How The Election Could Impact Your Money

DENVER (CBS4)- The November election is quickly approaching and people may be wondering how each candidate could impact their money. On CBSN Denver, we talked to Alex Leonida, Chief Investment Officer of Capital Financial Group.

"Historically speaking, the stock market doesn't really care if you have a Republican or Democrat in office," says Leonida.

"From a Democrat versus Republican platform perspective, Democrats are learning toward raising taxes. Essentially it's going to affect only 1% of the population so it's not huge. But if you make over $400,000 you're likely to see your income taxes go up.

"On the flipside, they'll likely reinstate state and local tax deductions which could be helpful for people that are looking to write off some more of their mortgage interest."

So what about a Republican in office? Leonida says it will likely be similar to what we are seeing now, which makes things more predictable and more easily understood by corporations.

"It could be a smoother ride over the next six months to a year if we have conservative leadership, but in the long term it's not really going to matter that much."

Over the past few months, more and more businesses have been reopening following COVID-19 restrictions. Leonida says that's had a positive impact on the markets.

"From the economic perspective, reopening has been a positive and you've seen that in states that have opened faster. Their economies have rebounded a little bit faster versus states that have been a little more conservative in their approach."

The pandemic has created much economic uncertainty and has forced many Americans to pinch pennies. Leonida has some advice if you're looking to reduce your financial stress. He recommends taking advantage of the record low interest rates to refinance your home, or even get a home equity line of credit to help consolidate credit card debt.

"Rates are as low as 3% or 4% sometimes on home equity lines versus 17% to 20% on credit cards," says Leonida.

He also recommends having a conservative investment strategy right now to avoid possibly tumultuous markets.

"Being a little more conservative with investment strategies and consolidating debt is hugely helpful in this type of environment."

If you want more information or would like to contact Alex Leonida and Capital Financial Group, you can visit their website, www.CFGfinancialplanning.com or send an email to info@CFGfinancialplanning.com.

Any opinions are those of Alexander Leonida and not necessarily those of RFJS or Raymond James. Investment Advisory Services offered through Capital Financial Group, Inc. Capital Financial Group, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC.