Today, we are one month from President-Elect Donald Trump taking office so Assured Retirement Group is taking a look at where we could be as Donald Trump is sworn in.
Since he has no political track record, President-elect Donald Trump is causing uncertainty in financial markets, therefore, many investors have adopted a wait-and-see attitude while they speculate on how his policies will impact the stock market, housing costs and the average American’s financial health.
The Stock Market
On June 2016, President-elect Donald Trump supposedly sold all of his stock, saying that “in a big, fat, ugly bubble” during the first presidential debate, refering to the same stock market bubble he warned The Hill about in 2015 when he warned small investors would suffer losses out in an inflated stock market. Trump’s bubble isn’t evident yet, in the weeks after the election stocks have soared and the Dow Jones Industrial Average registered record closes.
Historically, the stock market’s performance has not been dependent on whether the President is a Republican or a Democrat. Candidates make bold claims while running, however, if Trump not receive support from Congress, he may not be able to implement his objectives. Basing a stock portfolio on who is in the Oval Office is a poor investment strategy.
When Donald Trump spoke to the National Association of Home Builders, he said “Twenty-five percent of the cost of a home is due to regulation. I think we should get that down to about 2 percent.” If the President-elect, whose father build homes, is able to ease over regulation of the home building industry, prices of new homes should decrease. Home ownership is at its lowest rate since 1965, with home builders saying they cannot build affordable new homes due to the added costs of excessive regulations.
In a bit of good news for the average middle-class American, Trump’s promise to cut federal income taxes will likely happen with a Republican-controlled House and Senate, although lawmakers may scale back cuts amid concerns about government debt. Even Forbes is suggesting that if a person can legally delay getting paid for work until 2017, they will pay a lower tax on the income. While employees cannot do this, independent contractors can specify that they would like to receive their payment next year before beginning an end-of year assignment.
Health Insurance Prices
Uncertainty surrounds several of Trump’s proposed policy changes, such as the repeal of the Affordable Care Act. It’s unlikely that he will be able to scrap the Act entirely, nevertheless, Money reports health insurance subsidies will probably go away. Considering that insurers have clauses that allow them to discontinue coverage if the subsidies stop, a number of people may have to shop for new health coverage, however, the mandate to have health insurance will also very likely end.
While it is tempting to go out and Trumpify your portfolio with stock in home builders and defense companies, since Trump also wants to bolster the nation’s military, Assured Retirement Group says that anyone interested in augmenting their long-term savings should do what they have already been doing; namely diversifying their investments and adjusting them to a comfortable risk level each year.
Vincent Oldre, CFP®
Investment advisory services offered through Assured Retirement Financial Group, Inc. a Registered Investment Advisor in the state of Minnesota. Insurance products and services are offered through Assured Retirement Group, Inc. Assured Retirement Financial Group, Inc. and Assured Retirement Group, Inc. are affiliated companies.
Assured Retirement Financial Group, Inc. outgoing and incoming e-mails are electronically archived and subject to review and/or disclosure to someone other than the recipient. We cannot accept requests for securities transactions or other similar instructions through e-mail. We cannot ensure the security of information e-mailed over the Internet, so you should be careful when transmitting confidential information such as account numbers and security holdings. If the reader of this message is not the intended recipient, or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you have received this communication in error, please notify us immediately by replying to this message and deleting it from your computer.
Let's be honest- saving money is certainly not easy. Most of us save a small increment of our checks, and the rest goes to bills and life. In addition, we don't always know the in's and out's and trick to retirement savings accounts. Or what kind of benefits we could...read more
Grandma's house is such a simple place where so many of us have created so many memories. Baking cookies with grandma playing airplane with grandpa, running around in the backyard with our cousins. Making all of these precious memories all because our grandparents...read more
According to the Merriam-Webster dictionary, the definition of retirement is the "withdrawal from one's position or occupation. Or "or from active working life." The other definition is "an act of retiring: the state of being retired." I understand you probably know...read more
How many of us want to retire early? Basically everyone right! Who wouldn't want to retire early, is the real question. But what's an even more vital of a question than that? HOW can you retire early, especially in this economy. Retirement is often viewed as a happy,...read more
If you have not downloaded our FREE Retirement Guide yet, you most certainly should! Get your now by clicking HERE! If you are getting ready for your next phase in life- Retirement- you've come to the right place. It means you have decided to take a more active role...read more
While there are an overabundance of beautiful places in the US to retire, we like to think Minnesota is the best choice! If you already live in Minnesota, and are ever-so-slightly nearing your retirement years, you are leaning towards permanence here right? You likely...read more