America’s debt and budget deficit challenges—and how the U.S. government pays its bills—could have a wide-ranging impact on investors. In light of current U.S. fiscal trends, Wells Fargo Investment Institute recommends considering these three actions that may help you achieve your investment goals.
Consider saving more for retirement.
Along with possible reductions in entitlement benefits or the possibility of a tax hike, health care costs could go up. Increasing the amount you set aside in retirement savings can help offset those expenses in the future.
Fine-tune your investment plan.
Investors who fall short of retirement income goals may opt for more risky asset allocations, which can further increase the impact of market volatility. Work to develop an investment plan that will help you reach your goals and still manage risk.
Diversify your assets.
Unforeseen events and limited fiscal options could have negative consequences on the federal budget. You can better prepare for any possible impact on your investments by diversifying your investment portfolio.