Don't make financial decisions based on politics

By Rob Schulz

Mansfield Record

All too often, people make investment decisions based upon their political concerns. Sure, policymakers can make changes to things like our taxes, minimum wage and other regulations that affect our economy somehow, but not significantly or predictably.

It's easy to forget that the politicians in Washington don't drive our economy, we do, people like you and me, working in our businesses or as employees to make a living. There have always been, and always will be regulations, taxes and red tape that either help or hurt our efforts. But there are many other forces at play, the COVID-19 pandemic is the most recent example.

It would have been easy to assume back almost a year ago that our entire economy was doomed to destruction. We survived partially due to the actions of legislators, the Federal Reserve and the Treasury Department. But the primary reason our economy survived was that creative, hard-working and determined people refused to give in or give up. Across all industries and around the country, businesses found ways to survive and even thrive within the strict constraints COVID thrust upon them.

It's hard to believe the robust and record-breaking earnings reports we see for the fourth quarter. But they are real, and they are the result of relentless creative effort by the employees and leaders of these corporations. Many of these companies' corporate headquarters have remained vacant for months on end, yet they found a way to succeed. That's amazing.

When we invest our money in our investment and retirement accounts, we are putting our faith in these publicly-traded companies that they can pivot and grow as a whole continually. Their ability to succeed has much more to do with their people than it does with the political environment. So don't confuse your politics with your pocketbook. We all have political opinions and concerns, but our success as investors, employees and business owners have less to do with politics than we may realize.

Rob Schulz is a local Certified Financial Planner and author of “Thoughts on Things Financial: Your Guide to a Chaotic Money World.” He can be reached at rob.schulz@schulzwealth.com. Buy his book here: https://www.schulzwealth.com/book/

‍