What Trump’s Return to the White House Could Mean for Your Finances

Taxes: Could We See More Tax Cuts? 

One of Trump’s big wins during his first term was the Tax Cuts and Jobs Act of 2017, which lowered taxes for both individuals and businesses. Those tax cuts are set to expire after 2025, but now that he’s back, there’s a good chance he’ll push to extend them or make them permanent. We might also see new proposals aimed at reducing taxes for families and small business owners. 

This could be good news if you’re in a higher income bracket or run a small business. On the other hand, these cuts could lead to bigger budget deficits, which might mean less funding for public services down the road. 

Market Ups and Downs: A Return to Volatility? 

Trump’s leadership style is anything but predictable, and that can make markets a bit jumpy. During his first term, we saw big swings tied to trade disputes, tariffs, and sudden policy changes. His pro-business stance might boost corporate earnings, but any surprises—especially related to foreign policy—could lead to short-term market ups and downs. 

It’s natural to feel anxious during uncertain times, but it’s important to remember that the market is built to handle these ups and downs. Staying calm and sticking to a solid, diversified strategy can help you weather whatever comes. 

Inflation and Interest Rates: What to Expect 

Inflation and interest rates are on everyone’s mind these days. Trump has been vocal in the past about preferring lower interest rates to boost economic growth. While this could be good news for borrowers, it might also risk pushing inflation even higher if rates drop too quickly. 

Balancing economic growth with keeping inflation under control is no easy task. Lower rates can mean cheaper borrowing, but they can also mean lower returns on safer investments like bonds. 

Healthcare: What Changes Could Be Coming? 

Healthcare was a major focus during Trump’s first term, and it’s likely we’ll see more efforts to reform the Affordable Care Act (ACA). He might push for changes aimed at cutting costs, making pricing more transparent, or expanding Health Savings Accounts (HSAs). 

If you’re nearing retirement or rely on Medicare, any policy changes could affect your coverage and out-of-pocket expenses. It’s a good idea to stay informed and review your options regularly. 

Social Security and Retirement Planning: Possible Reforms 

Social Security is facing financial challenges, and while Trump didn’t make major changes during his first term, he might focus more on it this time around. Reforms could include changes to the payroll tax cap or benefit formulas, which could impact future payouts. 

If you’re getting ready to retire or already collecting benefits, it’s natural to worry about these changes. But remember, any reforms will likely be phased in slowly, giving us time to adjust your plan as needed. 

Trade Policies and Tariffs: What to Watch For 

Trump’s first term saw a strong focus on trade reform, including tariffs on imported goods as part of his “America First” agenda. These moves aimed to boost domestic manufacturing and reduce the trade deficit, particularly with China. Now that Trump’s back, we might see more of the same, with new tariffs or a return to those lifted in recent years. 

While tariffs can help protect American industries, they can also lead to higher prices for consumers and increased costs for businesses that rely on imported goods. Key sectors like manufacturing, agriculture, and technology could see the biggest impacts. 

Immigration Policy: Potential Changes and Economic Impact 

Immigration was another major focus during Trump’s first term, and it’s likely we’ll see efforts to tighten immigration policies again. This might mean restrictions on work visas, increased border enforcement, and changes to asylum policies. 

Many industries—like agriculture, construction, and technology—depend on immigrant labor. Stricter policies could lead to labor shortages, which in turn might drive up wages and lead to higher prices for goods and services. 

The Big Picture: Balancing Risks and Opportunities 

A Trump administration brings both opportunities and challenges. We might see policies aimed at boosting domestic production, cutting regulations, and growing jobs, but there could also be bumps along the way, especially if changes come quickly. 

At Allworth Financial, our job is to help you stay steady through it all. We’re here to make sense of what’s happening, help you make smart choices, and keep your financial plan on track. 

No matter what Washington does next, our focus remains the same: helping you reach your financial goals with confidence and peace of mind. If you have questions or want to talk through how these changes might impact you, don’t hesitate to reach out. Together, we’ll make sure you’re ready for whatever comes next.