What Does a Trump Presidency Mean for Your Retirement Plan?
When it comes to retirement planning, policies — not politics — are what truly matter. Every administration brings change, and while some may feel uncertain about what’s ahead, our focus remains the same as always: tracking change and adapting our strategy accordingly. Whether it’s adjusting for tax changes, managing market volatility, or optimizing a Social Security strategy, a proactive and flexible approach helps keep retirement plans on track. Rather than speculate or worry about what might happen, it’s best to focus on facts and adjustments as policies take shape. While it’s impossible to predict everything, here are four areas that could see changes under a Trump presidency — and what they could mean for retirement planning.
will closely monitor portfolio allocations and make adjustments as needed to keep them aligned with your goals and risk tolerance. UPDATES TO RETIREMENT ACCOUNT RULES Legislation in recent years, like the SECURE Act, has already changed retirement account rules, and new adjustments could be introduced.
SOCIAL SECURITY AND MEDICARE ADJUSTMENTS
While Social Security and Medicare are hot topics during election campaigns, major changes require legislative approval and often face significant public and political resistance. Historically, reforms have been incremental rather than sweeping, making drastic shifts unlikely without broad bipartisan support.
However unlikely, funding adjustments could impact benefits or eligibility requirements.
What this could mean: • The required minimum distribution
What this could mean: • Possible changes to benefit calculations or taxation on Social Security income. • Adjusted Medicare costs could affect healthcare planning in retirement. Our approach: We regularly review benefits and build flexibility into retirement plans to help adapt to changes in healthcare benefits. Our technology includes healthcare expense forecasting, allowing us to apply potential adjustments and provide updated projections, ensuring financial strategies remain aligned with evolving policies. MARKET VOLATILITY AND ECONOMIC POLICIES Economic policies, such as trade agreements, regulations, and corporate tax adjustments, can have ripple effects on the stock market. What this could mean: • Some industries may see growth, while others could slow down. • Changes in inflation and interest rates could impact investments and borrowing costs. Our approach: A diversified portfolio and a long-term investment strategy help manage risks and keep you on track toward your retirement goals — regardless of short-term market swings. We
(RMD) age may change again, affecting when withdrawals must begin.
• New policies could impact 401(k) contributions and catch-up
contributions, potentially altering tax- deferred growth periods.
Our approach: Staying up to date with regulatory changes ensures that we adjust your strategies to maximize opportunities while staying compliant. A MEASURED APPROACH TO CHANGE Successful retirement planning isn’t about reacting to every political shift — it’s about maintaining a well-structured plan that can adapt to new circumstances. By prioritizing facts over speculation, we strive to keep retirement strategies aligned with long- term goals while maintaining flexibility for necessary adjustments. Regular review of your financial plan in a changing market and legislative landscape allows for strategic adjustments to capitalize on emerging opportunities and mitigate risks. A flexible approach helps keep your financial plan adaptable to external changes so it continues to align with your objectives. Rest assured, McBeath Financial Group will be by your side, providing guidance and support regardless of any changes that may arise.
POTENTIAL TAX CODE CHANGES Taxes are always a major topic in any
administration, and there could be beneficial shifts in income tax brackets, capital gains taxes, or estate tax rules. One key area to watch is the sunsetting of the Tax Cuts and Jobs Act (TCJA) of 2017, which is set to expire at the end of 2025. Depending on legislative priorities, some provisions may be extended or revised. What this could mean: • Changes in tax rates or deductions could impact retirement withdrawals, Roth conversions, and estate planning strategies. • Tax laws influence how and when to withdraw income from retirement accounts, impacting tax efficiency and long-term wealth management strategies. Our approach: We’ll monitor any tax changes and adjust your strategy as needed to ensure you maximize opportunities while minimizing tax burdens.
2 McBeathFinancialGroup.com
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