By Elaine King, CFP®
The headlines say it's a win. Influencers call it "beautiful." But as a financial planner who's walked alongside families building multi-generational wealth, I say: let’s pause, zoom out, and look at the full picture of the recently passed One Big Beautiful Bill (OBBB).
This isn't just about tax tweaks or budget lines. This is about your wealth philosophy, your legacy, and your next move. Here’s what you need to know.
Big Picture Wins
- Short-term tax relief: More take-home pay from reduced taxation on tips, overtime, and increased Child Tax Credit.
- Higher SALT deduction cap: Particularly helpful if you live in a high-tax state like New York, California, or even Florida if property taxes are biting.
- Defense and national security investments: This could mean long-term stock opportunities in tech, cybersecurity, and energy sectors.
Red Flags to Watch
- $3.8 trillion added to the deficit: Which could mean rising interest rates, inflationary pressures, or tax increases in the future.
- Cuts to Medicaid and SNAP: Even if this doesn't affect you directly, remember: social instability affects markets.
- Green energy rollback: ESG-minded investors may need to realign their portfolios.
What I Tell My Clients with $1M+ AUM
- Don’t chase trends. Focus on your long-term strategy, not social media buzz.
- Review tax impact scenarios with your advisor. Higher SALT deductions might mean it’s time to rework your charitable giving or trust strategies.
- Reassess your risk exposure. Government spending and policy shifts could affect muni bonds, real estate, and international allocations.
- Start family conversations. Laws may change, but values endure. This is a good moment to revisit your family mission statement.
My Take?
This bill is neither a disaster nor a miracle. It’s a signal. A reminder that even in chaos, we must plan intentionally. Wealth isn’t just about returns—it’s about resilience.
Let’s keep your legacy aligned with your vision. And let’s not let hashtags define our financial philosophy.
Want a personal walkthrough of how this impacts your plan?
Let’s talk.
