Think Philadelphia Eagles. Think defense.
A change in presidents means a change in economic policy. This brings about our continuing concerns about the flow of future interest rates and what economic sectors could flourish under the upcoming administration.
Since 1958, we’ve prepared clients to think long term, but also to expect "new" volatility associated with current and future economic trends and what a new administration’s economic policies will bring—or, as we've stated in the past two books we've written: “Think positive. Hope for the best but prepare for the worst."
Some specific things to try and do as we enter 2025 include:
• Play defense. Keeps your funds in three separate baskets (short term, intermediate and long term)
• Manage your tax liability. Will President Trump let the tax cuts and Jobs Act expire in 2026, or extend them? If extended, the standard deduction will be double what we had in 2017; therefore, less of our income will be taxable. Also, if you have earned income from working, consider contributing to an IRA or a Roth IRA.
• When playing defense, you should consider fixed-guaranteed situations, as well as treasury inflation-protected securities (TIPS), E-Bonds and tax-deferred situations.
The last thing you want is to be in a position where you need to sell stocks in a down market to meet your income needs, so we strongly suggest allocating your savings and investments among your three baskets.
Before doing anything with your funds, consult with your advisor, CPA and attorney, because every circumstance is different.
We have prepared an “estate checklist” that we will make available to anyone reading this article by calling (800) MONEYSHM.
The SHM Financial Group
Voorhees
(856) 454-5110 | (800) 666-3974
SHMFinancial.com
