Amid uncertainty, making informed decisions about your money and the election

• A recent survey found that approximately 63% of Americans are postponing financial decisions about vacations, car and home purchases, and remodeling projects until after the November election.
• Social Security benefits getting reduced is a top concern.
• Investors are concerned about the policy changes that will revert back to 2017 levels for capital gain taxes in 2025.

People's financial decisions are influenced by their perceptions of which candidate may win the November election.

A survey of 1,005 Americans conducted in early August revealed that nearly two-thirds of Americans, or 63%, are postponing financial decisions about vacations, car and home purchases, and remodeling projects until after the November election.

But waiting for election results may not be the best move.

It is advised to assess whether a financial decision should be made promptly, taking into account the cost of delaying. Keep in mind that significant policy changes necessitating legislation may take time, with the president and Congress in agreement.

How to frame decision-making ahead of the election

Instead of allowing the election results to influence financial decisions, financial advisors suggest that individuals should prioritize their own goals.

"If Candidate A or Candidate B had won, would they have done anything differently?" asked Michael Liersch, head of advice and planning at Wells Fargo.

Considering your personal financial plan is crucial when making a big purchase, even if political outcomes create uncertainty, it's unlikely to affect the decision's outcome.

Liz Miller, founder and president of Summit Place Financial Advisors in Summit, New Jersey, stated that when she speaks with a client who believes they will postpone something, they revisit their plan. Frequently, she added, they discover there's no need to defer.

Map out the scenarios

Best-case scenario: "Within that framework, you can test it," said Liersch. "Don't wait for the outcome to be known. Look into it now, map out those possibilities, and see if it would even change your decision in any way, shape, or form." Worst-case scenario: "Within that framework, you can test it," said Liersch. "Don't wait for the outcome to be known. Look into it now, map out those possibilities, and see if it would even change your decision in any way, shape, or form." In-between scenario: "Within that framework, you can test it," said Liersch. "Don't wait for the outcome to be known. Look into it now, map out those possibilities, and see if it would even change your decision in any way, shape, or form."

In an Edelman Financial Engines survey, 81% of respondents expressed worries about reduced Social Security benefits as a top concern.

If Congress does not act, Social Security's trust fund will be depleted by 2033, leaving only 79% of benefits payable.

To gain some perspective, you can obtain a Social Security benefit estimate and examine ways to increase savings.

What would be the impact of a benefit cut on your finances? Experts suggest that you can manage the shortfall by adjusting your budget, paying off debt, saving for emergencies, and sticking to your investment plan.

In an uncertain world, feeling more at peace is possible when you know you are doing the right things and have a solid financial foundation, as CFP Stacy Francis, president and CEO of Francis Financial in New York City, emphasized. She is also a member of the CNBC Financial Advisor Council.

Currently, Francis is working with clients to update their financial plans and project them up to age 95. Some clients are considering Roth conversions in anticipation of upcoming tax policy changes, such as those involving conversions.

Be proactive with your plan

Investors are also concerned about capital gain taxes when candidates pitch. Experts advise that, regardless of election results, it is a good time to evaluate whether to take gains with double-digit gains in the stock market.

Miller, the 2024 Chair-Elect of the CFP Board, stated that we are discussing the possibility of taking capital gains this year, as the tax rates are stable and we are aware of the expected outcomes.

"Is it worth delaying your decision until after the election results are known, or would making the decision sooner provide a greater benefit?" advised Wells Fargo's Liersch.