With the election of President Donald Trump, we should be prepared for volatility in the investment markets. Since he has provided less detail about his policy positions than a traditional campaign, it may take some time for markets to sort out his priorities. Although, for the time being the market has digested the news positively.

[CLICK TO WATCH]

What’s Happened So Far

Donald Trump’s surprise presidential election victory led to extreme market volatility in overnight trading since the market had already priced in a Clinton win. Futures were down over 800 points while votes were being counted and it was becoming clearer that Trump would win. But, we bounced back and ended the following day up over 250 points, hitting all time market highs. What we can be sure of is that markets are likely to remain unsettled in the near to medium term.

The Intrinsic Value of Stocks

In the end, the intrinsic value of stocks don’t change with the occupant of the White House.

What To Do Now:

In times of uncertainty, remember that panic is not a good investment strategy, and that it’s important to stick to your long-term investment plan.  The very worst thing you could do, over the next few days and weeks, is make a temporary loss permanent by selling into the general panic or buying into over excitement. Follow this advice:

• Have an investment plan
• Be prepared for volatility
• Remember, the market will move up and down but it won’t always be in the direction you want

Accumulating Retirement Assets?

If you are accumulating assets for retirement with a long term time horizon the key is to stick to your proper allocation regardless of what is happening in the markets.

Preserving Your Assets?

If you are preserving your assets and approaching retirement, again make sure you are allocated appropriately and taking on the appropriate amount of risk.

Drawing on Your Assets?

If you are drawing on your assets, consider using a bucket approach and having your short term needs in cash so you are not forced to take money out if the market is down.

Use This Tool

To make sure your portfolio is matched with your comfort for risk you can use this tool: http://bit.ly/YourRiskNumber. It’s a good first step to help steer you in the right direction if changes are needed in your portfolio.

Day 1&2: The Election PLUS Tips For Your Kids 18+

The Market & The 2016 Presidential Election

Greg Valliere, Schwab’s Chief Political Strategist had this to say:

• If Trump wins the markets may not respond favorably
• On the flipside, if Hillary wins there may not be much in the way of volatility
• Valliere anticipates Hillary winning by a 5-7 point lead spread
• However, if Hillary wins by a wider margin we could see strong volatility along with potential changes to the house (not good historically for the markets)

Tips for Your Kids Heading To College

• Consider having them sign Power of Attorney form (POA) before going off to school since you may not have access to their accounts.
• Fill out the HIPAA release form at the college your child is attending. If something were to happen to your child the college could then release the information to you.

Day 3: Malcolm Gladwell PLUS Balancing Retirement & College Saving

Insights from Malcolm Gladwell

The Internet of Things

Playing Basketball vs. Playing Soccer

Malcolm’s Advice: Improve The Weak Links

College Planning vs. Retirement Planning

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Check it out here: http://bit.ly/WFGFacebook

SWITCHING FROM ONE JOB TO ANOTHER CAN LITERALLY PAY OFF

Data from payroll processing giant ADP confirms that statement. In the first quarter of 2016, the average job hopper realized a 6% pay boost!

That’s a pretty significant jump in pay, so it’s definitely something to consider. We all get comfortable in our jobs, but as you can see it may pay to look elsewhere. You never know what opportunity may be out there for you if you are not looking.

Nevertheless, before you make that leap, be sure you address these matters:

CONSIDERATION #1

HEALTH CARE

How quickly can you arrange health coverage?

If you already pay for your own health insurance, this will not be an issue. If you had coverage at your old job you will need to figure out how to replace it.

If you were enrolled in an employer-sponsored health plan, you need to find out when the coverage from your previous job ends – and, if applicable, when coverage under your new employer’s health plan begins.

If the interval between jobs is prolonged, and COBRA will not cover you for the entirety of it, you may want to check whether you can obtain coverage from your alumni association, your guild or union, or AARP.

If you are leaving a career to start a business, confer with an insurance professional to search for a good group health plan.

CONSIDERATION #2

YOUR RETIREMENT SAVINGS

What Happens With Your Retirement Savings?

You will likely have four options regarding the money you have saved up in your workplace retirement plan: you can leave the money in the plan, roll it over into an IRA (this is the option we help with at Weiss Financial Group), transfer the assets into the retirement plan at your new job, or cash it out.

