The Trump Economy Begins: 3 Things Retirees Should Sell Before Inauguration Day
Written by
Chris Adam
Edited by
Cory Dudak
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President Donald Trump and his administration are likely to have much different priorities than the Biden administration. Specifically, policies concerning financial institutions, the markets, international trade, real estate investments and healthcare may be of particular interest to retirees who are investors. Policies and actions by the president can have a big impact on the overall economy, as well as how stocks and investments perform in reaction to those moves.
With that in mind, GOBankingRates consulted financial experts for advice about things retirees may consider selling before inauguration day. They pointed to three things — bonds and international investments, healthcare-related stocks and real estate holdings.
Diversification Needs
Adam Garcia, a certified financial planner and founder of The Stock Dork, is among financial experts who said retirees should take another look at diversification of their investment portfolios as Trump prepares to take office again. While diversification is commonly an important consideration, Garcia said it’s especially crucial during times of transition in power for the country.
“Under previous administrations, shifts in the economy, such as healthcare policy reforms and tax changes, caused retirees to reconsider their portfolios of assets,” Garcia said. “Since Trump is coming into power, retired people should think about disposing of stocks they have which are speculative or have a high-risk profile so they can shun away wealth from market uncertainties caused by policies.”
Garcia and other experts agreed it’s important to see what policy changes are put in place by Trump once he takes office again.
Bonds, International Investments and Healthcare Stocks
Retiree investors might want to review their positions in sectors likely impacted by policy shifts expected with the Trump administration, said Andrew Lokenauth, money expert and owner of Fluent in Finance.
Trump has talked about his plans for strengthening the economy, including ideas to impose 25% tariffs on products from Mexico and Canada, plus an additional 10% tariffs on goods coming from China. The tariffs, which had been talked about a great deal during the presidential campaigns, are placed on imported goods in an effort to protect domestic manufacturers. It’s just one of the plans Trump has talked about when it comes to the economy.
“I would advise investors to consider evaluating bonds that could be impacted by interest rate changes,” Lokenauth said. “A second piece of advice is to look at international investments that might face trade pressures. Third, think about adjusting healthcare-related stocks due to policy uncertainties.”
Real Estate
In addition to looking at stocks and other investments, it might be time to reconsider your real estate holdings as the Trump economy begins.
“Retaining too much real estate may make the retired population vulnerable to risks if fiscal policies lead to increased interest rates, thereby making it advisable to rebalance portfolios toward assets with more stability, such as treasury bonds or dividend-paying stocks,” Garcia said.
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.
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