Another presidential election is here, and financial advisors have been considering the possibility of Donald Trump winning a second term in office. Some advisors believe the odds of a Trump victory are significant, so they 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 in case Trump once again occupies the Oval Office.
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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. If you’re expecting another Trump term, 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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During his first term, Trump took steps to loosen financial regulations imposed after the 2008 crisis. If re-elected, 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.
