BETA
This is a BETA experience. You may opt-out by clicking here

More From Forbes

Edit Story

With A New Administration Setting Up Shop, Pay Attention To These Financial Changes

Expert Panel
POST WRITTEN BY
Forbes Finance Council
This article is more than 6 years old.

As with any major change in administration, the market seems to be expecting a shift in policy and regulations to suit new philosophies. However, change can generate uncertainty, especially in the financial world. Businesses need to be able to plan ahead in order to set aside the right funds for expenses or take advantage of new opportunities. After all, major shifts in industry regulations can open up new avenues of business — or close down sectors for years.

Which changes are particularly important to watch for in the new few years? Below, seven experts from the Forbes Finance Council share what they are focusing on, and why. 

All photos courtesy of Forbes Councils members

1. Interest Rates 

Love or hate the new administration, change is in the air, which brings uncertainty. Uncertainty typically leads to rising interest rates, making bankers more nervous to lock in long-term fixed rates. Now is the time to explore opportunities and lock in interest rates. The Fed says loan weakness is still present in February, and it's tougher to get a bank loan today than it was a year ago. Should you act now? - Ami KassarMultiFunding

2. Tax Reform 

Like them or not, taxes are here to stay. But what and how much we tax have profound impacts on markets and the economy. The United States is mired in the worst post-recession recovery in more than 50 years, creating an environment ripe for new tax policy. Repatriation of overseas corporate profits combined with sensible middle-class tax relief will be a powerful growth tonic. - Erik ChristmanOxford Financial Partners

3. NFIB 

Pay attention to the National Federation of Independent Business Small Business Optimism Index. The index reached 105.9 in January — the highest reading since 2004. The survey asks employers if they plan to increase employment, make capital outlays, and other relevant market moving questions. If there is confidence in the small business space, then we will all benefit. - Darryl LyonsPAX Financial Group LLC

4. Tax And Regulatory Reform 

Capital naturally gravitates towards the areas where it's best treated. In order to serve global markets more efficiently, many businesses have established a presence abroad because of lower taxes and relaxed regulations. Relaxation of U.S. regulations and the lowering of corporate tax rates should stem this tide. The result will likely be increased domestic production, job growth and tax revenue. - Andy Barkate MSCalifornia Retirement Plans 

5. Durbin Amendment 

The Durbin Amendment, which is part of the Dodd-Frank Act, capped debit card interchange fees at a much lower level than had previously existed. If Durbin is repealed, debit card fees will likely rise, adding pressure to the already troubled retail industry. It could also lead to the reintroduction of debit card rewards programs, which went away as a result of the cap. - Paul ParadisSezzle 

Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?

6. Department Of Labor's Fiduciary Rule 

The new Department of Labor Fiduciary Rule was to start in April. It states that all financial advisors must provide their clients a fiduciary level of care on ERISA 401(k) and 403(b) plans, as well as on IRA accounts. The new administration may delay, terminate, or alter this rule, and it will have a dramatic effect on the industry and individuals with retirement accounts. - Amir EyalMylestone Plans LLC 

7. Pay Attention To The Data 

If you're in a long-term investment plan, paying attention to the political noise can be incredibly dangerous. Remember that timing the market rarely works, and the stock market has always gone on to reach new highs. If you panic or concentrate your wealth because of political announcements, you'll most likely be sorely disappointed. You should pay attention to the data rather than the headlines. - Elle KaplanLexION Capital