Turning Financial Planning into a Path of Empowerment: Trump Tariffs Affects

Financial literacy begins with clarity on your goals and understanding the tools available for investment. We discussed establishing a Solo 401(k) for retirement savings and explored the implications of tariffs introduced during the Trump administration on the American economy. 

• Financial goals guide investment choices 
• Establishing a Solo 401(k) offers significant benefits 
• Various contribution options available for retirement savings 
• Federal government spending's role in economic health 
• Tariffs serve as a protective economic measure 
• Impact of tariffs on consumer prices and industry dynamics 
• Balancing domestic protections with global trade relationships 
• Importance of informed policymaking in economic strategies

Setting up a Solo 401(k) is straightforward and involves several key steps:

1. Determine Eligibility:
- To qualify, you must be self-employed or own a business with no full-time employees other than your spouse.

2. Select a Provider:
- Research financial institutions—like banks, brokerage firms, or retirement plan providers—that offer Solo 401(k) plans. Compare fees, investment options, and customer service.

3. Choose the Plan Type:
- Decide between a traditional Solo 401(k) for tax-deferral or a Roth Solo 401(k) for tax-free withdrawals in retirement.

4. Complete the Necessary Paperwork:
- Fill out the plan documents provided by your chosen institution. This usually includes adopting the plan and setting the plan's rules.

5. Obtain an Employer Identification Number (EIN):
- If you don’t already have an EIN, you will need to obtain one from the IRS. This is necessary for tax reporting and to establish your retirement plan.

6. Fund Your Solo 401(k):
- Start contributing to your plan once it’s established. Ensure you're aware of the contribution limits and deadlines.

7. Maintain Records and Compliance:
- Keep accurate records of your contributions and investments. While Solo 401(k)s require minimal reporting, if your plan’s assets exceed $250,000, you’ll need to file a Form 5500 annually.

8. Review and Adjust Your Plan:
- Regularly review your investment choices, contribution levels, and financial goals. Adjustments may be necessary as your business grows and your financial situation changes.

Transcript

Speaker 2: 0:18

You are listening to the People Station on GreatDayRadiocom. Investing. Whether you're a beginner or someone looking to refine your strategy, we have something for you. Let's kick things off by discussing the importance of understanding your financial goals.

Speaker 3: 0:31

After these messages from our supporters and sponsors, Thank you for your interest in Great Day Radio and your continuous support. Did you know we can represent your company or products on our top 40 online radio station and podcast shows? The best thing is, we can offer you a complete package from audio to display, video and social media marketing. We get thousands of visits per day and an average of 50 to 100 podcast downloads per week. We get thousands of online traffic from Google, yahoo, amazon, iheartradio, youtube, pinterest, apple Podcast and much, much more. What are you waiting for? Visit GreatDayRadiocom. Click on Advertising. Thank you again for your support and looking forward to representing your organization, products or services.

Speaker 2: 1:20

Welcome back to Money Talk Podcast, your go-to podcast for all things money and investing. I am your host, DJ Money B. One of the fun things I like to do is answer callers' questions, Hello my name is Olof, from Boston, massachusetts.

Speaker 1: 1:35

I have a few questions I would like to get some suggestions on. I just started a small construction company and want to establish a 401k retirement account. How do I establish one and what are the advantages? Additionally, I still work and have a retirement account with my employer. Is it possible to roll that retirement into my business-sponsored retirement account? Also, with Trump being back in office and proposing large tariffs, how will that affect the economy and should I be worried?

Speaker 2: 2:03

Olaf, thank you for your call. Wow, that is a load of questions. I will do my very best to answer them for you. Before you start investing, ask yourself what are you investing for, Whether it's retirement, buying a home or funding your child's education. Having clear goals will guide your investment choices. Take a moment to jot these down and let's move on. So what you are referring to is a retirement account that is for business owners such as yourself. As a business owner, planning for your retirement is just as crucial as managing day-to-day operations.

Speaker 2: 2:38

A Solo 401 plan can be an excellent retirement savings tool for self-employed individuals or small business owners with no employees other than a spouse. First, one of the most significant benefits of a solo 401k is its high contribution limits compared to other retirement plans. For 2025, you can contribute up to $20,500 as an employee, or $27,000 if you're age 50 or older, and an additional employer contribution of up to 25% of your compensation, with a total contribution limit of $66,000, $73,500 for those 50 and older. Second, contributions to a Solo 401 can be made pre-tax, which reduces your taxable income for the year. Alternatively, if you choose a Roth Solo 401k, you can make after-tax contributions allowing for tax-free withdrawals in retirement. Third, solo 401k plans allow for loans and hardship withdrawals, providing increased financial flexibility if your business needs additional capital or if you face unexpected expenses.

