28 Jun Trump’s policies and overseas investing

Q. I know I need to have international investments, but I’m concerned about President Trump and what his “America First” policies will do to international markets. Should I worry? How much should I have overseas, and what are the best areas now? I’m 55 and all of my investments are in IRAs.
— Investor

A. Figuring out what’s best for your portfolio must include more than worrying about any president’s potential policies.

We don’t know enough about your portfolio and your personal needs and preferences, so we’re just going to talk generally.

But every investor, specifically, needs to determine their personal profile by evaluating their ability and willingness to take risk, said Anthony Benante, a chartered financial analyst with Baron Financial Group in Fair Lawn.

And then, you need to make sure that risk level will help you reach your long-term goals.

Benante said there are benefits to including globally-diversified assets in your investment strategy.

“We encourage our clients to think about the long-term nature of investing and validate their investment strategy with a comprehensive financial plan that shows outcomes based on different market environments,” he said.

Given your age and the expectation that you could live into your 90s, it would probably not be best to look at your portfolio through a political lens, given the possibility for the change of political parties that will occur throughout your lifetime, Benante said.

“Breaking news is constantly occurring and it would be difficult to react correctly to each new development as it relates to your investments,” he said. “The decision to include international investments should not be directed by current political situations, but rather based on which investment strategy can help you achieve long-term success.”

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This post was first published in June 2017.