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Message The LynnLeigh JournalLife. Investing. And Everything in BetweenOn July 4, 2025, Congress passed the One Big Beautiful Bill Act (OBBA).While the name makes headlines, the real story lies in what it means foryour retirement plan, your taxes, and your estate strategy. This isn’t aroutine tax update. It’s a strategic reset with opportunities worth actingon now.Let’s explore the key changes—and how smart financial planners arealready adapting.ONE BIG, BEAUTIFUL TAX SHAKE-UP:WHAT SMART PLANNERS ARE DOINGNEXTBy Kelly L. Olczak, CFP® Feature ArticleHighlights:A U G U S T 2 0 2 5V O L U M E 8Just for Fun: RealRecipes for anEnd-of-SummerPicnicNot Just a Tax Bill—It’s aPlanning WindowNew Tax Rules = NewPlanning MovesNo, Social Security Didn’tSuddenly Become Tax-FreeBig SALT Deduction, BigAsteriskNavigating the “NewNormal”Policy Shifts: What’sChanging and Why ItMattersMarket Trends: A Tale ofTwo WorldsMarket Update:The Tax Cut That Finally StuckRemember all the uncertainty swirling around the 2017 tax cuts?Whether they’d stick or sunset by 2026? Well, the OBBA slammed thatdoor shut. Tax brackets? Locked in. The top rate? 37% and staying there.

2A U G U S T 2 0 2 5 V O L U M E 8A Retirement Deduction You Probably Haven’t HeardAboutAnd with inflation indexing still in play, the tax landscape just gained alot more predictability.Translation: Retirement income strategies, Roth conversions, andmulti-year tax plans just got a whole lot simpler. You can finally planlong-term without worrying that Congress is going to pull the rug outfrom under you.Why This Matters...More predictability means better long-term tax planning.Multi-year Roth conversion strategies just became easier to model.Long-term income withdrawal plans no longer need to account for a2026 bracket increase.The OBBA introduces a new $6,000 deduction per taxpayer age 65+, or $12,000 per couple. Thisdeduction applies on top of the standard deduction and is available to those with incomes under $75,000(single) or $150,000 (joint). This provision has been widely publicized as the so-called "no taxes on SocialSecurity" promise—but while it certainly reduces or eliminates taxes on Social Security benefits formany moderate-income retirees, it doesn’t eliminate them entirely. Instead, it's a targeted benefit thatlowers taxable income and, for many, reduces or removes Social Security taxes without being a blanketexemption.It applies whether or not you're currently collecting Social Security, so even if you're delaying benefits,this deduction could lower your overall tax bill during the window. Don’t wait to adjust your tax strategy.Important: This provision is only available from 2025 through 2028. After that, unless extended byCongress, it disappears—making this a limited-time planning opportunity.Why This Matters...It reduces taxable income for retirees, helping them stay in lower tax brackets.Lower income means lower IRMAA surcharges on Medicare.Reduces taxes owed on Social Security benefits, possibly down to zero for many moderate-incomeretirees.

3A U G U S T 2 0 2 5 V O L U M E 8For higher-income retirees, note that the deduction phases out above those income thresholds—but theplanning opportunity remains for many.The SALT Deduction is Back—Kind OfThe OBBA temporarily raised the SALT (State and Local Tax)deduction cap from $10,000 to $40,000, but only through 2029. Thefull $40,000 deduction is only available to households with adjustedgross income under $500,000. Above that threshold, the expandeddeduction phases out gradually—meaning higher-income filers maystill be capped closer to $10,000. That’s a big deal for taxpayers inhigh-tax states—but it’s also a ticking clock and a sliding scale basedon income.If your property taxes and state income taxes exceed $10,000, youmay finally be able to deduct the full amount again.Filing StatusBase StandardDeductionExtra for65+Single, 65+Married, one 65+OBBB BonusDeductionTotalDeductionMarried, both 65+$15,750 $2,000 $6,000 $23,750$31,500$31,500$1,600$3,200$6,000$12,000$39,100$46,700Planning Note: This deduction only lasts through 2028. Review your property tax prepaymentsStrategy Tip:Time estimated state tax payments to fall in higher-income years.If you give charitably, pair deductions to maximize impact.(And, of course, this isn’t tax advice—we’re not CPAs. Always consult your tax preparer before taking action!

