2016 Election & financial markets

How Will the Election Affect Your Retirement Plan?

Regardless of which side of the aisle you find yourself on, the recent election results have thrown many things into question. While the markets have not been substantially impacted so far, many people have expressed uncertainty and worry about how the new administration will impact their retirement planning or investments.

We take a long-term view of planning, so if you have funds in market-based assets that we have recommended, remember that short-term volatility is not a cause for panic. Our V.P. of Eagle Investment Management, Brian Minier, explains more in this quick video:

However, there are many other ways that a new president can impact your retirement planning besides just stock market volatility.

President elect Donald Trump has not yet expressed much regarding his plans for our current retirement system. But as a recent article from PlanSponsor.com notes, “potential proposals in tax reform that could affect retirement plans include lowering or raising contribution limits, changing the tax benefits of retirement plans, Roth requirements, and setting lifetime limits on retirement savings.

All of these aspects have changed from time to time under previous administrations, so we should not be surprised to see at least some of these proposals go into effect over the next few years.

Other areas that could potentially impact your retirement include changes to Social Security (though Trump has said he does not want to make changes here), Medicare, and the Affordable Care Act.

Although most recent predictions of what Trump’s policies will entail come with a cautious description of “hazy,” “unclear,” or “uncertain,” one thing is for sure: Change is afoot.

Stay tuned, as we will do our best to keep you abreast of new developments that may impact your retirement plans or financial future as things unfold over the next few months!

In the meantime, if you are feeling a bit uncertain or hazy about your own financial or retirement plan, feel free to contact us for a free financial review!

 

Leave a Reply