Elections have consequences… but they're not what many people think. Investment markets have done well under both Republicans and Democrats.

Both.

And election consequences extend well beyond the top of the ticket. With that in mind, here's how this next election is likely to affect you and your money:

1. Estate tax changes. Current estate tax brackets and rates are set to expire in 2025. Presidents can certainly advocate for tax law changes, but change requires Congress to enact those changes. It will probably take well into 2025 to establish clarity on how these changes will or won't beimpacted.

2. Income tax changes. Both candidates are discussing changes to income tax brackets. Again, this will not be settled definitively in November (or in2024).

3. Regulation changes. If you own a business or are in a professional partnership, regulation changes are likely to occur and will probably affectyou.

4. Investment winners/losers. Since the first debate, markets have already shifted the way some sectors are performing. Policies can be structured to benefit or penalize different segments or sectors of the economy. Expect afurther reshuffling of the investment deck until there is more clarity, and even then, the “shift” will evolve over time, not in a day, week, or month.

5. Knee-jerk reactions. Regardless of the outcome, there may be short-term “wiggles” in the market. Knee-jerk reactions, up or down, can invoke powerful (but temporary) emotions. To counteract the strong desire to make investment changes at precisely the wrong time, it is critical to have a game plan and remember the Three Rules of Investing. A well-thought-out, market-tested, repeatable decision-making process can prevent you from making a bad decision!

Going out on a limb, here are some bold predictions about this election:

1. The election won't be entirely clear on election day. (This was also our prediction in 2020).

2. Whoever wins won’t bring about the arrival of the Four Horsemen of the Apocalypse. Regardless of the rhetoric from both sides, I predict that we can demonstrate good sportsmanship, follow the process, and move forward as a country. (This was also our prediction in 2020).

3. If you have a good game plan, this election will have a similar impact on you that the elections of 1996, 2004, 2012 and many others had on you. (And my guess is that those are all distant memories).

“The best way to predict the future is to create it.” — Peter Drucker

Going into election season, remember that we create our financial future by following the Three Rules of Investing.