Keep in mind that the last option will be taxable and may incur a 10% early withdrawal penalty if you are not yet 59 1/2.

Here is a link to another blog post that goes into greater detail about what to do with your retirement account when you leave your job: 4 Options for Your 401(k) When You Leave Your Job

YOUR CASH FLOW

Can you manage your cash flow effectively between one job & the next?

First, you’ll need to truly understand if you can make this work. I suggest taking pencil to paper and filling out a cash flow worksheet to figure out what your needs are.

Here is a link to our cash flow worksheet to make things easier for you: http://bit.ly/CashFlowWorksheet

Use can also online tools to help with this. We use first step cash management with our clients. In my opinion this is the best cashflow planning strategy available. If you are interested, as a thank you for watching the video and reading this post I will give you free access. Simply send a private message request to the Weiss Financial Group Facebook page and I’ll get you set up.

This all makes the case for having an emergency fund in place. Do you have one? Take a look at this blog post I wrote: How Big Should Your Emergency Fund Be?.

Finally, I recommend postponing big purchases, and avoid running up large credit card debts you will regret later.

BOTTOM LINE

• Make sure you keep your household money needs top of mind
• Make sure you address your insurance needs
• Strive to keep saving for your future at your new workplace

Sources

1. qz.com/666915/when-to-switch-jobs-to-get-the-biggest-salary-increase/
2. money.cnn.com/2016/04/12/news/economy/millennials-change-jobs-frequently/
3. healthcare.gov/quick-guide/dates-and-deadlines/
4. lifereimagined.aarp.org/stories/14481-Financial-Checklist-for-Job-Changers
5. This material was prepared, in part, by MarketingPro, Inc.

Staying on top of your financial life can be a daunting task, however if you tackle a few smaller tasks every month it becomes more manageable. Here are 3 things you can do in October to help to keep your financial life on track this year:

#1
OPEN ENROLLMENT

Open enrollment is the perfect time to review what your employer offers to help you manage your finances.

Did you have a baby this year? If so, you may be interested in the dependent care flexible spending account.

Is your employer offering a high-deductible health insurance plan? If so, you should learn more about the benefits of a health savings account (HSA)

#2

SUBMIT YOUR TAX RETURN

If You’ve Filed for an Extension Submit Your Taxes by October 15th.

October 15 is the last day that you can submit your taxes if you’ve filed for an extension.

#3
ESTATE PLANNING TASKS

Since you may be dealing with open enrollment this month, you can also tack on some estate planning tasks.

First, check the beneficiary designations on your retirement plans and make updates if needed.

Also, while you’re at it take a look at your will and health care directive to see if want to make any changes there.

Sources:

1.http://www.learnvest.com/knowledge-center/your-january-2016-financial-to-dos/
2.http://money.usnews.com/money/personal-finance/articles/2014/12/02/your-end-of-year-financial-checklist
3.http://www.forbes.com/sites/learnvest/2013/01/04/your-financial-to-dos-for-every-month-in-2013/#14fe6d3d41d4

Whoever wins the election, the status quo will likely remain on Capitol Hill. As a Morgan Stanley report commented in July, “Current evidence suggests the U.S. elections in November won’t yield outcomes that substantially change market fundamentals.”

SCENARIO #1:

What Happens if Clinton Wins?

Morgan Stanley analysts foresee Clinton winning the election and Republicans retaining their majority in the House of Representatives. In that scenario, Clinton wins, but her administration has difficulty enacting any of its planned reforms.³

SCENARIO #2:

What Happens if Republicans Lose Control of the House or Trump wins?

If the Republicans lose control of the House or Trump wins, Wall Street could see some pronounced short-term volatility, which is also an outcome that could possibly affect market fundamentals. Even if one candidate or the other wins by a landslide, their most ambitious proposals may never get off the ground. As Morgan Stanley asserts, “attempts by Clinton or Trump to exercise transformative power domestically will be stunted” by a lack of support in Congress.³

So, What Should You Do?

Should stocks rollercoaster before or after Election Day, keep calm. Any disturbance may be short-term, and your investing and retirement saving effort is decidedly long-term. The election is a big event, but earnings, central bank monetary policy, and macroeconomic factors may have a much bigger impact on the markets this fall.

