| Few topics combine as many taboos you shouldn't talk about in polite conversation as political donations. There's politics. There's money. And for a fair few people, there's religion, too. But the subject burst into the fray this week with the surprise shakeup of the race to the White House. Many US voters donated for the first time. Many did so earlier than they normally would in an election cycle, too. Financial advisers say that's all well and good, but whichever party you decide to back, your contributions should fit into a well crafted plan. Before we dig into all that… Three things to know: - The cost-of-living crisis is taking a toll on sales of food, cars, luxury.
- Markets are tearing up the popular trades that reached 'stupid levels'.
- Amex Gold card refresh features new perks for Resy, Dunkin'.
…back to your money — and your politics. Two of my colleagues did a great job of spelling out how to donate to presidential campaigns in this story. They cover campaign finance laws, tax implications and the importance of budgeting before you give. One point that really struck me: Don't forget to check that making a donation won't create any problems for you at work. "Contractors for the federal government and some people involved in the financial services industry are prohibited from making contributions connected to federal elections," they wrote. "Also, remember that your donation may be part of the public record." I called up a few financial advisers to talk about donations as well, and a big theme kept coming up time and time again. It's that politics brings out our emotional side. But we have to stay logical in order to avoid wreaking havoc on our portfolio or financial plans. "While this presidential election feels to have the weight of the world behind it, it is just a basic input that the markets evaluate constantly along with a million other inputs," said Andrew Cook, partner and director of investment management at financial planning firm Berman McAleer. "A responsible allocation should have no bearing on the upcoming election. Therefore, if your allocation is appropriate prior to the election, it should be just as appropriate after the election even though it feels like changes are necessary." What's more, many advisers say making dramatic moves in your allocations of stocks, bonds and cash would be premature at this point. Remember: Vice President Kamala Harris has only even been a contender for the White House for a few days, and hasn't formally nabbed the nomination.  US Vice President Kamala Harris during a campaign event in Milwaukee. Photographer: Daniel Steinle/Bloomberg "It's surely too early to start changing anything around based on who's getting elected," Dennis Nolte, financial consultant with Seacoast Investment Services, told my colleague. "If one party sweeps, there might be a leaning towards greater regulation, tax relief or wealth redistribution. And perhaps there will be a reason to look at international versus domestic asset allocation based upon a falling dollar, higher tariffs, or whatever. But it'll take awhile to figure it out, and no one I know can predict that kind of future." No one I know can, either. What I do know is that as the race ratchets up, it's important to keep calm, keep cool and try to keep these conversations civil. — Charlie Wells Send questions about your own financial decisions to bbgwealth@bloomberg.net What's the biggest real-estate mistake you see couples make? Mark Struthers, financial planner at Sona Wealth writes: The biggest money mistake I see couples make is buying too much house. Buying a home is an emotional decision, and getting carried away is easy. Ignoring or cherry-picking facts to justify a pre-determined emotional decision is natural. Mortgage and real estate agents often don't care about a couple's college or retirement plans or the ability to take advantage of the company match. And most often, they would rather see an emergency fund spent on an extra bedroom than as a backup for a job loss. As a result, what is approved is usually good for them rather than the couple. The amount of house purchased should be based on goals, values, and personal risk profile, not maxing out the monthly payroll check. Also, I've never run into a couple who spent less than expected on new furniture, repair, and remodeling for a new home — nesting is a powerful emotion. Plan for it. Don't be house-rich and cash poor.
This week, we're looking to speak with people who have put off financing a major purchase (a car, a home, etc.) until interest rates come down but no longer feel they can wait. Some of our best journalism at Bloomberg Wealth comes from your own stories and we'd love to hear from you, your friends or clients. Please email bbgwealth@bloomberg.net to share.  The Yamashiro restaurant in Hollywood, California. Source: Avison Young Bringing together leaders at the intersection of sports, business and technology, this half-day experience at Bloomberg headquarters in New York on Sept. 5 will deliver exclusive perspectives on innovations and strategies disrupting the industry landscape. Join us for forward-thinking conversations, forge strategic partnerships and gain insight that will empower you to stay ahead of the game. Get your discounted passes now. | 
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