Insights

The 2026 Midterm Elections: Five Financial Planning Opportunities to Watch

by Sequoia Financial Group

November 10, 2026

The 2026 midterm elections have reshaped the political landscape in Washington. For investors, retirees and high-net-worth families, the changing balance of power presents an opportunity to revisit financial strategies, evaluate potential legislative changes, and prepare for what comes next.

Following the November 3, 2026, midterm elections, Democrats secured control of the U.S. House of Representatives and Senate. However, with a Republican president retaining veto authority, significant legislative changes remain uncertain. ¹ ²

Rather than attempting to predict Washington’s next move, individuals and families can focus on five financial planning opportunities that may help position them for the years ahead.

1. Reevaluate Tax Planning Strategies

Changes in congressional leadership could renew discussions about income taxes, capital gains, and deductions. However, several provisions of the One Big Beautiful Bill Act (OBBBA) already have scheduled expiration dates.

Deductions for qualified tips, overtime compensation, qualifying car loan interest, and eligible seniors are scheduled to expire after 2028. The expanded state and local tax (SALT) deduction cap is also scheduled to return to $10,000 in 2030.³

Rather than assuming these provisions will be extended, consider evaluating Roth conversions, tax-loss harvesting, capital gains realization and income timing under different tax scenarios. ⁴ ⁵

2. Revisit Estate Planning and Wealth Transfer Strategies

The OBBBA established a permanent federal estate and gift tax exemption of $15 million per individual for 2026, indexed for inflation thereafter. However, permanent under current law does not mean immune to future legislation. ⁶

Depending on future congressional priorities, including those following the 2028 elections, the exemption could change.

Families with substantial estates may benefit from reviewing lifetime gifting, trusts, beneficiary designations and multigenerational wealth transfer strategies with their financial, legal and tax professionals. ⁶ ⁷

3. Explore Tax-Efficient Charitable Giving

Existing tax law changes also create opportunities to reassess philanthropic strategies.

Beginning in 2026, taxpayers who itemize generally face a charitable deduction floor of 0.5% of adjusted gross income. ⁸

For individuals and families considering significant contributions, evaluating the timing and structure of gifts may be worthwhile. Strategies involving donor-advised funds, charitable trusts, or appreciated assets may help align philanthropic objectives with broader tax and estate planning priorities. ⁸ ⁹

4. Reassess Investment Portfolio Positioning

Shifting congressional priorities could influence federal spending, regulations and policies affecting industries such as healthcare, energy, and financial services.

However, election outcomes alone should not dictate investment decisions.

Instead, consider reviewing portfolio concentration, diversification, asset allocation, and tax-efficient rebalancing. Maintaining an investment strategy aligned with your goals, time horizons, and risk tolerance remains essential regardless of political developments. ¹⁰ ¹¹

5. Review Retirement Income and Healthcare Planning

Potential policy discussions involving Social Security, Medicare, and healthcare affordability could influence long-term retirement planning.

Meanwhile, existing healthcare costs and insurance premium considerations already warrant attention. ¹² ¹³

Individuals approaching or navigating retirement may benefit from reviewing Social Security claiming strategies, required minimum distributions, withdrawal sequencing, and projected healthcare expenses. ¹⁴ ¹⁵

Coordinating these decisions can help support a more sustainable retirement income strategy.

Financial Planning That’s BUILT FOR YOU

Elections may change the policy landscape, but effective financial planning shouldn’t depend on political predictions.

At Sequoia Financial Group, our BUILT FOR YOU approach integrates investment management, retirement planning, tax-aware strategies, estate planning considerations, and risk management into a coordinated financial strategy.

By working with your Sequoia team, you can evaluate potential changes, identify opportunities, and make informed decisions based on what matters most: your goals, priorities, and financial future.

Sources

Associated Press — Calling Control of Congress in the 2026 Midterm Elections
Associated Press — Democrats Win the US House and Senate
Internal Revenue Service — Working Families Tax Cuts: Individuals and Workers
Internal Revenue Service — Retirement Plans FAQs Regarding IRAs
Internal Revenue Service — Publication 550: Investment Income and Expenses
Internal Revenue Service — What’s New: Estate and Gift Tax
Internal Revenue Service — Frequently Asked Questions on Gift Taxes
Bipartisan Policy Center — The One Big Beautiful Bill Act’s Changes to Charitable Deductions
Internal Revenue Service — Donor-Advised Funds
U.S. Securities and Exchange Commission — Beginner’s Guide to Asset Allocation, Diversification, and Rebalancing
U.S. Securities and Exchange Commission — Asset Allocation and Diversification
HealthCare.gov — How to Save Money on Monthly Health Insurance Premiums
Medicare — Medicare Costs
Social Security Administration — Delayed Retirement Credits
Internal Revenue Service — Retirement Plan and IRA Required Minimum Distributions FAQs

The views expressed represent the opinion of Sequoia Financial Group. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Sequoia believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and Sequoia’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. Past performance is not an indication of future results. Investment advisory services offered through Sequoia Financial Advisors, LLC, an SEC Registered Investment Advisor. Registration as an investment advisor does not imply a certain level of skill or training.