A Donald Trump presidency is already having an impact around the world, but what about you and your money? On Your Side Investigators went digging for answers on what's happening now and what you can expect in the near future for your finances.
"They call it the Trump Effect,” said Financial Advisor Willie Schuette. He told us the stock market hitting 20,000 is part of that effect.
However, with increased confidence and potential for growth, other areas could negatively affect your buying power. "With the Fed announcing that they’re going to approximately raise interest rates 3 different times this upcoming year, it is going to impact the consumer if they have to go get a loan for a new vehicle or if they want to move and purchase a new home," Schuette explained.
Best advice on interest rates? "Start taking a look now, if it's been on your radar screen, now might be a great time to visit your lender and see what the rates are before they go up,” said Schuette.
He also told us one of the biggest impacts from a Trump presidency will be with tax proposals including lowering income tax rates, the repeal of the Alternative Minimum Tax which helps senior citizens, and higher standard deductions. "A majority of Americans don't itemize their taxes,” said Schuette. “So, for those who do not itemize their taxes, that's going to be a nice windfall for them."
When it comes to manufacturing and businesses, if President Trump is successful with changes to regulations, companies could spend more. "Now that they might see a more beneficial regulatory world for them in the future, they can unleash some of this cash for capital spending, increasing some of their businesses, which, in turn, increases hiring in America,” said Schuette.
Another possible tax break is lowering capital gains rates. If that happens, when you do sell off investments, it will mean more money in your pocket.
