Allworth Advice | Will Biden or Trump be better for the economy?

Which presidential candidate would be better for the economy?

Every week, Allworth Financial’s Amy Wagner and Steve Hruby, CFP, answer your questions. If you, a friend, or someone in your family has a money issue or problem, feel free to send those questions to yourmoney@enquirer.com.

Gordon in Highland Heights: Who will be better for the economy? Trump or Biden?

Answer: This is a question that will no doubt keep coming up between now and November. But in this hyper-partisan era we all now live in, it’s important to take a step back and look at things through the lens of data, not through the lens of politics.

There are two big factors that affect the economy. The first – and most significant – is consumer spending, i.e., how much cash you, your friends, your family, and your neighbors are infusing into the economy. This makes up 70 percent of the country’s economic output (what’s called Gross Domestic Product, or GDP). This then is driven by bank lending standards, inflation, interest rates, the job market, and corporate profits, among other things.

The next-biggest factor is government spending (17 percent). And yes, this is where the hot-button issue of deficit spending and the debt level come into play. But here’s the thing – while both parties have acknowledged the importance of managing the country’s debt, the total amount of debt has regularly increased regardless of who is in the White House.

Similarly, our data at Allworth shows that the economy has expanded every four-year period going back to the 1949 inauguration date. This is key. What this tells us is that, over the last 50 years, the economy has grownregardless of who is in the White House.

Sensing a theme?

Here’s the Allworth Advice: We know that emotions will be running high this year as election season starts to ramp up. But you need to check your political affiliation at the door when it comes to your retirement plan and investments. Because while there may be market turbulence in the short-term depending on the outcome, keep in mind there are market ups and downs in non-election years as well. And even more importantly, the data shows that over the long run, stocks (on the whole) and the economy are relatively indifferent to the president’s party.

Caroline in Cincinnati: Is pet insurance worth it?

Answer: We all love our furry friends, but wow, they can be expensive. In fact, a recent Forbes analysis found that essential dog expenses – for things like vet care, grooming, toys, boarding, etc. – can cost more than $1,500 annually (cats are a little less expensive). And if you take Fido to doggie daycare twice a week? You’re likely going to spend almost an additional $3,000 per year on average. And of course, unexpected bills can pop up, too – like an emergency trip to the vet.

If you don’t have room in your budget to deal with these kinds of expenses, pet insurance could be worth it. The average monthly premium is about $50 a month for dogs and $30 for cats, according to the North American Pet Health Insurance Association. But if that’s too steep, you could consider getting an "accident-only" plan (that should cut the monthly premium in about half). You could also raise your deductible. And enrolling your pet when they’re younger will also help cut down on costs.

The Allworth Advice is that buying pet insurance can be a smart move depending on your financial situation and your pet’s overall age and health. Just don’t forget to shop around. Kiplinger’s recommends using a site like PawlicyAdvisor or PetInsuranceQuotes.com to compare policies.

Responses are for informational purposes only and individuals should consider whether any general recommendation in these responses are suitable for their particular circumstances based on investment objectives, financial situation and needs. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing, including a tax advisor and/or attorney. Retirement planning services offered through Allworth Financial a SEC Registered Investment Advisor. Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Visit allworthfinancial.com or call (513) 469-7500.

This article originally appeared on Cincinnati Enquirer: Will Biden or Trump be better for the economy? Allworth Advice