As 2026 Midterms Loom, Financial Experts Urge a Long-Term Financial View
Should you put your financial life on hold until voters decide who will control Congress in 2027? It’s a question worth asking as Americans prepare to head to the polls this November for the midterm elections, in which all 435 seats in the House of Representatives and roughly one-third of the Senate will be on the ballot.
The outcome will determine which party controls each chamber of Congress for the next two years, potentially influencing taxes, government spending and financial regulation.
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Knowing an election (and potential political upheaval) is around the corner makes it tempting to wait until the votes are counted before making major financial moves. If Republicans retain control, for example, current policy priorities will likely continue. If Democrats regain both — or even one — of the chambers of Congress, the legislative agenda will likely shift.
So, should you make that big money decision now, or wait until next year? Financial experts recently explained to MoneyLion that most people are better off making decisions based on their own financial circumstances rather than trying to predict an election. Read on to explore more.
Don’t Wait for Election Day
Putting off a new home purchase or job change solely because of the midterms is more often than not a mistake, according to Rob Pfleghardt, former CPA and founder of VoraPrep.
“People give the political calendar way more weight than it deserves,” he said. “It makes noise, but it rarely moves the needle on your finances in any immediate way.”
Markets tend to price anticipated election outcomes before Election Day, Pfleghardt said. Additionally, even if a change in congressional control eventually leads to changes in fiscal policy or regulation, those changes generally have to work through Congress long before impacting people’s finances.
Waiting can have its own cost, too. A mortgage rate could change, debt could increase, or you may end up losing a job opportunity, all while waiting for a potential political development.
If you’re concerned about borrowing costs, Pfleghardt suggested watching the Federal Reserve rather than election polls. Fed decisions can have a more direct impact upon rates for mortgages, cars and other loans.
Build a Plan That Can Handle Either Outcome
All that said, you don’t have to ignore uncertainty, either. Just prepare for it without agonizing over predicting the future.
Arie Brish, a business and technology executive/investor, told MoneyLion that geopolitical uncertainty could make the coming months particularly unpredictable. His advice: Don’t stretch your finances to the limit, maintain liquidity and avoid excessive debt.
There’s no need to postpone a major purchase you genuinely need, Brish said, as long as you can afford it if economic conditions become less favorable.
For investors, he recommended diversification rather than positioning a portfolio around an election result. "The objective isn’t to bet on war,” Brish said. “The objective is to build a portfolio capable of surviving several different outcomes.”
The Bottom Line
The Republicans maintaining the status quo, or the Democrats changing it, could influence economic policy over time, but neither is likely to rewrite your personal finances anytime soon.
Robert R. Johnson, professor of finance at Creighton University’s Heider College of Business, pointed to Warren Buffett’s warning against mixing politics with investment decisions: “I've been buying stocks since March 11, 1942. I've bought them under every President, seven Republicans and seven Democrats. I've bought them quarter after quarter. Some of the buys were terrific [and] some of them weren't at such good times."
The safest bet? Don’t turn your financial plan into a political prediction. If a purchase, job change or investment makes sense based upon your finances and goals, waiting for November will likely accomplish very little. Building enough savings, flexibility and diversification to handle whatever happens next is the more durable move.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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