One Month From Today: Trump Takes Office

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.

Housing Costs

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.

Income Tax

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®
President
www.AssuredRetirementGroup.com
952-657-7470

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Article Sources:
http://money.cnn.com/2016/12/06/investing/donald-trump-stocks/
http://thehill.com/homenews/campaign/256851-trump-economic-bubble-about-to-burst
https://www.nahb.org/en/news-and-publications/press-releases/2016/08/trump-vows-to-cut-burdensome-regulations-in-address-to-home-builders.aspx
http://www.constructiondive.com/news/us-homeownership-rate-sinks-to-lowest-level-since-1965/423477/

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.

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