Hillary Clinton has clinched the Democratic nomination and has received the endorsement of President Obama. What could this mean for your retirement?
Regardless of who you think might win the election in the fall, you’re going to want to be prepared either way.
Let’s take a look at where candidate Clinton stands on taxes, jobs and wages and what that means for the economy and your money going forward.
Extending the Obama Economy
As an establishment Democratic politician, Clinton’s stated goals and plans are clearly in line with the policies of President Obama. As such, the status quo will remain firmly in place.
The following statistics I’ve gathered paint a sobering picture of the economic legacy that candidate Clinton hopes to emulate:
During the Obama years, the number of Americans below the poverty rate is up 3.5%.
By the time President Obama leaves office in January 2017, the U.S. national debt will reach $20 trillion dollars.
The number of Americans who own homes is down 5.6%.
Real median household income is down 2.3%.
Student loan debt has soared to nearly 70% to $1.2 trillion dollars.
Despite the Affordable Care Act, the cost of healthcare since 2009 has risen 150% faster than inflation and major insurers are fleeing the exchanges.
President Obama is the first U.S President not to produce an annual GDP of 3% or better.
According to Pew Research Center analysis of census data, more young adults in the U.S. are living with their parents than at any time since 1940. These are millions of college–educated young adults mired in debt and with little or no job prospects.
In October 2008, 30.8 million Americans were on food stamps; in 2012, 46.7 million Americans were on food stamps.
A 2012 survey revealed that 40% of all Americans have $500 or less in savings.
Should I go on?
Annualized GDP growth in the first quarter of 2016 stalled, posting only a meager 0.5% in growth. If this slow-growth, low-wage economy has been a soggy blanket on your retirement plans, expect more of the same under Clinton.
Under a Clinton administration, the rich will likely pay more and the tax code will undoubtedly become more complicated. For example, Clinton would impose the so-called Buffett rule and require people with an Adjusted Gross Income (AGI) of more than $1 million dollars to pay a minimum of 30% of their income in taxes.
That certainly plays well in the media! However, it can also create a disincentive for the entrepreneurs and high earners who are supposed to be creating jobs for the rest of us.
Most importantly, Clinton has provided no specifics as to how she will reduce taxes on low- and middle-income filers. This will likely be an irresistible carrot to offer voters in the fall, giving us some scary scenarios for a country already mired in federal debt.
Jobs and Wages
Clinton wants to build on Obama’s job and wage policies, including her intention to fight for a $12 minimum wage (currently $7.25 an hour). While highly media-friendly, it isn’t hard to see how this hike might seriously hamper the ability of small businesses to stay afloat in this very tender economic period.
Clinton hopes her economic policies will raise pay, create good-paying jobs and generate more government revenue to invest in infrastructure and education. All admirable goals, to be sure! It is just hard to imagine how the bill will be paid without sending America deeper into debt.
Naturally, the specifics of who will pay for this massive spending have yet to be revealed.
Is Your Retirement “Politician-Proof”?
It’s no longer a question about the continuation of the status quo if Clinton is elected. Based on recent history, we can expect more federal debt, taxes, bitter partisan gridlock and a bigger federal government. Are you willing to risk your family’s hard-earned money that the next four years are going to be any different?
Investors will have to wrestle with negative interest rates, ineffective central bank policies and global deflation. These trends will put pressure on stocks, bonds and any currency-based asset.
Add growing social unrest because of income and wealth inequality to the mix and you can see why the best way to “politican-proof” your portfolio is to own gold or silver. It’s a safe haven no matter what happens under this or any president, as it has been for thousands of years.
Many experts think the current bull market in precious metals is just in its early stages.
Change the Status Quo and Take Charge of Your Financial Future
Call our experts today at 800-462-0071 today and explore in greater detail how the Presidential candidates and the upcoming election could affect your retirement.
Gold and silver deserve a prominent place in your portfolio, especially in these current times of uncertainty.