3 Ways To Protect Your Retirement If Biden Wins, According to Experts
Written by
Laura Beck
Edited by
Ashleigh Ray
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Like it or not, the 2024 presidential election is just around the corner. Many people are concerned about the future and what it means for their retirements.
Nobody has a crystal ball to know exactly what’s to come, but experts can make educated guesses. GOBankingRates reached out to top retirement planners and financial gurus to get their take on safeguarding your golden years in a potential Biden 2.0 era. Here’s what they had to say.
Consider Roth IRA Conversions
Craig Kirsner, retirement planner and president of Kirsner Wealth Managment, suggested: “If Biden wins, you might want to look at some proactive ways to take advantage of today’s relatively low income tax rates while we still have them, in conjunction with your accountant.
One way to potentially do that would be to look at partial Roth IRA conversions, so you pay taxes now and then never pay tax on that Roth IRA money again!”
Kirsner continued, “The reality is that with over $35 Trillion in debt, we’ll probably see higher taxes at some point in the future so be sure to take advantage of today’s tax brackets while we still have them.”
Stick to Basic Financial Rules
When it comes to retirement planning, Paul Tyler, chief marketing officer at Nassau Financial Group, said, “… turn off the television and don’t answer your phone in the next few months. Presidential elections simply won’t impact the basic rules that lead to a safe retirement: spend less than you earn, max out your employer’s contribution to your 401(k) and regularly invest 5-10% of your income in the market.”
The power of good, long-term savings habits will outlast whatever laws do or don’t get passed in the next four years.
Stay Invested Regardless of Party Control
The financial planners at Edelman Financial Engines stressed the importance of staying invested regardless of which party controls the White House.
According to them, “A separate study from EFE has found that whoever controls the White House — regardless of their party — does not impact individual investments over the long run.”
The EFE study also revealed that, “If Americans invested only when a Democrat was president, starting in 1948: $10,000 would have grown to $1,200,696; if invested only when a Republican was president over the same time period $10,000 would have grown to $309,811.
“However, if they stayed invested in the entire time period regardless of which party was in the White House: $10,000 would have grown to $37,198,830 today.”
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