Election Dispatch: Modernist on Money & Politics

At Modernist we’re committed to engaging with our wealth while benefiting the larger community. Whether it is how we invest or where we bank, how we donate our money and time, or advocate for policy change, here are some of our greatest hits around money and values.

look to the past for context

For as long as markets have existed, stock prices have endured the risk of world wars, regional conflicts, revolutions and countless other geopolitical events. It’s natural for investors to look for connections between who wins the White House and which way the market will go, but nearly a century of returns shows that stocks have trended upward.

Stocks have rewarded disciplined investors for decades, through both Democratic and Republican presidencies.

The market tends to behave similarly regardless of the political party in power. We’ve shared graphs that show the market in relation to who’s in control of Congress and the White House—revisit these as we ramp up towards the election!

STAY FOCUSED ON YOUR PLAN

As always: diversification is your friend. While elections have the potential to reshape policies and legislation, it’s difficult to predict which sectors or industries could benefit. The most effective way to manage risk, whether geopolitical or otherwise, is broad diversification.

These are anxiety-inducing times! Fully acknowledge that. And as we tell our clients, it’s important to step back and consider the big picture, and use data-backed evidence to guide your decisions, not emotional reactions. Focus on what you can control: take a break from the news, take a walk, call a friend.

Get clear and strategic about your giving

Says Georgia: “I’m generally focused on giving to 1. lawyers to sue the Proud Boys and 2. journalists to cover those lawsuits. But I’m concerned about policy in an election year, so I lean towards non-deductible funding for 501c4s and the political campaigns of local change-makers early in their campaigns.”

We’ve been talking with clients and CPAs about resources that support democracy, especially the difference between donating to a 501(c)(3) and a 501(c)4: the quick primer: it’s about DIRECT vs. LEGISLATIVE impact.

We have a nice breakdown here with examples!

A few progressive orgs collaborated on this fabulous resource, which includes many strategies we love. Here’s one for creating a plan for giving:

1. Set an aspirational budget

2. Determine how much spending you wish to apply to: Presidential, Congressional, and state and local elections

3. Divide each category into campaign contributions, PACs, and 501(c)3s and 501(c)4s

4. Consider “adopting” another more conservative state for your giving to amplify their grassroots activists.

5. Execute your plan!

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For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third-party sources, which may become outdated or otherwise superseded without notice. Third-party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio nor do indices represent results of actual trading. Total return includes reinvestment of dividends and capital gains. Mentions of securities are to demonstrate passive funds versus active funds, and low-cost funds. The mentions of specific securities should not be construed as recommendations of securities. Performance is historical and past performance is not an indication of future results. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements, or representations whatsoever by us regarding third-party websites. We are not responsible for the content, availability, or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of Buckingham Strategic Wealth® or Buckingham Strategic Partners®, collectively Buckingham Wealth Partners. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article. R-24-6678

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For informational and educational purposes only and should not be construed as specific investment, accounting, legal, or tax advice. Certain information is based upon third party data which may become outdated or otherwise superseded without notice. Third party information is deemed to be reliable, but its accuracy and completeness cannot be guaranteed. Neither the Securities and Exchange Commission (SEC) nor any other federal or state agency have approved, determined the accuracy, or confirmed the adequacy of this article.

© 2022 Buckingham Wealth Partners. Buckingham Strategic Wealth, LLC, & Buckingham Strategic Partners, LLC (Collectively, Buckingham Wealth Partners). R-22-4113

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.

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