Financial Fitness

3 Investment Moves to Consider Based on U.S. Fiscal Trends

America's debt and budget—and how the U.S. government pays its bills—may impact your investment strategy. Here are three steps to consider.

February 18, 2019

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.

Icon for 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.

Icon for saving more for retirement.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.

Icon for saving more for retirement.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.

 

 

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Additional Resources

Is your portfolio appropriately diverse? Learn more.

How the U.S. government manages its finances may affect your investments. Learn more in the Wells Fargo Investment Institute report “Paying America’s Bills.”

Wells Fargo Investment Institute, Inc. is a registered investment adviser and wholly owned subsidiary of Wells Fargo Bank, N.A., a bank affiliate of Wells Fargo & Company.