Dori: Experts answer retirement investment questions during a volatile election year
SPONSORED — Are your investments and retirement ready for the 2020 election?
In an election year, anything is possible in the stock market. The only solid prediction this year is that there will be volatility, as the race for the Democratic nomination and eventually for president will have economic ramifications.
This type of financial climate may leave investors like yourself uneasy, especially when your retirement depends on consistency in the stock market.
With an unpredictable election year looming ahead, KIRO Radio’s own Dori Monson sat down with Chief Investment Officer of Bulwark Capital Management, Zach Abraham, to ask for his two cents regarding the economic effect the 2020 presidential race will bring.
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You can get answers to all your investing and retirement questions as Abraham takes his radio program, Know Your Risk Radio, on the road for the Know Your Risk Roadshow. He’ll be at the Bellevue Hyatt Regency on Feb. 29 from 10 a.m. to noon.
“We’ll go through our entire investment planning process in a little under an hour, answering all the big questions on people’s minds in 2020,” Abraham says. “Then my favorite part, we’ll dive into some great investing Q and A with the audience. It’s what we’re all about, arm you with the resources and the information to make your retirement as successful as it can be.”
When you RSVP at KnowYourRiskRadio.com/Roadshow, you’ll get a free copy of Bulwark Capital’s booklet, “Common Cents Investing.” You can also schedule an appointment to speak with Zach Abraham at BulwarkCapitalMgmt.com to prepare for your financial future in the potentially turbulent waters ahead.
Election years spell uncertainty
“Looking back to election night 2016, we saw incredible volatility on election night and the days and weeks following,” Monson observed.
“Markets hate uncertainty,” says Zach Abraham. “If you get an Elizabeth Warren or a Bernie Sanders, I’m not saying that it’s going to be economic carnage. But generally speaking, socialistic practices are not beneficial for equity markets.”
Then again, when Donald Trump was elected, stock analysts predicted a plunge in the stock market. However, according to Market Watch, on Election Day the DOW rose over 250 points to nearly record highs.
“The past few years with the tax cuts and de-regulation on business, the markets have really taken off. But, this election might be a coin toss, so how should we position ourselves with all this uncertainty?” Monson questioned.
“When we go into the election, regardless of what it looks like is going to happen, I will tell you that our portfolios will be hedged,” Abraham says.
With such uncertainty in the wind, you likely want to know how to protect your investments. Investment firms like Bulwark Capital already have contingency plans in the works.
“And we’ll put sell stops on either side of those hedges. And if everything starts breaking loose, we’ll let those sell stops run up.”
These fail safes are in place to prevent untenable losses, with a safety net that will allow Bulwark Capital to sell shares at a predetermined price should prices fall too low.
Still, you may have a lot of questions about your portfolio. How much risk is too much? Are bonds a safe option? Do returns keep up with inflation? How much do you need for retirement? When should you start drawing from Social Security? Is estate planning or long-term care insurance necessary?
The answers will depend on your goals. For example, the amount of money needed for retirement will depend on how much time you have left until retirement, the lifestyle you want, current income, health, and whether you want another job.
The closer you are to retirement age, the less you’ll be able to absorb losses from a financially volatile election year. It may be in your best interest to speak with a financial advisor about switching your portfolio to low risk options before anything major occurs to shake up the stock market. On the other hand, if you have decades until retirement, you may be able to ride out any setbacks and maintain a higher risk portfolio, potentially capitalizing on unexpected gains.
This commentary on this website reflects the personal opinions, viewpoints and analyses of the Clear Creek Financial Management, LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Clear Creek Financial Management, LLC or performance returns of any Clear Creek Financial Management, LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Clear Creek Financial Management, LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.