The Money Alchemist Podcast

Six Figure Poverty: Is $140,000 Enough to Raise a Family Today?

This Week's Agenda:
What’s happening in 10 min 
Record Black Friday Sales
11.8B up 9.1% from 10.8B in 2024 (Adobe Analytics)
Higher in-store component (1.7% up since last year)
Alphabet surpasses Microsoft as 3rd most valuable company in the world
Concept of circular financing dominating headlines
Fed rate cut in December jumped to 80 - 85% Dec 9 - 10
Topic de jour - Is $140k the new poverty line?
Listener Q&A - 
What should I do if my computer/Mac has been compromised?
Tip of the week
https://www.auctionzip.com/
 
_____
 
 
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karatstick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  
__
 
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
Join Brent's Monthly Newsletter:
https://40221980.hs-sites.com/join-infinite-wealth-plannings-newsletter
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
  
__________________
 
Editor:
 
Trevor Gargano (The Digital QB)
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
 
 
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

Surviving Holiday Dinner Conversations

This Week's Agenda:
What’s happening 10 min 
50 year mortgage idea announced to unpopular fanfare 
Bitcoin down 35% from highs, down 5% on the year.  Crypto markets erase over $1.1T in market cap. 
Government shutdown hits 43 days, ended when House of Reps passed a continuing resolution that would make it through the Senate. 
No BLS jobs data ever for period.  
Michael Burry announcing major AI short on Palantir and NVDIA then closes hedge fund shortly thereafter 
Topic de jour - top financial questions to bring up at Thanksgiving
What investment should I buy?
I need to reduce my taxes, how are all people doing this?
The stock market is rigged, why should I bother?
I hate the mortgage debt/payment and just want to pay it off, why shouldn’t I do that?
My advisor has been recommending annuities, is that a good idea?  
My friend/acquaintance has made so much money trading, where should I start?
TikTocker/YouTuber says we’ve peaked.  Time to get out, the crash is coming. 
The housing market is going to crash, terrible time to buy. 
The US debt ($38T) is too great and the American dollar is going to collapse.  I’m buying gold.  Prove me wrong. 
What about this AI bubble?  What’s that about? 
Listener Q&A - 
I’ve maxed out my 401(k) by summer and was told I might be missing out on company match.  Will I continue to get a company match?
Tip of the week
Learn how to login to your payroll portal and figure out split deposits
https://www.auctionzip.com/
https://simplelogin.io/ 
 
_______
 
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karatstick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
Join Brent's Monthly Newsletter:
https://40221980.hs-sites.com/join-infinite-wealth-plannings-newsletter
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
 
___________________
 
Editor:
 
Trevor Gargano (The Digital QB)
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
  
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

What To Do About Healthcare: Essential Strategies for Workers and Retirees

Agenda
What’s happening 10 min 
Gov’t shutdown - no BLS employment data 
Bitcoin now in bear market collapsing to below $100k 
Michael’s Burry’s new big short 
Healthcare premium inflation 
Jester “Jack” Daniels - how he built an empire and did not survive to reap the reward 
Topic de jour - Cost of healthcare for workers vs retirement, long-term care
Listener Q&A - 
I’ve maxed out my 401(k) by summer and was told I might be missing out on company match, will I continue to get a company match?  
All my neighbors are putting their homes in a trust or giving them to their kids so the nursing home doesn’t take the money, should I do that? 
Tip of the week
Understand how you pay for a mortgage - not all refis are the same.  
___
 
Sources 
 
https://communications.fidelity.com/wi/tools/retirement-health-care/
Healthsherpa.com 
https://www.carescout.com/cost-of-care
 
_____
 
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
Join Brent's Monthly Newsletter:
https://40221980.hs-sites.com/join-infinite-wealth-plannings-newsletter
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
 
___________________
 
Editor:
 
Trevor Gargano (The Digital QB)
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
  
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

Don’t Waste Your Money: Common Annual Enrollment Mistakes

Agenda:
What’s happening 10 min 
All asset classes are up: bonds, stocks, precious metals, crypto 
Valuations at ATH
Brent’s new baby
Equity flows from funds to bonds
Crypto crunch in October - Bitcoin in corrective territory from ATH
Tariff threat with China last week. 
This week’s most interesting money story - Alfred Nobel 15 min
Topic de jour - Open enrollment season - Optimize your choices 20 min
Listener Q&A - 
“We are buying a new home, what do we do with our old home.  Should we rent it out or sell it to fund goals or reduce the mortgage balance on the new home”
Tip of the week
Don’t use your HSA - defer it 
Backup, Hidden savings of online delivery 
529 plan payroll deduction 
Resources:
Employer Benefits Checklist: https://www.fppathfinder.com/checklists/respond/423a7a8d-e99e-4201-b7da-80e337855dce
 
