The polarizing election season is over and Americans are all set in a state of shock with the result. Donald Trump has already promised to bring about certain welcoming changes to the US economy and the Americans are actually looking forward to all that the new President-elect has to offer them. Amidst all this, are you wondering how the election results of 2016 are going to set an impact on your wallet? Well, it is pretty normal to go through a minimum level of anxiety regarding your personal finances, especially due to such an antagonistic presidential election.
However as everything is more than settled now, Americans have already started re-assessing where exactly they stand in terms of their personal finances. They are now wondering about what would be the near-term and long-term impact on their personal finances. We have recently seen that the stock market plummeted and again soared within 48 hours since the new President voiced his acceptance speech. Here are some personal finance tips that you can take into account to stay on top of your finances.
Make sure you stay away from rash moves: When it comes to making financial moves, it is vital not to make any sudden and reactive fiscal moves. When you invest keeping the long term in mind, this clearly means that the short-term volatility which you’re seeing right now may blow you very soon. Therefore, it is better to stay on the right course rather than trying to time the trends with too much speculation.
Diversify your portfolio: Are you worried and confused about the extreme volatility of the financial markets that we’re presently seeing in the US? When you spread your investments through a mixture of bonds, cash, real estate, and stocks, you will be closer to reaching your financial goals. If you are eager to ride out the market volatility, diversification is definitely the key to your main ability. When you carefully disburse wealth through different asset classes, you can protect yourself against market fluctuations and can avoid a bumpy market cycle.
Federal Income tax rate: As per the new tax plan of Donald Trump, the income taxes will be reduced for almost everyone and this will lead to an increase in standard tax deductions. The ultimate goal of this plan is to assist working Americans to help keep more of their money and pay less on income taxes.
Childcare costs: Donald Trump has proposed a new plan which would assist the working households to pay for their medical costs for children. Donald Trump has already proposed a $5000 deduction for childcare costs and for the households which make $62,500. The childcare plan of Donald Trump will also offer a discount through the Earned Income Tax Credit. There is this new savings account named the Dependent Care Savings Account which requires a $2000 yearly contribution limit.
Health care options: Under the new President-elect Donald Trump, the Affordable Care Act will be soon replaced by HSA or the Health Savings Account and other reforms which can definitely make healthcare more accessible to all people.
Therefore, if you’re scared and worried about the different steps that you should take to live on the right side of your finances, make sure you follow the above-mentioned ideas and strategies. Inform yourself of the changes brought about by the new President so that you are not deceived by the carriers of insurance or the investment advisors.
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