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Donald Trump Wins! Moving To Canada Is Out Of The Question

Updated: 08/17/2021 by Financial Samurai 108 Comments

Wow! Donald Trump will be the 45th President of The United States. The polls were wrong. The political pundits were wrong. And I was wrong as well. We’re now going to experience a hammering in all stock markets around the world due to policy uncertainty. Hopefully the sell-off is very temporary like Brexit’s. The only thing I was right about was aggressively saving cash all year and nibbling on some bonds. I’ve been waiting to build a large bond portfolio for a while and am surprised the 10-year yield is surging to ~2%.

If you stayed up late enough to listen to Donald’s victory speech, you should come away feeling better that everything will be OK if you are a Hillary supporter. Donald spoke with a lot of humility. He talked about bringing the nation back together, working with every country, and helping every citizen. In a word, he sounded presidential. Have a listen if you haven’t already.

With Republicans winning the Executive Office, Senate, and House, we should expect lower income tax rates and the potential repeal of Obamacare, which is truly costing middle class Americans much more than expected. I’ll write more about this later. Donald said he’ll raise tariffs, get tough on immigration, and decrease oil and gas regulations, among many other things. We shall see.

As financial freedom seekers, we should accept the outcome and look at the bright side of change. Out with the status quo and in with the new. Let’s see what a businessman can do versus a career politician.

Where It All Went Wrong And How Did Donald Trump Win?

It’s now clear Hillary had too many trust issues to overcome. Further, instead of sounding like she was always reading from a script, she could have spoken in a more natural, genuine tone. Charisma counts.

Joe Biden probably should have run instead. He must be feeling pretty guilty right about now. Donald Trump has the charisma that won a lot of voters over.

European nations who support Trump and Clinton

As I wrote in Affirmative Action Based On Income and Wealth, there’s a large part of the country that feels ignored by the establishment. They’ve seen their jobs evaporate due to globalization and their incomes decline over the past eight years. Yet they see Obama being soft on immigration and favoring minorities. Of course they want change.

On the flip side, look at all the states that voted for Hillary. It’s not a coincidence the blue states have seen some of the fastest increases in employment growth, property price appreciation, and wealth creation. When things are going well, the last thing you want is change.

Final Presidential Election Vote Count between Donald Trump And Hillary Clinton

It’s pretty amazing that despite a biased media and tremendous celebrity backing, Hillary still lost. It just goes to show you how bad things are for many Americans.

Here’s a fascinating snapshot of how people ages 18-25 voted. It’s not a big surprise given young people pay less taxes. It’s a good life lesson of not always getting what you want. Be nice to your elders. Your massive inheritances may depend on it!

How young people voted in the 2016 election

Time To Get Back To Work

I told myself if Donald Trump wins, I’ll probably do these three things:

  1. Look for a full-time job again
  2. Increase the amount of consulting clients (corporate and personal)
  3. Publish more content

Lower tax rates is an incentive to work harder. I’ve had it really good since 2012, but all good things have to come to an end. Besides, paying for your own healthcare is so damn expensive!

Here is Trump’s tax plan from his website:

The Trump Plan will collapse the current seven tax brackets to three brackets. The rates and breakpoints are as shown below. Low-income Americans will have an effective income tax rate of 0. The tax brackets are similar to those in the House GOP tax blueprint.

Brackets & Rates for Married-Joint filers:
Less than $75,000: 12% (from 10% – 15% currently)
More than $75,000 but less than $225,000: 25% (from 25% and 28% currently)
More than $225,000: 33% (from 33%, 35%, and 39.6% currently)
*Brackets for single filers are ½ of these amounts

The Trump Plan will retain the existing capital gains rate structure (maximum rate of 20 percent) with tax brackets shown above. Carried interest will be taxed as ordinary income.

The 3.8 percent Obamacare tax on investment income will be repealed, as will the alternative minimum tax.

The Trump Plan will lower the business tax rate from 35 percent to 15 percent, and eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business.

