Financial advisors predict the impact of a new Trump administration on your money.

• With Donald Trump's re-election, many Americans are questioning the implications for their finances.
• Instead of making hasty decisions based on the news, financial advisors recommend taking a wait-and-see approach.
• The markets, tax policy, and inflation may be affected by the proposed policies of the president-elect, according to advisors.

With Donald Trump's election as president, individual investors are questioning the impact on their finances.

This week, the markets surged due to the news of Trump's victory, with the Dow Jones Industrial Average reaching a new high of over 44,000 on Friday.

Financial advisors recommend taking a wait-and-see approach before making any significant financial decisions regarding the long-term performance of the markets and Trump's campaign proposals.

Jude Boudreaux, a certified financial planner and partner with The Planning Center in New Orleans, advised clients to stick with their long-term financial plan and strategy if they have one, as it meets their goals.

Boudreaux, a CNBC FA Council member, stated that we will make adjustments as more details emerge.

Claris Financial Advisors owner and CFP, Lee Baker, advised clients against making significant financial changes at present.

Baker, a CNBC FA Council member, stated that the policies may not be set in stone and there may be adjustments or shifts based on how events unfold.

Markets may be volatile

While the markets initially responded positively to Trump's election, it is uncertain whether this trend will persist.

Baker advised people not to mistake the market pop as a confirmation of all things Trump.

Generally, markets dislike uncertainty, and experts believe the post-election rally demonstrates this.

CFP Stacy Francis, CEO of Francis Financial in New York City, stated that the markets might be experiencing relief because the toss-up election resulted in a clear, undisputed winner.

During a Friday webcast, Francis, a CNBC FA Council member, stated that many investors anticipate Trump's presidency to prioritize faster economic growth and market-friendly policies.

It is still recommended for individual investors to base their asset allocations on their specific circumstances, including personal goals, time horizon, and risk tolerance, according to Marguerita Cheng, CEO of Blue Ocean Global Wealth in Gaithersburg, Maryland.

Cheng, a CNBC FA Council member, stated that those factors should not change regardless of the election's outcome.

Some investors anticipate a rise in energy, financial, and industrial stocks due to Trump's predicted leniency on regulation. To minimize risk, individuals can invest in a broad-based index, as advised.

Ultimately, market moves do not necessarily depend on who is president.

No matter which party is in power, the stock market generally performs well, according to Francis.

Lower taxes could be extended

The Tax Cuts and Jobs Act, enacted in 2017, lowered tax rates. This legislation, which includes a higher standard deduction, a $2,000 child tax credit, and a $10,000 cap on the state and local deduction, is set to expire at the end of 2025. Advisors say that with Trump's re-election, many of the tax changes could be extended.

During her Friday webcast, Francis stated that both individuals and corporations are anticipating tax cuts due to Trump's victory, which may have contributed to this week's stock market increase.

Francis stated that the anticipated tax cuts would result in slightly accelerated economic growth in both 2026 and 2027.

Trump proposed eliminating taxes on Social Security benefits, tips, and overtime pay during his campaign. Although this would increase Americans' income, experts caution that it's premature to expect these changes.

David Haas, a CFP and owner of Cereus Financial Advisors in Franklin Lakes, New Jersey, stated that it is difficult to predict the law or policy regarding proposed Social Security changes since it has not been properly drafted and adopted yet.

Inflation could go up

The Federal Reserve has aided in reducing inflation's rate, bringing it close to the 2% target.

Yet, some policies proposed by Trump may risk elevating inflation.

The implementation of tariffs may result in an increase in the prices of imported goods and services, while inflation may also rise due to the pro-business policies and tax cuts implemented by Trump, as stated by Francis.

The Federal Reserve's interest rate policy could be affected by Trump's leadership, as the central bank cut interest rates by 25 basis points on Thursday.