How to break through the noise and help clients make informed decisions

As we gear up for the presidential election, investors are being flooded with headlines laden with emotion and might be seeking answers about how certain political events could impact their financial well-being. While elections matter, it’s the underlying policies that truly shape the financial landscape. We outline certain areas that could be affected by the election outcome—impacting investors—and how financial institutions can guide their clients through an election year.

Key areas to keep in mind during the 2024 election season

Certain tax law extensions are still in question
While no major new tax laws are expected in 2024, the extension of certain tax-expired provisions from 2023 is still up for debate and could hinge on the election outcome. But the pressure doesn’t stop there—most individual tax provisions from the Tax Cuts and Jobs Act are set to expire after 2025. These potential tax shifts could affect overall finances and tax planning.

Shifts in the regulatory landscape
Over 60 new rules have been proposed by the Securities and Exchange Commission (SEC), and other federal agencies are following suit. Industries such as finance, health care and technology might be impacted by these regulatory changes. Staying informed about evolving regulations is crucial for helping clients make sound investment decisions.

The impact of geopolitics on global markets
Ongoing conflicts around the world, such as the situations in Ukraine and the Middle East, along with U.S.-China relations, will remain critical. Financial institutions should assess how these tensions may affect global markets and investments. On top of that, the U.S. is one of at least 64 countries going through an election cycle. This means there could be fundamental shifts in foreign relations, further impacting global markets, which could make investing during an election year feel even more daunting.

Additional considerations to keep in mind

  • Stock market data shows us that market returns are usually more dependent on post-election economic and inflation trends.
  • If some of your clients are small business owners, an election year can serve as an opportunity to navigate change strategically. Potential policy changes such as new trade deals and burdensome regulations can have a profound impact on operations.
  • Individuals with large estates may want to capitalize on current exemption levels by stepping up the pace of lifetime gifting. Depending on congressional action, the individual lifetime gift and estate tax exemption is scheduled to drop to approximately $6.8 million in 2026.

Breaking through the political noise

Remind clients of investing fundamentals
It’s important to remind clients to prioritize fundamentals over sentiment. Rather than getting caught up in political noise, investors should stay invested, diversify wisely and keep an eye on specific policies affecting their portfolios.

Acknowledge the uncertainty and remain neutral
It’s okay to acknowledge this time of uncertainty, but your role is to provide unbiased guidance grounded in facts and to emphasize the long-term view. Elections come and go, but solid financial strategies endure.

Take a balanced approach to content
Producing relevant content during an election year is still essential. While it might be tempting to highlight the political landscape, financial institutions should focus their attention on providing valuable insights that empower clients and investors. Below is a list of content ideas:

  1. Share policy insights, such as non-partisan analyses of proposed policies, and explain how different scenarios might affect specific sectors, asset classes, tax planning, investment decisions and retirement savings.
  2. Explore historical trends and data on how previous election years influenced financial markets.
  3. Host webinars and virtual events with experts from various fields such as economists, financial advisors and legal professionals who can provide neutral perspectives on election-related topics.
  4. Utilize LinkedIn as a platform to share resources and engage with consumers in a relaxed, yet professional way.

Last, but not least, be personal

In a flurry of robo-calls and an oversaturation of political content, you can stand out from the crowd with personalization. Use analytics to help understand the demographics, behavior and preferences of your clients. This can help tailor your messages to speak directly to the individual, versus the wider audience.

Look beyond the election

Election years can be overwhelming with candidates promoting their big agendas and policy ideas. Clients might worry about how the race to the White House could impact their portfolios and overall financial goals—during and after the election cycle.

Help your clients navigate the complexities of election-driven uncertainty by providing valuable, unbiased information on the latest policies that could affect their finances. Now is an ideal time for financial institutions and their managers to position themselves as a trusted resource for current and potential clients.

Let’s connect. Contact