As the dust settles after the 2024 Presidential Election, United States citizens and the world have eyes on President-Elect Donald Trump. Regardless of where you stand politically, there is often financial anxiety whenever a new president is elected. With the 24-hour news cycle spouting every conjecture and opinion possible, it’s tough to know what’s reality — and whether investors can anticipate major changes in 2025 and beyond.

What Do We Know Will Be Addressed in 2025?

When in doubt, it’s helpful to look at the facts. There are a few time-bound items that will need to be addressed in 2025:

1. Tax Cuts and Jobs Act. The current Tax Cuts and Jobs Act of 2017 is set to expire at the end of 2025. Deciding whether to allow the TCJA to expire, to continue the laws outlined by TCJA, or to revise tax laws and implement new rules will be on the docket for next year. 

2. The Fed & Interest Rates. The Fed cut interest rates by another 25 basis points in early November, with a range of 4.50%-4.75%. Currently, the Fed forecasts that rates will continue to lower throughout 2025. Of course, nothing is set in stone, and this will be something for investors to watch next year.

What About Tariffs?

The #1 financial question we’re hearing from clients is about the potential for tariffs under the Trump presidency. Per the Trump campaign, tariffs would aim to bring jobs back to the U.S. However, some economists have indicated that tariffs could cause economic turbulence. 

While the idea of tariffs or any other potential economic changes under a new presidential candidacy, can feel overwhelming, there are a few things to keep in mind:

• Capitalism is like water. It finds a way over, around, through, or under any obstacles it faces. Businesses will always find a way to provide goods and services at a profit and we’ll own those businesses. Capitalism works and that’s what we’re invested in.

• Your portfolio is built to withstand pressure. You’re invested for the long-game, and as a result, your portfolio is built to withstand market drawbacks, shifts in the global economy, and more. That’s the power of diversification, and we’ve seen its benefits time and time again throughout history.

What Can You Do?

We’ve discussed this often, but it remains true:

Stay the course. 

Your long-term goals may shift, but that’s okay. Your strategy can always pivot to support your changing goals and needs. However, making dramatic financial and wealth management changes in response to an election is often counterproductive. The most important thing to do is to contact your advisor if you have questions or need a sounding board, monitor your progress toward your own unique goals, and make minor adjustments as necessary with the support of your advice team.

Reach Out If You Have Questions

As your financial planning team, we’re here to help you clarify any financial questions you may have in light of the recent election. We also want you to rest easy knowing several key things:

1. We’re on top of it. It’s our job to monitor the markets, tax law changes, and other external factors that impact your financial plan and your investments. We’ll be monitoring all of the above on your behalf. 

2. You can expect to hear from us. Our team won’t leave you in the dark. If something changes, you’ll be hearing from us in 2025 and beyond.

3. We’ve already anticipated many portfolio threats and planned accordingly. We still firmly believe that investing is a long game. As such, we’ve anticipated a variety of potential “threats” to your financial plan and personal goals – recession, market fluctuations, tariffs, and more. Your portfolio is built with these possible setbacks in mind. 

4. Markets are resilient, and so are you. No matter what's happening in the world, one constant remains - over long periods of time, markets generally trend upward. National and global markets have shown remarkable resilience, bouncing back from changes and challenges. As an investor, you share in that resilience.

Even amidst uncertainty, there is wisdom in diversification and staying focused on your unique long-term goals. Knowing you’re invested in a way that cushions against market turbulence, and still supports the life you want to pursue, should provide some reassurance. 

Additionally, just as markets have weathered storms before, you as an investor have the capacity to weather changing conditions as well. With a long-term outlook and a diversified portfolio, you can navigate market fluctuations and have confidence in the resiliency of both the markets and yourself as an investor.

If you ever have questions, don’t hesitate to reach out. We’re here to support you in any way we can.

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