After the Midterms: What Comes Next for Your Financial Plan?
The election changed who controls Congress. It has not changed your financial plan. We don’t yet know what policies the new Congress will pursue or which, if any, may become law. For now, there’s no election-related action you need to take.
Democrats have won control of both the House and the Senate. President Trump remains in office, so the new Congress and the president will need to work together for legislation to become law.
At Emerald Advisors, we’ve guided clients through many changes in Washington and the markets. We’ll continue to monitor the news and any policy proposals that emerge, and we’ll let you know if something could affect your financial plan.
What could happen next?
Federal legislation must pass both chambers of Congress in identical form before being presented to the president, who can sign or veto it.³ With congressional majorities and the presidency held by different parties, agreement across party lines may be necessary to advance legislation that receives presidential approval.
That creates several possibilities: lawmakers could reach agreements on selected issues, negotiate narrower versions of broader proposals, or leave some proposals unresolved. These are potential paths, rather than predictions about which policies will become law.
For planning purposes, avoid assuming either that campaign proposals will be enacted or that divided government means nothing will change. Instead, evaluate specific developments as their provisions, timing, and prospects become clearer.
Separate policy discussions from personal decisions
If a proposal concerns taxes, retirement savings, healthcare costs, or estate planning, start with three questions: Has anything changed? Does it apply to my household? Is there a deadline that requires action?
Consider a hypothetical proposal to change the tax treatment of gifts to family members. Before accelerating a gift, confirm the proposal’s status, review any applicable effective dates, and evaluate how the gift would affect your own financial needs.
Also consider the alternative: If the proposal never becomes law, would you still want to make the gift? Reviewing both scenarios with your financial advisor and qualified tax or legal professional can help you assess the decision.
Keep investment decisions connected to your circumstances
The election provides an opportunity to review your plan, but the outcome alone does not establish which portfolio changes, if any, are appropriate for you.
Your investment time horizon and willingness and ability to accept losses are central considerations in choosing an investment mix.⁴ Are you approaching retirement, preparing for a significant purchase, or facing a change in income? Those circumstances should be part of the discussion before adjusting your investments.
If a change is being considered, evaluate its purpose, potential taxes, transaction costs, and effect on your overall plan. Reviewing your portfolio does not necessarily require making a transaction.
Turn the headlines into a conversation
As the policy agenda develops, consider reviewing your plan under several scenarios, including the possibility that current rules remain in place.
At Emerald Advisors, we welcome your questions. If an election-related development raises concerns about your retirement, investments, or estate-planning priorities, please contact our team. We can help evaluate the financial planning considerations and coordinate with your tax and legal professionals as appropriate.
Sources
- Associated Press. “Democrats Usher in a New Era With Their Resounding Sweep of the House and the Senate.” November 4, 2026. Reported congressional election outcome and divided-government context.
- U.S. Senate. “Constitution of the United States.” Twentieth Amendment, Section 1: beginning of congressional terms.
- U.S. House of Representatives. “The Legislative Process.” Congressional passage and presidential consideration of legislation.
- U.S. Securities and Exchange Commission, Investor.gov. “Asset Allocation and Diversification.” Investment time horizon and risk tolerance.
Emerald Advisors, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