This means you may owe no federal income tax at all on a significant portion of your pay during thoseyears, although you'll still be on the hook for Social Security and Medicare taxes.The catch? The deduction phases out for incomes above $150,000 ($300,000 for joint filers), and thereare specific rules on what qualifies as "tip income" or "overtime."Bottom line: If you or someone in your household earns a good chunk of income in tips or extra shifts,this could lead to thousands in tax savings—but only for a limited time. For service workers, the OBBAmakes tips and overtime income federally tax-free for three years. That’s a direct cash-flow benefit thatshouldn’t be overlooked.4A U G U S T 2 0 2 5 V O L U M E 8Several quirky but valuable provisions are now live—but they’re temporary. These aren’t headline grabbers,but they matter for real households.Short-Term Breaks: Use Them Before They're GoneFor service workers in qualifying jobs, the OBBA allows you todeduct up to $25,000 in tip income and $12,500 in overtime pay fromyour federal taxable income—or up to $25,000 total for marriedcouples—for tax years 2025 through 2028.For the first time in decades, interest on new auto loans for U.S.-manufactured cars is deductible—up to$10,000 per year, from 2025 through 2028. The deduction is only available for new, personal-use vehiclesthat were assembled in the U.S., and it begins to phase out for incomes over $100,000 (single) or$200,000 (married).If you're thinking about buying a new car during this window, check the final assembly location on thewindow sticker, and time your purchase carefully—this deduction isn’t expected to stick around long.Sections 110101 & 110102: "No tax on tips" (OBBA Part 2 – Additional Tax Relief forAmerican Families and Workers) - “See IRS Fact Sheet FS-2025-03 (July 14, 2025) andofficial bill section summaries”Auto Loan Interest Deduction (for U.S.-Made Vehicles)Tax-Free Tips & Overtime (2026–2028): Section 110104: "No tax on car loan interest" - “See IRS Fact Sheet FS-2025-03 (July 14, 2025) and official bill section summaries”

5A U G U S T 2 0 2 5 V O L U M E 8New parents receive a $1,000 federal seed deposit at birth,and can contribute up to $5,000/year after-tax. Theseaccounts grow tax-free and can be used for education, homepurchases, job training, or anything after age 30.Planning Tip: Grandparents and parents should considerfront-loading contributions during this short window.The OBBA has created a rare window where brackets are stable, deductions are expanded, and severaltax advantages are in play—but many are expiring within 3–5 years.If you:Newborns Accounts (2025–2028 Only)The Smart Move: Realign While the Window’s OpenAre approaching or just entered retirementWant to reduce taxes on Social Security and Medicare premiumsNeed to adjust Roth conversion timingHave adult children or service workers in your life…this is the moment to revisit your tax map. Let’s talk about how to make the most of it.And, please remember... We're not tax professionals. Before making changes to your tax strategy,always consult your CPA or tax preparer.Want the Key Numbers at Your Fingertips?We’ve put together a handy two-page summary of the updated 2025 financial benchmarks—includingmany of the new OBBB tax law changes. It’s a quick reference for deductions, income thresholds,phaseouts, and planning windows you’ll want to keep an eye on.Click to Download

6A U G U S T 2 0 2 5 V O L U M E 8 MARKET UPDATE: Reading Between the LinesNavigating the "New Normal"As summer gives way to late season, the world feels a little... unsettled. The headlines might lookcalm, but if you’ve been paying attention, you can feel the shift—both in the markets and in daily life.Things aren't chaotic, but they aren’t smooth either. We’re in a new chapter of economic adjustment,and like any good chapter, it’s full of nuance.Economic Snapshot: Softening, But Still StandingWe’re not in crisis mode. But we are shifting. Real GDPdipped slightly—down 0.5% in Q1—thanks mostly toimport surges ahead of new tariffs. Consumer spendinggrew modestly (0.5%), signaling more cautious households.Jobs data remains a mixed bag. Yes, 147,000 new payrollswere added in June—but most were in state and localgovernment. Private sector hiring was softer, and the laborforce actually shrank. Unemployment inched up to 4.1%,and wages are growing just enough to keep pace withinflation. Translation? We're not spiraling, but we’re alsonot sprinting.For investors, this is a “slow and steady” environment—but with less predictability than we’re used to. Thinkmarathon, not sprint.The numbers paint an interesting picture: the U.S. economy, after years of surprising strength, isstarting to exhale. Growth is cooling, policy changes are moving fast, and inflation is quietlyreshaping the landscape again. If July was the pause, August is the inflection point.So what does this mean for your money, your goals, and your next right step? Let’s break it down.

7A U G U S T 2 0 2 5 V O L U M E 8Tariffs aren’t just headlines anymore. With average rates up to nearly 15%, prices on goods likeclothes, appliances, and toys are rising—and we’ll see more of that this fall. Inflation may feel like it's Tariffs Are Here—and They’re BitingWhile June’s CPI report was tamerthan expected (2.7% headline), thatcalm may be temporary. J.P. Policy Shifts: What’s Changing and Why It Mattersunder control, but these policychanges are pushing prices up insneaky ways.Inflation: A Second Wave?Morgan projects inflation could reaccelerate to 3.5–4% by year-end, especially in categories wheretariffs hit hardest.The Fed: Cautious and Under the MicroscopeThe Fed held steady at its July meeting, keeping rates between 4.25% and 4.5%. While they soundeda bit more dovish, they’re still wrestling with inflation’s next move and the unknown effects oftrade policy. Don’t count on multiple rate cuts. The market may want them, but the Fed isbalancing political pressure with economic reality.Market Trends: A Tale of Two WorldsBig Tech Still Leads—but Look Beyond the ObviousEarnings season has been decent: 82% of companies are beating estimates, though most of thegrowth is coming from just a handful of tech giants. The "Mag 7" account for over two-thirds ofS&P 500 profit growth this year. That’s not sustainable forever, and it’s why diversificationmatters.

