Preparing Your Retirement Plan for a Potential Second Term for President Biden
President Biden’s potential reelection in November could have significant implications for retirement planning. As winning a second term can prompt presidents to make policy changes, now is the time to ensure your retirement plan is ready for any potential shifts.
Election years serve as a crucial reminder to pay close attention to your retirement plan. Whether you haven’t revisited it in a while or don’t have one at all, taking action now is essential. To help you navigate this important matter, GOBankingRates spoke with experts to provide seven retirement planning moves to consider if Biden is elected for another four years.
One key move is to diversify your investment portfolio. Spencer T. Hakimian, founder of Tolou Capital Management, emphasized the importance of spreading your assets across various classes to mitigate risk. This strategy can help protect against market volatility, especially in light of potential economic policies under a Biden administration.
Another crucial step is to review and adjust your tax strategy. Changes in tax laws could impact your retirement savings, so it’s vital to optimize your plan with the help of a financial advisor. This may involve reallocating your assets and exploring tax-advantaged accounts like Roth IRAs.
Additionally, strengthening your healthcare plan is essential, as healthcare costs are a major concern in retirement. Policy changes under a Biden administration could affect Medicare and related expenses, making it important to have a robust healthcare strategy in place.
Increasing your retirement plan contributions and considering Roth IRA conversions are also recommended moves. Nischay Rawal, managing partner at NR Tax and Consulting, highlighted the benefits of contributing to tax-advantaged plans and converting assets to Roth IRAs to potentially save on taxes.
Furthermore, thinking about increasing your investment risk and reviewing your estate plan are prudent steps to take in anticipation of potential policy changes. By meeting with an estate planning attorney and adjusting your investment strategy, you can better prepare for the future.
Overall, creating a comprehensive long-term financial plan and staying adaptable to potential changes is key. By saving enough money, maintaining a balanced portfolio, and being prepared for tax law adjustments, you can navigate the uncertainties of a second term under President Biden.