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If youreretiredor youre about to retire, you might be wondering: will these changes affect your nest egg?
And if so, how?
Heres what financial experts say could change for retirees in 2025.
Seniors should not pay tax on Social Security, Trump said during his campaign.
He promised to eliminate these taxes.
This might be the biggest potential shake-up imminently facing retirees.
Experts warn this change could have unintended consequences.
Thomas Brock, chartered financial analyst (CFA) and expert atAnnuity.org, has overseen multi-billion-dollar portfolios.
Right now, hes predicting lower interest rates ahead.
These low rates could benefit you if youre in debt.
But it could also impact returns on your investments, like savings accounts and bonds.
With interest rates low, youd earn less money overall.
Tax Cuts
During his first term, Trump passed theTax Cuts and Jobs Act(TCJA).
This was intended to stimulate economic growth, by lowering taxes for individuals in the highest tax bracket.
Currently, the act is set to expire this year.
But Trump could extend these cuts or even make a run at make the TCJA permanent.
If youre a retiree and youre in a higher bracket, this could be a welcome change.
Youd enjoy lower taxes as well as higher estate tax exemptions.
Ultimately, youd havemore disposable income.
Healthcare Changes
Trump has said that he wont cut funding to Medicare.
But during his campaign, he also indicated plans to overhaul healthcare.
This might mean, for example, changes to what Medicare covers or doesnt cover.
And if youve retired early, you may be relying on theAffordable Care Actuntil you become eligible for Medicare.
Trumps administration could make big changes to the ACA as well.
Market Implications
Brock explained that he anticipates higher stock market values under Trump.
But, regardless of whos in office, verify your portfolio is diversified.
Depending on Trumps policies, some assets might perform differently than others.
Thats why its always important not to put all your eggs in one basket.
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