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
Join Brent's Monthly Newsletter:
https://40221980.hs-sites.com/join-infinite-wealth-plannings-newsletter
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
 
___________________
 
Editor:
 
Trevor Gargano (The Digital QB)
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
  
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

Making the Most of Your 401k: How to Optimize Your Plan's Design and Contributions

This Weeks Topics:
Enrollment and contribution best practices 
Plan design - who these plans are optimized for 
Fees, what they pay for
How to collab with an advisor 
Hidden secrets in the plan document 
Recent policy changes that expand investment offering potential 
_____
 
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  _
Special Guest: Matt Heitman, CFA, CFP®, ChFC®
Wealth Advisor, National Wealth Management Group
www.nwmgadvisors.com 
https://www.linkedin.com/in/matthew-e-heitman/
 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com
Call us at 513-438-0095 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com
 
___________________
 
Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
  
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

The Shocking Truth Behind Terrible Returns: How to Align Your Goals with Market Mechanics

Managing investment return expectations.  
The truth behind terrible returns is a person that doesn’t quite understand market mechanics and how they tie into your financial goals.  
 
Watch this episode now: https://www.youtube.com/channel/UCDMLU9XVm8Cd5c1-gWbk3VA
 
Sources:
https://www.ramseysolutions.com/retirement/the-12-reality
https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/insights/ltcma-2025-us-matrix_usd.pdf
https://corporate.vanguard.com/content/corporatesite/us/en/corp/vemo/vemo-return-forecasts.html
https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/guide-to-the-markets/
 
_______________
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com
 
___________________
 
Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
 
___________
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
Information in this podcast should not be construed as tax advice.  Consult with your tax professional for specific advice on your situation. 
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

Exponential Wealth through Concentration: Integrating a Focused Strategy into Your Financial Plan

Diversification is the foundation of most investment advice, but what if it's also the single greatest barrier to generating true, exponential wealth?
In this episode, we challenge conventional wisdom and explore the high-risk, high-reward strategy of concentrated investing. We delve into how some of the world's most successful investors built fortunes not by spreading their capital thin, but by placing high-conviction bets on a few key assets.
We’ll discuss the principles behind this approach, the deep research it requires, and why it's a strategy that can either lead to transformative wealth or significant loss. Join us as we explore whether the path to exponential returns lies in taking a different, more focused direction.
________
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com
 
___________________
 
Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
 
___________
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
Information in this podcast should not be construed as tax advice.  Consult with your tax professional for specific advice on your situation. 
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

The Most Hated Economy: Building a Financial Plan to Thrive in a Divided Market

A war of the classes 
“It was the best of times, it was the worst of times”, so begins the famous novel Tale of Two Cities written in 1858.  Written by Charles Dickens, the motif of duality can easily be applied to our modern economy.   Throughout history, the state of mankind can generally be described as fitting someplace between bad and good.  
The economy is either terrible or great, depending on who you ask.  It’s a subjective sentiment check more based on feelings colored by bias rather than material facts.  The Michigan Consumer Sentiment survey illustrates that respondents feel worse about our present day economic state as they did in the doldrums of the 2008-09 Great Financial Crisis.
The perplexing disparity requires us to unpack layers of independent variables feeding data points like the Consumer Sentiment Index to better understand what is going on.  First, it’s important to acknowledge that winners and losers exist concurrently.  There is no economic condition in which all market participants are doing well or all are doing poorly.  We all function as independent cogs in the machine. 
Some cogs receive more lubrication than others depending on their positioning in the mechanism.  It is undeniable that inflation is the rust deteriorating the function of smaller economic ‘inputs’.  Inflation exacerbates wealth disparity as asset prices accrete monetary premiums whilst prices for necessary goods and services devour greater portions of free cash flow.  A one-two punch for the middle and lower classes. 
A big differentiator in 2008-09 is that most felt some degree of pain, even the wealthy.  For the first time in many generations, housing prices fell.  Stock and fixed income markets fell substantially more than a typical recession.  It was a great opportunity for those who played it safe, although many didn’t change their appetite for risk when the time was ripe.
Today, the situation is grossly asymmetric.  Anyone who has achieved a financial escape velocity, a definition that is subjective but not representative of the majority, is doing quite well.  Those living paycheck to paycheck, not so much.  
In fact, they may be doing worse than ever, relatively speaking.  Delinquencies are picking up across the board, with most of the increase concentrated in higher risk loans such as credit card and auto loans.  Recent revisions to the BLS establishment survey suggest that lower income earners may not be as well off as initially reported.  
We tried to contact an external analyst to inform on the matter, however the department was recently sacked as part of a strategic efficiency initiative.  I assure you this is an isolated incident that has nothing to do with AI (it is most certainly AI).  
Yet there has not been any meaningful deterioration in financial markets.  It has been quite the opposite with the S&P 500 kissing the 10%+ performance marker so far in 2025.  Housing prices have broadly moved higher with Zillow reporting a 0.4% YoY increase.  One could conclude that the economy is quite strong when looking solely at asset prices.  
This then begs the question: does it matter?  To financial markets, no.  What matters is total spending, not the symmetry of value exchange.  To a stockholder, margins matter more than the quantity of widgets the customer receives.  It does matter for political and economic stability. 
Resentment is building with an unknowable tolerance threshold and outcome potential.  Do the wealthy usher in a new age of economic dominance, dragging a disgruntled class of serfs like detritus?  Or can we expect an upheaval or even a renaissance of egalitarianism?
Ben and Brent discuss this matter further and offer their insights on what could be going on, but more importantly, what to do about it.  Listen to Episode 38 of The Money Alchemist Podcast to join in on the conversation! 
_______________
Sources:
BLS Employee Situation Summary: https://www.bls.gov/news.release/empsit.nr0.htm
 
