(Image credit: Getty Images)Managing your retirement savings and spending is always a juggling act, with many balls all requiring careful control to keep everything airborne. This task only gets harder when you must do it while balancing on unsteady ground. But such is the reality facing retirees and near-retirees as President Donald Trump embarks on his second term.From the threat of tariff wars and inflation to uncertainty about health care costs and stock market volatility, retiring in today’s shifting political landscape is not for the faint of heart. But there are ways you can retake some control over your financial future. The trick is knowing how to alter the arc of your throw so those juggling balls stay in the air.Here are five ways your retirement spending and saving should change under the Trump administration.Subscribe to Kiplinger’s Personal FinanceBe a smarter, better informed investor.
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Sign up for Kiplinger’s Free E-NewslettersProfit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more – straight to your e-mail.Profit and prosper with the best of expert advice – straight to your e-mail.1. Manage your retirement savings and spending by changing your withdrawal rateRising costs are one of the biggest threats facing retirees under the current administration. Trump pledged to impose tariffs, or taxes on imported goods, on several — if not all — countries. While he pressed pause on tariffs on Canada and Mexico, the 10% additional tariff on Chinese goods is in effect as of earlier this month.Tariffs increase the prices of imported goods. For retirees living off of their savings, these higher costs could mean you must withdraw more than originally planned to cover your expenses. However, increasing your withdrawal rate should only be done with caution.”Retirees should hold off until sustained higher prices kick in,” says Angelo DeCandia, professor of business and accounting at Touro University. “Only then should they alter their original schedule and any modifications should be done with moderation as conditions may change again.”2. Pay attention to bond durationBonds should be a staple in retiree and near-retiree portfolios, DeCandia says. But don’t make the mistake of believing bonds are completely safe, especially under the Trump administration.There are two primary risks bondholders face. The first is default risk, which occurs when the issuer fails to repay its debt. This can be managed by choosing higher-quality bonds, rated BBB to AAA, DeCandia says.The second major risk bondholders face is harder to understand and avoid. It’s interest rate risk, and occurs when bond prices fall as a result of rising interest rates.”This phenomenon affects all bonds, even those rated AAA,,” DeCandia says. “It is a mathematical result of the way bonds are priced and is the more likely way in which bond investors will lose money.”The price increases from Trump’s tariffs could spu
