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Episode Breakdown: The One Big Beautiful Bill Act + 6 Retirement Myths That Might Be Holding You Back​
(0:00) What you really need to know about the latest retirement-focused tax bill
(11:17) Retirement Headlines and Listener Question

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Retirement Headline: The One Big Beautiful Bill (Yes, That’s the Actual Name)

Source: The Actual U.S. Government

Let’s start with some sizzling new tax legislation. The One Big Beautiful Bill Act was signed into law on July 4th, and it includes a variety of changes that could benefit retirees—and just about any taxpayer.

Before we dive in, remember: I don’t do politics. I dislike everyone equally. But when legislation impacts your taxes and retirement strategy, we have to talk about it.

Here’s what’s inside this “Big Beautiful” Bill:

What’s Changed

• Lower tax brackets “made permanent”​
  The 12% and 22% tax brackets are sticking around past their 2025 sunset… but let’s be real—“permanent” in tax law means “until Congress changes its mind.”
• Bigger standard deduction​
  In 2025, joint filers will see $31,500, and singles get $15,750. Over 65? There’s a temporary bonus: $6,000 per person from 2025–2028. That means a couple over 65 could shield $46,700 from taxes.
• Social Security tax myth alert​
  Social Security is still taxable. Yes, more of it may be shielded by the bigger deduction, but don’t let misleading headlines fool you. SSA-1099 still matters.
• Charitable deduction for non-itemizers returns​
  From 2026–2028, deduct $1,000 (single) or $2,000 (joint) above the line for charitable donations—even if you don’t itemize.
• SALT deduction cap increased​
  From $10K to $40K through 2029. High-tax-state clients, this one’s for you—especially if you own multiple homes or pay steep property taxes.
• ACA subsidy cliff returns​
  If you're under 65 and using the ACA marketplace, the enhanced premium subsidies are set to expire after 2025. Roth conversions could trigger major paybacks in 2026.
• Auto loan interest deduction (new!)​
  Buying a new, U.S.-assembled car from 2025–2028? If you finance it, the interest may be deductible. But don’t spend $1 to save $0.25.

What This Means for You

Most retirees will see some form of tax relief starting in 2025. But our core planning principles haven’t changed:

• Roth conversions? Still on the table.
• Tax gain harvesting? Still a strong option.
• Front-loading income and spending? Still worth exploring.

We’ll go over all of this in detail during client year-end reviews. And yes, our tax software is already updated with these new rules!

Pro Tip: Keep an eye out—word on the street is we may see a 2026 tax filing extension due to the IRS scrambling to adapt.

Retirement Headline: 6 More Retirement Myths to Avoid

Source: Morningstar by Cheryl Rowling

Here are a few of my favorite busted myths from Cheryl’s article:

1. “Don’t splurge in retirement.”​
   A $50,000 trip or RV is a rounding error on a $3M portfolio. If it fits your plan, go for it. Retirement is about freedom, not fear.
2. “It’s best to give to charity after you die.”​
   Nope. Give now. Get a deduction. See the impact. Live generously today.
3. “Spending less is always better.”​
   Fear-based saving is not a strategy. Enjoy your wealth while you’re healthy enough to use it.
4. “You must pay off your mortgage before you retire.”​
   Not always! Paying off a low-rate mortgage by raiding a tax-deferred account might increase your tax bill. Do the math first.
5. “Reverse mortgages are a last resort.”​
   Reverse mortgages have evolved. With proper guidance, they can be a tool, not a trap.
6. “Market crashes are your biggest threat.”​
   Actually, panic selling, scams, and poor timing are far more dangerous. Stay the course and stay skeptical.

Pro Tip: Read Die With Zero if you haven’t already. It’s a great guide to living well with the money you’ve saved.

Listener Question: How Should I Buy a Car in Retirement?

A listener writes:

Great question! Buying a car in retirement is a classic “taxes vs. interest” decision. Here are your options:

1. Pay cash from savings​
   Easiest, no tax consequences.
2. Pay cash, then reimburse yourself​
   Use the savings now, then slowly draw from your IRA to rebuild the account.
3. Withdraw from your 401(k)​
   This could reduce future RMDs—just be aware of the tax hit.
4. Use your inherited securities​
   If they received a step-up in basis, selling could be very tax efficient.
5. Finance the car​
   Especially if you qualify for the new interest deduction. Just don’t borrow money only for the tax break.