Zillow July 31, 2025 National Home Value Report: https://www.zillow.com/home-values/102001/united-states/
 
JPMorgan Guide to the Markets: https://am.jpmorgan.com/us/en/asset-management/protected/adv/insights/market-insights/guide-to-the-markets/
 
_______________
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karatstick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  __
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com
 
___________________
 
Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
LinkedIn: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
 
___________
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
Information in this podcast should not be construed as tax advice.  Consult with your tax professional for specific advice on your situation. 
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.
 

Should Your Advisor Watch CNBC?

News or Noise?
In our fast-paced, 24/7 news cycle, it can feel like a financial advisor's credibility hinges on keeping up with every daily headline. A tweet from a prominent news host, a new market prediction, or a breaking story from CNBC can make an advisor who isn't up to speed feel discredited.
The question of whether an advisor should be a news junkie is at the heart of today's episode. Ben and Brent explore their differing approaches to information consumption. Brent keeps the news on in the background, believing it's essential to have a pulse on market sentiment. Ben, on the other hand, believes that tuning out the daily noise is key to long-term strategic thinking.
About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
 
___________________
 
Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
Linkedin: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
____________________________
 
Follow our socials to support the podcast; see extra clips and announcements!
 
Instagram: https://www.instagram.com/moneyalchemistpod/
X: https://twitter.com/moneyalchpod 
Facebook: https://www.facebook.com/profile.php?id=61556458987483
 
  ___________
Disclosure: 
 
Investment advice offered through National Wealth Management Group, LLC. 
 
Information in this podcast should not be construed as tax advice.  Consult with your tax professional for specific advice on your situation. 
 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.

The One Big Beautiful Bill Act: Tax Changes, Deficit Impact, and Your Financial Plan

