Home > Education > Market Insights > Federal budget proposals and their effect on investment strategies
image of the US Treasury Department

Federal budget proposals and their effect on investment strategies

WATCH:

 

Every year there is a lot of fanfare when a U.S. president submits their budget proposal for the upcoming fiscal year. The media jumps into action, predicting what this proposal will or won’t do for the economy and telling you how to invest your money based on what changes the budget may bring.

This can cause people to engage in emotion-based investing decisions – like selling stocks and getting out of the market. There can be misappropriation about the federal budget proposal and its effect on investment strategies.

Remember that a presidential budget proposal is just that, a proposal. It’s not law. Congress is the only branch of government authorized by the Constitution to make laws for spending and taxes. As the saying goes, “The president proposes, Congress disposes.”

That’s why having a long-term investment plan, one that lasts longer than a four- or six-year political term – and sticking with it – is so important. So the next time that you’re concerned with the news out of Washington, call your financial advisor.

Schedule Your Free, No Obligation Consultation

You May Also Like:

  • adult son conversing with older father at a table
    Article
    Hiring a caregiver for in-home help can be tricky
    Read more
  • young couple talking to professional financial advisor
    Article
    Financial advisor performance evaluation
    Read more
  • younger female sitting with older father at table discussing
    Article
    How you can avoid taxes on a 401k inheritance
    Read more