Besides starting a business, the biggest benefit under Donald’s tax plan is to therefore try and make as much above $466,000 (current married couple income minimum for 39.6% tax rate) as possible. Tough for many to do, but worth a shot. For all incomes less than $466,000, not much changes except for the Net Investment Income tax going away for those making more than $200,000/$250,000 as individuals/married couples.

The sweet spot for maximum happiness continues to be an individual or married couple income of around $200,000 – $250,000. They should hopefully pay an effective 25% tax rate or less as a result, although it’s unsure exactly whether individuals making between $91,150 and $190,150 will really see an increase in their taxes from a 28% marginal rate to a 33% marginal rate. A 25% tax rate is just the right amount for everyone to feel good about contributing to our great nation. It’s also low enough that it may increase tax revenue overall due to lower tax fraud.

I don’t think I’ll have too much trouble finding more consulting gigs and writing more content to boost online revenue. My main problem will be finding a full-time job. After almost five years away from the system, it’s going to be very difficult for me to assimilate. Employers are always skeptical of me wanting to come back to work as well. At the very least, I can entertain you with new job failure stories!

Finally, for those folks who say they plan to move to Canada, come on now. They’ve got some of the most unaffordable real estate in the world, high-paying jobs are not plentiful, and you’ll be freezing for five months a year. Besides, America needs your tax dollars. If you’re a disappointed Hillary supporter who must move, just move to California or Hawaii. Life is really nice out here.

Readers, how are you feeling post election? Have you properly hedged your portfolio for volatility? Are you buying stock in the sell-off? Or do you see money flowing into real estate given the volatility? Now is a great time to revisit my post: Real Estate vs Stocks: Which Is A Better Investment?

Donald Trump Wins is a FS original post. Now we’ve got President Biden. Let’s hope he does much better. Donald Trump is likely going to go down as one of the worst presidents ever.

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Filed Under: Big Government

Author Bio: I started Financial Samurai in 2009 to help people achieve financial freedom sooner. Financial Samurai is now one of the largest independently run personal finance sites with about one million visitors a month.

I spent 13 years working at Goldman Sachs and Credit Suisse. In 1999, I earned my BA from William & Mary and in 2006, I received my MBA from UC Berkeley.

In 2012, I left banking after negotiating a severance package worth over five years of living expenses. Today, I enjoy being a stay-at-home dad to two young children, playing tennis, and writing.

Order a hardcopy of my new WSJ bestselling book, Buy This, Not That: How To Spend Your Way To Wealth And Freedom. Not only will you build more wealth by reading my book, you’ll also make better choices when faced with some of life’s biggest decisions.

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Comments

  1. Markey13 says

    October 29, 2019 at 6:30 pm

    I’d be interested in a Trump report card post. You seemed pretty confident in his skills upon election and now I wonder if those hold true.
    Financial Samurai says

    November 9, 2016 at 7:27 am

    Canada property prices might surge again, or be saved if Americans downstairs actually relocate upstairs! But, you and I know it’s mostly rhetoric.

    I’m glad the stock market is FLAT and Trump’s words sounded assuring

    Reply
  2. ZJ Thorne says

    November 22, 2016 at 7:45 pm

    I’m a progressive and I hate that so many progressives/liberals pretend that they will abandon this country whenever a leader we consider bad gets elected. It’s especially upsetting this year when so many people throughout the world are actually displaced and trying to find somewhere to live. End rant.

    I will continue to build up my business. My clients/potential clients are terrified of what the Administration will look like, and they are coming calling. This may make it possible for me to leave my FT gig and do my business FT. I don’t know what I would do about insurance if the ACA goes away. Probably go without and pray I don’t get sick.

    Reply
  3. Kuntal Banerjee says

    November 17, 2016 at 12:30 pm

    The winning of Trump is a surprise for all.But anyways, in the long run, it should not matter who wins.We should focus on ourselves.

