It’s a historic day in America. The crazy 2024 presidential election is behind us. Now we’ll see what impact Trump returning to the Oval Office will have on the economy and our investments.

Love him or hate him, Trump’s policies and priorities have had significant implications for the economy, taxes, and healthcare—three pillars of a secure retirement. With that in mind, here are five key areas to monitor and keep ahead of the curve:

1. Market Performance & Economic Growth

President Trump’s first term was marked by pro-business policies, tax cuts, and a focus on deregulation that boosted market performance. However, volatility has also been a hallmark of his administration, with geopolitical tensions and trade policies playing a role. Retirees should review their portfolio allocations, ensuring they are diversified and balanced to weather potential market swings. It’s also worth keeping an eye on sectors that could benefit from Trump’s focus, such as energy, defense, and infrastructure.

2. Tax Policies and Retirement Accounts

The Trump tax cuts of 2017 were a game-changer for many Americans, including retirees. With Trump back in office, there may be efforts to make those cuts permanent or introduce new ones. He’s also promised to eliminate the Federal tax on Social Security income. That’s a huge deal. Retirees should stay informed about changes to tax brackets, standard deductions, and the taxation of retirement income. If tax reform is on the agenda, consider how it might affect your required minimum distributions (RMDs), Roth IRA conversions, and estate planning strategies.

3. Healthcare Costs & Medicare

Healthcare is always a major concern for retirees, and Trump’s second term could bring changes to Medicare and healthcare policy. There’s been talk about expanding health savings accounts (HSAs) and increasing competition among drug manufacturers to lower costs. Retirees should keep an eye on any reforms that could impact out-of-pocket expenses or coverage. Reviewing your Medicare plan annually to ensure it aligns with your needs is always a smart move.

4. Inflation Risks and Cost of Living Adjustments (COLAs)

Although inflation remained relatively low during Trump’s first term, retirees know that even moderate inflation can erode the purchasing power of fixed incomes. The impact of his new Department of Government Efficiency and potentially stepped-up tariffs are unknown. The Social Security COLA for 2025 (+2.5%) and beyond will be a key indicator of how retirees’ benefits keep up with rising costs. Be prepared for potential increases in healthcare premiums, housing, and other essential expenses that could outpace these adjustments.

5. Geopolitical Stability

Trump’s “America First” policies could continue to influence global trade, international relations, and energy prices. Retirees who travel or invest internationally should monitor potential disruptions, such as currency fluctuations or changes to travel policies. Additionally, policies related to energy independence and climate change could have a trickle-down effect on utility costs and other everyday expenses.

Final Thoughts

Retirement planning is never static and I’ll be watching the challenges and opportunities with great interest. I had mixed feelings of his first-term performance, but it was exponentially better than the last four year’s Bidenomics.

As always, remember: retirement is about creating the life you want, no matter the political landscape. Stay proactive and focus on what you can control.

Have thoughts about how Trump’s reelection might impact your retirement?