5. Keep Perspective on Changes in Washington
Political shifts, such as a new administration or changes in Congress, can create anxiety about taxes, Medicare, Social Security and the markets. However, it's important to remember that market movements are more often driven by corporate earnings, economic data and central bank policies than by political changes.
Additionally, there's usually a significant gap between campaign promises and actual policy changes. Legislative processes are slow and often result in watered-down versions of initial proposals, so avoid jumping to conclusions based on political rhetoric.
Stick to your long-term investing plan and avoid making emotional decisions based on the latest headlines.
Retirement is a major life change, and even if you're generally confident about your retirement savings, it is normal to be anxious about factors outside of your control. If you're feeling that, you're not alone. And although you can't control inflation or the markets, health care costs, or the economy in general, there are steps you can take to regain a sense of control.
For more information, visit Schwab.com/retirement for a wide range of resources and help.
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Disclosures
The information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, consult with a qualified tax advisor, CPA, financial planner or investment manager.
Investing involves risk, including loss of principal.
Diversification strategies do not ensure a profit and do not protect against losses in declining markets.
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