|Welcome to the era of the Joe Biden presidency (as of January 20th, 2021)!|
Like it, love it, or strongly object, Joe Biden is now the 46th President of our United States of America, and we have four years (if not eight!) of Biden and Kamala Harris in office.
Certainly, there will be big changes compared to Donald Trump’s administration, but today I wanted to talk about how a Biden Presidency may affect your financial situation,
Please remember that the President actually has very little direct influence on monetary policy but needs the cooperation of the House and Senate to make sweeping reforms.
So, some of these items may be because of Biden’s direction, but others are just because of inevitable economic trends and he happens to be in office.
Here are 5 ways a Biden presidency will affect your money and finances:
Tax increases for higher income individuals and corporations.
Surely the top 1% will be heavily taxed, but increased taxes may extend down to those making over $100,000, which would affect a whole lot of people here in California!
Changes to retirement plans.
We may see wholesale alterations to our 401ks, 403bs, and other retirement accounts, including our options and how they are used, etc. The only questions remains, will Biden be a revolutionist or just a reformist when it comes to retirement plans?!
More business regulations.
Business deregulation and opening the spigot on markets are the hallmark of Republican administrations. But the corollary is true, too, so we’re likely to see Biden try to reign in regulations.
A stock market correction.
We’ve now seen the longest Bull Market in history, as the stock market has essentially climbed continuously since 2010. A correction is inevitable, and probably a drastic one as the Covid hangover sets in. But remember that the Federal Reserve, not the President, most influences the stock market, so this has less to do with Biden and more to do with reality.
Student loan debt relief.
We’ll certainly see some help and amnesty for student loan holders, but whether that will be a blanket $10,000 of forgiveness or massive education debt restructuring remains to be seen.
These are my 5 predictions for how a Biden president will affect your finances, but I’d love to hear your predictions, too!
Your financial guru,