5 Things Boomers Should Do With Their Investments Now That Trump Will Be President
Written by
Heather Altamirano
Edited by
Zuri Anderson
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President-elect Donald Trump will start his second term in just a few weeks, and his policies could affect your finances. While he’s vowed not to tax Social Security and to save the program, other proposals could jeopardize retirement funds.
According to finance experts, here are five things boomers should consider doing with their investments now that Trump is in office.
Prepare for Changes
Once Trump is back in the White House, interest rates could shift, “likely lowering them, which could impact various financial products,” said Matt Logan, certified financial planner (CFP) and founder and CEO of Rise North Capital.
“Boomers should prepare for changes in bank product yields, like CDs and savings accounts, and seek alternatives to counteract inflation. Focusing on personal skill development and maintaining adaptability in the job market will also be crucial as the workforce evolves.”
Take a Three-Step Approach to Managing Finances
Taking precautions to protect your assets and finances is important no matter who is in office, but a move boomers might want to take before Trump takes office again is a three-step approach to financial management.
- Ensure job security: “Investing in personal skills is essential, especially as longevity increases and the job market evolves,” Logan explained. “Enhancing skills can lead to better job security, income potential, and even opportunities for entrepreneurial ventures or side hustles.”
- Build savings and reduce debt: “This financial foundation can prepare boomers to take advantage of opportunities like real estate investments when interest rates drop,” Logan said. “Additionally, refinancing loan rates, such as mortgages, credit cards or student loans, in anticipation of lower interest rates in 2025 could be a strategic financial move. This can help boomers pay off debt more quickly or free up cash flow to allocate toward savings or investments.”
- Explore investment opportunities: “Once savings are secure, exploring strategic investments, including real estate and diversified portfolios, can help boomers align with their long-term financial goals while navigating economic shifts,” Logan added.
Certain Investments Could Be High Risk with Trump
Not every investment will be a safe bet and some could be at a higher risk with Trump.
“Interest rate-dependent products, like CDs and high-yield savings accounts, may be at risk as rates drop,” Logan said. “Boomers should look for alternative investments that provide returns exceeding inflation, ensuring their savings retain value.”
Understand the Financial Risks
Before making any moves regarding investments, Logan recommends talking to a personal finance expert.
“Boomers should take a macro, holistic approach to their finances,” he stated. “Start by assessing income, expenses, assets, and debts, and consult a financial professional to ensure strategic decisions.
“Avoid taking unnecessary risks with retirement funds or major purchases without understanding the ripple effects on overall financial stability.”
Don’t Make Emotional Decisions
With every new administration, it’s understandable to question the impact it could have on your portfolio, but making fleeting choices isn’t always the answer.
“If you have some runway before you retire, then the market fluctuations should generally not prompt you to make hasty moves,” stated Eric Mangold, certified wealth strategist (CWS) and founder of Argosy Wealth Management. “If you are closer to retirement, you may want to consider protecting some of your investments so that any market volatility doesn’t retail your retirement plans.”
Regardless of who the president is, reviewing your portfolio frequently and staying on track to meet your financial goals is vital, as American economist Benjamin Graham, known as the “Father of Value Investing,” famously said.
“The investor’s chief problem, and even his worst enemy, is likely to be himself,” Mangold said. “What he meant is that investors tend to make emotional decisions with their investments. Many times, these emotional decisions can do more harm than good.”
Editor’s note on election 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.
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