What A Trump Election Means | Stewardship Concepts Financial Advisors

Happy Friday, everyone; whether you are rejoicing or disappointed, we can all agree that it will be nice that the season for political ads is over. Trump is our new president with a Republican Senate and an undecided House. We'll have to see what happens. But if we see a full sweep, we could see a lot of new legislation pass in the next few years. Thank you for joining me today for two minutes on the economy, an interesting story, and a financial planning secret.

Economy - What A Trump Election Means

The Dow jumped over 3% following the trump election results because corporate tax rate cuts are expected to continue, and companies will be more profitable. Analysts predict debt levels are expected to rise due to continued tax cuts. With the upcoming tariffs and trade war with China, inflation may rise. If inflation reignites, the FED may respond with rising interest rates. We'll have to see if that happens, but that's why we saw yields rise, even with the FED cutting rates by 0.25% yesterday. We will continue to watch and see how tariffs affect this post-pandemic economy. The underlying concern behind yesterday's FED rate cut is to help the labor market, with the last report coming in very poor.

Interesting Story – Upcoming Trade War

The real question is how these tariff plans will affect the US and the world. Goldman Sachs has estimated that many foreign countries' GDPs are expected to take a hit, especially China, which is supposed to be hit with the biggest tariff at 60-100%. Everyone else, including our trade partners, will get hit with at least a 10% tariff. Mexico's GDP is expected to drop by 1.9%. The clear winners of this trade war are US manufacturers that don't import or export. These tariffs should lead to the availability and reshoring of more manufacturing jobs in the US.

Financial Planning Secret – Business Owners (File your BOIR, save $10k)

Business owners must take 10 minutes to avoid up to a $10,000 fine. To avoid this, you must disclose information about the entity and its beneficial owners to the Financial Crimes Enforcement Network annually. If you were formed on or after January 1st, 2024, you must do it within 90 days. If you were formed before that date, you must do it before January 1st, 2025. It's quick and simple. You must disclose the EIN and the business's physical address and list the information of any owner that owns 25% or more. You must upload the owner's driver's license or passport. Follow this link to submit the paperwork. LLCs, corporations, Limited partnerships, or limited liability partnerships must file. Most notably, non-LLC sole proprietorships are excluded. Look up exemptions here. We recommend setting up a calendar reminder to do this annually.

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