The Trump era dawns today, amidst a storm of both honest disagreement and an overwhelming degree of infantile protest.  What will Trump mean for the retirement account of the self-directed investor?  I’m Bryan Ellis.  I’ll break it down for you right now in Special Episode #240 of Self Directed Investor Talk

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Happy Inauguration Day, self-directed investor nation!  Welcome to the podcast of record for savvy self-directed investors like YOU, where if you give us just 7 minutes a day… we give you back MASTERY as a self-directed investor!

Ahhh yes… pomp and circumstance.  I really enjoy it, honestly.  I’ve watched all of the inaugurations, and the day’s events leading up to them during my adult lifetime, and it’s really so fascinating to me.  You can frequently tell a WHOLE LOT about how the President will behave in office solely on the basis of how they behave during inauguration.  In fact, that was more true of Obama than for anyone else, but that’s old news, because there’s a new sheriff in town.

His name is Donald Trump, and he’s a billionaire real estate developer… and he’s already changed the political landscape of America in a way that nobody every predicted… I mean, NOBODY AT ALL… except, for Donald Trump.

That’s kind of an interesting thing, isn’t it?  I’ll bet it’s safe to say that when Trump announced his candidacy on June 14 of 2016, I think there was probably one and only one person in the entire country… the entire WORLD… who believed he’d be the next president, and that was Trump.

He was right.  The entire rest of the world – including me, by the way – was wrong.

But what will this mean for you and me as Self-Directed Investors?  I’ll tell you, right now, my friends.

But first, two things:

Number One:  More than any other day, I’d REALLY love to get your feedback about what I have to say.  Just go to today’s show notes page at SDITalk.com/240 to leave your comments.

Number Two:  Remember – always and forever – if you need some funding for your business or real estate deal, and ZERO PERCENT sounds like the kind of interest rate you’d like to pay to borrow that capital, then stop by SDITalk.com/credit.  We have a great FREE WEBINAR there that will tell you exactly how that can be done.  And it’s the best kind of credit, too… totally unsecured, and not connected to your personal credit report.  Doesn’t get better than that, so visit SDITalk.com/credit.

What will Trump mean for Self-Directed Investors?

All in all, I think that Trump could prove to be OVERWHELMINGLY GOOD for those of us who take care of our own investment decisions.  I mean, stratospherically excellent.  And understand… while I did vote for Trump in the general election, I did not vote for him in the primary, so it can’t be said that I’m a Trump fanboy.

So here’s what I’m expecting:

The most immediate impact on you as a user of retirement accounts – self-directed or otherwise – is that TRADITIONAL accounts will become a bit less valuable and ROTH accounts will become a bit more valuable.  That’s under the assumption that Trump succeeds in reducing personal income tax rates, which is a great thing, but also means that the tax deduction you’d receive for contributions to a Traditional IRA or 401k would inherently result in less real dollar savings for you.  So that’s the first real, tangible effect.

Second, if Trump succeeds – in part or in whole – in two of his stated objectives, the economy will simply explode to the upside and the stock market would have some serious upside pressure.  Those two objectives are:

Number 1:  Reduction of CORPORATE income tax rates to 15%.  Now just understand… that is HUGE.  Or maybe it’s YUGE.  Currently, that rate is 35%... so Trump is proposing to slash corporate rates by well over half.  What does that mean?  The Tax Policy Center estimates that $473.3 BILLION dollars was collected in 2016 in corporate taxes.  A very crude calculation would suggest that this change alone would leave over $200 BILLION dollars in the coffers of corporations, and that nearly always means one or more 3 things:  (1) more dividends for owners; (2) more jobs; and/or (3) investment in infrastructure for future growth.  All three of those things are very, very good for an economy.

But yes, this is a huge TAX CUT… and some of you think that’s a bad thing.  Sound off about it!  Leave your comments at in the comments area below!

And the second big objective that could rock the economy in a big way is Trump’s proposed tax holiday on repatriating offshore profits.  This is a big deal, folks… and you folks out in Silicon Valley and up in Redmond, Washington are, I’m sure, particularly interested in this one.  You see, a lot of Fortune 500 companies – most notably Apple and Microsoft – have hundreds of billions of dollars stashed offshore.  The moment they bring that money back to the US, they’ve got to pay that horrendous 35% tax rate.  But Trump is proposing a bit of a tax holiday on repatriating that capital… a massive holiday, actually, down to 10% for a time.  According to one estimate, Apple alone would save over $48 billion in taxes and Microsoft would save about $24 billion in taxes.  Now folks, I don’t care who you are… even if you’re Warren Buffett… those are MASSIVE MASSIVE numbers, and have the potential to be GAME CHANGERS… again, with likely results being one or more of:  increased dividends, more hiring and/or more business growth infrastructure.  All very, very good for the economy, but not so good – at least when judged in vaccum – for US tax revenues.

I’m not one to cry over reduced tax revenues.  Unlike the government, I don’t see my money as the government’s first, and then mine if and only if I can manage to keep it from them.  What do you think?  Let me know at SDITalk.com/240.

I’ve got more to say about the expected Trump effect for investors like you and me, but we’re just about out of time today, so I’ll revisit this in our next episode, and in that episode, we’ll look more into the specific effect on real estate and other alternative assets, because I think we can make some reasonably well educated predictions on that.

And look… I REALLY want to hear from you folks about this, and right away!  The inauguration happens in about 2 hours from now, so there’s no time to lose!  Jump on over to SDITalk.com/240 right now and let me know what you think!

My friends… invest wisely today, and live well forever!

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