Captain’s Log

 

How the “Big Beautiful Bill” Affects Your Financial Plan

On July 4, 2025, the federal government passed the One Big Beautiful Bill Act—a sweeping new law that impacts taxes, retirement, business ownership, employee compensation, and federal benefits.

Because these changes often include complex rules like phase-outs and limits, it’s important to understand how they specifically affect your unique situation. Here’s what you need to know—and why now is the perfect time to take a fresh look at your financial plan.

Tax Rates Locked In

The 2017 lower tax brackets are now permanent. The standard deduction has also been temporarily increased (for example, $32,600 for joint filers in 2026).

This makes tax planning more stable, but also more critical to optimize now—especially with rising income.

Overtime and Tips

Changes here will happen at tax time, not on payday. Employers will keep withholding taxes as usual, and it’s up to you to apply the deduction. If you qualify, expect a larger tax refund.

The tax break packs the biggest punch for middle- and high-income workers who rack up overtime or bring in substantial tips.

Estate and Gift Tax Opportunities

The estate and gift tax exemption has been doubled (now approximately $15 million per person), creating a limited-time window to transfer wealth more tax-efficiently.

High-net-worth families should revisit their estate strategies while this opportunity exists.

Higher Child Tax Credit

The Child Tax Credit has been increased to $2,200 per child and will be indexed for inflation moving forward.

This provides more annual tax relief for families with dependent children, which may help offset rising costs.

Support for Business Owners

The 20% Qualified Business Income (QBI) deduction is now permanent.

The Section 179 expensing limit has increased to $2.5 million.

100% bonus depreciation has been reinstated.

Business owners can deduct more and invest more efficiently. Now is a good time to align year-end purchases and growth strategies with these new rules.

Social Security Deduction

Instead of a full tax exclusion, the bill offers a temporary $6,000 deduction for seniors receiving Social Security income.

This provides partial relief, but you may need to adjust your income strategy to manage taxes in retirement.

What This Means for Your Plan

The One Big Beautiful Bill affects nearly every area of your financial life—from how your income is taxed to retirement savings, estate planning, and business ownership. While I’ve only highlighted a few key areas our clients are asking about, this is a sweeping law, and it will take time to fully understand its impact.

Now is the perfect time to schedule a conversation with your Anchor Wealth Advisor. Let’s proactively revisit your comprehensive financial plan to make sure you’re not only prepared for what’s changing—but positioned to take advantage of it.

Adam Ludwig, CEO/Wealth Advisor

2025 Halftime Check-Up— See Where Your Money Stands

As we hit the halfway mark in 2025, now is a great time to pause and assess your financial progress.

Whether or not you’ve met with your advisor recently, this point in the year offers a natural moment of reflection.

Are you on track to meet the goals you set in January? Are there areas of your financial plan that need more attention or less?

CLICK HERE to finish reading Adam Ludwig’s blog for July.

Enhancing our Expertise

On July 8th, Anchor Wealth Management Paraplanner, Malik Coleman, passed his Financial Paraplanner Qualified Professional exam.

The FPQP is a study course that highlights the foundational knowledge of Financial Planning.

Malik had to learn, study, and pass an exam on the following planning elements, similar to the Certified Financial Planner (CFP):

• Financial Planning Process
• Business Ownership, Cash Management
• Time Value of Money
• Insurance Types
• Investment Basics & Strategies
• Retirement Planning and Tax Implications
• Estate Planning

Congratulations, Malik, on a truly outstanding accomplishment.

We are making it even easier to Connect!

Have a quick question?

For your convenience, texting is an option for communicating with the AWM team.

Get timely information and answers right to your phone. The best thing is that you don’t have to memorize a new number.

You can text or call us at (815) 201-5011.

This number is monitored Monday through Friday during regular business hours.

If you send us a text after hours or on the weekends, we will reach out the next business day.

Bring Joy to Children Worldwide!

Can you believe it’s already July? While summer fun is in full swing here in Rockford, Illinois, our thoughts are already turning to Christmas – specifically, to the incredible impact of Operation Christmas Child!

This year, we’re launching our “Christmas in July” donation drive to get a head start on collecting items for shoebox gifts.

Imagine the smiles on children’s faces around the world when they receive a box filled with gifts, knowing someone cares for them. These simple shoeboxes deliver not just toys and essentials, but a message of hope and love.

Why “Christmas in July”?

Summer sales offer a fantastic opportunity to find great deals on items perfect for shoeboxes. By collecting now, we can maximize our donations and ensure even more children experience the joy of Christmas. It also helps us beat the rush of the traditional fall collection period.

We will be collecting donations from now to October 13th.

You can help by purchasing an item(s) from our Amazon wishlist.

Please have your donation sent to our Rockford office, and we will hold it until our Packing Party on October 15th at the same location.

Please join us in making this holiday season a little brighter for children in need. Thank you in advance for your generosity and support!

If you have questions, contact Chris DeSchepper at (815) 201-5011 Ext. 1020.