Some beauty is skin deep.
Reinforcing a modern political trend, the One Big Beautiful Bill Act (OBBB) garnered only strict partisan support.  Carrying the timbre of our nation’s President, its name either strikes a nerve with unbearable annoyance or tickles the funny bone.  A dichotomy to define out times.  One many have grown weary of.    
Now signed into law, few Americans are unaffected by its reach.  Even fewer still understand the full scope of its consequences.  The CBO estimates $2.4T – 3.3T will be added to the Federal deficit over the next decade while the White House claims a $1.4T deficit reduction over the same period with tariffs. 
The appropriate way to view such estimates is with extreme suspicion.  Like the odds that an astronaut will land a hole-in-one from the wing of the International Space Station.  The CBO thinks they can do it.  The White House believes the earth and hole will be pulled into the gravity well of the ball.  It’s all haruspication.
No one accurately forecasted our national debt a decade ago, currently sitting at $37T and counting.  Directionally, the CBO’s estimate is probably more correct given strong incentives for policy makers to deficit spend. 
But who cares about something as banal as the national debt, we want the beautiful eye candy.  The OBBB does not disappoint in this aspect, delivering on promises of substantial tax relief for individual taxpayers.  
This comes as no surprise as it was a major cornerstone of the current administration’s campaign and the necessary showpiece for public support.  Some of the major upgrades to the tax code include:
Permanent extension of the lower Federal brackets passed as temporary relief for individual taxpayers in the TCJA (2017).
Permanent doubling of the standard deduction with a doubling of the inflation adjustment for 2026.
Permanent child tax credit of $2,200 per qualifying child (under 17), indexed for inflation.
Permanent 20% deduction on Qualified Business Income (199A deduction).
Permanently set the Federal estate tax exemption at $15M per individual with an inflation adjustment.
Added the “Trump Account” for minors with a $5,000 annual contribution limit and one-time $1,000 Federal government contribution for babies born 2025 – 2028. 
Added an additional $6,000 per person deduction on top of the standard deduction for taxpayers 65 and older, subject to phase outs.
Charitable contributions up to $2,000 (MFJ) can now be taken even if the standard deduction is elected.
Temporary tax relief on income earned through tips and overtime from 2026 through 2028 (phased out at $150k Single / $300k MFJ)
Temporarily lifted the state and local income tax (SALT) deduction limit to $40k for households with an AGI of $500k or less, reverting to $10k with 1% annual inflation adjustment in 2030.
There are more obscure updates made to the tax code in the 800+ page bill signed into law, but we’ve covered the highlights.  Much of it is still being digested by tax and legal firms and/or requires clarification from the IRS. 
While we love eye candy, the beautification process is both complex and painstaking.  A principal that holds true in the application of this legislation.  All the ‘beautiful’ parts of the law require effort and guess who gets to apply the makeup?
You.  True to form, policy makers have further complicated an already convoluted tax code.  The real winners are financial planners and full-service CPA firms, although the net effect is lower taxation across the board for most taxpayers.  
So much for simplifying the tax code. 
To offset the projected cuts in tax revenue, lawmakers looked to niche tax increases and spending cuts, specifically in Medicaid.  We need not cover one obvious source of additional tax revenue in 2025, tariffs, but other tax increases were included in the final Bill.
For one, many university endowments will see their net investment income tax climb from 1.4% to as high as 8%.  Still lower than personal tax rates but an increase, nonetheless. 
Second, AMT provisions were adjusted that will slightly increase the number of Americans subject to Alternative Minimum Tax.  Chances are it will not affect you unless a significant portion of your compensation comes from ISOs. 
The ugly part of the legislation were the necessary cuts to welfare programs, Medicaid in particular.  It’s important to not conflate Medicaid with Medicare.  The two programs may share 6 out of 8 letters but are very different. 
There are no cuts to Medicare or Social Security as part of the OBBB, which are the programs many retirees depend on.  The same is not true for Medicaid, which is the socially subsidized health insurance program for qualifying individuals living in the US. 
Qualification status varies by state given each manages their Medicaid programs separately using Federal funding.  The OBBB establishes more strict qualification criteria than currently exist in most states.  The obvious effect is less individuals will qualify, hence the reduction in spending.
Some estimate that as many as 10 million with be shifted off fully subsidized Medicaid plans to an uninsured status or partially subsidized ACA plans.  Regardless, it marks a notable shift in policy support for Federal redistribution programs. 
Decrying the spending cuts may be cathartic to those standing in opposition, but it fails to properly consider the full scope of potential long-term consequences.  The most significant of which being an increased reliance on US Treasury bond sales to fund current and future spending. 
Heavy reliance on debt to fund operations destabilizes currencies and the economies that use them.  So long as the dollar remains the world reserve currency, the appetite for its debt will remain quite high.  Even so, it’s not without drawbacks.  
Deficit spending diverts inflation into financial assets, which will further exacerbate wealth disparities.  Marie Antoinette might have offered a more personal account on where this could lead but tragically, she lost her head during her exit interview. 
More than ever, it’s important to save and invest to gain a footing on society’s social ladder.  There’s an idea for a portion of your tax savings.  You’ll certainly need it.
For a more in-depth breakdown of the OBBB, listen to the latest episode of The Money Alchemist Podcast where we dig into the legislation.  Tax talk has never been this much fun! 
 
___________________
 
Show Reference:
 
Charitable Bunching using a DAF: https://www.karatstick.com/p/tis-the-season?utm_source=publication-search
 
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About your Hosts 
 
Ben Jones, CFP® 
Managing Director, National Wealth Management Group 
www.nwmgadvisors.com  
Sign up for Ben’s newsletter at www.karastick.com  
Follow him on X @thekaratstick 
https://www.linkedin.com/in/ben-nwmg/ 
  
Brent Gargano, CFP®
Founder & Advisor, Infinite Wealth Planning  
www.infinitewealthplanning.com 
linkedin.com/in/brent-gargano-cfp®-2067b573 
 
Comments or questions?  Email us at comments@moneyalchemistshow.com 
  
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Editor:
 
Trevor Gargano
Email: Trevor@trevorgargano.com
Linkedin: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
 
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Disclosure: 
Investment advice offered through National Wealth Management Group, LLC. 
Information in this podcast should not be construed as tax advice.  Consult with your tax professional for specific advice on your situation. 
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.