What a Trump Presidency Could Mean for Your Wallet

Here are three ways your wallet could be impacted by the new president-elect (and Republican Congress):

  1. Taxes. Trump's proposal calls for three tax rates: 12%, 25% and 33%. (Currently, there are 7 brackets.) If you're in a lower income tax bracket, your taxes may actually increase. If you're in a "mid-tier" income tax bracket, your taxes may stay the same or be lowered marginally. However, those in the highest tax brackets (35% and 39.6%) will see the greatest tax benefit.

  2. Retirement. Even though Trump said he would not cut Social Security, he could be pressured by Republicans to make changes to help ensure the government has enough funding to pay for future retiree benefits. Some suggestions have been to raise the retirement age or reduce benefits for individuals making above a certain threshold. What can you do in the meantime? If you haven't already done so, aim to maximize all available tax-advantaged and retirement accounts, including your company's 401k/403b/Roth 401k, IRA, and Roth IRAs. If you're self-employed, set up and max out a SEP IRA, Solo 401k, or SIMPLE IRA.  

  3. Health Care. One platform Trump ran on was to repeal the Affordable Care Act, aka Obamacare. Even if repealed, it is uncertain whether health insurance costs paid by individuals--either under their company's corporate plan or under a nationalized health care plan--would increase or decrease. While there's nothing you can do about this in the short term, it's important to stay on top of developments, as they could impact your monthly budget and future health care costs.