🎙LISTEN: Matt Goolsby on Retire Hour with an instant reaction to Donald Trump's 2024 Presidential victory (recorded Wednesday, Nov. 6).

The 2024 election results are in, and Donald Trump has secured victory. This will have an impact on financial planning, taxes, estate planning, and healthcare.

As with any U.S. Presidential Election, a change in leadership can increase the number of questions and turmoil some pre-retirees and retirees have over the economy, their assets and wealth, and the new administration’s decisions.

At Market Advisory Group, we realize you may be wondering: what does Donald Trump winning the 2024 election mean for retirement planners?

When the Presidency changes hands, the U.S. economy often experiences a period of uncertainty and adjustment. This is largely due to markets, businesses, and consumers anticipating the policies and direction of the newly elected administration. We already saw the markets adjust strongly with a surge on Wednesday, November 6th.

According to CNN, Democratic Presidents have traditionally had stocks perform better under their terms, although stocks boom regardless of who is in the Oval Office. Additionally, the GDP averages 3.9% under Democratic presidents and 2.4% under Republicans (CFRA).

Trump’s proposal to not tax tips or overtime wages may impact Social Security and Medicare. If those plans solely involved income taxes, Social Security and Medicaid would not be impacted, but by removing those wages from payroll taxes, the funding stream to these entitlement programs would be reduced.

Getty Images 2024 | Donald Trump signing a document during his first term.

Getty Images 2024 | Robert F. Kennedy Jr. is poised to join Trump's cabinet in a healthcare-related role.

The outcome of a Presidential election can have significant implications for retirees. These implications can be especially impactful when it comes to issues like healthcare, taxes, asset management, and overall financial stability (our specialty is helping people with all four). A change in administration may bring policy shifts that impact how much retirees pay in taxes, how Social Security benefits are adjusted, stock market implications, and what healthcare options are available to them.

With Donald Trump winning the 2024 election, retirees could see several potential changes that impact their financial security. Republicans often advocate for reduced government spending, which could lead to cuts in programs like Social Security or Medicare, potentially impacting the benefits many retirees depend upon. However, those cuts might be offset by reforms intended to preserve the long-term sustainability of these programs. On the investment side, Republican pro-business policies often boost the stock market, offering retirees with investment-heavy portfolios the possibility of greater returns.

There’s plenty of speculation about what changes could be on the horizon for retirees following the results of the 2024 Presidential election. However, one thing is near certain: The estate tax loopholes that high-net-worth families have utilized for years are narrowing greatly. We’ve already seen both parties express their desire to tighten state estate tax laws, including proposals to lower the federal estate tax exemption, eliminate certain gifting strategies, and enforce regulations on trusts that guard assets from taxation.

Another change to look out for is that a Republican victory can often drive an increased spike in inflation, which can pose problems for our country’s population of retired individuals. Inflation is a key point to factor into any retirement plan, which is why it’s important to update your retirement budget regularly—at least annually.

With all of these in mind, the impact of these potential changes can vary, and retirees will need to monitor proposed policies closely—particularly those related to Medicare, taxes, estate planning, and asset management.

Stay alert and be sure to adapt your retirement plan accordingly. We’ll use this blog and Retire Hour (link) to update you weekly.

In times like these, it is beyond important to have a team in place to help you navigate retirement. It is likely that there will be upcoming changes to Medicare, taxes, and the management of assets—if you do not have a team in place that you can rely upon, the transitional period following this election will be more complicated.

The unpredictable tax fluctuations that we are facing become much more manageable when you have tax professionals who are there to walk you through. Our team at Market Advisory Group is equipped to help you with the “Core Four” of retirement: finances, taxes, estate planning, and healthcare.

You shouldn’t have to go through retirement planning alone. We believe in clarity and honesty, and we always want you to have the answers to all the questions that arise when it comes to navigating through these changes.

As previously mentioned, a retirement plan is something that needs constant adaptation. It is suggested that you review your plan at least annually to stay on top of your finances, especially accounting for a projected increase in inflation following the results of the 2024 Presidential election.

The Presidency changing hands always brings a level of uncertainty, but it can also bring a certain amount of optimism. As things calm down in the wake of the election, we’ll be able to take a closer look at the impact the results have on the economy, and on our country’s retirees.

Lastly, never underestimate the importance of having a team of professionals in your pocket to gracefully walk you through the ins and outs of retirement.

Investment Advisory Services offered through Foundations Investment Advisors, LLC, an SEC-registered investment adviser.