Retirement Plans and the 2024 Election: What You Need to Know

Oct 15, 2024 | Articles

Retirement Plans and the 2024 Election: What You Need to KnowAs the 2024 election approaches, market volatility is expected to rise due to uncertainty around potential policy changes. Short-term fluctuations in the stock and bond markets could lead retirement plan participants to pause savings or shift to more conservative portfolios. Here’s how different dynamics could impact retirement planning:

Political Policies:

  • Democrats may advocate for expanding access to retirement plans and offering tax credits.
  • Republicans could focus on increasing tax advantages and contribution limits for retirement accounts.
  • Bipartisan initiatives like the SECURE and SECURE 2.0 Acts show shared interest in improving retirement security.

Federal Reserve Rate Cuts:

As the Fed lowers interest rates, this can stimulate stock market growth, benefiting stock-heavy retirement accounts. However, for those nearing retirement with more conservative, bond-focused portfolios, lower yields may present a challenge.

Tips for Retirement Plan Participants

  • Keep a long-term perspective: Avoid reacting to short-term market or election changes.
  • Know your goals and risk tolerance: Invest in line with your long-term objectives.
  • Diversify your portfolio: This helps manage risk during market fluctuations.
  • Focus on time in the market, not market timing: Consistent investing beats trying to predict the market.
  • Seek professional advice: A financial advisor can offer personalized guidance on retirement strategies.

Tags

Have questions how this information applies to your situation?

Reach out us. We’re here to help.