Should You Change Your Investments Before the 2026 Midterms? What Advisors Say
The midterm elections are rapidly approaching, and many investors are making changes to their portfolios in anticipation. New research from the Nationwide Retirement Institute found that 3 in 4 investors believe the midterm election outcome could meaningfully affect their long-term financial plan, and 4 in 10 have already changed their retirement savings or portfolio in anticipation.
But do financial professionals believe these changes are warranted? Here's what financial advisors recommend doing ahead of Election Day.
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Most Financial Advisors Say Not To Change Your Strategy
Although investors are making anticipatory changes, most financial advisors advise against it. More than 6 in 10 advisors (63%) say that in an election year, the best course of action is not to change investment strategies.
"Taking a step back, history offers an instructive perspective," said Mark Hackett, chief market strategist for Nationwide's Investment Management Group. "First, we know volatility tends to rise as investors grapple with uncertainty around the policy path for the remainder of the presidential cycle, but that uncertainty has rewarded the long-term investor, not the emotionally reactive investor.
"Second, history shows that midterm years often bring larger-than-average market swings and meaningful drawdowns, which can tempt investors to react to the headlines."
He continued, "Yet history also suggests that some of the strongest returns have come after elections, as uncertainty fades and investors refocus on corporate fundamentals."
Long-term market performance has historically been driven more by factors like corporate profits, labor market strength, valuations and capital investment than by election results themselves. That's why many advisors caution against making emotionally driven portfolio changes and instead encourage investors to stay focused on their long-term goals.
"Markets don't require investors to predict elections to build wealth," Hackett said. "They require investors to endure uncertainty long enough to capture long-term gains. That's why many advisors believe staying committed to a long-term plan is often more valuable than repositioning a portfolio in response to election-year headlines."
He added that since 1950, the S&P 500 has risen 100% of the time in the six- and 12-month periods following elections, generating average returns of 13% and 14%, respectively.
What Financial Advisors Recommend Before the 2026 Midterm Elections
While most advisors aren't recommending major portfolio changes, many are encouraging investors to revisit key elements of their financial plans that can support long-term goals regardless of election outcomes.
Build More Tax-Efficient Retirement Income
Nine in 10 advisors (90%) have increased focus on incorporating tax-efficient retirement income solutions for clients.
"Taxes are one of the few retirement variables advisors can actively manage, regardless of which party is in power," Hackett said. "A stronger focus on tax-efficient retirement income planning helps clients keep more of what they’ve earned. By building assets across taxable, tax-deferred and tax-free accounts, you can help your clients adjust where income comes from each year instead of having them be locked into one solution, giving them flexibility no matter how tax laws, tax rates or economic conditions change."
Maintain a Diversified Portfolio
Most advisors (88%) are focusing on asset diversification.
"No matter which party wins an election, markets, interest rates, inflation and geopolitical events remain unpredictable," Hackett said. "A diversified portfolio helps clients avoid making retirement outcomes dependent on any single asset class, sector or economic scenario."
History shows that discipline, not politics, often drives long-term investing success.
"It is very understandable that election cycles can create anxiety and uncertainty about the path forward, but they also provide a valuable opportunity to revisit your portfolio, reassess risk tolerance and ensure allocations remain aligned with your long-term goals," Hackett said. "Rather than trying to guess which sectors or asset classes may benefit from a particular election result, maintaining a diversified portfolio can help investors navigate a range of potential outcomes while reducing reliance on any single market theme."
Consider Guaranteed Retirement Income Sources
According to the research, 84% of advisors are increasing their focus on identifying guaranteed income solutions for clients.
"Guaranteed income solutions can help investors address one of their biggest financial risks: outliving their assets," Hackett said. "That challenge exists regardless of which party controls Washington. Solutions like annuities, which can provide guaranteed income regardless of how long someone lives, can help provide confidence and stability through changing political and market environments."
Guaranteed income solutions can also help address election-related anxiety by providing greater certainty around retirement cash flow, allowing investors to focus less on election outcomes and more on their long-term financial future.
Editor’s note on political coverage: MoneyLion is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories.
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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