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Is my retirement, investment plan OK under a new president? | Money Talks

When it comes to your money, and your investing, "knee-jerk" reactions are never a good idea according to Certified Financial Planner Neil Vannoy.

WACO, Texas — There is no doubt with a new president in January, there is new fiscal policy being pushed in Washington D.C. and many ideas are being bantered about to raise revenue through taxation. 

So with the Democrats now in charge of Congress and the presidency, should we expect new tax laws which could change your investment strategy?

When it comes to your money, and your investing, "knee-jerk" reactions are never a good idea according to Certified Financial Planner Neil Vannoy. 

“In general it's a good idea to avoid changing your investment strategy just because we have a new president or the control of Congress changes," he said. "There might be changes to tax law and other regulations that warrant changes to your financial plan, but making changes in anticipation of what could happen could end up being a mistake."

And favorable business tax law has been in effect since 2018, and has no doubt lead to the gains seen in the market since the U.S. started bouncing back from the COVID-19 pandemic. 

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Vannoy said good steady habits, always win over time in investing.

"Investment strategies like diversification, keeping costs low, rebalancing regularly, and taking advantage of tax-favored accounts will stay in style no matter what happens."

One thing that might stick out is policies being pushed by a new administration and talking to your investor or balancing your portfolio, which really doesn't require much effort.

Vannoy said that really pays off over time. 

"Just because I don't recommend “knee-jerk” reactions to your investment strategy doesn't mean you should stick your head in the sand. Stay informed of potential changes that might affect you, and adjust as needed."

RELATED: Money Talks | Certified financial planner talks taxes

Remember, the stock market, over time, and that's the key phrase, over time has gone up 100% of the time regardless of which political party is in power.

That’s while Vanny said he tinkers very little. 

"But know that most changes I make and recommend as a professional are small changes at the margins rather than huge sweeping changes like selling out of stocks, cashing out a retirement plan, or other huge adjustments."