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

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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.

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Episode Transcript

Speaker 2 (00:18):
You are listening to the People Station on
GreatDayRadiocom.
Investing.
Whether you're a beginner orsomeone looking to refine your
strategy, we have something foryou.
Let's kick things off bydiscussing the importance of
understanding your financialgoals.

Speaker 3 (00:31):
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, Thank you for your interest inGreat Day Radio and your
continuous support.
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(00:53):
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(01:14):
Thank you again for yoursupport and looking forward to
representing your organization,products or services.

Speaker 2 (01:20):
Welcome back to Money Talk Podcast, your go-to
podcast for all things money andinvesting.
I am your host, DJ Money B.
One of the fun things I like todo is answer callers' questions
, Hello my name is Olof, fromBoston, massachusetts.

Speaker 1 (01:35):
I have a few questions I would like to get
some suggestions on.
I just started a smallconstruction company and want to
establish a 401k retirementaccount.
How do I establish one and whatare the advantages?
Additionally, I still work andhave a retirement account with
my employer.
Is it possible to roll thatretirement into my
business-sponsored retirementaccount?

(01:56):
Also, with Trump being back inoffice and proposing large
tariffs, how will that affectthe economy and should I be
worried?

Speaker 2 (02:03):
Olaf, thank you for your call.
Wow, that is a load ofquestions.
I will do my very best toanswer them for you.
Before you start investing, askyourself what are you investing
for, Whether it's retirement,buying a home or funding your
child's education.
Having clear goals will guideyour investment choices.
Take a moment to jot these downand let's move on.

(02:25):
So what you are referring to isa retirement account that is
for business owners such asyourself.
As a business owner, planningfor your retirement is just as
crucial as managing day-to-dayoperations.
A Solo 401 plan can be anexcellent retirement savings
tool for self-employedindividuals or small business
owners with no employees otherthan a spouse.

(02:48):
First, one of the mostsignificant benefits of a solo
401k is its high contributionlimits compared to other
retirement plans.
For 2025, you can contribute upto $20,500 as an employee, or
$27,000 if you're age 50 orolder, and an additional
employer contribution of up to25% of your compensation, with a

(03:10):
total contribution limit of$66,000, $73,500 for those 50
and older.
Second, contributions to a Solo401 can be made pre-tax, which
reduces your taxable income forthe year.
Alternatively, if you choose aRoth Solo 401k, you can make
after-tax contributions allowingfor tax-free withdrawals in

(03:39):
retirement.
Third, solo 401k plans allowfor loans and hardship
withdrawals, providing increasedfinancial flexibility if your
business needs additionalcapital or if you face
unexpected expenses.
4.
If you are 50 years old orolder, you can make catch-up
contributions, allowing you tosave more as you approach
retirement.
5.
A solo 401 typically offers awide range of investment options

(03:59):
, including stocks, bonds,mutual funds and even
alternative investments likereal estate or precious metals.
Lastly, compared to otherretirement plans for businesses,
the Solo 401k is relativelysimple to administer and
maintain, making it anattractive option for smaller
operations.
While you did not ask, in thedescription of this podcast I

(04:22):
will list strategies onestablishing your solo 401k For
our social media audience.
Visit greatdayradiocom andclick on this podcast.
We will take a brief break andanswer other questions about
Trump's tariffs and more.

Speaker 4 (04:37):
This podcast and all of our podcasts are dedicated to
cancer foundations hoping for afuture cure.
This is DJ Mikey D.
While I do not often discuss mypersonal life on air, I
recently discovered I have thebeginning stages of lung cancer.
For this segment, we supportorganizations such as the
American Cancer Society.
They are a leadingcancer-fighting organization

(04:59):
with a vision to end cancer aswe know it for everyone.
Acs are improving the lives ofpeople with cancer and their
families as the onlyorganization combating cancer
through advocacy, research andpatient support to ensure that
everyone has an opportunity toprevent, detect, treat and
survive cancer.
To find out more informationabout what they offer or to

(05:22):
donate to their causes, visitcancerorg or call toll-free
1-800-227-2345.
Thank you for your support andtogether we can find a cure for
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Speaker 2 (05:33):
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 itpushed me to conduct some
serious research questions.
Thank you for that, as itpushed me to conduct some
serious research.
Okay, before we discuss Trump'stariffs plans, I think it is
fair to discuss federalgovernment spending first, to
get a better understanding onhow American finances work In

(05:56):
the complex milieu of governinga nation.
Federal government spending isone of the most crucial debated
and dissected aspects ofnational administration.
At its core, this spendingrepresents the financial
decisions made by a country'scentral government to support
its operations, ensure thewelfare of its citizens and
promote its strategic objectives, both at home and abroad.