    Reply
  4. MoneyAndMovement says

    November 16, 2016 at 1:16 am

    Sam, great post. I was thinking the same. Paying your own health ins sucks I could make payments on a new Caddy for what I’m paying in insurance. Considering going back to work after a few years too. It will be difficult to do it and actually find a place that offers health benes. Will be looking forward to see how it works for you and will be checking back to see your progress. Its nice to see someone in the same position as me. Doesn’t have to work, but why not.

    Reply
  5. ARB says

    November 13, 2016 at 8:07 pm

    After the Wells Fargo scandal, I had been watching WFC in the $44-45 range waiting to get the capital to buy. Trump gets elected, and now the stock is at $51/share. I guess people are bullish on banks now that the candidate who supports deregulation is now going to be in office.

    #thankstrump

    Sincerely,
    ARB–Angry Retail Banker

    Reply
  6. Jakub says

    November 13, 2016 at 6:23 am

    Are you really serious about finding a new full-time job? Why – to earn few more extra $$ that you don’t need?

    Considering the fact that you are very well off financially what upside of having a job is there? If you want “private jet-set, yacht” lifestyle then a job won’t help. So it really doesn’t click in my head :)

    Why not enjoy more of life instead?

    Reply
    • Financial Samurai says

      November 13, 2016 at 6:33 am

      I’ve always enjoyed work, especially when the work is meaningful and with a good group of people. If I can get paid to do something fun, and pay less taxes, then absolutely I’d be willing to go back to work full-time.

      Imagine getting paid $700,000 a year to get back massages, and foot rubs for four hours a day and then write a report about how good these massages and foot rubs are. That would be a pretty sweet job! These type of jobs are out there. You just have to go find it.

      See: https://www.financialsamurai.com/its-impossible-to-stay-retired-once-you-retire-early/

      Reply
  7. David says

    November 11, 2016 at 11:10 pm

    If Clinton supporters really want to do something they shouldn’t move to California or Hawaii. They should all move to Ohio. 100,000 politically active liberals could make that no longer a swing state.

    Reply
  8. Your First Million says

    November 10, 2016 at 2:12 pm

    Regarding the map showing what the results were for people 18-25… that is not surprising at all. The majority of these people like what the democrats promise them: fee college, free healthcare, free whatever.

    It is even more interesting to see how their views change as their perspectives change. Once these people start working career jobs and start seeing what the true costs of these social programs are, many start to change their minds.

    The next 4-8 years are going to be very interesting indeed. I think the Republicans will be able to get a lot done (as far as what is on their agenda). This is the first time in a VERY long time since the presidency, the house and the senate have all been under control/majority all of the same party.

    Also, the Republicans have the majority of governors across the states. And don’t forget the Supreme Court… it is likely a few very conservative justices will be appointed in the next few years and will become the majority.

    It is very interesting to see the pendulum swing back to the right. We have had 8 years of very liberal policies in place, probably enough to start tipping the scales back in the other direction. Very interesting indeed.

    Reply
  9. Jay says

    November 10, 2016 at 5:04 am

    I’m just happy the election is over so we can get back to our regular lives! Good luck with your employment hunt. :)

    Reply
  10. PatientWealthBuilder says

    November 9, 2016 at 8:16 pm

    I can’t believe it. I was very surprised at the result. I had thought the market would drop dramatically on a Trump victory due to shock and surprise. It didn’t quite work out that way thankfully. The futures did drop overnight but came back and then the market went UP. Wow.

    It is times like this though that make me glad that I am a patient, slow, and long-term investor. Blips like this just don’t matter. We’ll have many presidents over the next 40 years.

    Don’t move to Canada people! Think about why people felt like they had to vote for someone like Trump. Its an interesting thing to consider.

    Reply
    • Leigh in the PNW says

      November 12, 2016 at 4:24 pm

      Female, minority, non-Trump voter here. I, too, was stunned by the election results. And I agree with you, don’t move to Canada. Move to Mexico! Great weather, low cost of living, and think of the benefits that would accrue to that nation by virtue of an influx of highly skilled, well-educated go-getters. Ask not what your new country can do for you — ask what you can do for your new country!

