With the 2024 presidential election fast approaching, everyone is on edge. Voters on both sides wonder what the next four years will look like and how their finances will fare whether Vice President Kamala Harris or former President Donald Trump wins.
Find Out: Trump Wants To Eliminate Income Taxes: How Would That Impact You If You Are Retired?
Read Next: 7 Reasons You Must Speak to a Financial Advisor To Boost Your Savings in 2024
Many retirees are concerned about Social Security, inflation and other fiscal matters as they live life on a more restricted budget.
We spoke with two retirees, Heather Larson and Doug Nordman, to see how they’ll manage their money if Trump wins in November.
Earning passive income doesn’t need to be difficult. You can start this week.
Meet Heather Larson
Heather Larson, age 79, is married and resides in Tacoma, Washington. She’s been retired for 14 years but still takes on personal finance freelance writing assignments to supplement her household income.
When asked if she had financial concerns about another Trump presidency, Larson said, “Since Trump doesn’t have much of a platform per se, it’s difficult to predict what he might change financially if he’s reelected. [However], I do think we all should be worried about it in light of Project 2025.”
Despite her worries, Larson isn’t planning to change her financial approach much if Trump gets reelected.
“I plan to keep on doing what I’m doing now and keep my credit cards paid off every month. I’m also planning to make the changes needed, so we don’t owe the IRS money on April 15th,” she said.
Larson plans to stay the course partly because she’s laid a solid financial foundation.
“I paid off my mortgage before my husband retired because I knew we would be on a reliable fixed income from then on. Currently, I try to save as much money as I can, and if I have the amount needed for taxes or homeowner’s insurance, I pay those bills early,” she said.
When asked about advice for other retirees, Larson said, “Given the short amount of time until a new president takes office, there isn’t much long-term action retirees can take. If they haven’t already done so, I would encourage them to hire a financial advisor who can help them protect their funds.”
She also warned, “Trump has promised not to touch Social Security or Medicare, but what percentage of what he says are lies? So, save whatever you can, invest what you can, and keep your fingers crossed.”
Learn More: Here Are All the Promises Trump Has Made About Social Security If He’s Reelected
Meet Doug Nordman
Doug Nordman is a 64-year-old retiree and author of “The Military Guide to Financial Independence and Retirement.” He lives with his wife in Central Oahu, Hawaii, and, like Larson, doesn’t plan to change how he manages his money no matter who wins the presidency.
“My spouse and I earned our military pensions, and veterans depend on the federal government continuing to deliver benefits. However, we’ve also reached our financial independence on our savings and investments beyond our pensions. Although we certainly live well on our pensions, we could also survive on our investments,” Nordman said.
“As long as we’re receiving our pensions — the equivalent of monthly income from I-bonds or TIPS — the rest of our asset allocation can be aggressive. We’ve invested in a passively managed total stock market index fund with a very low expense ratio,” Nordman continued.
Plus, he said, “Regardless of who’s president, we’re invested in American businesses. In the long term, they’re growing their revenues faster than inflation. We’re comforted that our economy has thrived for over two centuries under all sorts of administrations. The markets will probably endure the next four years, while the only control we have over our finances is our spending and our asset allocation.”
However, Nordman encouraged all Americans — not just retirees — to participate in the system that could impact their lives.
“I have plenty of concerns about all of the candidates, of course, but the only control I have over the election’s result is … showing up to vote. I haven’t missed a national election since my first one in 1978, and I’m not going to spoil that record now. If you’re eligible to vote, you should do that, too,” he said.
How Should You Prepare?
If you have Social Security concerns or other related worries tied to the election results, there are money moves you can make to prepare whether Trump or Harris wins the presidency.
For instance, it’s wise to:
-
Create and follow a budget to avoid overspending and taking on debt.
-
Pay down existing debt, especially high-interest obligations like credit cards.
-
Keep adding cash to your savings and investment accounts when possible.
-
Diversify your portfolio to reduce risk in case one investment type performs poorly.
Of course, this is sage advice for people of all ages — whether there’s an upcoming election or not.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Retiree: How I’ll Approach My Finances If Trump Wins in November
