The Trump Economy Begins: 4 Moves Boomers Should Hold Off on Until Trump Takes Office
Written by
Daria Uhlig
Edited by
Levi Leidy
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Historically, the transition from one presidential administration to another has had little impact on the market, as a recent market data review by U.S. Bank showed. Still, uncertainty over how a new president’s policies might affect individuals’ wallets and the economy as a whole leaves many Americans looking for ways to safeguard their money. That’s especially true for baby boomers, who are either at or quickly approaching retirement age.
Complicating matters this time around are the sweeping changes President-elect Donald J. Trump hopes to implement. From mass deportations of undocumented migrants, to tariffs on foreign imports, to shunning Biden-era clean-energy initiatives in favor of increased production of fossil fuels, a Trump economy could signal a radical departure from currentpolicies.
Whether you’re optimistic about Trump’s proposals or fear for what the next four years might hold, what you don’t do with your money can have a significant impact on your finances.
GOBankingRates spoke with Monique Hayes, an estate and succession planning attorney and partner at DGIM Law in South Florida, about money moves boomers should hold off on until Trump takes office.
Making Drastic Changes to Your Portfolio
Hayes acknowledged the anxiety some boomers might have about how Trump’s tariff, clean energy and other policies might impact stocks in the affected industries.
“It could be tempting to dump stock or modify investment holdings to avoid losses,” Hayes noted. “But it’s really too soon to tell which policies will actually be enacted and what the market response would be.”
However, Hayes did offer one type of change you might make in the interim — diversifying your portfolio, which she said should still be a priority.
Changing Your Investment Strategy
Just as this is a bad time to sell off or load up on stocks in anticipation of a particular market response to Trump’s policies, it’s also a bad time to change your overall strategy — unless that strategy is to diversify your portfolio.
Diversity should be a priority, according to Hayes.
With that in mind, consider how your portfolio is allocated across stocks, bonds and cash. As the Securities and Exchange Commission notes, when one of these categories performs poorly, another typically performs well.
Making Major Purchases
Trump’s threats to impose tariffs on imported goods has led some pundits to encourage Americans to make any big-ticket purchases they’re planning before he takes office. Hayes, on the other hand, recommends sitting tight for now.
“Many are cautioning against major purchases (imported cars and appliances, for example) in exposed industries until market impact is settled post-inauguration,” she said.
It’s also a good idea to avoid stockpiling less-expensive items, according to Scott Lincicome, vice president of general economics at the Cato Institute. Lincicome told CNN that in addition to diverting money you might use for other things, stockpiling can actually drive up prices, as happened during the pandemic.
Modify Estate Planning Because of Tax Concerns
Trump’s 2017 Tax Cuts and Jobs Act reduced personal income tax rates and doubled the exclusion for federal estate and gift taxes. Among estate planners, a major concern before the election was whether the cuts would be extended beyond Dec. 31, 2025, the scheduled sunset date.
“Now that we are clear on the president and Congress, there is less of an urgency to modify estate plans solely for tax purposes,” Hayes said.
What Should Boomers Do Now?
Hayes said her best recommendation is diversification and a wait-and-see approach.
“We won’t have an all-clear until trade policies and tax legislation are enacted. But the first 100 days of President Trump’s term is when I anticipate clarity on these priorities,” she said.
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