As President-elect Donald Trump prepares for his second term, many Gen X voters are watching how his campaign promises will affect their wallets. They should expect a continuation of policies focused on tax cuts for businesses and individuals, particularly the wealthy.
To prepare for the Trump economy, Gen Xers should consider four money moves:
1. Reconsider Your Investment Strategy
With potential changes to Social Security and tax laws in the next decade, Gen Xers should evaluate their investment strategies to prepare for future uncertainties. They may need to work longer or delay claiming Social Security benefits, which could affect their retirement timeline and require more savings or a shift in investment strategy.
2. Maximize Your Retirement Contributions
Gen X is entering their peak earning years and should take advantage of retirement savings opportunities. They can contribute an additional $7,500 to 401(k) plans if they’re 50 or older, and consider Roth IRAs for tax-free withdrawals in retirement.
3. Plan Your Next Housing Move Wisely
Trump’s promise to promote homeownership through tax incentives and boost housing supply by reducing zoning regulations could impact Gen Xers who are planning to buy a home. They should evaluate its impact on cash flow and spending, including home maintenance costs.
4. Make Small Lifestyle Changes
Even tiny tweaks, like swapping one takeout order for a home-cooked meal each week or using a browser extension to earn rewards as you shop online, can make a huge difference in earning extra cash.
Source: https://www.nasdaq.com/articles/trump-economy-begins-4-money-moves-gen-xers-should-make-inauguration-day