The upcoming November election will bring a great deal of debate along the way. Already we’ve seen the typical campaign advertisements where one is pitted against the other while pointing out his competitor’s faults.
The truth is, though, that both candidates have positive and negative aspects. And, while it is difficult not to get caught up in the proverbial “mud slinging,” it is essential to sort out truth from fiction and determine each candidate’s views – and potential actions – on the issues that are of importance to you.
Are you a recent graduate trying to find a job? Are you part of the middle class and looking towards retirement? Or, are you on the lower end of the income bracket, looking to send your kids to college?
Regardless of where you come from and where you want our country to go, one thing is for sure – our next President won’t likely be able to be the very best answer for everyone. Therefore, depending upon where your finances are right now, which Presidential candidate should you be considering?
Analyzing their Own Expenses
When considering which of the Presidential candidates will be best for your finances, it is a good idea to first take a good hard look at how each has handled his own funds. As of now, both candidates have already raised and spent millions of dollars in their campaigns. This is evident based on the reports that they are required to file each month with the Federal Election Commission.
When looking at the source of each candidates’ contributions, it is interesting to note that the top five for Barack Obama include Microsoft Corporation, Google, and Harvard University. On the other hand, all five of Mitt Romney’s top contributors are banks and financial service companies.
How the Election Could Affect Your Investments – Or Will It?
As the campaign picks up steam, however, each individual is asking many of the same important questions. These include concerns regarding taxes, interest rates, job growth, health care, and the housing market.
Unless something drastically changes over the next few months, the Presidential choices include a far-left candidate who believes in an economy controlled by the government, along with an easy money policy; and a far-right candidate who believes in a smaller amount of government and much more loose regulation.
A lot can also be skewed by the type of investing that individuals participate in. For instance, a recent poll showed that Barack Obama’s popularity has been growing among global investors. For instance, over 50 percent of global investors saw Obama in a positive light. However, when the poll included only U.S. investors, the majority felt that Romney would be a better bet for the overall global economy.
According to a recent story by The Daily Ticker, poll respondents feel that Barack Obama would be good for domestic markets as well. And this, in fact, is actually in line with the actual U.S. market performance since early 2009 when Obama took office. As of that time, both the Dow and the S&P 500 are up approximately 40 percent.
There is one area in which both domestic and global investors are in agreement. This has to do with the fact that the financial regulation laws that have been pushed by Obama’s administration over the past three plus years have impacted the economy in a negative way. This, therefore, has also led to further job loss.
With all this in mind, determining which of the upcoming Presidential candidates will be best for your wallet – and your portfolio – will really be determined by which way the market essentially goes, and certain also upon the future laws, regulations, and tax related legislation that is ultimately passed over time.
The Bottom Line
The bottom line is that no matter which candidate is elected in November, the President alone can’t make or break one’s total savings and investments. Yes, the market overall may be affected, based on new policies, laws, and other related factors.
But the truth is that everyone should have a strong savings foundation that starts with an emergency fund, and continues with investments for specific future goals and dreams like retirement, college funding, or a once-in-a-lifetime vacation.
A good investment strategy will help you get through the good market times and the bad – regardless of who’s at the helm. And, a continuous and regular stream of contributions will also help your money grow. So, while our next president may move the market initially, trusting the system can only get investors so far – the rest is up to you.
Jennifer Ricci works for Cedar Education Lending to help guide students in finding information on the student loan process. She also writes for a number of popular finance blogs on the topics of investing, personal finance, and government.