Investors should stay with their long-term financial plans no matter who is in the White House, advisors say

Stocks soared in the days after President-elect Donald Trump won the 2024 election, and the Federal Reserve announced another interest rate cut less than two days later. The Dow Jones Industrial Average, S&P 500 and Nasdaq markets reached record highs and their best week in a year. Yet, Wall Street’s reaction to the election outcome does not reflect how many Americans feel about the state of their personal finances, some financial experts say. “Vibecession,” or the disconnect between the markets, the economy and people’s feelings about their financial standing, continues. Feelings, however, should not overshadow anyone’s focus when assessing the potential impact of a second Trump presidency when it comes to finances, advisors say. “While a new presidency may bring changes to the economic environment, it’s crucial to focus on financial strategies within our control,” said certified financial planner Rianka Dorsainvil, founder and senior wealth advisor at YGC Wealth and a member of the CNBC Financial Advisor Council. “Stick to your long-term financial plan, adjusting only when your personal circumstances or goals change.” Consumers and investors have little or no control over government policies on tariffs, taxes, interest rates or the state of the economy. However, improving your personal economy is possible by taking better control of your money, experts say. Here are five ways to improve your finances:

1. Build an emergency fund

Build up your emergency funds in a high-yield savings account. “Aim for three to six months of living expenses,” Dorsainvil said. “This financial buffer provides peace of mind and stability, regardless of broader economic conditions. It ensures you’re prepared for unexpected expenses or income disruptions.”

2. Increase savings goals

Boost savings goals in accounts that also offer tax breaks. Compare tax advantages of traditional and Roth 401(k) plans and other workplace retirement savings accounts — and Roth IRAs, too. “If you’ve got a 401(k) plan with a matching contribution, if you put it in the stable value fund or the cash option and you put in $100 with each paycheck, you’re ahead of the game,” said CFP Lee Baker, founder of Claris Financial Advisors in Atlanta.

3. Review benefits from employers

During open enrollment, thoroughly review health insurance coverage options and other benefits, including flexible spending accounts and health savings accounts. FSAs and HSAs are tax-advantaged accounts for health expenses. Unlike FSAs that are “use it or lose it” savings vehicles generally for the calendar years, HSA funds roll over from year to year. The account comes with you if you change jobs and HSA money can be invested. HSAs also offer three ways to save on taxes: funds go in pretax, grow tax-free and you can withdraw money to pay for qualified medical expenses without paying taxes on it. “They’re the perfect investment vehicle,” said Baker, who is also a member of the CNBC Financial Advisor Council. “Turbocharging it or putting as much money into as possible has always been our advice to the vast majority of clients.”

4. Pay down debts

If you’re dealing with credit card debt, experts say to take a break from using cards and work with a nonprofit credit counselor to develop a strategy to pay down your debt. You can find one through the National Foundation for Credit Counseling. “By reducing debt, you’re better positioned to adapt to potential changes in interest rates or economic policies,” Dorsainvil said.

5. Look for ‘missing money’

Another option is finding “missing money” or unclaimed assets from accounts you may have forgotten. Search for your “unclaimed property” on the National Association of State Treasurers’ missingmoney.com website or go directly to the state’s unclaimed property office. It may only take a few minutes to fill out a form to claim funds from an old bank or brokerage account. The bottom line: don’t let short-term market reactions or speculative headlines scare you into decisions that may adversely affect your portfolio or wallet, Dorsainvil said. Instead, focus on fundamental financial practices that “provide a solid foundation to navigate any economic environment, regardless of who’s in the White House,” she added.