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Political headlines can feel relentless and it’s not unusual for money worries to spike when the news cycle turns heated. From market volatility to policy uncertainty, constant updates can create pressure to act quickly, even when acting isn’t the smartest move.
Financial planners say the key is separating emotional reactions from sound financial decision-making. GOBankingRates spoke with financial planners about how to stay grounded when the news gets overwhelming. Here are some tips to manage stress when there are political headlines with financial implications all around you.
When political headlines feel chaotic, financial planners say it’s important to remember why the financial plan exists in the first place.
According to Christopher Stroup, certified financial planner (CFP) and the founder and president of Silicon Beach Financial, a solid financial plan is built to handle uncertainty.
“Markets, policy shifts and political cycles are always changing,” Stroup said. “A strong plan already assumes volatility, so our focus stays on long-term goals and personal priorities, not short-term headlines.”
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When headlines trigger anxiety, it’s easy to feel like doing something financially will restore control.
“The most common mistake is making a reactive move just to feel in control,” Stroup said. “Selling investments, stockpiling cash or chasing whatever looks ‘safe’ in the moment often locks in losses and disrupts long-term growth. Emotional decisions usually create permanent financial consequences.”
Political news can make market swings feel urgent and personal, especially during elections , foreign policy moves or major policy debates. However, financial planners said that reacting to headlines by overhauling your investments can create long-term damage.
“Panic-selling your stocks or drastically changing your asset allocation based on the outcome of an election or news about some policy,” is a common mistake, according to Hanna Horvath, CFP and financial psychology expert at Your Brain on Money.
“Everything is priced into the market already, even dramatic policy shifts,” Horvath said. “The cost of being out of the market while waiting for perfect clarity on something always exceeds the cost of staying invested through uncertainty.”
Political news can sound urgent, but financial planners say not every headline translates into a real financial change for individuals or markets.
One practical way to manage stress is to look at whether the news actually alters everyday spending, earning or financial behavior.
Stephen Wagner, CFP and owner of Integrity Wealth Advisors, said he starts by asking clients whether headlines are changing anything about their daily routines.
“Are you still going to work tomorrow, planning that vacation, paying for services or ordering from Amazon?” he said.
“If nothing in your routine changes, the market probably won’t either. Political headlines can be loud, but unless they change what people actually do with their money, the market tends to move on pretty quickly,” Wagner explained.
Headlines often blur the line between confirmed developments and what might happen next, which can make financial decisions feel more urgent than they are. Financial planners say slowing down the decision-making process can help investors avoid reacting to uncertainty instead of facts.
Derek Brainard, CFP and director of financial education at AccessLex Institute, said he encourages clients to pause before responding to the news.
“I like to ask questions to assess whether the news is based on actual change in law or regulatory guidance or if it’s just speculation. Then, walk through possible outcomes together before making any decisions,” Brainard said.
“This can help them process decisions past the emotional response that triggers them, leading them to the course of action that increases their subjective sense of satisfaction with their current plan,” he added.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: I’m a Financial Planner: Here Are 5 Tips To Manage Stress From Political Headlines