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From investments to tax planning to real estate and beyond,consider these money moves entering 2025.
Max Out Tax-Sheltered Accounts
It nearly always makes sense to contribute to your retirement accounts.
But investors see extra reasons to max out contributions this year.
And with Republicans controlling both houses of Congress, that seems like a foregone conclusion.
In fact, Trump campaigned on lowering tax rates even further.
Id suggest maxing out your retirement accounts like IRAs or 401(k) [plans] now.
Do it while you’re free to still take advantage of those pre-tax contributions, Carlson said.
Invest In Domestic Manufacturing and Energy With Caveats
Who benefits from import tariffs?
But not just any domestic manufacturers.
So, if you have investments in those areas, youll want to reallocate your portfolio.
Trumps proposed deregulation also stands to boost domestic companies, Carlson said.
That booming growth may not last.
Sellers may look at exiting now, while bullish investors can consider buying the dip.
It spurred massive investments in the commercial real estate sector.
The near-certain extension of the TCJA also applies to bonus depreciation.
That makes the tax benefits forpassive real estate investmentsparticularly attractive.
Consider joining a passive real estate investment club to start with smaller amounts.
Renewed bonus depreciation would allow for the write-off of fixed assets in the year they are acquired.
The deductions will be much more powerful if full bonus depreciation is back on the books.
Keep an Eye on Inflation
Importers and retailers dont just swallow the cost of tariffs.
They pass them on to consumers in the form of higher prices.
Tariffs aside, many of Trumps economic policies are designed to stimulate the economy.
Tax cuts and reduced regulation both aim to juice the economy.
But what happens when an economy gets overstimulated, like happened in 2021?
Many prospective homebuyers and real estate investors alike have assumed that mortgage rates will plummet in 2025.
That may yet happen but dont be too certain.
Stock Up on Imports Now
Love French wines?
Consider buying what you want now, rather than waiting for tariffs to drive import prices higher.
In particular, look at any products with a supply chain through China.
That includes many consumer electronics, clothes and apparel items like shoes.
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