3 Ways a Trump Presidency Could Impact Your 401(k) or IRA

When big political changes happen (*cough—like a Trump presidency) it’s natural to feel a little nervous about how policies could affect your finances. If you’re like most women just starting to pay more attention to investing or your retirement planning journey, you’re probably wondering, “but what does this mean for me?”

It’s easy to feel panic, especially when a sweeping list of changes in just a few days impacts the stock market in wild ways. You might have already seen articles with titles like “Stock market’s hang on Trump’s every word.”

These type of articles are helpful to understand what’s going on but can also induce panic if you’re not an informed investor.

To help you navigate what might be coming, let’s talk about 3 ways a Trump presidency could impact your 401(k) or IRA—and what you can do to stay in control of your financial future.

1. Corporate Tax Cuts: Good for Big Companies and Your 401(k)/IRA... (but with a massive asterisk*)

Trump’s push for corporate tax cuts will likely let big companies keep more of their profits. On paper, that’s great for the stock market—higher profits often lead to higher stock prices. If you’re investing in low-fee index funds that hold a mix of stocks, this could actually help your 401(k) or IRA grow.

I’d be remiss if I didn’t make two notably points here:

• Who really benefits? The people who have the potential to benefit most from any future stock market increases in the next few years are those who already have a chunk of money in the stock market and in retirement accounts or are starting to invest more right now. If you’re living paycheck to paycheck, corporate tax cuts aren’t likely to help you financially.

• The downside: Supporters of tax cuts say that cuts could an individual or family's disposable income and help grow the economy. Sounds nice, but economic critics of corporate tax cuts point out that tax cuts for big businesses can sometimes mean less government funding for programs that help lower-income families. So, while the market might rise, life could get tougher for people struggling to make ends meet.

What I’m Doing:

I’m keeping my IRA simple and diversified. My portfolio includes funds like the US Total Stock Market Funds, International Market Funds, and Tech-focused ETFs and Index Funds.

Why? Because it’s easy, it works, and I don’t want to spend hours analyzing individual stocks.

I’m also slowly upping my contributions to my retirement accounts to save on taxes and grow my future wealth. Trust me, even bumping up your contributions by $50 to $100 a month can make a massive difference over time.

Pro tip: If you’re overwhelmed by the thought of finding “extra” money, start by reviewing how your spending money now. Identify some changes that might allow you to start increasing your investments even by small amounts. You’ll probably hardly notice the change in your budget, but your future self will thank you!

2. Your 401(k) or IRA Balance Could Bounce Up and Down... a Lot

One thing we know about Trump’s policies is that they can shake up the stock market. Trade deals, deregulation, tariffs, weird phone calls—you name it. All of these factors can cause the market to feel like a rollercoaster.

One month your 401(k) balance might look amazing, and the next, it could feel like it’s free-falling.

You need to know that:

• Volatility is normal. Markets will always have ups and downs, but historically, they trend upward over time. The US stock market has averaged over 10% annual returns, even after major crashes like 2008 and COVID-19.

• Sticking it out works. The people who win in investing are the ones who don’t panic. Checking your portfolio every day is like weighing yourself every hour—it’s stressful and pointless.

What I’m Doing:

I’m continuing to automate my investing and tune out the noise. My money goes into my IRA and brokerage accounts every month like clockwork. I don’t obsess over market news because I know I’m playing the long game.

If you’ve been tempted to hit “pause” on investing because the market feels unpredictable, here’s my advice: don’t. Even if the market dips, you’re buying stocks at a discount—and that’s how you build wealth.

3. Tariffs Could Make Everything More Expensive (...but investing more in retirement accounts can help)

Here’s how tariffs work: When the U.S. adds extra taxes on imported goods, companies here have to pay more to bring those products into the country. And because they are paying more to get those goods they cover the costs by charging you—said another way, they pass on the extra cost to us, the consumers.

What does that mean?

• Higher prices: Everyday items like cars, electronics, and even groceries could get more expensive.

• Inflation: If enough products rise in price, we could see inflation, which means your money doesn’t stretch as far (another reason why investing is critical—to outpace inflation so our money isn’t losing purchasing power every year.)

• Rising interest rates: The Federal Reserve often raises interest rates to slow inflation, making loans and credit cards more expensive, too.

What I’m Doing:

To prepare for rising costs, I’m making sure my investments are in stocks, not sitting in cash. Why? Because when prices go up, the value of stocks tends to rise over time, helping your money grow even when inflation happens.

I’m also double-checking my budget to make sure it’s built to handle inflation and that I’m focused on spending money on the things that really bring me joy—for me that’s travel, hiking, and experiences with people I love.

Spending less than you earn and investing the difference? That’s still the golden rule for building wealth.

Political shifts can create a lot of noise, but your financial future is still within your control—especially if you invest in your own education. Whether the market is booming or volatile, staying consistent with your investing and focusing on the long term is the key to success.

Your 401(k) or IRA isn’t just a line item in your financial plan—these are tickets to financial independence. Start now, stay consistence, and watch your confidence (and your balance) grow.

If you want to make sure you’re growing your 401(k) as fast as possible, be sure to check out the free mini course–4 ways to make the most of your 401(k).