We have a new President, forthcoming policies, and are about to welcome 2017. Just the perfect time to look back to our financial documents and make the necessary changes. Though exact financial forecast is not possible, we can at least change our financial portfolio according to the upcoming economic policies.
Are you ready for the change?
You must be!
Well, a lot has been predicted on how Donald Trump’s presidentship would affect the financial life of the common man in the country. Nonetheless, Trump has himself promised to make some changes in the prevailing fiscal policies.
So, let’s see how you can define your financial contours in 2017 in the wake of Trump’s presidency:
1 Keep money aside to deposit in your HSA
Though Obamacare has promised to keep its premiums low, it has only increased with time; thus, making it difficult for the common folk to pay the premiums.
However, Trump has plans to abolish and replace Affordable Care Act (ACA) commonly known as Obamacare with this tax-advantaged Health Savings Accounts (HSAs). If HSA comes into effect, you must save your dollars and get it deposited in your HSA.
2 Save money on your student loan payment
President Trump has proposed some changes in the current student loan repayment plan such as:
- Borrowers have to pay 12.5% of their monthly income for 15 years toward their student loan payment.
- If they continuously pay, after 15 years, the remaining amount will be canceled.
- He wants colleges to reduce their tuition fees by cutting on huge administrative fees.
If the new rules get implemented, you can save lots of money in the long run. Use the saved amount to pay other debts, utility bills, and so on.
3 Keep dollars separately for your business
If Trump’s immigration plan comes into effect, this may cost your business a fortune. Because a lot of industries in the country is dependent on inexpensive labor.
If your business depends on cheap immigrant labor, it can get hurt due to the upcoming immigration policies. So, you should save money for your business before the new immigration rules get implemented.
4 Save money on taxes
Trump plans to reduce the current 7 tax brackets to 3 tax brackets of 12%, 25%, and 35% and cancel the head of the household tax filing category.
So, as you can see, you have a golden opportunity to save your hard-earned dollars on taxes.
5 More money due to new jobs
According to Donald Trump’s new economic policies, about 25 million new jobs will be created. Those who’re out of the job will have the opportunity to work and earn money.
Ultimately, the fate of the country’s economy depends on the upcoming policies.
6 Save money for retirement
Trump hasn’t mentioned any changes that he wants to make in the Social Security policy. If the Social Security policy remains the same under Donald Trump, be ready to continue paying huge taxes on your Social Security account.
The Trump administration also plans to scrap the fiduciary regulation scheduled on 10th April 2017, which intends to expand the “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA). If this happens, it can affect retirements assets worth $3 trillion.
You don’t know what will happen to your retirement once Mr. President takes the office. So, for the meantime, try to save as much as you can for your retirement.
7 A final thought
It is too early to say anything about what will happen to the financial world or how you will manage your finances under Trump’s presidency. You may have to face both the good and the bad. Prepare yourself beforehand for the hard times to come. You still have time to change the game. So, take full advantage of it.