On July 04, 2025, President Trump signed The One Big Beautiful Bill into law. This extends the 2017 tax cuts, which were set to expire at the end of this year, and makes some of the rules permanent. It also added several new tax laws for individuals—most of which will take effect this year while others start in 2026. A helpful breakdown of the tax changes can be found here.
Although the impact of the law was not yet built into market performance for the first two quarters of 2025, the first half of the year ended up stronger than many expected. Despite market decline in first quarter and heightened volatility in April, the market rebounded in May and June to end the second quarter positive.
History has shown that the market does not like uncertainty, which is exactly what we saw the first half of the year. Now that The One Big Beautiful Bill has passed, we have more certainty about tax changes—and opportunities—at least for the next few years. It’s an important time to talk with your financial advisor about how to make the most of current tax laws.
Make sure you feel comfortable with your income plan—both now and in the future—and understand how taking required minimum distributions in retirement will affect that income. If you expect to be in a higher tax bracket in the future, it’s especially important not to leave money in the lower part of your tax bracket now and miss opportunities to reduce your overall tax burden while rates remain steady.
Retaining current tax rates and larger deductions might mean it's time to get proactive about Roth IRA conversions, for example. Talk with your advisor about how to leverage the current gifting and estate strategies to maximize the impact of wealth you transfer. Tax planning is no longer a year-end push; it’s a priority year-round to properly steward your resources.
At the end of the day, the economy changes often. However, it’s not nearly as important to daily life as your personal economy—that includes having clarity about your values, focusing on the things you can control, remaining committed to your long-term plan, and cultivating peace and contentment no matter the season.
Most people would’ve guessed that the market would be down at the halfway point of 2025, but it just goes to show that you can’t allow yourself to be distracted by the headlines of the day. Having a financial plan affords perspective when the markets are good, and when markets are down, a financial plan reorients your focus to what matters in the long run. Good stewardship requires that you stay informed about how new changes can apply to your situation and affect your finances, so you can make educated decisions based on facts rather than feelings.