(06:19):
Federal spending is categorizedinto three primary segments
mandatory spending,discretionary spending and
interest on debt.
Mandatory spending is dictatedby existing laws and includes
Social Security, medicare andother social safety net programs
.
Discretionary spending, on theother hand, is determined

(06:40):
annually during the budgetprocess and is allocated towards
government functions such asdefense, education,
transportation and housing.
Interest on debt refers topayments that the government
must make on its accumulateddebt.
The federal budget processbegins with the President
providing a proposed budget toCongress.
This proposed budget outlinesthe administration's priorities

(07:02):
for the next fiscal year.
Congress, which holds the powerof the purse, reviews, alters
and approves the budget throughits various committees.
The approved budget sets thelevel of spending that will
guide federal agencies andprograms.
The federal budget is often adelicate balancing act between
revenues, primarily collectedthrough taxes, and expenditures.

(07:25):
A balanced budget occurs whenspending equals revenue, while a
budget deficit happens whenspending surpasses revenue.
Surprisingly, budget surpluses,when revenue exceeds spending,
are relatively rare in modernAmerican history.
Fiscal policy plays a vital rolein managing the economy, with
government spending serving asone of its primary levers.

(07:47):
Increased spending canstimulate economic growth during
downturns, a method known asdeficit spending, which often
leads to increased debt.
Conversely, spending cuts andincreased taxation can slow down
an economy, but are sometimesemployed to manage high levels
of debt or inflation.
Government spending haswide-reaching effects on the

(08:09):
economy and society.
It can drive infrastructuraldevelopment, underwrite
scientific and technologicalinnovation, fund national
defense and support educationand health care.
The allocation of these fundsultimately shapes public policy
and the nation's priorities.
The topic of federal governmentspending is often contentious,

(08:30):
with different politicalideologies proposing various
approaches to fiscalresponsibility.
Some argue for increasedspending on social programs to
support societal well-being,while others advocate for a
reduction in government size andspending to foster economic
growth and reduce the tax burdenAccrued.
Federal spending that surpassesrevenue contributes to the

(08:53):
national debt, which is theaccumulation of all past
deficits minus any surpluses.
The debt is financed throughgovernment securities bought by
domestic and internationalinvestors, including foreign
governments.
Managing this debt is crucial,as it can influence interest
rates, inflation and even theinternational standing of the US

(09:13):
dollar.

Speaker 3 (09:14):
Thank you for your interest in Great Day Radio and
your continuous support.
Did you know we can representyour company or products on our
top 40 online radio station andpodcast shows?
The best thing is, we can offeryou a complete package from
audio to display, video andsocial media marketing.
We get thousands of visits perday and an average of 50 to 100

(09:37):
podcast downloads per week.
We get thousands of onlinetraffic 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 yoursupport and looking forward to
representing your organization,products or services.

Speaker 2 (09:59):
Welcome back to Great Day Radio's Money Talk podcast,
my man Olaf, from Boston,massachusetts.
I hope that I was able toenlighten you about how the feds
work and how our tax dollarsare utilized.
Okay, now on to tariffs and theimpact of Trump-era tariffs on
the American economy.
While my research can onlyaccess what Trump did in his

(10:20):
last presidency, I am forcertain it is much the same in
2025.
Today we're diving into acomplex and often controversial
topic.
Today, we're diving into acomplex and often controversial
topic the tariffs introducedduring the Trump administration
and their lasting impacts on theAmerican economy.
In 2018, the Trumpadministration initiated a
series of tariffs on imports,especially targeting China.

