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President Donald Trump and his administration will likely have very different priorities than the Biden administration. Specifically, policies regarding financial institutions, markets, international trade, real estate investments, and health care may be of particular interest to retired investors. The president’s policies and actions can have a big impact on the overall economy, as well as how stocks and investments react to those moves.
With that in mind, GOBankingRates consulted financial experts for advice on things retirees might consider selling before Inauguration Day. They highlighted three things: international bonds and investments, health-related stocks, and real estate holdings.
Diversification needs
Adam Garcia, a certified financial planner and founder of The Stock Dork, is among financial experts who said retirees should reexamine the diversification of their investment portfolios as Trump prepares to return to office. Although diversification is generally an important consideration, Garcia said it is particularly crucial during times of power transition in the country.
“Under previous administrations, changes in the economy, such as health policy reforms and tax changes, caused retirees to reconsider their asset portfolios,” Garcia said. “Since Trump took office, retirees should consider getting rid of stocks they own that are speculative or have a high risk profile so they can avoid market uncertainties caused by policies.”
Garcia and other experts agreed that it was important to see what policy changes would be implemented by Trump once he returns to office.
Bonds, international investments and healthcare stocks
Retired investors may want to review their positions in sectors likely to be affected by expected policy changes with the Trump administration, said Andrew Lokenauth, a financial expert and owner of Fluent in Finance.
Trump discussed his plans to strengthen the economy, including the idea of imposing 25% tariffs on products from Mexico and Canada, as well as additional 10% tariffs on products from China. Tariffs, much talked about during presidential campaigns, are imposed on imported products in an effort to protect domestic manufacturers. This is just one of the plans Trump has talked about when it comes to the economy.
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“I would advise investors to consider evaluating bonds that could be affected by changes in interest rates,” Lokenauth said. “A second piece of advice is to look at international investments that may face trade pressures. Third, consider adjusting healthcare-related actions due to political uncertainties.
Real estate
In addition to looking at stocks and other investments, it may be time to reconsider your real estate holdings as the Trump economy takes off.
“Holding too much real estate may leave the retired population vulnerable to risk if fiscal policies lead to an increase in interest rates, which would incentivize a rebalancing of portfolios toward more stable assets, such as Treasuries or stocks paying dividends,” Garcia said.
Editor’s Note on Political Coverage: GOBankingRates is nonpartisan and strives to objectively cover all aspects of the economy and present balanced reporting on politically charged financial topics. You can find more coverage on this topic at GOBankingRates.com.
