7 Ways to Financially Prepare for a Trump Presidency

President Trump

On January 20, Donald Trump will become the 45th president of the United States. Until there is clarity around his economic agenda, you can expect volatility in the markets. Don't fear volatility, it's a normal part of market behavior. We believe that the election outcome will not interfere with your ability to achieve your long-term financial goals and that the best thing that you can do is to take control of your financial situation. 

Here are seven ways you can help make the next four years successful for yourself and your family:

1. Increase the amount you’re contributing to your IRA (if eligible) and retirement account at work (if you’re not already contributing the maximum). Studies show that the investor who accumulates the most money is the investor who contributed the most. Don’t let the election news interfere with your need to save for the future. We can help you figure out the appropriate amount and place to save. And if you are already contributing the maximum to your retirement accounts, let us show you ways to save additional money in nonretirement accounts!

2. Refinance your mortgage. With interest rates projected to start rising, this could be the last opportunity you’ll have to lock in today’s historically low rates. Talk with your Edelman Financial advisor to see if refinancing is in your best interests, and if so, what type and size of loan is best for you.

3. Update your estate plan. Elections often create new state laws, and they sometimes have implications for estate planning. We’re busy analyzing the new laws that take effect in January. In the meantime, if you haven’t reviewed your documents in several years, do so now.

4. Reassess your insurance. This year’s devastating storms, floods and fires remind us of the importance to make sure you have the homeowner’s coverage you need to rebuild if the worst happens. You also should make sure your disability, life, long-term-care and umbrella liability coverage is sufficient for your needs. Talk to us and your property/casualty insurance agent.

5. It’s open enrollment season for insurance benefits at work. Now’s the time to review your beneficiary designations, and your options for health and dental benefits, short- and long-term disability coverage, life and long-term-care insurance, and deferred compensation benefits. Let us know if you need help with the review.

6. Make sure you have sufficient cash reserves. This can help you avoid having to sell shares if you incur a personal emergency during a volatile period in the market. Your Edelman Financial advisor can tell you how much you should maintain in reserves and where best to keep it.

7. Beware of sales pitches. During periods of transition, con artists and unscrupulous financial salespeople try to exploit your fears. If someone approaches you with investment ideas that claim to offer guarantees or other too-good-to-be-true benefits, call us for a second opinion — before you invest.

If you're curious about how the S&P has performed when Republicans have controlled the White House, House of Representatives and the Senate, check out this chart.

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