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Unknowns with the election and Covid could impact your financial future

Holiday money-saving strategies that can backfire
Posted at 7:15 AM, Oct 29, 2020
and last updated 2020-10-29 10:39:59-04

NATIONAL — Early voting is underway, and Election Day is now just days away. Many people are wondering what will happen once our next President is picked and what that will mean for the economy.

"You want to talk about the world of uncertainty, this is what the stock market doesn’t like. Stock market likes certainty, likes a pathway. In an election year, we don’t know what that vision is going to be," said Fred Creutzer, the President of Creutzer Financial.

Not only is the election uncertain but if there will be a second spike of the coronavirus.

So the best thing you can do right now is to not let your emotions get the best of you. Creutzer said the biggest mistake people make is when they can't handle the stress of the stock market changing, they sell at the lowest point just to have the market come back in a few months.

"There’s never been a more important time that consumers have someone listen to their concerns because the mistake consumers make is they're gonna let emotions dictate what they do with their stock picks and if you’re in 401k and you’re within 5 years of retirement maybe you should reposition your portfolio to figure out where you’re gonna be after November," said Creutzer.

If you're someone closer to retirement, you really can't afford another big hit to the market like we saw earlier this year.

At the beginning of the year, the economy was thriving and unemployment was at 3.5 percent. The lower unemployment, the better the economy because more people are working and getting money and then spending that money back into the community. When Covid hit, we saw about a 20 percent drop in the stock market in just a couple of weeks.

"I don’t think it will be as bad as what we saw in March but we’ve gotta keep in mind we haven’t had a year where we had a 20 percent correction since 2008. So we’ve literally gone twelve years where we’ve not had a 20 percent correction. It’s always around the corner, we just don’t know when it’s gonna be," said Creutzer.

If you're a younger person farther away from retirement, now is the time for you to be aggressive because you want to take advantage of those lows and have plenty of time to bounce back.