(10:43):
These tariffs were meant toprotect American industries and
jobs, bring back manufacturingand address what was seen as
unfair trade practices.
Before we get too involved onTrump and his view on tariffs,
let's look at what it means.
In the ever-evolving landscapeof global trade, tariffs remain
a critical instrument thatgovernments use to regulate the

(11:05):
flow of goods across borders.
Essentially, tariffs are taxesimposed on imported goods and
services, their primary purposebeing to raise the cost of
foreign products, making themless competitive against
domestic offerings.
Tariffs are levied by a countryon goods coming from abroad,
and they can be specific fixedfee per unit or ad valorem

(11:27):
percentage of the value of thegood.
These taxes serve multiplefunctions, such as protecting
nascent industries, promotingdomestic employment and
sometimes as a response to whata country might consider unfair
trade practices by other nations.
While tariffs can provide arevenue stream for governments,
their primary impact is on thesupply and demand dynamics in

(11:49):
the markets.
After tariffs are applied,imported goods become more
expensive, which pushesconsumers to favor domestically
produced alternatives.
In theory, this can bolsterlocal businesses and boost the
domestic economy.
Though tariffs aim to protectlocal industries, they can
bolster local businesses andboost the domestic economy.
Though tariffs aim to protectlocal industries, they can also
lead to increased prices forconsumers.

(12:09):
Since imported goods becomemore costly, the demand for
local products might rise,allowing domestic producers to
charge higher prices.
This means that consumers couldend up paying more for certain
goods, from electronics toclothing to agricultural
products.
Moreover, in a globallyinterdependent world, tariffs

(12:30):
can disrupt supply chains.
For countries that rely heavilyon imported intermediate goods,
components or raw materialsused to produce final products,
tariffs can lead to increasedproduction costs and, ultimately
, higher prices for consumers.
Okay, back to Trump Back then,as it is likely now.
These tariffs were part of abroader strategy to renegotiate

(12:52):
trade deals on terms morefavorable to the United States,
but the question remains didthese tariffs have the intended
positive impact on the USeconomy?
That's the key question.
While some American industriessaw benefits, such as steel and
aluminum, which experienced atemporary production boost,
there were significant downsides.

(13:13):
These tariffs made importedgoods more expensive for
American consumers and companiesreliant on foreign materials.
This led to a ripple effectWith higher costs.
Many industries, includingagriculture and manufacturing,
faced increased expenses.
This, in turn, led to joblosses in sectors that depend
heavily on exports, asretaliatory tariffs from trading

(13:35):
partners reduced their marketaccess.
To mitigate some of theseconsequences, the government
introduced subsidies, especiallyto help farmers who were hard
hit.
However, the long-termsustainability and effectiveness
of these subsidies have beendebated among economists, and
let's not forget the impact onconsumer prices.
With higher import costs,everyday items became more

(13:58):
expensive, contributing toinflationary pressures that we
are still seeing the effects oftoday.
The consumer electronicsindustry, for example, faced
significant challenges astariffs increased the cost of
crucial components.
This inevitably affected retailprices and thus consumer
spending patterns.
So, moving forward, what arethe potential long-term impacts

(14:21):
on the economy?
The Biden administration hasmaintained several key tariffs,
indicating a complex pathwaytowards resolving these trade
tensions.
Analysts suggest that, whiletariffs may have catalyzed some
movement back to Americanmanufacturing, they need to be
part of a broader, morestrategic approach that includes
innovation, workforcedevelopment and infrastructure

(14:44):
investment to truly bolster theUS economy.
And this is a fascinating timeto watch global trade dynamics,
as new trade agreements andpartnerships are continuously
being forged.
The key takeaway is thattariffs are a tool, but not a
standalone solution for economicgrowth.
It's all about balance.
Protecting domestic interestswhile fostering fair and open

(15:08):
international trade is adelicate act that requires
continuous negotiation andadaptation To our listeners have
your thoughts on tariffschanged since their introduction
?
We'd love to hear your opinionsand stories, so get in touch as
we get ready to wrap up theepisode.
Tariffs are a double-edged sword.
They can offer essentialprotection to vulnerable

(15:29):
industries and serve as a toolfor governments to assert their
trade policies.
However, the broaderimplications of tariffs extend
far beyond their immediatefinancial impact For businesses,
consumers and entire economies.
The effects can be complex andfar-reaching, potentially
leading to higher prices,changes in production and

(15:49):
strained international relations.
Ultimately, the implementationof tariffs should be carried out
with careful consideration forthe interconnected nature of
modern economies.
Policymakers must weighshort-term gains against
long-term consequences, strivingto strike a balance that
maintains robust traderelationships while fostering

(16:11):
competitive domestic industries.
It is the response of markets,consumers and international
partners to these policies thatwill determine their success or
failure.
Thank you for tuning in toMoney Talk Podcast.
Stay with us for our nextepisode, where we continue to
explore the economic forcesshaping our world.
Until then, stay informed andstay engaged.