Simplicity Digital Advisor
Ethical Investing in Retirement: Aligning Values with Financial Goals
Retirement often brings with it an opportunity to reassess not only one’s lifestyle choices, but also one’s financial strategies. At the heart of these decisions is the concept of ethical investing.
How The “Big Beautiful Bill” Affects Long-Term Financial Planning
The recent tax legislation, known as the ‘Big Beautiful Bill,’ introduces a number of changes that may affect various aspects of personal finance. This reform impacts various aspects of personal finance, from income tax rates and brackets to modifications in deductions and exemptions. Here’s what investors need to know about the “Big Beautiful Bill,” which is now law.
Changes in tax brackets
One of the most significant changes under the “Big Beautiful Bill” is the restructuring of the federal income tax brackets. While there were previously seven tax brackets, the new system also maintains seven, but at different rates.
For many taxpayers, these lower rates may result in reduced tax liability, depending on their individual circumstances. This could potentially free up funds that might be redirected toward other financial priorities.
Standard deduction and personal exemptions
Another critical aspect of the tax reform is the changes to standard deductions and personal exemptions. The “Big Beautiful Bill” has now nearly doubled the standard deduction.
However, it eliminates personal exemptions. For individuals who traditionally itemize deductions, this means reassessing whether it’s beneficial to continue doing so. In some cases, taking the increased standard deduction could lead to more significant tax savings.
Changes to estate and gift taxes
The reform has implications for estate planning, too. The “Big Beautiful Bill” has effectively doubled the federal estate and gift tax exemptions.
This change increases the amount of wealth that may be transferred free of federal estate or gift tax, which could influence estate planning strategies for some individuals.
Financial and tax professionals can provide guidance regarding how estate and gift tax changes may impact your estate and gift tax situation.
Impact on the mortgage interest deduction
The bill includes changes to the mortgage interest deduction, including a reduction in the cap from $1 million to $750,000 for new mortgages.
Social Security taxes
The Big Beautiful Bill temporarily increases the standard deduction of up to $4,000 for individuals 65 and over, from 2025 to 2028.
Child tax credit
The current $2,000 child tax credit, set to return to the pre-2017 level of $1,000 in 2026, now permanently increases to $2,200 under the bill.
Working with financial and tax professionals can help you navigate this landscape and work toward your goals under the new tax environment.
SWG4708884-0825a This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed.
In addition, Impact Your Wealth specializes in providing strategies and guidance for those seeking a better retirement lifestyle. If you have five million dollars or $50,000 retirement savings, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!
Seven-Generation Thinking: How Indigenous Planning Principles Can Help Transform ‘Retirement Thinking’
One of the values embedded in many Indigenous cultures worldwide is something known as Seven Generation Thinking. This philosophy invites individuals to consider the impact of today’s decisions far into the future—potentially offering a complementary perspective to traditional retirement planning models.
Financial Wellness in the Digital Age
As the world advances at a rapid pace, our lives are becoming increasingly digitized. The digital age has seen remarkable advancements that have intrinsically changed how we navigate our daily lives, especially in financial matters. Financial wellness now extends beyond balancing checkbooks- it involves understanding and utilizing digital tools to manage, save, and invest for goals.
End-of-Summer Financial Reset: Preparing for Q4 Tax Planning
As summer winds down and autumn approaches, it’s the perfect time for a financial reset, to reassess your financial situation, and prepare for Q4 tax planning. With these tips and guidance from a financial professional, you can tackle Q4 tax planning with ease!
When’s The Suitable Age to Purchase an Annuity?
Determining when to purchase an annuity can play a critical role in some retirement income strategies. Annuities are long-term insurance products that can provide a steady income stream during retirement. But when is the appropriate time to buy one? Here, we provide information to help investors make a more informed decision before purchasing an annuity.
Mental Health and Money: Addressing Financial Anxiety in Uncertain Times
Financial confidence is a cornerstone of one’s overall well-being. Yet, in today’s volatile economic environment, it is increasingly challenging to maintain this stability. Unforeseen circumstances can arise for many, leading to heightened anxiety levels. Here, we provide strategies on how to navigate financial anxiety in these uncertain times.
Financial Lessons from History’s Greatest Disasters
History is a great teacher, offering insights and financial lessons on a wide range of subjects. By examining some of the most catastrophic financial disasters in history, we can learn valuable lessons to apply in our lives.
Labor Day Legacy: Teaching Children About Work, Money, and Retirement
Labor Day, a nationally celebrated holiday in the United States, offers more than a day off from work or school. It’s a valuable opportunity to honor the contributions of the labor force while also teaching children about work, money, financial stability, and saving for retirement.
How to Declutter Your Debt and Boost Your Savings
Declutter your debt may help simplify your life. It involves prioritizing debts, creating a plan to clear them, and creating a safety net through savings. Let’s explore some best practices for decluttering debt and boosting savings.
1. Evaluate all debt
The first step in the debt-decluttering process is understanding the depth of one’s debt. Many people underestimate their debts because they fail to examine them closely. A thorough examination includes compiling all loans, credit card bills, car loans, student loans, etc., and listing all debts. With a consolidated view, planning a debt reduction strategy is more effortless.
2. Prioritize each debt
Not all debts are created equal. Some have higher interest rates, while others have lower rates. Prioritizing all debts and paying off those with high interest rates or those that adversely impact your credit score first is vital. This approach allows you to be more intentional with payments.
3. Debt consolidation
Debt consolidation is another strategy that may help simplify debt obligations. Merging debts into one payment with a lower interest rate may make payments more manageable.
4. Create a budget
A comprehensive budget illustrates how much money to allocate to monthly debt repayment and savings. Be realistic about your income and expenses, leaving room for emergencies.
5. Cut down on expenses
Cutting back on non-essential expenses can dramatically help when trying to declutter debt and grow savings. This might involve reducing dining out, buying unnecessary items, or canceling underutilized subscriptions. Use the extra money to repay debt, increase savings, and work toward goals.
6. Establish a savings plan
Once debts are reduced, it’s time to focus on boosting savings. An essential savings strategy is the “pay yourself first” approach. This approach means setting aside a portion of income into a savings account and toward retirement savings before covering other expenses.
Practical ways to boost savings
Automate savings—Setting up automatic transfers to a savings account will help ensure that this crucial step toward boosting savings is implemented.
Negotiate for lower interest rates—Don’t hesitate to negotiate lower interest rates with your creditors. Even a slightly mitigated rate could result in significant savings over time.
Participate in employer-sponsored retirement plans—If your employer offers a retirement savings plan like a 401(k) match, take full advantage of it. It’s essentially free money for accumulating retirement savings.
Create an emergency fund—An emergency fund serves as a financial buffer and mitigates the need to borrow when unexpected expenses occur.
Tackling debt and bolstering savings is a journey well worth embarking on. Decluttering debt may help simplify your financial life and boost your savings. Remember, every little step in decluttering is the path toward financial freedom.
SWG4220481-0225 d This information is provided as general information and is not intended to be specific financial guidance. Before you make any decisions regarding your personal financial situation, you should consult a financial or tax professional to discuss your individual circumstances and objectives. The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed.
In addition, Impact Your Wealth specializes in providing strategies and guidance for those seeking a better retirement lifestyle. If you have five million dollars or $50,000 retirement savings, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!