3 Ways a Trump Win Could Affect Your Finances If You Have Less Than $10,000 in Savings
Penny-pinchers and savings strugglers, listen up! If you’re part of the under-$10,000 savings club (and let’s face it, that’s a lot of us), you might be wondering how a second term with Donald Trump as president could impact your wallet. Will your piggy bank finally get some love, or is it time to start hoarding quarters?
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GOBankingRates spoke with financial experts to get the scoop on what Trump 2.0 could mean for your modest nest egg.
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The Big Picture
Thomas J. Brock, CFA, CPA, with over 20 years of financial experience and an expert at Annuity.org, thinks a Trump win could be a mixed bag for savers.
“If you have less than $10,000 in savings, a Trump presidency may not provide an immediate boost to your bank account,” Brock said.
But don’t lose hope just yet! He added, “I think the economy is likely to strengthen if Trump retakes the office and the Republicans gain control of Congress – which will undoubtedly lead to interest rate cuts.”
So, what does this economic crystal ball mean for you? Brock broke it down:
“While you may not earn as much interest income on your savings, you will have better job prospects, a potentially more favorable tax environment and a heightened ability to grow your savings via a long-term investment strategy.”
In other words, your savings account probably won’t grow as fast, but, in Brock’s opinion, your overall financial picture could potentially improve.
Find Out: Trump Wants To Eliminate Income Taxes: Here’s What That Would Mean for the Economy and Your Wallet
Tax Cuts?
Aaron Cirksena, founder and CEO at MDRN Capital, thinks Trump’s tax-cutting tendencies could be good news for those with thin wallets.
“Trump has pushed for tax cuts, so if you are in a lower tax bracket with less than $10,000 in your savings, there may be room for more disposable income,” Cirksena said.
He added that historically Trump’s tax reform efforts have involved decreasing personal income taxes, which could lead to a bigger tax refund. A potential fatter refund check could be just the boost your savings need — but it’s all dependant on what a potential Trump administration actually does.
Economic Growth?
Cirksena also pointed to possible economic growth under Trump’s policies.
“The deregulation policies could also result in more economic growth, so you could start saving more,” he said.
But it’s not just about having more money to save.
Cirksena noted another potential benefit: “The financial stability that would come from economic growth would minimize economic risk, allowing more focus on saving rather than spending.”
So, if there is economic growth, there might be a chance to work on your savings.
The Final Word
Before you start planning how to spend all that extra cash, Paul Tyler, CMO at Nassau Financial Group, reminded us of a looming issue that any president will have to face:
“Basic economics unfortunately won’t change regardless of who wins the presidential elections,” Tyler shared.
Of course, there’s no crystal ball to predict what will actually happen. The best you can do is take your finances into your own hands — proactively instituting a budgeting and saving plan that works for you. That’s smart advice under any administration.
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This article originally appeared on GOBankingRates.com: 3 Ways a Trump Win Could Affect Your Finances If You Have Less Than $10,000 in Savings