———–

Here are three things you should be doing this month to keep your financial life on track:

#1 Review Your Credit Report

For the second time this year, download a copy of your credit report from http://www.Annualcreditreport.com. Just remember that each of the bureaus will only give you one free copy a year, so if you received a copy from Equifax in May, pull your report from either TransUnion or Experian now.

#2 Gauge Your Tolerance For Risk

Once a year you want to check your tolerance for risk. “Risk Tolerance is an important component in investing. An individual should have a realistic understanding of his or her ability and willingness to stomach large swings in the value of his or her investments. Investors who take on too much risk may panic and sell at the wrong time” – Investopedia. Market conditions, your age or life events could affect your risk tolerance this this so it’s good to gauge where you are at to determine if changes to your portfolio are necessary. Use my free tool to gauge your current comfort for risk: http://bit.ly/YourRiskNumber

#3 Review Your Asset Allocation

You should have set up the assets allocation in your portfolio at the beginning of the year. Now, you want to check in to see if any of the allocations have drifted and if you need to make any adjustments. If you’re not comfortable doing this yourself I advise you to talk to your CERTIFIED FINANCIAL PLANNER™ and he or she will be able to help you making smart decisions.

Sources:
1.http://www.learnvest.com/knowledge-center/your-january-2016-financial-to-dos/
2.http://money.usnews.com/money/personal-finance/articles/2014/12/02/your-end-of-year-financial-checklist
3.http://www.forbes.com/sites/learnvest/2013/01/04/your-financial-to-dos-for-every-month-in-2013/#14fe6d3d41d4

#1 Check Your Credit Score

It’s that time again: Review your credit score at http://www.CreditKarma.com, paying special attention to any fraudulent charges, so you can report it to your credit card company.

#2 Review Your Insurance

Review your auto and homeowners insurance coverage and to shop around. Make an appointment with your agent, or go online and see what other insurers charge for similar coverage.

#3 Review Your Benefits

Review your current benefits situation. Each fall, employees have a brief window of time when they can make changes to their insurance policies or set up and adjust contributions to health savings accounts (HSAs) and flexible spending accounts (FSAs). Check out any new options that are available and decide whether you should make any switches

Sources:
1. http://www.learnvest.com/knowledge-center/your-january-2016-financial-to-dos/
2. http://money.usnews.com/money/personal-finance/articles/2014/12/02/your-end-of-year-financial-checklist
3. http://www.forbes.com/sites/learnvest/2013/01/04/your-financial-to-dos-for-every-month-in-2013/#14fe6d3d41d4

TASK #1: Run a Retirement Plan Projection

Run a retirement plan projection so that you know where you are and what you need to do to get closer to YOUR goals. You should do this once a year to see if you are heading in the right direction. Use our free Retirement Check-Up Wizard here to get a general idea of where you stand with your retirement plans. If you want a more thorough calculation you should work with a CERTIFIED FINANCIAL PLANNER™. They’ll have access to more sophisticated software and will look at your entire financial life. If you are working with a CERTIFIED FINANCIAL PLANNER™ you will want to revisit their projections at your annual review to account for changes in your financial life.

TASK #2: Increase Your 401(k) Plan Contributions

For most people, setting a goal to max out your 401(k) or 403(b) plan contributions should be key. If you’re saving in a 401(k) or 403(b) and aren’t already on track to max it out, increase your contributions by 1%. Re-evaluate in 6 months and increase your contributions by another 1% until you ultimately max it out.

TASK #3: Review Your Investment Strategy

Has anything changed over the last 6 months that would cause you to have to make changes? Births? deaths? New goals? If so, review your plan or speak to your CERTIFIED FINANCIAL PLANNER™ to help you make smart choices

For more financial planning tips, download my free report: “8 Steps to Organize and Optimize Your Financial Life”. Thanks for reading!

Sources:

1. http://www.learnvest.com/knowledge-center/your-january-2016-financial-to-dos/
2. http://money.usnews.com/money/personal-finance/articles/2014/12/02/your-end-of-year-financial-checklist
3. http://www.forbes.com/sites/learnvest/2013/01/04/your-financial-to-dos-for-every-month-in-2013/#14fe6d3d41d4