8A U G U S T 2 0 2 5 V O L U M E 8Here’s the twist: Global equities arefinally getting their moment. With thedollar down 11% since January,international holdings areoutperforming U.S. counterparts forthe first time in years. If your portfoliois U.S.-heavy, this might be the seasonto explore broader opportunities.Surprise Winner: International StocksWhat We’re WatchingBudget with flexibility.Prices aren’t falling—but the rate of increase is slowing. Review your spending. Build a buffer.Tariffs will show up in everyday costs before year-end.Tariff impact on inflation and consumer demandPolicy shakeups that could ripple through tax strategy or investment positioningOver-concentration risk in mega-cap tech stocksVolatility tied to Fed decisions and political noiseSo, What Should You Do With All This?Let’s zoom back out. What actually matters for your financial life?1.Update your tax strategy.OBBA brought new deductions, credits, and withholding rules. If you haven’t revisited your taxplan this year, it’s time. The winners in 2025 will be the ones who prepared.2.

9A U G U S T 2 0 2 5 V O L U M E 8Stay employed—or ready.The job market is softening, not collapsing. If you're working, be proactive about your benefits,emergency fund, and career development. If you're not, let's review your income strategy.3.Don’t chase headlines.Markets are noisy. If you have a plan, stick to it. Reacting emotionally to news cycles usually leadsto regret—not results.4.Final Thoughts: Perspective Is PowerYour financial life isn’t about guessing what the Fed will do next or riding the next market wave.It’s about clarity, control, and confidence. The plan that works is the one that adapts—to your life,your values, and the world as it evolves.Reflect, don’t react. Plan proactively. And reach out—we’re here to help make thecomplex feel simple.You’ve got this. And if you need support turning uncertainty into action, we’re just a call away.Content informed by J.P. Morgan Asset Management’s July 28 Market Update and LynnLeigh & Company’songoing research and planning insights.Just for Fun: Real Recipes for an End-of-Summer PicnicMarinated White Bean Salad2 cans cannellini or great northern beans, drained1 small red onion, finely diced1 clove garlic, minced2 tbsp fresh parsley, choppedBright, herby, and satisfying—no mayo, no wilting.Ingredients:1 tbsp fresh rosemary or thymeZest and juice of 1 lemon3 tbsp olive oilSalt and pepper to taste

10A U G U S T 2 0 2 5 V O L U M E 8Marinated White Bean Salad (cont.)Instructions:Combine all ingredients in a bowl.Let marinate at least 30 minutes (better after a few hours).Serve chilled or room temp.Roasted Veggie Picnic Sandwich (Wrap in Parchment)1 large ciabatta loaf or focaccia, halved1 red bell pepper1 zucchini1 small eggplantBuilt to travel and gets better as it sits.Ingredients:Olive oil, salt, pepperGoat cheese or provoloneHandful of arugula or baby spinachBalsamic glazeInstructions:Slice and roast veggies at 400°F for 20–25 min with olive oil, salt, and pepper.Layer veggies, cheese, greens, and adrizzle of balsamic glaze onto bread.Press gently, wrap in parchment, andslice into servings.

11A U G U S T 2 0 2 5 V O L U M E 8Cold Herb-Rubbed Chicken Thighs6 boneless, skin-on chicken thighs1 tbsp olive oil1 tsp kosher salt1 tsp smoked paprikaDelicious chilled—juicy, not greasy.Ingredients:1 tsp garlic powder1 tbsp fresh thyme or rosemary, mincedInstructions:Rub chicken with oil and seasonings.Layer veggies, cheese, greens, and adrizzle of balsamic glaze onto bread.Cool, refrigerate, and pack with adipping sauce or mustard on the side.Until Next TimeAugust has always been a bit of a paradox—part golden hour, part turning point. The pace slows,the light softens, but there’s also a subtle gear shift in the background. Kids head back to school,routines start to reassert themselves, and even the markets seem to catch their breath. It’s anatural time to pause, take stock, and recalibrate.That’s what this newsletter is meant to do—offer you both clarity and calm. Whether you’redigesting economic shifts, mapping out your next tax move, or just trying to make sense of theheadlines, remember: you don’t have to navigate any of it alone. We’re here to help you interpret,filter, and act—strategically and confidently.

12A U G U S T 2 0 2 5 V O L U M E 8And if you're not ready for strategy yet? That’s okay, too. Maybe your next best move is somethingsimple: finally making that sandwich and heading to the park. Listening to music instead ofmarket commentary. Letting your plan work in the background while you enjoy what’s right infront of you.So here’s your invitation: Keep asking the big questions. Keep ignoring the noise. And keep choosing progress over perfection.We’ll be here when you need us—with insights, ideas, and support that meets you where you are.Warmly,Kelly & The LynnLeigh TeamLynnLeigh & Company - A Registered Investment AdvisorThis information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believed to be reliable – LynnLeigh& Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to any individual’s personal circumstances. To the extent that thismaterial concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayershould seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice. Pastperformance is not a guarantee of future returns.