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Historically, the transition from one presidential administration to another has had little impact on the market, as a recent market data review by U.S. Bank showed. Still, uncertainty over how a new president’s policies might affect individuals’ wallets and the economy as a whole leaves many Americans looking for ways to safeguard their money. That’s especially true for baby boomers, who are either at or quickly approaching retirement age.
Complicating matters this time around are the sweeping changes President-elect Donald J. Trump hopes to implement. From mass deportations of undocumented migrants, to tariffs on foreign imports, to shunning Biden-era clean-energy initiatives in favor of increased production of fossil fuels, a Trump economy could signal a radical departure from current policies.
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Whether you’re optimistic about Trump’s proposals or fear for what the next four years might hold, what you don’t do with your money can have a significant impact on your finances.
GOBankingRates spoke with Monique Hayes, an estate and succession planning attorney and partner at DGIM Law in South Florida, about money moves boomers should hold off on until Trump takes office.
Hayes acknowledged the anxiety some boomers might have about how Trump’s tariff, clean energy and other policies might impact stocks in the affected industries.
“It could be tempting to dump stock or modify investment holdings to avoid losses,” Hayes noted. “But it’s really too soon to tell which policies will actually be enacted and what the market response would be.”
However, Hayes did offer one type of change you might make in the interim — diversifying your portfolio, which she said should still be a priority.
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Just as this is a bad time to sell off or load up on stocks in anticipation of a particular market response to Trump’s policies, it’s also a bad time to change your overall strategy — unless that strategy is to diversify your portfolio.
Diversity should be a priority, according to Hayes.
With that in mind, consider how your portfolio is allocated across stocks, bonds and cash. As the Securities and Exchange Commission notes, when one of these categories performs poorly, another typically performs well.
Trump’s threats to impose tariffs on imported goods has led some pundits to encourage Americans to make any big-ticket purchases they’re planning before he takes office. Hayes, on the other hand, recommends sitting tight for now.
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