With President-elect Donald Trump set to take office later this month, many financial advisors are recommending clients make certain financial moves now to protect and grow their money in 2025 and beyond.
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While no one knows for certain what the future holds, preparing your finances can help you prosper through a potential rollercoaster ride over the coming years. Based on the beliefs of financial experts, here’s how you can fortify your financial plan today as Trump once again prepares to take over the Oval Office.
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Target Stocks Benefiting From Tax Cuts
With corporate taxes a focus under Trump’s first term, further cuts could come in a second term.
“One of the significant moves during Trump’s previous term was slashing the corporate tax rate from 35% to 21%,” said Scott DePeralta, president of Scott DePeralta Consulting. “That was a game-changer for many corporations … it’s worth keeping an eye on companies that could enjoy further tax cuts or at least benefit from maintaining the current rate.”
Stocks of high-tax-paying companies could see gains if Trump pushes tax rates even lower.
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Invest in Banks and Financial Services Stocks
During his first term, Trump took steps to loosen financial regulations imposed after the 2008 crisis. For his second term, he could go much further in rolling back oversight of banks and Wall Street.
“Trump has made no secret of his desire to dismantle the Dodd-Frank financial reform law,” said DePeralta. “Should he manage to do this, we could witness a significant deregulation of the financial sector. This could potentially lead to a bull run for banks and other large financial institutions. If you have a risk appetite, investing in these stocks might just be the ticket.”
Bank and financial stocks could surge if Trump succeeds in rolling back regulations in a second term. This would benefit major players like JPMorgan, Wells Fargo and Citigroup. However, lower regulations also increase risk across the board, so use caution if pursuing this approach.
Invest in Real Estate
“Let’s not forget about real estate, Trump’s own playground!” said DePeralta. “He is a real estate mogul, and his policies have generally favored this sector. So … putting some money into real estate investment trusts (REITs) or directly into properties might be worth considering.”
Given Trump’s extensive real estate background, it’s reasonable to expect continued policies aimed at bolstering real estate markets. Real estate is an area Trump understands well, and he enacted policies favorable to the sector in his first term. Investing in REITs or actual properties could be rewarding if that support continues with Trump back in office.
Remember That No One Knows the Future
“While we’re talking about all these potential moves, I want to emphasize that they are purely speculative, based on Trump’s previous term and campaign promises,” said DePeralta. “The actual outcome could vary widely based on a range of factors, including the global economic situation, ongoing legal battles and the specific policies enacted during his potential second term.”
Everything discussed is speculative and what will actually happen is anyone’s guess. These moves could make sense if trends from Trump’s first term continue, but you should never bet big on any one scenario. The wisest course is sticking to smart fundamental investing principles, no matter who is in the White House.
“Here’s my most important piece of advice: Don’t put all your eggs in one basket,” said DePeralta. “No matter what the political climate, diversifying your portfolio is always a smart move. Also, remember that political outcomes can be unpredictable, and making drastic changes based solely on election outcomes might not be the best strategy.”
While some tactical shifts aligned with expected policy make sense, stay balanced and keep perspective. Don’t lose sight of your risk tolerance and long-term goals.
Editor’s note on political 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.
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This article originally appeared on GOBankingRates.com: I’m a Financial Advisor: 4 Money Moves To Make for Trump’s Upcoming Presidency
