What Trump’s Executive Order on Retirement Security Means for You
In 2018, former President Donald Trump signed an executive order aimed at improving retirement security for Americans. This action reflects a growing concern over the financial readiness of citizens as they near retirement age, especially in light of changing job markets and economic uncertainties. But what exactly does this executive order mean for you and your retirement plans?
Understanding the Executive Order
The executive order’s primary focus was to expand access to retirement savings plans and minimize the barriers that many small businesses face in offering these plans to their employees. By encouraging the establishment of multiple employer plans (MEPs), the order sought to allow small businesses to band together to create retirement plans, thereby sharing administrative costs and making it easier for employees to save for their future.
Key Provisions of the Order
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Expanding Access to Retirement Plans:
The executive order aimed to make it easier for businesses, particularly small businesses, to offer retirement savings plans. By promoting MEPs, the order seeks to increase the number of Americans who can access employer-sponsored retirement plans, which often offer tax advantages and incentives for saving. -
Promoting Financial Education:
The order emphasized the importance of financial education and literacy. It encouraged the Department of Labor to take steps to improve the availability of educational resources designed to empower employees to make informed decisions about their retirement investments. -
Encouraging Long-Term Savings:
By promoting retirement plans that are easier to administer and participate in, the executive order aimed to increase the number of individuals saving for retirement. This is crucial in a time when many Americans feel unprepared for retirement due to lack of savings. - Reducing Regulatory Burdens:
The order called for a review of existing regulations that might discourage employers from offering retirement plans. By reducing unnecessary regulatory challenges, the hope is to encourage more businesses to create retirement savings opportunities for their employees.
Implications for Individuals
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Increased Options for Retirement Savings:
If your employer decides to participate in a MEP, you may gain access to a retirement plan that previously wasn’t available to you, providing you with an easier way to save for retirement through regular payroll deductions. -
Enhanced Financial Knowledge:
With greater emphasis on financial education, you may find more resources available to help you understand your retirement options better. Access to workshops, online tools, and personal finance advice may empower you to make better decisions regarding your retirement savings. -
Potentially More Robust Retirement Funds:
As more employees participate in retirement plans under the MEP structure and with better financial literacy, there’s a potential for significant growth in overall retirement savings across the workforce, which can contribute to a more secure retirement for individuals. - Navigating Changes:
As this executive order unfolds and new regulations are implemented, individuals should stay informed about changes to retirement plan offerings at their workplaces. Staying proactive about your retirement planning can support financial security in the long term.
Considerations Moving Forward
While the executive order sets the groundwork for improving retirement security, individuals must remain active in their financial planning. It’s essential to assess your own retirement savings needs, understand your employer’s offerings, and consider supplementing employer plans with personal savings accounts, such as IRAs.
In conclusion, Trump’s executive order on retirement security represents a significant step toward improving access to retirement savings for Americans, particularly those working for small businesses. By fostering an environment that encourages savings and simplifying the process for employers, the order can pave the way for a more secure financial future for many. As these changes take effect, stay informed, engage with the resources available to you, and take control of your retirement planning to ensure a secure and comfortable retirement.
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The average American has seen STAGNANT WAGES for a few decades. Truth! Plusssss … many of us have had competition from contractors/ truckers ETC that are working in OUR country ILLEGALLY & they drive our prices down because they charge for the same type of subcontracting work about 50-70% Less on average. They drive dilapidated equipment / vehicles because they cannot afford it on what they charge. They think they're in business but they are not. They're stealing business. They have in a sense what we call a glorified JOB
That's a money making voice you have there, Chris Hogan…
People can't save when they don't have jobs or they are only making enough to get by . The wages have been stagnet for 35 years and the cost of living is sky rockting . These so called gurus know this but act like there new books will fix all of this for average Americans . Not until wages go up and cost of living comes down .
Sad.
TRUMP 2020….
How many days would it take until small businesses can actually implement the 401K's to their employees.
Great opportunity for not rich old white dudes…fuck yall
The problem is the 2 dollar per jobs in a restaurant do not allow you to feed yourself let alone save and pay bills. The CEOs are raping the the money that should be ours to save. Climb off you high horse and do research in the real world with a real job. A gallon of gas or water cost more than you can make at chillis in a hour. But the ceo makes enough to pay for their employees rent for 2 months in 2 minutes. The only answer is to revolt and paint the streets with the blood of our rich, greedy overlords. But their answer is always get another job, you don't need to spend time with family, have a heart attack and die from not sleeping. Its ok then we can steal that pot you used to piss in instead of you passing it on to your family
Not saving because I live in California.
Means my mother and aunt have to work until they die ..
Thanks Mr Trump
This is really a ploy to boost his falling approval rating
Start by staying away from 30 yr mortgages, only 15 yr or less. Then invest as much as possible, 401k is basically investing in the stock market except not being taxed. Now everyone goal should be to invest to the point that the investment returns pay for your monthly bills. Finally, only buy vehicles you plan on keeping for at least 15, 20 years, Toyota and Lexus are excellent at used prices.
There is a very important reason not to invest — The Democratic Party. In 2006 the
Democrats took Congress. They immediately strong-armed banks into making home
loans to their constituents and caused the biggest bank crash in recent history.
Why invest (stock market or real estate) as long as Democrats are around?
Put all your money in the hands of others.
I like what he had to say. Capitalism is great but when people don't have self control and understand how to spend and save their money capitalism can suffocate a person..BUT if somebody knows how to manage their money capitalism can take you to the TOP
Millennials are not saving. As they are in debt with College loans. With a degree worth shit. That debt can never be forgiven either.. As they owe $200,000.00 with interest!
The biggest problem is an "I DESERVE IT NOW!" mentality. There's just no regard for delayed gratification and living within, or below ones' means.
Dont go after the smallest amounts owed first… Go after the bills with the highest interest!! Pay off the bills that will cost you most in the long run
This is nothing more than to try and appeal to the seniors to get their vote at midterms. You got him trying to look like a hero to the seniors but at the same time he deregulated the rules for predatory lending which is what caused the 2008 meltdown. Since nobody went to jail and they got a bailout you damm well know the banks are gonna pull the same shit. It's just a matter of time ppl
He is so right, you have to be very disciplined and use the credit card but only to the extent that you can pay it off each month. That way you get all the benefits and you are not helping the credit card companies to get even richer off of your hard earned money. Always live my this mantra GOOD that means Get Out of Debt. You will be so much happier for it. I know there are necessary debts but do you really need that expensive New SUV to hall your but to and from work? How about getting something slightly used and let someone else eat the depreciation.
here is what I wish I had been told in my early 20's….if you wanna be broke then look at 40 hours a week as a full time job