Many millennials are closely following the presidential race between President Joe Biden and former President Donald Trump. After all, the winner and his policies will have a major impact on millennials and their financial futures.
Learn About: 5 Changes That Could Be Coming for the Middle Class If Biden Is Reelected in 2024
Trending Now: 4 Genius Things All Wealthy People Do With Their Money
From the stock market to jobs to retirement savings, a second term for Trump could be a financial boon for millennials for a number of reasons. Here’s a look at some of the most important potential impacts to consider.
Wealthy people know the best money secrets. Learn how to copy them.
Solid Stock Market
While the market has seen larger gains so far during Biden’s administration than at the same point in Trump’s presidency, in general, the stock market has tended to react better to Trump than Biden. That’s not to say the stock market is guaranteed to be great or keep a solid record of gains under Trump, as markets soared when businesses reopened and stimulus money hit Americans’ bank accounts during the pandemic — conditions unlikely to recur in the next several years. But investors and traders generally trust his business instinct.
Not only is a good stock market a benefit for millennial investors, but sometimes Trump himself might help their accounts, especially if they invest in sectors likely to benefit from another Trump term. Those could include energy and financials, according to Morgan Stanley CIO Michael Wilson, addressing the Reuters Global Markets Forum, as reported by Reuters.
Be Aware: I’m a Financial Planner: What a Trump Win in November Would Mean for Your Retirement Savings
Retirement Savings Account Options
Neither candidate has gone on the record lately to address potential changes to retirement savings accounts. But that’s not necessarily a reason to worry. Each has a track record of signing legislation beneficial to retirees and workers saving for retirement, according to U.S. News & World Report.
Trump, for instance, signed the SECURE Act. Among other things, it made some part-time workers eligible for 401(k) accounts.
Tax Benefits
No matter who you favor in the election, taxes are probably on your mind. After all, you don’t generally find a lot of Republican or Democratic voters who want their candidate to increase taxes across the board.
For millennials, a second term for Trump could bring good tax news. His 2017 Tax Cuts and Jobs Act, which is due to expire next year, was designed to lower your personal tax burden. If he wins the White House again, the U.S. could see more tax cuts.
Housing Market Improvements
Although housing markets are local, battleground states such as Nevada are experiencing “challenging and complex” problems that could have implications on this year’s national elections, according to The Washington Post.
Voters are looking to the candidates for their plans to help improve housing access in the United States. For his part, Trump has talked about reducing inflation to help Americans better afford food, housing and other needs.
Support for Jobs
If you follow the weekly jobs numbers, you may not know what to think about the U.S. jobs market. After all, whenever there is a good report out about the state of jobs in the country, the next week there seems to be one with more distressing news.
If Trump secures a second term, it’s likely the jobs market will continue to gain some strength. His economic policies can be popular with some huge corporations and other organizations that employ a great deal of workers.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 5 Reasons a Trump Second Term Could Be a Financial Boon for Millennials