Speaker 2: 3:47

4. If you are 50 years old or older, you can make catch-up contributions, allowing you to save more as you approach retirement. 5. A solo 401 typically offers a wide range of investment options, including stocks, bonds, mutual funds and even alternative investments like real estate or precious metals. Lastly, compared to other retirement plans for businesses, the Solo 401k is relatively simple to administer and maintain, making it an attractive option for smaller operations. While you did not ask, in the description of this podcast I will list strategies on establishing your solo 401k For our social media audience. Visit greatdayradiocom and click on this podcast. We will take a brief break and answer other questions about Trump's tariffs and more.

Speaker 4: 4:37

This podcast and all of our podcasts are dedicated to cancer foundations hoping for a future cure. This is DJ Mikey D. While I do not often discuss my personal life on air, I recently discovered I have the beginning stages of lung cancer. For this segment, we support organizations such as the American Cancer Society. They are a leading cancer-fighting organization with a vision to end cancer as we know it for everyone. Acs are improving the lives of people with cancer and their families as the only organization combating cancer through advocacy, research and patient support to ensure that everyone has an opportunity to prevent, detect, treat and survive cancer. To find out more information about what they offer or to donate to their causes, visit cancerorg or call toll-free 1-800-227-2345. Thank you for your support and together we can find a cure for cancer.

Speaker 2: 5:33

Welcome back to Great Day Radio's Money Talk podcast. My man, olaf, from Boston, massachusetts, asked some interesting questions. Thank you for that, as it pushed me to conduct some serious research questions. Thank you for that, as it pushed me to conduct some serious research. Okay, before we discuss Trump's tariffs plans, I think it is fair to discuss federal government spending first, to get a better understanding on how American finances work In the complex milieu of governing a nation.

Speaker 2: 5:59

Federal government spending is one of the most crucial debated and dissected aspects of national administration. At its core, this spending represents the financial decisions made by a country's central government to support its operations, ensure the welfare of its citizens and promote its strategic objectives, both at home and abroad. Federal spending is categorized into three primary segments mandatory spending, discretionary spending and interest on debt. Mandatory spending is dictated by existing laws and includes Social Security, medicare and other social safety net programs. Discretionary spending, on the other hand, is determined annually during the budget process and is allocated towards government functions such as defense, education, transportation and housing. Interest on debt refers to payments that the government must make on its accumulated debt. The federal budget process begins with the President providing a proposed budget to Congress. This proposed budget outlines the administration's priorities for the next fiscal year. Congress, which holds the power of the purse, reviews, alters and approves the budget through its various committees. The approved budget sets the level of spending that will guide federal agencies and programs. The federal budget is often a delicate balancing act between revenues, primarily collected through taxes, and expenditures. A balanced budget occurs when spending equals revenue, while a budget deficit happens when spending surpasses revenue. Surprisingly, budget surpluses, when revenue exceeds spending, are relatively rare in modern American history.

Speaker 2: 7:40

Fiscal policy plays a vital role in managing the economy, with government spending serving as one of its primary levers. Increased spending can stimulate economic growth during downturns, a method known as deficit spending, which often leads to increased debt. Conversely, spending cuts and increased taxation can slow down an economy, but are sometimes employed to manage high levels of debt or inflation. Government spending has wide-reaching effects on the economy and society. It can drive infrastructural development, underwrite scientific and technological innovation, fund national defense and support education and health care. The allocation of these funds ultimately shapes public policy and the nation's priorities.

Speaker 2: 8:27

The topic of federal government spending is often contentious, with different political ideologies proposing various approaches to fiscal responsibility. Some argue for increased spending on social programs to support societal well-being, while others advocate for a reduction in government size and spending to foster economic growth and reduce the tax burden Accrued. Federal spending that surpasses revenue contributes to the national debt, which is the accumulation of all past deficits minus any surpluses. The debt is financed through government securities bought by domestic and international investors, including foreign governments. Managing this debt is crucial, as it can influence interest rates, inflation and even the international standing of the US dollar.

Speaker 3: 9:14

Thank you for your interest in Great Day Radio and your continuous support. Did you know we can represent your company or products on our top 40 online radio station and podcast shows? The best thing is, we can offer you a complete package from audio to display, video and social media marketing. We get thousands of visits per day and an average of 50 to 100 podcast downloads per week. We get thousands of online traffic from Google, yahoo, amazon, iheartradio, youtube, pinterest, apple Podcast and much, much more. What are you waiting for? Visit greatdayradiocom. Click on advertising. Thank you again for your support and looking forward to representing your organization, products or services.

