As the election season heats up, you will hear more and more promises and claims and counterclaims from the candidates. You might or might not enjoy this political theater, but as an investor you might be concerned over all the talk about taxes, Social Security, Medicare and other financial topics.

Before you adjust your investment strategy in anticipation of actions by Washington, keep a couple of facts in mind. First, few campaign promises become reality. Second, due to our system of government, radical shifts in direction are difficult to implement – which is why so few of them occur.

Still, we might see smaller-scale changes in the near future. In light of these, what investment decisions should you make? Here are a few suggestions:

• Consider owning investments that are taxed in different ways – No one can predict what will happen with income tax rates. Consequently, it may be a good idea to seek tax diversification by owning investments that are taxed in different ways. It’s always a good idea to take advantage of tax-advantaged vehicles such as an individual retirement account and a 401(k) or other employer-sponsored retirement plan.
• Stick with quality – Invest in quality companies with diversified businesses. These companies usually are less dependent on a particular government program and typically have a global reach, so they might be better able to handle any changes implemented in Washington.
• Stay focused on your long-term goals – Politicians come and go, and our political parties seem to take turns holding the reins of power. Yet your long-term goals really don’t change. By realizing that you are largely responsible for achieving your goals, and by following an investment strategy that’s suitable for your risk tolerance and time horizon, you can make gradual but meaningful progress toward those goals
• Review your strategy regularly – With possible changes in tax policies and government programs that can affect your retirement security, you’ll want to review your investment strategy regularly to make sure it’s on track toward your objectives. You may want to seek out more “tax-smart” investment opportunities and always look for ways to increase the assets you’ll need to enjoy the retirement lifestyle you’ve envisioned.

Aside from voting for the candidates who best represent your interests, you might not have much influence over what goes on in Washington. But by “electing” the right moves to help meet your goals, you can have plenty of control over your investment strategy.

This article was prepared by Edward Jones for use by Rocky Speight, an Edward Jones financial adviser in Rocky Mount.