The Trump Economy Begins: 3 Moves the Upper Class Should Hold Off on Until Trump Takes Office
Written by
Marc Guberti
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
The economy will likely go through a few changes when President-elect Donald Trump returns to the White House. Trump hinted at what he plans to do throughout his campaign. His policies present risks and opportunities, and knowing what’s coming can lead you to better financial decisions.
However, upper class Americans shouldn’t rush to make certain money moves leading up to Trump’s inauguration. Making these money moves can open you up to an unnecessary level of risk. Sometimes, it’s best to wait on the sidelines for just a bit, instead of making significant financial decisions before any policies get passed. These are some of the money moves the upper class should hold off on until Trump takes office.
Not quite upper class? Find out what money moves the middle class should hold off on until after the inauguration.
Overcommitting to Industries Trump Will Support
Trump has proposed several policies that imply which industries he will support. For instance, “drill, baby, drill” is his popular catchphrase that implies more deregulation in the oil industry.
However, that doesn’t mean upper class investors should rush to pour more money into those sectors. Wenyao Hu, Ph. D., assistant professor at the School of Management at the New York Institute of Technology, presented an alternative to pouring too much money into sectors Trump is likely to support.
“Wealthier individuals should not shift their portfolios based on speculation about Trump’s policies. Even though there are anticipated changes in tax policies, it may take time to pass these bills,” he explained. “Moreover, upper-class families should not over-invest in industries like infrastructure, even though Trump has proposed significant spending in that area. Diversifying investments remains key to reducing risks and preserving wealth.”
Waiting for Trump to pass policies in favor of specific industries offers a greater guarantee versus committing to investments before Trump’s inauguration.
Selling Assets
Many investors aim to beat the market and align their portfolios with assets that can benefit from Trump’s second term. However, it’s also possible that some people rush to sell assets that may not benefit from Trump’s return to the White House.
Cameron Burskey, senior partner and managing director of retirement security at Cornerstone Financial Services, explained how selling assets leading up to Trump’s inauguration may be a bad move. “The upper class should avoid selling assets or making changes to their estate plans, as these actions could cause unnecessary tax liabilities. Diversification in your financial portfolio remains key to reducing risk.”
Adam Ferrari, CEO of Phoenix Capital Group, a firm that invests in oil and gas ventures, added, “Hold off on selling assets. … Possible tax breaks under Trump could save you money.”
Rushing To Make Real Estate Deals
Ferrari also urged people to avoid making real estate or business deals before Trump gets sworn into office, because “deregulation may create better terms.”
Better terms from deregulation combined with lower interest rates can lead to higher returns for real estate investors who wait it out. Trump may also opt to lower capital gains taxes in office. He has floated the idea of replacing income taxes with tariffs. Lower tax rates allow you to keep more of your gains, so it may be good to wait and see before committing to any large transaction, especially real estate deals.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
