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3 reasons why a second Trump term could be a financial boon for boomers
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The economy appears to be one of voters’ top priorities this election year. But fear among some voters could undermine the efforts of Joe Biden and Donald Trump, each trying to secure another term in the White House.
Baby boomers in particular are expressing concerns about economic policies, rising prices and their own economic futures. One AARP Survey found that about a quarter of U.S. adults ages 50 and older who are not yet retired said they hope to never retire. Around 70% expressed concern about prices rising faster than their incomes.
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So why does this matter in an election year? On the one hand, Trump and Biden have had very different policies on a range of issues that directly affect boomers. Although Biden has touted his health policies for saving consumers moneyTrump spoke about the impact of corporate taxes on ordinary Americans.
Corporate taxes
According to Brandon Gregg, consultant and market president at BBK Wealth Management, the debate over corporate taxes is something boomers are following closely. This is because the Trump tax cut passed in 2017 will largely expire in 2025. As the Washington Post reported, the corporate tax cuts have been made permanent, but individual taxes will increase dramatically if Congress doesn’t act.
“There is a lot of debate about whether this would be a good thing or a bad thing, given the current deficit we find ourselves in, but there is no doubt that lower taxes will keep more money in consumers’ pockets,” Gregg said. “Boomers own a considerable percentage of consumer goods, so there would be no doubt that this would be a huge positive for them.”
Read next: 5 presidents who raised taxes the most and 5 who reduced them
Energy costs
Another issue that is a big topic of debate this election year — and which could be a financial boon for boomers if Trump wins a second term in the White House — is that there has been a big push in recent years to reduce energy costs.
Energy is “on the ballot” this year in many important ways – ones that will impact every voter. “The outcome of the elections will determine the amount people will pay for gasoline and electricity; what devices they can buy and their cost; what kind of new and used cars will be in dealer showrooms and at what prices; and how much power China will wield over the U.S. supply chain,” according to the National Review.
Although Congress has the power to pass major energy bills, the president ultimately has authority through regulations enacted by individual agencies. But as Gregg said, lower energy costs could be a boon for boomers and all consumers.
The story continues
Interest rate
A third advantage for boomers under President Trump is the potential for lower interest rates. According to Gregg, lower rates are inevitable and will primarily be the work of the Fed.
“Lower interest rates are a big win for lending for people of all ages, but especially for boomers,” Gregg said. “They can lead to better financing conditions and, in turn, better financial conditions for boomers.”
When it comes to financial benefits and investments, Gregg said it has generally been easier to make predictions for President Trump than for President Biden. Gregg said Wall Street investors and the stock market generally react favorably to President Trump’s moves in sectors that are fairly predictable based on their past economic movements.
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This article originally appeared on GOBankingRates. with: 3 reasons why a second Trump term could be a financial boon for boomers