Imagine driving off into the sunny horizon, where your cushioned retirement awaits. You’re at the wheel of a brand new convertible Porsche and you’ve only got the people you care about most as passengers.
The end of the road is so bright you’ll need the highest quality sunglasses money can buy, but that’s no issue. You can afford a hundred pairs of those with all your retirement savings.
Until the horrifying reality kicks in and you end up driving your brand new car off a cliff and into the deep dark canyon of 21st century retirement…
Do you know where your retirement currently stands? How healthy is your Medicare plan looking under the imminent Trump presidency?
If you haven’t done any research on where your money is going, then you might be very alarmed.
It’s important to understand the status of your retirement, and how much of an impact the Trump presidency—and the possibility of a second term—could have on you in the next 5 to 10 years.
If you haven’t been keeping a close eye on the various policies that have been thrown around the political world in the past couple of months, then you may not be aware that there were statements made by both parties that were bound to be contradicted.
One in particular was Donald Trump’s policies on Medicare.
Now, I’m not singling him out. Like I said, both parties have and will go back on statements they made—president or not—so there’s no pointing fingers. But Trump’s change of heart regarding Medicare is the latest of many.
In his presidential campaign, Trump set aside conventional Republican ideals and pledged to not cut Medicare. We very well know that Trump’s not your conventional Republican, but shocking nonetheless.
It was obvious that there would be an immediate attempt to repeal Obamacare, but Medicare wasn’t really included in the big picture.
Now that the president-elect has had time to review and consider all his policies, your retirement plan may not be so secure after all.
Trump’s nod to Tom Price as the head of the Health and Human Services Department rattles the comfort of those turning to Medicare for healthcare after retirement.
Price has already vocalized plans for his “Empowering Patients First Act,” which directly applies to Medicaid, but will serve as a model for Medicare. Price’s proposed plan would see more of a privatized healthcare market, while changing the tax-credit distribution to an age-based system.
It’s vital to realize that 401(k) accounts may be just as shaky as Medicare.
The most important thing to understand is that there’s always risk when handing your money over to the government for saving purposes. You’re essentially betting on the economy—not just America’s economy, but the world’s economy.
Nothing is set in stone yet and it certainly won’t be a done deal before passing through congress, but there’s no harm in being prepared.
This preparation can come in many forms, but the most important approach to take is personal savings. Take matters into your own hands. If you individually save for your retirement, then it won’t matter if you can lean on Medicare or not—you won’t have to.
The amount of options out there in saving for retirement is endless.
One of many solid preparation techniques I would advise is investing in sound and stable Exchange Traded Funds (ETF).
Now, I’ll leave the long and boring description of ETFs for another day, but I trade them just as if I was trading stocks.
We have multiple recommendation services, some of which will cater to the long-term (6 months+) investor, and help you financially prepare for the unknown world of retirement.