6 ways Trump’s win will affect your wallet

There is a great deal of fear surrounding the watershed presidential election we just witnessed. Right now, there are garbage trucks around Trump Tower on Fifth Avenue in New York, protests on the 101 Freeway in Los Angeles and angry crowds in many downtowns across the country. Additionally, Donald Trump's victory has sparked student walkouts and protests on college campuses across the country.

It remains to be seen if Trump can find ways to reach out to the people who are less than enthusiastic about his presidency. He mentioned in his victory speech that he wants to be everyone's president. With so many uncertainties, there is one thing that we can actually digest — what Trump's fiscal plan would mean to your wallet. We can drill down into what he has proposed and determine what it could mean for us if passed into law. I've pulled out six major areas and how his plan could affect us.

Donald Trump
Mandel Ngan | AFP | Getty Images
Donald Trump

Investments: As the dust settles and investors look into the policies of Trump's fiscal plan, they seem to be more positive, at least the last few days of trading have been. The stock market was down over 800 points during after-hour trading the night of the election, and has now been up the last few days.

The rise is based on Trump's promises around spending on infrastructure and his support for low interest rates and sweeping personal and business taxes. If implemented, these policies could make the stock market go even higher.

Roads and bridges: Trump and Hillary Clinton both agreed on infrastructure spending, so this should be one area where Democrats and Republicans will actually make something happen. The massive spending on roads, bridges, etc., will create jobs and hopefully spur the economy.

More from FA Playbook:
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How President Trump will affect your tax return
Can you afford to help your kids with college costs?

Taxes: Trump has promised to cut personal taxes across the board into three rates — 12 percent, 25 percent and 33 percent — depending on your tax bracket, and business taxes from 35 percent to 15 percent, so you should expect to pay less tax individually or if you own a business.

He also plans to increase the standard deductions we receive, so a family who makes less than $30,000 a year wouldn't pay any taxes. Traditionally, when taxes are cut, there is a bump in the economy because people now have more money to spend. Tax cuts would probably be supported by the Republican-controlled Congress. Yay, lower taxes.

Students and debt: Based on his plan, government student loans will be forgiven after 15 years of making payments, versus 20 years as it is now. You will also be able to increase your debt repayments to 12.5 percent of your income, from 10 percent, if you chose a repayment plan. Plus, standard deductions, which are more likely to be used by low-income individuals like students, will be increasing. For an individual, the standard deduction will go from $6,350 to $15,000. That means millennials making $15,000 or less will pay no tax.

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Health costs: Trump, like all Republicans, wants to ditch Obamacare and replace it with a free-market solution that can cross state borders in hopes of efficiency. He has proposed that the premiums you pay when not covered by an employer will be tax-deductible. We'll have to see how this plays out to see if it will save us money or not. If Obamacare goes and if you lose your job and the benefits that came with it, the Obamacare subsidies wouldn't be available to you and you wouldn't be insured.

Babies: Ivanka Trump announced a policy on behalf of her father supporting the new six weeks of maternity leave for new moms and dads — but not for gay or lesbian couples. It would be roughly $300 a week for six weeks and paid out of the current unemployment insurance pool. Trump also suggests that childcare spending, up to a limit, should become deductible from your taxes and that the current child tax credit should be increased by $1,200.

The Republican-controlled Congress will have to approve all of these neo-liberal and not-so-neo-liberal ideas, and the big criticism is finding funding for all of these projects. Will we have more deadlock or will this all-red trifecta be able to get things done? It remains to be seen.

— By David Lester, managing director at Brightworks Interactive Marketing