Trump’s inauguration day is coming up quickly. Making the necessary preparations before the president-elect steps into the White House can put you in a better financial spot.
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The Trump Economy presents opportunities and risks for investors. The upper-middle class can benefit from making the following money moves.
Blake Harris is an attorney and the founding principal of Blake Harris Law. He is an expert in asset protection and offshore banking solutions. He believes that upper-middle class investors may benefit from moving some of their assets outside of the U.S. financial systems.
“Between the recent flip-flop to reinstate the Corporate Transparency Act reporting requirements, the looming debt ceiling crisis and instability within certain American banks, the economic outlook suggests potential volatility. High-net-worth individuals should hedge against these uncertainties by diversifying their holdings internationally,” Harris stated.
“Establishing accounts or investments in stable foreign banking systems, such as Switzerland or Singapore, not only safeguards funds from domestic financial turbulence, but also offers privacy and jurisdictional stability,” Harris continued. “Smart money moves outside the U.S. in times of uncertainty, ensuring that assets remain secure and accessible regardless of domestic policy shifts or economic downturns.”
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Raul Gastesi is an attorney and co-founder of Gastesi, Lopez & Mestre. He has assisted clients with estate planning for more than 35 years, and suggested now may be a good time for upper-middle class individuals to plan out their estates.
“One smart money move for high-net-worth individuals to consider, particularly focusing on estate planning, is to take proactive steps before the Trump-era tax cuts potentially sunset in 2025,” he said. “This could include utilizing the current high federal estate tax exemption of $13.75 million ($27.5 million for married couples) to transfer wealth to heirs, either through lifetime gifts or trusts, to lock in these favorable rates.”
Gastesi suggested three specific estate planning strategies to consider:
Grantor Retained Annuity Trusts (GRATs): Allows tax-efficient wealth transfers while taking advantage of the current exemption.
Dynasty Trusts: These can protect assets for multiple generations within the current framework.
Irrevocable Life Insurance Trusts (ILITs): A strategy to leverage life insurance for estate tax planning while locking in current rates.
