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Created: November 16, 2024
Modified: November 18, 2024
Outlet: FOX61

How to Financially Plan for a New Presidential Administration

A new presidential administration is set to take office next year, and while there are a lot of uncertainties around what a second Trump term could bring, it’s important to stay the course in your journey to retirement.

Heath Grossman, CFP® joined Tim Lammers on FOX61 to explain why you should remain focused on long-term financial planning amidst political shifts.

Refrain from Being Reactive

Historically, the stock market has a strong track record of long-term success regardless of short-term political changes. No matter how you feel about the election results, avoid letting it influence your financial decisions in retirement. We don’t know what will happen in the next four years, but being reactive could have consequences. When it comes to politics and your overall retirement and investment strategy, it helps to stay agnostic.

Consider Tax Implications

With the incoming administration, there is some level of financial planning predictability regarding taxes. If current tax policies remain unchanged, we can expect tax rates to remain low, as they have been in recent years. Even so, you should consider strategies within your own retirement plan to reduce your lifetime tax obligation, such as Roth conversions or tax-efficient gifting. The possibility of other economic promises such as tariffs remains to be seen. In general, potential shifts in policy should not be the focus when planning for retirement.

Build a Retirement Income Plan

You want to create a retirement income plan that’s specific to who you are and what you want out of this next phase in your life. Consider when you want to retire, what type of lifestyle you want to lead, where your income will come from, your risk tolerance, and so on. The first step is to do an inventory of all your current savings. This may include a pension, Social Security, retirement accounts like a 401(k), or personal savings.

Next, evaluate what your monthly expenses will be. We don’t necessarily mean budgeting but knowing how much income you will need each month to cover costs is essential to maintaining your desired lifestyle in retirement. With the guidance of a financial advisor, you can craft a comprehensive retirement income plan that leaves nothing to chance.

Evaluate Your Investment Strategy

To navigate market volatility and maintain a stable stream of income in retirement, you will likely need to adjust your investment strategy. What once served you in your 30s and 40s may no longer be applicable to your current objectives. As you approach retirement, the overall goal is to reasonably grow your money and strive for steady and consistent performance.

By speaking with a financial advisor, you can determine what rate of return you’ll need. You may discover you need to target a 5 to 8% rate of return, or if you’ve been a diligent saver, you may be able to rely on lower risk investments. Knowing your risk tolerance is key to adding longevity to your investment portfolio.

In Conclusion: Stay the Course

Making rash financial decisions in response to a new administration could derail your retirement plans. Instead, consult with your financial advisor to regularly assess your goals and address any concerns that may arise. While no one can predict exactly what will happen in the future, we encourage you to focus on the long-term and keep moving forward.

Click here to watch the full video with Johnson Brunetti Partner, Heath Grossman, CFP®, on FOX61.

Information presented here is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.

Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.

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