27 Sep, 2016
Clinton or Trump: either way Americans need to review their money plans
Whoever gets the keys to the White House, change is on its way whether you like it or not. The leader of one of the world’s largest independent financial advisory organisations affirms that, as a safeguard, Americans need to act now to shore-up their finances.
The founder and CEO of deVere Group, Nigel Green, comments on the aftermath of the first presidential debate between Hillary Clinton and Donald Trump.
“This race to the White House is too tough to call. But one thing is for certain: this unusual election cycle has changed U.S. politics and this will impact how Americans create, grow, maximise and protect their finances moving forward”, says Mr Green.
He continues: “Whether it is Clinton or Trump who gets the keys to the White House, change is on its way. Americans need to act now to shore-up their finances. Failure to act sooner rather than later could mean missing out on important opportunities and hitting some avoidable pitfalls.
“In the longer-term, Trump could preside over looser fiscal policy, including increasing the defence budget and cutting taxes. This would constitute a demand uptick for the U.S. economy.
“That said, he has some controversial protectionist policies that could impede real, sustainable economic growth.
“Should Clinton win, the financial markets are likely to immediately bounce as they breathe a collective sigh of relief – they highly value the continuity she represents. In response, it can be expected that the Fed will raise rates this year, which will be a short-term boost to Treasuries and put equities under pressure.
However, Mr Green adds that “any financial malaise that could potentially be created is likely to be tempered by the markets’ general sense of relief.
“That said, even with Clinton there would be changes ahead. For instance, like Trump, she has also jumped on the anti-globalisation bandwagon and this could damage longer-term economic growth. In addition, tax hikes are likely to be on their way for wealthier American families.”
Mr Green goes on to say: “Change is around the corner. Whatever happens, there will be key opportunities you will want to take advantage of and risks you will want to mitigate.
“The best advice right now is to review your financial strategy to ensure the changes will be beneficial to your wealth.”
Nigel Green, the deVere Group CEO, concludes: “Investors should be ensuring that their portfolios are properly diversified, they should be aware of their tax liabilities and how they could change and, most importantly, they should seek professional independent advice.
“Vigilance is crucial at the moment. Complacency should not be an option if you’re serious about growing and protecting your wealth.”