      Reply
  11. Denny says

    November 9, 2016 at 8:06 pm

    The election results were devastating, can’t believe everyone here is simply gloating about bit lower taxes and putting a fascist, racist, sexist demagogue to the highest office. I am a minority woman and I feel incredibly sad and afraid of what the future holds with complete GOP control at every level of government without any practical checks and bounds in place. They can enact all their crazy plans, my elder sister will loose their insurance coverage due to pre-existing conditions when ACA is repealed. Roe vs wade will be overturned, if I have unplanned pregnany, what are my options? Go back for a back alley abortion and put my life at risk? We can obviously forget about any parental leave and childcare policies for good. We are back to the 50s and women should forget abour career advances, so incredibly financially liberating!! Obviously most male commenters here will never have to deal with this, you can enjoy your 6% tax break. And just to be clear, I am a high earner as well, but still disgusted and angry at what this win means for anyone not white and male. FS I am disappointed at your very one sided analysis here. Trump voters cannot be excused for ignoring his horrible sexist record and giving him a free pass just so they can have low taxes. Ones who do that are sexist jerks themselves, no hiding away from it.

    Reply
    • Financial Samurai says

      November 9, 2016 at 8:41 pm

      What I realized all these years is that we must learn to accept those things we cannot control and work our hardest to improve those things we can control.

      If we dwell on the past, we will end up being miserable. Try to look on the bright side of things and move forward. You will find greater happiness this way.

      I refuse to let being a minority in America negatively affect my lifestyle. Instead, I will cherish my differences and work hard to provide the best life so possible for me and my family.

      Reply
      • Ena says

        November 10, 2016 at 1:27 am

        Sam, some of us can’t control whether being a minority in America negatively effects our lifestyle. That control has been stripped from us and no one has our back.

        Reply
      • raluca says

        November 10, 2016 at 3:20 am

        Sometimes, the things we cannot control will harm us the most. People in Syria could focus on the things they can control, escape the country, choose to live there and fight, but I would think not even you would consider theirs a situation where self control can offset the reality of their country being reduced to rubble and their families being killed.

        Having the right to control your own body taken away from you is such a frightening prospect, that we, women, can be excused from feeling scared.

        Since Texas introduced their draconian rules for abortion, the pregnancy related deaths doubled. A repeal of Roe vs Wade could make this the new reality all over the US.

        Making more money does not sweeten the deal when you know that your like might be in danger. Money did not save jews in Germany, in fact, money made them the target.

        Reply
        • Financial Samurai says

          November 10, 2016 at 9:16 pm

          What are your thoughts about moving to a blue state if you are planning on having an abortion? Do you feel that America may turn into Nazi Germany now?

          I’d think the easiest thing for people who dislike Republican rule is to move to states that voted majority Democrat according to the map.

          Reply
          • raluca says

            November 10, 2016 at 11:13 pm

            I don’t think I would move to a blue state in order to have an abortion. I would move to a blue state because I need to have my dignity respected. Having somebody else decide what they will do to my body is not acceptable to me. Pregancy and it’s result should not be left up to the state, because the state will obviously NOT suffer the consequences.

            I believe that the people that surround Mr Trump will have a great impact on his policies. Mike Pence, his vice-president is staunchly anti-abortion. I’m looking forward to see whom he will appoint next, and that will probably tell us a lot about his term in office.

            Also: https://edition.cnn.com/2016/11/10/us/post-election-hate-crimes-and-fears-trnd/index.html

            Reply
            • Financial Samurai says

              November 11, 2016 at 12:02 am

              Ok, so what are some of the actions you plan to take now? I definitely Believe in a woman’s right to choose. Although past a certain number of weeks, things get very very difficult.

              Reply
            • raluca says

              November 11, 2016 at 12:23 am

              I’m entering politics as of today. Taking action, as you say.

              Reply
              • Financial Samurai says

                November 11, 2016 at 10:47 am

                Awesome! I wish you good luck in trying to enact the change you want to see in the world.

