I’m a Financial Planner: 4 Moves My Middle-Class Clients Are Making Under Trump
Written by
Kerra Bolton
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
With President Donald Trump back in the White House, middle-class investors are reassessing their financial strategies.
“Concerns include market volatility due to trade wars and possible inflation from tariffs,” said Christopher Stroup, founder and president of Silicon Beach Financial.
Some middle-class investors are working with financial planners to rethink their portfolios, retirement plans and spending habits to combat economic uncertainty, market volatility and shifting tax policies. GOBanking Rates spoke to two financial planners about the four money moves their clients are making under Trump.
Building Tax-Efficient Portfolios
Many middle-class clients are focusing on building tax-efficient portfolios, taking advantage of Trump’s prior tax cuts while they last.
“Current tax strategies focus on capitalizing on deductions from existing tax reforms, which is especially important for the self-employed and business owners,” Stroup said.
Many tax provisions affecting middle-class taxpayers are set to expire at the end of 2025, including reduced marginal tax rates, the nearly doubled standard deduction and the cap on state and local tax (SALT) deductions.
Both the House and Senate have proposed legislation totaling over $4 trillion in tax cuts, aiming to make many of Trump’s tax reductions permanent. However, while the House narrowly passed its version, Senate Republicans have raised concerns about the national debt and the need for spending cuts to offset tax reductions, Reuters reported.
Adjusting Retirement Strategies
Financial experts report mixed reactions among middle-class clients regarding retirement planning.
“Many clients are maxing out their retirement accounts to take advantage of tax-deferred benefits,” Stroup said. “When it comes to savings, the focus is on ensuring an appropriate cash reserve for emergencies while directing excess funds into the stock market for long-term growth.”
However, some investors are taking a different approach. Jason DeLorenzo, a registered investment advisor (RIA) and principal at Volland, an online forecasting tool for options market liquidity, noted a shift among his clients.
“There’s a growing number of middle-class clients pulling out of IRA accounts early,” DeLorenzo said. “Many feel their current income levels are unsustainable in an inflationary economy.”
Bracing for Impact
DeLorenzo, who specializes in risk control through options trading, sees middle-class clients divided into two groups.
“Some middle-class clients with stable income streams are getting more defensive, preparing for the potential economic impact of Trump’s policies,” he said.
However, others are feeling financial pressure and looking to take bigger risks.
“A growing number of middle-class Americans feel cornered and want to accelerate their risk out of desperation,” DeLorenzo added. “I encourage these clients to explore alternative strategies to manage their financial anxiety.”
Finding Opportunities
Despite concerns, some middle-class investors are actively seeking opportunities within Trump’s second-term policies.
“Opportunities lie in executing tax-efficient strategies, including investing in opportunity zones and sectors benefiting from deregulation, such as energy and infrastructure,” Stroup said.
In February, President Trump signed an executive order establishing a National Energy Dominance Council, aimed at boosting fossil fuel production by reviving pipeline projects and reducing environmental oversight. Middle-class investors could benefit from the administration’s broader deregulation efforts, particularly in oil, gas and coal sectors, which may experience growth under relaxed policies.
As economic policies evolve, financial advisors are working with middle-class clients to navigate both challenges and opportunities, ensuring their investments align with changing market conditions.
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
