November 5th the presidential election will be over and we can all stop getting calls, texts and commercials for it. I have a preference on who I think will win. However, I feel that all of us are trying to figure out how to make more money. This is true no matter if either candidate wins. If Kamala Harris becomes president, she will make history. She will be the first woman president of the United States of America. Alternatively, if Donald Trump becomes president, he will be the 47th president of the United States. Here are some things you may want to take into consideration on how to leverage their presidency.
5 Financial Steps for Families if Kamala Harris Wins
If Kamala Harris wins the presidential election, families may benefit from policies aimed at supporting middle- and lower-income households. Her proposals focus on improving financial security through tax credits, affordable housing, and access to essential services. Here are five financial steps that families can take to optimize their finances if Harris is elected.
1. Maximize Benefits from the Expanded Child Tax Credit
Harris plans to increase the Child Tax Credit, potentially up to $3,600 per child. Families should work with tax advisors to understand how best to utilize these credits, which can provide significant tax savings. In addition to tax credits, families might consider banks with high-yield savings accounts to grow these funds. Some top choices include:
- Ally Bank: Known for high-yield savings accounts with no monthly maintenance fees.
- Marcus by Goldman Sachs: Offers competitive rates with no minimum deposit.
Consider using a portion of tax savings to fund a 529 college savings plan, such as those offered by Vanguard and Charles Schwab, which allow for tax-free growth on education-related investments.
2. Look Into First-Time Homebuyer Assistance
Harris’s proposal includes a $25,000 down payment assistance program for first-time homebuyers. For families interested in purchasing a home, this assistance can reduce barriers to entry. Additionally, families should explore mortgage options with favorable terms. Top mortgage lenders to consider are:
- Rocket Mortgage: Known for a streamlined online application process and competitive rates.
- Bank of America: Offers first-time buyer programs and closing cost assistance.
Families can also explore online tools like Zillow or Redfin to research affordable housing markets and find homes within their budget.
3. Save on Healthcare and Elder Care Expenses
With potential plans to lower healthcare costs, families should stay updated on expanded Medicare options or drug price caps. In the meantime, families can optimize healthcare spending by using health savings accounts (HSAs) and flexible spending accounts (FSAs) available through employers. Recommended providers include:
- Fidelity: Offers one of the most popular HSAs, with options to invest unused funds.
- Lively: Another great HSA provider with low fees and investment options for growth.
Families with elderly members can look into Medicare Advantage plans from providers like Humana or Aetna, known for affordable premiums and extensive coverage.
4. Explore Small Business Opportunities
Harris aims to encourage small businesses with tax benefits and expanded startup deductions. For entrepreneurial families, this can be an excellent time to launch a side business or turn a hobby into income. To get started, families can look into small business accounts and loans from:
- Chase Business Complete Banking: Offers small business loans and no monthly fees for qualifying balances.
- Wells Fargo: Known for various business loan options and convenient account management tools.
In addition to funding, families can access resources like SCORE and SBA.gov for free business counseling and planning services.
5. Benefit from Lower Cost of Goods
Harris’s proposal includes strategies to combat price gouging and improve supply chains, which may reduce the cost of essential goods. Families can prepare by creating a flexible budget that allows for price fluctuations and by using cashback apps such as Rakuten and Ibotta to save on groceries. Additionally, banking at institutions with cashback credit cards, like Capital One or Discover, can provide additional savings on regular purchases.
5 Financial Steps for Families if Donald Trump Wins
If Donald Trump wins, his policies are likely to focus on reducing taxes, supporting the stock market, and minimizing regulation to encourage economic growth. Here are five steps families might take to align with Trump’s economic approach:
1. Capitalize on Tax Cuts
Trump has consistently supported tax cuts, and families may see reductions in federal income taxes. It’s wise to take advantage of these savings by increasing contributions to retirement accounts, such as IRAs or 401(k)s. Recommended providers include:
- Vanguard: Offers low-fee retirement accounts with a range of mutual funds and ETFs.
- Charles Schwab: Known for its excellent customer service and diverse investment options.
Consider using tax savings to build a long-term emergency fund at banks like CIT Bank or Synchrony Bank, both of which offer high-yield savings accounts.
2. Invest in a Bullish Stock Market
Trump’s policies often favor market growth, making this a good opportunity to invest. Families might consider creating diversified portfolios through low-cost brokerages like:
- Robinhood: Provides commission-free trading with a user-friendly platform.
- Fidelity: Known for research tools and no minimums on mutual funds.
For beginner investors, consider ETFs that track the S&P 500, such as SPDR S&P 500 ETF (SPY), to benefit from potential stock market gains.
3. Take Advantage of Low Interest Rates for Debt Reduction and Homeownership
Trump’s policies may maintain lower interest rates, benefiting those looking to refinance debt or buy a home. Families can explore low-interest personal loans from SoFi or LightStream, which offer competitive rates. For home purchases, consider:
- Quicken Loans: Offers a streamlined refinancing process with low rates.
- US Bank: Provides special programs for first-time homebuyers and veterans.
Families can also look into debt consolidation options through credit unions like Navy Federal, which often offer lower rates than traditional banks.
4. Leverage Employment Opportunities in Growing Sectors
Trump’s focus on domestic industries could boost job opportunities in sectors like manufacturing and technology. Families should consider advancing their skills through online platforms like Coursera or edX. For younger family members, saving for educational expenses in a 529 Plan could also be beneficial.
Top-rated 529 Plans include New York’s 529 College Savings Program and Nevada’s Vanguard 529 College Savings Plan.
5. Engage in Estate and Inheritance Planning
Trump’s potential tax policies may include estate tax reductions. This can be a beneficial time for families to focus on inheritance planning, especially for long-term financial security. Setting up trusts or utilizing life insurance policies from reputable providers like Northwestern Mutual or State Farm can safeguard generational wealth.
For more complex estates, families may consult with estate planning services like LegalZoom or Nolo to explore options that maximize asset protection.