                Reply
  12. Restful says

    November 9, 2016 at 5:31 pm

    Definitely an EXCELLENT time to start an online business. Thanks for your encouraging email!
    5 years out of the workforce and trying to get back in does sound challenging. Will be interesting to see how that works out. Do share. Would you take a job out of state?
    Alternatively building more products is also an excellent path too.

    P.S. It’s not freezing 5 mths of the year everywhere in Canada, but the Pacific NW does get depressingly rainy and cloudy like Seattle and Portland. Eg it rained 2 weeks straight before a little sunlight came out for 2 hours and everyone took pictures in downtown haha.

    I have to agree there are more career opportunities in LA/NY. Also notable is the entire country’s population of Canada is 35MM vs the state of California is 38MM. Large land mass for the former, but most people just huddle around Toronto, Vancouver, and Montreal.

    Reply
  13. Roberts says

    November 9, 2016 at 5:09 pm

    The polls were way off but I can see why. All the Trump supporters I know are closeted. I supported him shortly after his announcement and have no problem being open about it. I live near Seattle where they think all Trump supporters are Nazis, but after I opened up coworkers and friends also revealed they were supporters. Nobody wants to feel ostracized or be grouped in a bucket of deplorables so they keep it to themselves except when they vote.

    Anyway, I am positive about the long term changes. Short term there might be a market pullback which presents a good buying opportunity. Long term I look forward to less military adventurism, cheaper health care premiums, tax savings, and other things. I am hoping we can put a dent in the billion dollar lobbying industry as well.

    Reply
  14. Megan says

    November 9, 2016 at 3:17 pm

    Looks like the business has to be something other than an LLC or partnership though?

    Reply
  15. john says

    November 9, 2016 at 2:33 pm

    I’m pretty excited about these lower tax rates. Interestingly, I like you, assumed that Hillary Clinton would win. Psychologically, because of that, I thought it would be best to make as much money as I can now because taxes will be going up with Hillary Clinton.

    However, now I feel more motivated to grow my income because otherwise, I will have paid all this tax at a higher rate for nothing and current high earners will be at an advantage over me.

    It is strange actually how much of a psychological impact this was for me that I didn’t even realize.

    The majority of my income has been in the 39.6% bracket for the past few years.

    Reply
  16. Valeri Karpov says

    November 9, 2016 at 2:30 pm

    If you’re looking to take advantage of the potential changes to gas regulations and get a full time job at the same time, you should check out Booster Fuels. We’re in the Bay Area, we’re hiring, and we love FS :)

    Reply
    • Financial Samurai says

      November 13, 2016 at 10:55 pm

      Thanks Valeri! Could be good! Thanks for the offer.

      Reply
  17. Alexander says

    November 9, 2016 at 1:37 pm

    Well for the rest of the non politically interested folks out there like me!! :) Im just going to keep doing what I have been doing. Investing, being frugal and trying to reach financial independence.

    Reply
  18. Lieftinck says

    November 9, 2016 at 12:45 pm

    As a non-american I’m just glad this election is over. People from all around the world are going crazy on Twitter etc. They forget that working and continued learning is a garantee for succes no matter who lives in the White House. Focus on yourself – it is the only thing you can control.

    Reply
    • Stubborn Old Guy says

      November 9, 2016 at 3:38 pm

      Amen!

      Reply
  19. Aaron says

    November 9, 2016 at 11:00 am

    You mention 200k as the sweet spot for a single earner, with a 25% tax rate. But the tax plan states that “brackets for single filers are half the amount.”

    As a single filer, I took that to mean that the maximum income for 25% tax rate is around 112k.

    Am I misunderstanding?

    Reply
    • Financial Samurai says

      November 9, 2016 at 11:06 am

      Aaron, I need to go and clarify this tax proposal because I know that the Republican Party has been adamant on not raising income taxes for any income group. It wouldn’t make sense to raise ones tax rate by a person who is earning $125,000.

      Reply
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