In this podcast, I explore how to approach investing during election years, addressing the common questions I hear from investors about whether to adjust their portfolios as election season approaches. I discuss the historical performance of the U.S. stock market under different political parties, comparing returns during Democratic and Republican presidencies. Using examples from 1928 to the present, I show how staying invested consistently through election seasons often results in better long-term returns than trying to time the market. I emphasize the importance of focusing on your long-term investment goals rather than reacting to election-related news, pointing out that market fluctuations during election periods are hard to predict and usually don’t warrant major changes to your investment strategy.

Key Takeaways:

• Who is better for the stock market? Democrats or Republicans?

• Is there enough data to really know?

• The dangers of trying to time the market around an election.

• The best strategy is to focus on your long term investment goals.

• Stock market election years from 1928 to 2020.

• Is this election any different?

Key Timestamps:

(00:00) Introduction: Investing During Election Years

(01:45) Comparing Returns: Democrats vs. Republicans

(04:52) Case Studies: Elections 1928 to 2016

(09:28) Monthly Returns Analysis

(12:36) Concluding Thoughts

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show, 2024 election, US election, presidential election

Mentions:

https://ofdollarsanddata.com/sp500-calculator/

https://www.nasdaq.com/articles/heres-average-stock-market-return-under-democratic-and-republican-presidents-hint-it-may

https://www.fool.com/investing/2024/04/02/average-stock-market-return-democrat-republican-pr/

https://123jump.com/Monthly-Returns

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/51

In this episode, I discuss options for managing your TSP after leaving the military: keeping it in the TSP, rolling it over to an IRA or an employer-sponsored plan, or taking a distribution or purchasing an annuity. Keeping it in the TSP is easy and low-cost but offers limited investment options and multiple account management. Rolling it into an IRA provides more investment choices and easier management but can complicate backdoor Roth IRA contributions. Rolling into a new employer’s 401(k) consolidates accounts and preserves Roth IRA opportunities, though fees and options vary. Taking a distribution or buying an annuity offers different benefits and risks, including potential penalties and lower returns. The best choice depends on your personal circumstances and financial goals. Tune in to get a better idea of these options.

Key Takeaways:

• Keeping your TSP where it is can be a simple way to keep costs low and your financial life simple.

• Rolling your TSP into an IRA or 401(k) is a great way to broaden investment opportunities or consolidate accounts.

• Be cautious about taking a distribution from your TSP too soon, before 59 and a half, there can be penalties (though exceptions apply).

• Annuities are a transfer of risk to an insurance company, and can be considered, but the benefits really depend on your goals.

• To keep your TSP open, leave $200 in the account.

• The best decision depends on your situation and goals.

Key Timestamps:

(00:00) - Introduction: What to Do with Your TSP After Leaving the Military

(00:46) - Option 1: Keeping Your TSP in Place

(02:26) - Option 2: Rolling Your TSP to an IRA or Employer Plan

(04:51) - Option 3: Taking a Distribution or Purchasing an Annuity

(06:50) - Conclusion: Making the Best Decision for Your TSP

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, TSP, Roth IRA, 401(k), employer sponsored retirement plans, retirement savings, low cost savings

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/50

I welcome Evan Kaufman from WeVetHomeLoans, a fellow Air Force Academy graduate and economics major, to discuss VA loan refinancing amidst the fluctuating mortgage market. Evan explains the current state of interest rates, specifically for VA loans, and how recent trends have made refinancing particularly advantageous. We cover the unique benefits of the VA Interest Rate Reduction Refinance Loan (IRRRL), also known as 'Uncle Earl,' including no appraisal or income documentation requirements, low costs, and the ability to significantly lower monthly payments. Evan also introduces a newly developed tool from WeVet that helps veterans and active duty members determine their eligibility and potential savings instantly. We emphasize the importance of resetting mortgage rates periodically to maximize financial benefits and offer detailed insights into financial planning strategies for those with VA loans.

Key Takeaways:

• What are the benefits of VA IRRRL (Interest Rate Reduction Refinance Loan)?

• When will I know it’s time to refinance my mortgage?

• How will this affect my long term savings plans?

• Evan covers the tools he offers to notify you when you’re eligible and how you could benefit.

Key Timestamps:

(00:00) - Introduction to Evan Kaufman

(02:53) - Understanding VA Loan Refinancing

(04:16) - Benefits of VA IRRRL (Uncle Earl)

(07:32) - Refinancing Process and Costs

(11:27) - Strategic Considerations for Refinancing

(20:01) - VA Funding Fees and Savings

(20:23) - The Benefits of Refinancing

(21:07) - Calculating Long-Term Savings

(22:21) - Exploring Different Refinance Scenarios

(25:19) - Introducing the VA Loan Rapid Refi Tool

(29:34) - Evan's 20-Year Vision for Clients

(32:42) - Final Thoughts and Contact Information

(35:41) - Conclusion and Resources

Key Topics Discussed:

Erik Baskin, Baskin Financial Planning, BLUF, Bottom Line Up Front, The BLUF Finance Podcast, Military Money Manual, veteran finances, refinancing VA loans, IRRRL, Evan Kaufman

Mentions:

https://wevett.com/

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

www.baskinfp.com/post/49