Yahoo Finance 3 Reasons a Trump Second Term Could Be a Financial Boon for Boomers
The economy and the seemingly ever-rising cost of living seem to be one of the top priorities for voters this election year. But fear among some voters could hamper the efforts of Joe Biden and Donald Trump, each trying to secure another term in the White House. Baby boomers, in particular, are expressing concerns over economic policies, rising prices and their futures.
An AARP survey found that about one-quarter of adults in the U.S. age 50 and older who are not yet retired said they expect not to retire. About 70% expressed concerns about prices rising faster than their incomes.
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So why does this matter in an election year? For one thing, Trump and Biden have had very different policies on some issues that directly impact boomers. While Biden has touted his healthcare policies to save consumers money, Trump has talked about the impact of corporate taxes on everyday Americans.
Let’s dig into some ways a second Trump term might be the best thing for Boomers:
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Corporate Taxes
According to Brandon Gregg, an advisor and market president with BBK Wealth Management, the debate over corporate taxes is one that boomers are watching closely. It comes because the Trump tax cut passed in 2017 will largely expire in 2025. As the Washington Post reported, corporate tax cuts were made permanent, but individual taxes will spike sharply if Congress doesn’t act.
“There’s a lot of discussion of whether this would be a good or bad thing considering the current deficit we are in, but there is no doubt that lower taxes will keep more money in consumers’ pockets,” Gregg said. “Boomers hold a sizable percentage of consumer assets, so there would be no doubt that this would be a huge positive for them.”
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Energy Costs
Another issue that’s a big topic of debate this election year — and could be a financial boon for boomers if Trump wins a second term in the White House — is that there has been a major push in recent years to lower energy costs.
Energy is “on the ballot” this year in many big ways — ones that will impact all voters. “The election’s outcome will determine the amount people will pay for gasoline and electricity; what appliances they are allowed to buy, and their cost; what kind of new and used cars will be in dealer showrooms, and at what prices; and how much power China will wield over America’s supply chain,” according to the National Review.
While Congress has the power to pass major energy bills, the president ultimately has the authority through regulations enacted by the individual agencies. But, as Gregg said, lowering energy costs could be a boon for boomers and all consumers.
Interest Rates
A third boon for boomers with President Trump is the potential for lower interest rates. According to Gregg, lower rates are inevitable and will mostly be the work of the Fed.
“Lower interest rates are a huge win for borrowing for people of all ages, particularly boomers,” Gregg said. “They can lead to better borrowing conditions and, in turn, better financial conditions for boomers.”
When it comes to financial boons and investments, Gregg said it has generally been easier to make predictions for President Trump than President Biden. Gregg said Wall Street investors and the stock market generally react favorably to Trump’s moves in fairly predictable sectors based on his past economic moves.
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