When it comes to polarizing figures in modern U.S. history, Donald Trump takes center stage. Whether his name makes you smile or frown, there’s no denying the profound impact his presidency had—and could have again—on the economy and your financial future. Let’s explore some actionable insights and potential changes a Trump presidency might bring to your financial planning.
Interest Rates: Highs, Lows, and What They Mean for You
The Biden presidency brought us some of the highest interest rates in decades, creating unique opportunities and challenges:
Benefits of High Rates
- Savers Rejoice: Money markets, CDs, fixed and fixed-indexed annuities, and bonds offered attractive returns. These options provided a safe haven for those wary of riskier investments.
The Downside
- Borrowers Struggle: High rates hurt homeowners with variable-rate mortgages, those relying on home equity lines, and anyone needing loans for cars, businesses, or education.
What Could Change?
Trump has historically been vocal about the Federal Reserve, advocating for lower interest rates. If re-elected, it’s likely he’ll push to bring rates down. Here’s how you can prepare:
- Lock in Current High Rates: Secure the best possible rates on your safe money accounts for as long as you’re comfortable. While short-term promotions may look attractive, they often drop after a few months.
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Taxes: A Potential Game Changer for Retirees
Trump’s stance on taxes has always been clear—he’s no fan of high taxes. His policies could bring significant advantages:
Tax Relief for Retirees
- Social Security Income Penalty: Trump has hinted at eliminating the extra tax seniors pay if their income exceeds certain thresholds. This change could drastically improve retirement income planning.
Opportunities for Tax Planning
- With historically low taxes under a Trump administration, there’s potential for strategic tax planning:
- Roth IRA Conversions: Pay taxes now at lower rates to enjoy tax-free withdrawals later.
- Harvesting Gains: Take advantage of low capital gains taxes to optimize investment strategies.
Don’t wait for tax season—Start your tax-smart planning now.
Peace and Prosperity: The Economic Impact of Avoiding Wars
Trump’s track record shows a preference for avoiding prolonged conflicts, focusing instead on domestic prosperity. This approach could:
- Stabilize Markets: A peaceful environment encourages steady economic growth.
- Reduce Government Spending: Less military involvement means more resources for domestic programs and potential tax cuts.
Actionable Insight: A peaceful period is a prime time to build wealth. Diversify your investments and ensure your portfolio aligns with long-term goals.
What Should You Do Now?
With potential changes on the horizon, preparation is key:
- Evaluate Your Interest-Bearing Accounts: Lock in attractive rates before they drop.
- Reassess Your Tax Strategy: Take advantage of current tax laws to secure future benefits.
- Stay Informed: Monitor economic and political developments that could impact your financial plan.
Special Invitation: Ladies-Only Valentine’s Event
To our Managed Money clients, don’t miss our annual Ladies-Only Valentine’s event at Kalahari! Enjoy a day of pampering, entertainment, and delicious dining. Haven’t received your invitation? Call us today to reserve your spot for you and a guest.
Recipe of the Month
Easy Baked Lemon Chicken
- 4 boneless skinless chicken breasts 3 tablespoons butter
- 1⁄3 cup chicken broth
- 4 tablespoons fresh lemon juice
- 1 tablespoon honey
- 2 teaspoons minced garlic
- 1 teaspoon Italian seasoning
- Salt and pepper to taste
- Fresh rosemary and lemon slices for garnish
- Preheat oven to 400 degrees and grease a baking sheet or large casserole dish.
- Melt butter in a large skillet over medium-high heat. Add chicken and cook chicken 2-3 minutes on each side just until browned. Transfer chicken to prepared baking sheet.
- In a small bowl whisk together chicken broth, lemon juice, honey, garlic, Italian seasoning, and salt and pepper.
- Pour sauce over chicken. Bake 20-30 minutes (closer to 20 for smaller chicken breasts, closer to 30 for larger) until chicken is cooked through.
- Every 5-10 minutes spoon the sauce from the pan over the chicken.
- Garnish with fresh rosemary and lemon slices and serve.
View the Recipe
What's in Season
Hearty produce types are freshest in January. Think cruciferous vegetables like brussels, sprouts and kale, along with beets, leeks, sweet potatoes, and winter squash, including acorn, spaghetti, and butternut. For fruits, opt for citrus types like oranges, grapefruit, tangerines, and lemons.
Thank you for your referrals!
January Gift Card Recipient: Mr. & Mrs. Bill Moyers