As the 2024 election approaches, many Marylanders are focused on major issues like healthcare and the economy. However, it’s also essential to understand how elections may affect your personal finances.
From student loan policies to tax reforms, the decisions made at the ballot box can significantly impact your financial well-being. Here’s what to watch for and how you can align your financial decisions with your values and goals as you prepare for Election Day.
What to Watch for in 2024: Key Financial Policies
In the 2024 election, financial policies are likely to be a major focus. Issues such as student loan forgiveness, income-driven repayment plans, property taxes, and tax deductions for homeowners will be hot topics. Changes to these policies can affect everything from your monthly student loan payments to the amount of property tax you owe as a homeowner. Staying informed about candidates’ platforms and proposals can help you anticipate these changes and prepare your finances accordingly.
1. Student Loans and Election Outcomes: What’s at Stake?
For many Marylanders, student loans are a significant financial burden. The 2024 election could bring substantial changes to student loan policies, which may include expanded loan forgiveness, restructured repayment plans, or changes to interest rates. Policy positions range from pushing for broader forgiveness programs or income-driven repayment options to focusing on tightening eligibility criteria.
Determine How Policies Could Impact You
- If you are currently repaying student loans or plan to borrow in the future, changes to federal and state policies could directly impact your repayment strategy. Start by reviewing your loan terms and whether they are tied to existing or proposed forgiveness programs.
Steps to Take
- Research candidate platforms on student loan policies. Candidates often release specific plans regarding debt relief, so it’s important to stay informed.
- Consult a financial aid expert to understand how these changes might affect your current loans or future borrowing plans.
- Budget for potential changes by setting aside extra savings or adjusting your repayment strategy in case new policies increase or reduce your payments.
2. Tax Changes and Property Values: Could Taxes Increase?
Maryland’s property market is competitive, and its higher-than-average home values mean even small changes in property tax laws can significantly affect your financial outlook. The 2024 election could bring shifts in homeowner tax deductions, credits, or local property tax rates. Changes to federal income tax laws, including deductions like the mortgage interest deduction, could also impact your tax liability.
Determine How Policies Could Impact You
- Evaluate your current property tax rate and how a potential increase or decrease might affect your monthly budget. This is especially relevant if you’re a first-time homebuyer or planning to purchase property soon.
- Review your tax deductions, especially if you rely on the mortgage interest deduction or other credits that could be changed after the election.
Steps to Take
- Track policy proposals in both local and national elections. Local candidates, in particular, may have a direct influence on property tax rates and housing policies.
- Use online tax calculators from the IRS or Maryland tax offices to estimate your tax liability under different scenarios.
- Seek professional advice from a tax expert to get a personalized assessment of how changes in tax laws may impact your specific situation.
3. Retirement Plans and Social Security: Preparing for the Future
Retirement and healthcare benefits, such as Social Security and Medicare, are always key issues in elections. Changes to these programs could impact your retirement income, healthcare costs, and overall financial security in your golden years. In the 2024 election, candidates may propose policies ranging from increasing retirement age and modifying benefit formulas to restructuring Medicare coverage and costs.
Determine How Policies Could Impact You
Evaluate your retirement strategy and understand how proposed changes to Social Security or Medicare could affect your expected benefits. This is especially crucial if you are nearing retirement or already receiving these benefits.
Steps to Take
- Stay informed about candidates’ positions on Social Security and Medicare. Consider how changes might impact the benefits you expect to receive.
- Review your retirement savings strategy. If you’re worried about potential reductions in benefits, consider increasing your personal contributions to retirement accounts such as IRAs or 401(k)s.
- Consult a financial advisor to help you create a contingency plan for potential shifts in retirement policy.
4. The Broader Economic Impact: Beyond Taxes and Loans
While student loans and taxes are critical, broader economic policies that influence inflation, interest rates, and job growth will also be affected by the 2024 election. For Maryland voters, especially those near Washington, D.C., where government jobs and defense contracts play a major role in the economy, the outcome of federal elections can have far-reaching implications for employment and income stability.
Determine How Policies Could Impact You
- Assess your job sector to determine if it’s directly influenced by federal or state policies. For example, those in defense contracting, healthcare, or education may see significant changes coming out of the election.
- Consider inflation and interest rates when planning your financial future. Higher inflation could decrease your purchasing power, while changes in interest rates may affect your ability to refinance a mortgage or take out new loans.
Steps to Take
- Stay informed about economic forecasts and each candidate’s policies regarding inflation, job growth, and interest rates. These broader economic factors will play a role in your financial health over the long term.
- Revise your financial strategy if needed. For example, building an emergency fund or adjusting your investment strategy can help you prepare for potential economic shifts.
Prepare for the 2024 Election with a Financial Wellness Checkup
The 2024 election could bring changes to student loans, taxes, and your overall financial situation. To stay informed and prepared, schedule a Financial Wellness Checkup with SECU. This personalized review will help you understand your current financial position, navigate potential changes, and adjust your strategy ahead of the election.
