Hello Reader,

The Trump Administration will take power early next year, with both chambers of Congress also controlled by the GOP.

What does this mean for your financial planning? Great question!

There has been plenty of speculation about potential changes, but the truth is, we just don’t know.

​As this op-ed beautifully articulates, the world is complex, and humans are notoriously bad at predicting the future—no matter how confident we feel.

I also love the title: If You’re Sure How Trump’s Term Will Play Out, I Promise: You’re Wrong. 🗞️

That’s the challenge of planning for the future: we can’t know what’s going to happen. Yet we do need to plan.

The solution? Anticipate a range of possible outcomes.

While the probabilities of those outcomes may shift over time, a good plan—financial or otherwise—doesn’t require radical changes every time the wind shifts.

With that backdrop, let’s explore a few key areas to reflect on as Washington’s balance of power changes once again.

Stock Market Investing

One thing you likely shouldn’t change is your investment philosophy (provided you’ve implemented a well-thought-out approach).

Research shows there’s no reliable way to predict which political environments are best—or worst—for stock market returns. The market often behaves unpredictably and, at times, counterintuitively.

My investing advice remains the same: develop a sound plan and stick to it over time. Pulling money in and out of the market based on short-term predictions only worsens long-term returns (unless you’re exceptionally lucky).

Also, remember: the incoming Republican majorities are guaranteed for just two years—a blink of an eye in the context of long-term investing.

​This excellent article provides more context around investing amid political shifts.​

Estate Planning & Protecting Your Rights

Good estate planning isn’t just about who gets your assets after you pass away. It also ensures your rights and wishes are respected during your lifetime.

If you’re in a committed relationship but not legally married—or in a same-sex marriage—estate planning documents can replicate the rights automatically granted to legally married couples.

While no laws have changed yet, this election serves as a reminder that the Supreme Court could strike down same-sex marriage. If that happens, existing state laws governing (or restricting) marriage would take effect. Even without such a ruling, having robust legal documents can be invaluable, particularly in areas less accepting of same-sex or nontraditional marriages.

This isn’t an urgent matter yet, but if you’re in a “nontraditional” relationship (not my favorite term, but…), estate planning should be on your radar.

Taxes

The 2017 tax law brought sweeping changes to an already complex tax system. Many provisions are set to expire at the end of 2025.

With Republican majorities, it seems likely some of these provisions will be extended, though probably not all. While there’s no need to change your tax strategy right now, staying aware of potential shifts and their impact on your tax burden is crucial.

Health Insurance & Payor Reimbursement

Big changes might be coming—or maybe not. As this article explains, the Trump Administration may push changes to the ACA, Medicare, and Medicaid. Or, you know, it might not.

One likely scenario is the expiration of ACA insurance subsidies at the end of 2025. This isn’t guaranteed, but it’s worth keeping in mind if you currently benefit from these subsidies.

If you have an insurance-based practice, consider how reliant you are on any one payor. Think about what steps you might take if that payor became less reliable. (This is a good strategic exercise regardless of the political climate!)

Student Loans

The past four years have been chaotic for student loans, and it’s about to get even more complicated. If you’re looking for expert guidance, I highly recommend Student Loan Planner.

Here are a few updates based on where things stand today:

• SAVE IDR Plan: Biden’s SAVE plan is almost certainly dead. If you were on REPAYE, you’ve likely been moved to SAVE, and placed into an administrative forbearance: payments are paused and no interest is accruing. If you’re pursuing PSLF or IDR forgiveness, switching off SAVE might make sense because you are not accruing payment credit during this forbearance. If not, waiting and watching may be the best approach.
• PSLF: Public Service Loan Forgiveness is almost certainly safe. Repealing it would require 60 votes in the Senate, which seems unlikely.
• PAYE Plan: The fate of the PAYE plan is uncertain. A lawsuit challenging SAVE could also eliminate PAYE. If you’re on PAYE, staying put and monitoring developments is generally a good strategy.

Effectively managing student loans requires attention and flexibility. While there’s uncertainty, some positive outcomes remain possible! (House Republicans introduced a fairly resaonable IDR plan a few years back. While that didn’t go anywhere, it might come back in the future.)

Phew – That’s a Lot! 😮‍💨

And this is just a partial list. As always, financial planning requires staying informed and ensuring your plan aligns with whatever comes next.

Questions, comments, or concerns? Hit reply—I’d love to hear from you! 🗣️

Best,
Dave

PS: One last reminder that my friend Stephen has a new group program that I think is gonna be amazing 🤩.

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🎗️ As always, this is NOT an affiliate link. I never earn a commission for recommended any product or service. That’s part of my fee-only, fiduciary financial planner oath.​

Stephen will help you get crystal clear on the exact life and work you want, follow a proven roadmap to success and banish that self-doubt that keeps you small.

🌟 Click here and check out how great your life could be! 👈

I met Stephen through my friend Melvin Varghese – maybe you’ve heard of his podcast Selling the Couch 🤣 – and am really impressed at the simple yet powerful framework he uses.