Speaker 2: 9:59

Welcome back to Great Day Radio's Money Talk podcast, my man Olaf, from Boston, massachusetts. I hope that I was able to enlighten you about how the feds work and how our tax dollars are utilized. Okay, now on to tariffs and the impact of Trump-era tariffs on the American economy. While my research can only access what Trump did in his last presidency, I am for certain it is much the same in 2025. Today we're diving into a complex and often controversial topic. Today, we're diving into a complex and often controversial topic the tariffs introduced during the Trump administration and their lasting impacts on the American economy. In 2018, the Trump administration initiated a series of tariffs on imports, especially targeting China. These tariffs were meant to protect American industries and jobs, bring back manufacturing and address what was seen as unfair trade practices. Before we get too involved on Trump and his view on tariffs, let's look at what it means.

Speaker 2: 10:58

In the ever-evolving landscape of global trade, tariffs remain a critical instrument that governments use to regulate the flow of goods across borders. Essentially, tariffs are taxes imposed on imported goods and services, their primary purpose being to raise the cost of foreign products, making them less competitive against domestic offerings. Tariffs are levied by a country on goods coming from abroad, and they can be specific fixed fee per unit or ad valorem percentage of the value of the good. These taxes serve multiple functions, such as protecting nascent industries, promoting domestic employment and sometimes as a response to what a country might consider unfair trade practices by other nations. While tariffs can provide a revenue stream for governments, their primary impact is on the supply and demand dynamics in the markets. After tariffs are applied, imported goods become more expensive, which pushes consumers to favor domestically produced alternatives. In theory, this can bolster local businesses and boost the domestic economy. Though tariffs aim to protect local industries, they can bolster local businesses and boost the domestic economy. Though tariffs aim to protect local industries, they can also lead to increased prices for consumers. Since imported goods become more costly, the demand for local products might rise, allowing domestic producers to charge higher prices. This means that consumers could end up paying more for certain goods, from electronics to clothing to agricultural products. Moreover, in a globally interdependent world, tariffs can disrupt supply chains. For countries that rely heavily on imported intermediate goods, components or raw materials used to produce final products, tariffs can lead to increased production costs and, ultimately, higher prices for consumers. Okay, back to Trump Back then, as it is likely now.

Speaker 2: 12:49

These tariffs were part of a broader strategy to renegotiate trade deals on terms more favorable to the United States, but the question remains did these tariffs have the intended positive impact on the US economy? That's the key question. While some American industries saw benefits, such as steel and aluminum, which experienced a temporary production boost, there were significant downsides. These tariffs made imported goods more expensive for American consumers and companies reliant on foreign materials. This led to a ripple effect With higher costs. Many industries, including agriculture and manufacturing, faced increased expenses. This, in turn, led to job losses in sectors that depend heavily on exports, as retaliatory tariffs from trading partners reduced their market access. To mitigate some of these consequences, the government introduced subsidies, especially to help farmers who were hard hit. However, the long-term sustainability and effectiveness of these subsidies have been debated among economists, and let's not forget the impact on consumer prices. With higher import costs, everyday items became more expensive, contributing to inflationary pressures that we are still seeing the effects of today. The consumer electronics industry, for example, faced significant challenges as tariffs increased the cost of crucial components. This inevitably affected retail prices and thus consumer spending patterns. So, moving forward, what are the potential long-term impacts on the economy?

Speaker 2: 14:23

The Biden administration has maintained several key tariffs, indicating a complex pathway towards resolving these trade tensions. Analysts suggest that, while tariffs may have catalyzed some movement back to American manufacturing, they need to be part of a broader, more strategic approach that includes innovation, workforce development and infrastructure investment to truly bolster the US economy. And this is a fascinating time to watch global trade dynamics, as new trade agreements and partnerships are continuously being forged. The key takeaway is that tariffs are a tool, but not a standalone solution for economic growth. It's all about balance. Protecting domestic interests while fostering fair and open international trade is a delicate act that requires continuous negotiation and adaptation To our listeners have your thoughts on tariffs changed since their introduction? We'd love to hear your opinions and stories, so get in touch as we get ready to wrap up the episode.

Speaker 2: 15:24

Tariffs are a double-edged sword. They can offer essential protection to vulnerable industries and serve as a tool for governments to assert their trade policies. However, the broader implications of tariffs extend far beyond their immediate financial impact For businesses, consumers and entire economies. The effects can be complex and far-reaching, potentially leading to higher prices, changes in production and strained international relations. Ultimately, the implementation of tariffs should be carried out with careful consideration for the interconnected nature of modern economies. Policymakers must weigh short-term gains against long-term consequences, striving to strike a balance that maintains robust trade relationships while fostering competitive domestic industries. It is the response of markets, consumers and international partners to these policies that will determine their success or failure. Thank you for tuning in to Money Talk Podcast. Stay with us for our next episode, where we continue to explore the economic forces shaping our world. Until then, stay informed and stay engaged.