Jan 29, 2026
If your wallet feels like it’s riding a rollercoaster with every news headline out of Washington, you’re not alone.
A new CFP Board survey found that politics is Americans’ top money-related fear (46%), outranking inflation (39%), market stability (34%) and rising health care costs (33%) (1).
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Here’s why political stress is now at the forefront of financial planning conversations, and how you can keep calm when the headlines feel overwhelming.
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Politics and money
According to the planners surveyed, many political fears stem from uncertainty over tax policy changes, a number of which are tied to President Donald Trump’s new “big beautiful bill,” and questions about the impact of tariffs.
“A lot of people were attaching their outlook to overall economic and political conditions,” Kevin Roth, the CFP Board’s managing director of research, told CNBC (2). He added that the level of uncertainty clients are feeling caused by politics and economics is “creeping up.”
At the same time, consumer confidence is low. The Conference Board’s Consumer Confidence Index fell sharply in January following a small uptick in December — which was preceded by months of decline (3).
Between a recent federal government shutdown, shifting tariff policies and a changing tax system, many people may feel compelled to act to safeguard their savings. But experts warn that this kind of headline-driven thinking can do real damage. Knee-jerk moves tied to political news can end up hurting long-term results.
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When you get spooked by breaking news
Most CFPs (80%) surveyed by the CFP Board say their clients still expect to hit their long-term goals, even if they're feeling a little more on edge lately. This signals that financial stability isn’t built on political forecasts, but on solid planning.
“While political developments often bring uncertainty, successful investors know that long-term strategy, not short-term noise, should guide portfolio decisions,” Jimmy Lee, founder and CEO of The Wealth Consulting Group, wrote for Kiplinger in an article published Aug. 6 (4). “Politics might move markets day-to-day, but fundamentals drive performance over time.”
Here are some key fundamentals that should always be part of your portfolio planning.
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Have a diversified portfolio: This is probably the most common advice given to investors, and for good reason. A mix of stocks, bonds and other assets can mitigate risk from political shifts. Even diversity within equities can be helpful.
Take emotion out of investing: Another common tip. Don’t let short-term reactions impact long-term outlooks. If necessary, give yourself a “cooling-off period” to calm your nerves and conduct further research before making major financial decisions.
Use a rules-based, automatic system: Automating your investments, such as setting automatic contributions each month, in-line with your long-term goals can help ensure you don’t make decisions under stress.
Build buffers that can handle policy changes: It’s normal for taxes, benefits and economic conditions to shift. Having a solid emergency fund and a well-defined long-term plan can help you absorb those changes without having to scramble.
Political ups and downs may be inevitable, but they shouldn’t dictate your financial life. With a grounded plan, patience and some guardrails against making emotional decisions, you’ll be better prepared to handle shutdowns, tariffs, elections and other unpredictable moments.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CFP Board (1); CNBC (2); The Conference Board (3); Kiplinger (4)
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Freelance writer with an economic development and consulting background.
