I’m A Retirement Planner: 4 Moves You Should Make If You Think Trump Will Win the 2024 Election

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A rematch between President Joe Biden and President Donald Trump is practically inevitable as both candidates are poised to accept their party’s nomination this summer.

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While their names are well-known, consumers, entrepreneurs and investors are still determining how their policies will affect the economy and capital markets, according to a U.S. Bank Wealth Management study.

GOBanking Rates talked to retirement planners and other financial experts about four smart money moves you should make if you think Trump will win the 2024 election.

Save During Your Working Years

Many Americans spend more than they earn.

The national average savings rate is 3.6%, and by the age of 55, the average amount saved is about $77,000, said Chris Orestis, president at Retirement Genius. The company is an “all-in-one source” that helps seniors make the most of their golden years.

“Neither of these numbers are even close to achieve a middle-class retirement,” Orestis said. “By age 55, a person should have at least $500,000 growing in tax-advantaged retirement vehicles, and they should be adding to it every month at maximum allowable levels.”

If saving $500,000 seems intimidating, think about how much you would need to replace your income if you stopped working. For example, do you have enough to replace 70% of your income in retirement?

“If you started saving in your twenties, you would need to put away about 20% of your income to hit this mark in your sixties or seventies,” Orestis said. “If you waited until your thirties you would need to double your savings rate to get there.”

Practice Smart Money Management  

Being smart about budgeting expenses, managing cash flow, and reducing debt is essential to managing what you have wisely, no matter who wins in November.

Using the money you save to “maximize every opportunity with tax-advantaged investment retirement vehicles such as 401(k)s, IRA’s, and HSA’s.

“Look to create passive income opportunities by investing in real estate, businesses, or stocks that pay dividends,” Orestis said. “Owning life insurance and annuities and being prepared for the costs of long-term care are important ways to protect your financial security and that of your loved ones.”

Invest With a Plan

According to a U.S. Bank Wealth Management study, policy differences between Trump and Biden aren’t as significant as people think from an investor perspective and don’t always translate into investment outcomes.

Overall, Orestis recommended maximizing every opportunity with tax-advantaged investment retirement vehicles such as 401(k)s, IRAs, and HSAs.

In addition, clients should work with a credentialed financial advisor to create a comprehensive long-term financial plan, said Robert R. Johnson, Ph.D, CFA, CAIA, and a finance professor at the Heider College of Business at Creighton University.

“Investing without a plan is like driving without a roadmap or GPS,” Johnson said. “Investors should not concern themselves with broad market moves or the crisis de jour.”

Instead, Johnson recommends clients create an Investment Policy Statement (IPS) to guide them through changing market conditions. The plan should only be revised when individual circumstances change, such as death or divorce.

Stay the Course 

An election outcome shouldn’t impact your retirement portfolio if you stay the course because markets don’t like uncertainty, said Paul Tyler, Chief Marketing Officer at Nassau Financial.

“It’s hard to imagine any election outcome that will radically change the rules for successfully building and using a retirement nest egg,” Tyler said. “During your working years, spend less than you earn and invest the rest. As you near retirement, start taking some of the market risk off the table by shifting some investments to bonds and thinking seriously about buying annuities.”

Once the ballots are counted, continue to save,  manage your money wisely, and invest with intention.

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This article originally appeared on GOBankingRates.com: I’m A Retirement Planner: 4 Moves You Should Make If You Think Trump Will Win the 2024 Election