Preparing your portfolio for the presidential election: Emotionproofing strategies.

• This spring, a survey by the American Psychiatric Association revealed that 73% of people experienced anxiety regarding the election.
• Financial therapists often observe that people tend to experience significant financial stress during election periods, which can lead to self-destructive behaviors.
• It is a good time to use your worries to take action by reevaluating your goals and portfolio.

The U.S. presidential election could lead to an increase in stock market volatility, causing some investors to worry about the potential impact on their investments.

The American Psychiatric Association's spring survey found that 73% of people felt anxious about the election. Meanwhile, polls suggest that investors who are nervous about the election are more likely to move their investments or withdraw their money from the market, potentially disrupting their long-term financial plans.

"Financial psychologist Brad Klontz, a member of the CNBC Global Financial Wellness Advisory Board, stated that when we are emotionally charged, we tend to become rationally challenged. He added that during uncertain times, such as election periods, we are more likely to make poor financial decisions that can lead to financial destruction."

Experts recommend four steps to manage election jitters and protect your portfolio from emotional reactions.

Picture your goal

To alleviate anxiety about the election's impact on your finances, consider your long-term goals and maintain focus.

"Erika Wasserman, a financial therapist in Miami, stated that if one's goal is to pay off their mortgage or buy a car, they should visualize it by placing a picture on their front door or in their office. She emphasized that the upcoming election will not significantly impact one's input or goal, as it is mostly predetermined."

To better understand your concerns, keep a journal to record your worries and identify any recurring themes.

Ask yourself: Is your worry fact, or fiction?

Determine the risks associated with your fears by analyzing them. While it's easy to imagine worst-case scenarios, the likelihood of them occurring is often less than expected.

The presidential election is still months away, and the outcome remains uncertain. The House and Senate races will significantly impact any policy changes.

Political campaigns frequently use emotional appeals to garner support, but it's common for campaign promises to fall short of their mark.

Klontz, a Boulder, Colorado-based psychologist and certified financial planner, stated that the biggest risk currently facing us is our emotional state. He explained that the stock market tends to be volatile before elections and rises after the results are announced, regardless of the political party.

"Since things are no longer as uncertain, everyone relaxes a bit," he stated.

"After writing down your worries, you can focus on dealing with the truth and set aside fiction for another day until it becomes more relevant," Wasserman advised.

Revisit your goals and investments

Use your concerns to motivate you to reassess your objectives and review your portfolio. Given the market's stability and the robust economy, take into account your investment time frame and the variety of your holdings.

Megan McCoy, a financial therapist and professor of financial planning at Kansas State University, stated that it is always a good idea to reassess one's finances every couple of years, regardless of the circumstances.

It is advisable to consult with a tax and financial professional to ensure that you are investing in the appropriate accounts, given the uncertainty.

Klontz stated that the wisest decision one can make with the current information is because we cannot accurately predict the future.

'Spread out the all the stressors'

Instead of letting worries about the election outcome spiral and cause unnecessary stress, McCoy suggests using that stress to take control of what you can.

"Perhaps writing down all your stressors and worries can help you identify the underlying causes of your fears," she suggested.

She suggested using exercise as an outlet for stress and anxiety.

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