Wall Street has shown positive signs after the new president was elected. The Dow Jones average has hit an all-time high, breaking the 19,000 benchmark. You may wonder; will this rally have a long term positive outcome for me? For 46 million baby boomers in the US, this new administration will have a direct impact on their quality of life in retirement. Social Security and Medicare have been political bombs passed on from one administration to the other will Trump make changes to these programs? We have highlighted some of the key issues affecting retirees: Taxes, Social Security, Veteran’s affairs and Healthcare.
TAXES – Trump’s plan is to lower the income brackets from 7 to 3. A single filer with an AGI under $25,000 would be exempt and joint filers with an AGI under $50,000 would also be exempt from taxes; meaning that retirees with lower income streams or part time jobs would have more money to live on. For those that make more than that, the Trump plan will dramatically increase the standard deduction for joint filers to $30,000 up from $12,600. This plan will also eliminate the “Death Tax” for those with assets under $10,000,000.
SOCIAL SECURITY – Trump’s plan is to maintain the current social security system.
VETERANS AFFAIRS – With so many retirees having served our country, it is imperative that the VA issues be fixed to ensure the needs of our veterans. The Trump administration vows to put doctors and nurses in charge of making medical decisions and not bureaucrats. To appoint a VA secretary whose sole purpose is to serve the veterans and not DC and ask that Congress pass legislation that empowers the Secretary of the VA to discipline or terminate any employee who has jeopardized the health, safety or well-being of a veteran. Reform the system to ensure veterans are at the front of the line for health services, not the back.
HEALTHCARE – Trump plans to maintain the medicare system but pledges to “Modernize Medicare, so that it will be ready for the challenges with the coming retirement of the Baby Boom generation – and beyond.” He also pledged to repeal and replace Obamacare, and he has reiterated his goal of giving Americans access to tax-free Health Savings Accounts to maintain a portion of their pre-tax income to cover medical costs. His plan is also to increase options for healthcare by allowing the purchase of insurance across state lines. It remains to be seen whether this will lower the future cost of health insurance. With the intense increase in Obamacare premiums year after year, maintaining the current cost of healthcare would be a mild win.
In order to implement these plans, the Trump administration will have to work with Congress to make permanent changes and not just change by executive order. With a new year and a new administration to soon be in place it is a great time to consult with your personal advisors as to how you can prepare and take advantage of the coming changes to these fundamental retirement programs. If you would like to talk with a reverse mortgage specialist as to how a reverse mortgage can help you in your retirement please visit www.Funds4Seniors.com or call today at (877) 567-7476 for a free consultation with no commitment required.