Many Americans have established retirement accounts which rely on the success of the stock market for those accounts to grow [Opinion]
Under Donald Trump the stock market set 150 records on the benchmark index and the S & P grew by 67%. These were responsible for significant growth in Americans’ retirement accounts. That was a great achievement and marvelous benefit for many Americans.
Analysts credit the rolling back of numerous government regulations by Trump as one of two reasons the stock market had record-setting performance. The other contributing factor was the Trump tax cuts, according to analysts.
President Biden has promised to repeal much of those tax cuts and reinstate regulations Trump repealed. He is expected to start the repeals immediately.
These factors, along with a strong economic recovery, inflation, and interest rate hikes, will impact the market. Experts are expecting a Biden sell-off almost immediately.
For seniors living on their retirement accounts this spells trouble as account balances drop like rocks. For those close to retirement this could mean you will have to work longer.
The younger Americans who enjoyed watching those retirement accounts flourish over the past four years will see those record returns disappearing. It may well be that the old saying, “Easy come, easy go” applies here.
While many critics of Donald Trump often noted the former President spent too much time talking about the stock market in his speeches, the market performance directly impacts your retirement plans and accounts.
The market will also determine, in large part, how private sector businesses will expand or contract. Executives are extremely reluctant to expand business when economic uncertainty lies ahead. Often they scale back workforces to maintain profit margins. These are just facts and the sad truth.
These new policies impact every American worker, union or nonunion, who’s counting on these retirement accounts to help them retire. Almost all small, medium, and large businesses offer these accounts. Most of your government workers also rely on them to bolster defined benefit retirement.
We will have to see exactly what President Biden’s repeal of Trump polices will have on the economy, the creation and retention of jobs, investment in business expansion and growth. No question his tax hikes and environmental policies will send shock waves into the stock markets here and around the globe. How big those shock waves are will take some time to see.
Donald Trump left office with record stock market performance. Every American hopes that when President Biden leaves office that our stock market, investments, job creation, and retention is equal to or better than Donald Trumps.
- Piggy Bank: Pixaby