Regardless of who wins in November, the wealthy will likely pay more, says Hopkins.
“We’re in a rising tax rate environment,” Hopkins says. “The themes present in this election are going to impact high-net-worth individuals, and looking across party lines that seems to be one thing that Democrats and Republicans can agree on — any reforms are likely to be paid for with taxes on high income people, that’s their revenue source.”
As they retire, baby boomers, like previous generations, become the most influential voting bloc, but as the larger millennial generation becomes eligible to vote, they grow in potential influence.
“They’re active on social media, in tune with the issues and knowledgeable about candidates,” Carbray says. “There is a shift in terms of the electorate, those millennials are going to lead this country. They want big changes, and that’s why I feel it may be a long time before we see a Republican back in the White House.”
The shifting demographics and heated campaigns exacerbate uncertainty, says Cordasco, which is why advisors should proactively engage their clients in political discussions.
“We ask them questions about their views to get them to open up, and our clients want to talk about it,” Cordasco says. “We need to be willing to speak clearly about what might happen if Trump or Clinton are elected. People are scared because they don’t know something. People are worried that someone is going to take something from them, whether it’s guns or other liberties, or a piece of the nest egg. We need to work through that and try to create some clarity for them, and that ultimately builds their comfort level.”
Even though many questions about the candidates and where they stand on retirement issues remain unanswered, Horwitz says advisors should counsel their clients to remain calm.
“We’ve had a lot of these changes, people tend to forget that a lot was done around Medicare in the Bush and Clinton administrations,” Horwitz says. “These changes, for the most part, have been viewed as positive. Advisors should be telling their clients to be informed and to pay attention to what’s going on, but also to go do some objective research of their own. It’s hard to get objective information anymore in terms of what the candidates really stand for.”
At the same time, the heated rhetoric on the campaign trail troubles Horwitz.
“This year is unlike anything I have ever seen, it troubles me that we have such a divided country,” Horwitz says. “The problems we face as a nation are ones that we’re going to have to come together to solve.”