Possible economic policies of new administration

[18:16] – Preparing for increased taxes

[22:00] – What can we be doing right now as investors?

[23:48] – Dan’s outlook for 2021

[25:50] Stay positive

[26:57] How to discuss further with Dan

The Full Picture:

“Historically, what has really driven market returns has not been policy set by Washington, it’s been the unexpected news.”

– Dan Cuprill

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