Most Americans are concerned about their finances in retirement. A recent GOBankingRates survey found that 26% of Americans believe that they will need to depend on Social Security entirely during retirement, 25% believe they will have minimal savings in retirement and a staggering 22% believe they will never be able to retire.
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While these statistics are alarming, the financial reality for those who plan to retire during President-elect Donald Trump’s next term might be better than expected, according to Grant Cardone, a private equity fund manager and real estate investor. Here are two reasons why Cardone believes Trump’s presidency will improve retirees’ finances.
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Trump made several public statements pledging to repeal taxes on Social Security if he were to be elected president.
“I absolutely agree with his proposal,” said Cardone, who has sent a proposal to the Trump administration to implement a federal program, Make Americans Wealthy Again, which would teach financial basics to all Americans.
“I’ve already paid taxes on my income — why am I being taxed on my Social Security?”
Cardone explained that the taxes paid toward Social Security during our working years are essentially a loan to the government that we should get back when we retire.
“People at the max level, they’re going to pay in about $12,000 a year for 30 years, so you have somewhere under $400,000 invested there,” he said. “The government had that money to invest for somewhere between one and 30 years, and they didn’t do a good job with it.
“So here we are now where I’m going to pull my money — I finally need my money to retire,” Cardone continued. “The money shouldn’t be taxed, and that’s good for the elderly. [Trump] is going to do what he can to reduce taxes on Social Security to zero.”
Based on the current rates at which Social Security is taxed, the typical senior would save about $527 annually if taxes are eliminated.
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Currently, homeowners ages 62 and older have reached $14 trillion worth of equity in their homes, National Mortgage Professional reported. Cardone believes that Trump will take steps to make this equity easier for retirees to access.