Key Insight:

If you’re financially independent, you get to pick the option that fits your values—not just the one with the lowest number.

Hate taxes? Pay the interest.
​Hate debt? Pay the taxes.

Whatever path you choose, just be intentional about it.

Some of you may have questions about the new Big Beautiful Bill. Below is an email we sent our clients. I hope it's helpful.

"We’re reaching out to share some important tax law changes that will have some impact on your retirement in one way or another. The One Big Beautiful Bill Act (that’s it’s official name), signed into law on July 4th, includes a number of updates that benefit retirees and those approaching retirement.

Please read this entire email, as many headlines & pundits are pushing talking points & less-than-fully-accurate information.

Here’s what you need to know in three minutes or less:

Lower Tax Rates Are Now Permanent​
The lower income tax brackets originally set to expire after 2025 (like the 12% and 22% brackets) have now been made permanent. This helps create more predictability in your retirement income planning & Roth IRA conversion strategies.

Important note: “Permanent” simply means a rule that isn’t scheduled to sunset. In tax planning, permanent never actually means permanent.

Larger Standard Deduction​
Starting in 2025 (this tax year):

• Married couples filing jointly will get a $31,500 standard deduction
  ​
• Single filers will get $15,750
  If you’re 65 or older, there’s even more good news...

New Senior Bonus Deduction (2025–2028)​
If you’re 65 or older, you’ll qualify for an extra $6,000 deduction per person - stacked on top of the standard deduction.
Example: A retired couple over 65 could shield up to $46,700 of income from taxes in 2025.
This benefit begins to phase out for incomes over $150,000 (joint) or $75,000 (single).

Important note: There HAVE NOT been any direct changes to the taxation of Social Security, despite what any emails from the SSA may have implied. While a bigger standard deduction and bonus senior deduction will shield more of your Social Security from taxation, it is important to point out that the taxation of Social Security itself has not changed. There are a lot of misleading headlines on this topic.

Above-the-Line Charitable Deduction (2026–2028)​
Starting next year, even if you don’t itemize, you can still deduct:

• $1,000 if single
• $2,000 if married filing jointly

If this sounds familiar, we had similarly implemented deductions in 2020 & 2021 as a result of the CARES Act.

For clients that have no plans to itemize deductions, we’ll have to revert back to our old habits of maintaining records for charitable giving.

Expanded SALT Deduction​
The cap on deducting state and local taxes (SALT) increases from $10,000 to $40,000 through 2029. This is a big deal for clients in high-tax states (NY, NJ, CA, IL, CT) who still itemize and/or clients with multiple homes and/or large property tax bills.

Important note: The standard deduction is higher, making it tough to beat, but these new SALT rules will mean some clients that filed standard deduction last year will itemize this year.

ACA Subsidy Planning Alert​
If you’re not yet 65 and using the ACA marketplace for health coverage, be aware: the enhanced premium subsidies are currently scheduled to expire after 2025. This could affect your health insurance costs starting in 2026. Watch for specific legislation on the topic before year end (we think).

New Car Deduction​
If you purchased a new car this year-2028 and used financing, some of your interest could be tax-deductible. New cars only, final assembly of the vehicle must have occurred in the US.

I’m expecting more clarification of rules & documentation will be needed by year end.

What this means for you:​
Nearly every client should see some income tax relief in 2025 vs 2024. This new legislation DOES NOT change our overall strategy for tax planning.

We will address how this new legislation will impact each of you individually during our year-end tax planning meeting in the Fall. If you’re curious, our tax planning software has already been updated for the new rules & we should be able to illustrate a before & after.

If you’d like to discuss your individual impact sooner, we are always available and happy to meet. Simply reply to this email, or use the scheduling link & we’ll chat.

We will also be coordinating our efforts with Retirement Tax Services, our tax partners. I imagine Steven & team are crafting similar communications :)

While these rules are official, there will certainly be additional clarifications to follow before year end. Stay tuned."

Resources Mentioned

• ​Click here to view the Morning Star article, 6 More Retirement Financial Myths to Avoid
• ​Click here to order my book, Retirement Starts Today: Your non-financial guide to an even better retirement

That's it for our three hundred and eighty-eighth installment of "Every Day is Saturday." As always, I read (and usually reply to) every listener email. Got a question? Hit reply—you just might hear your name on the show.

Enjoy your “Saturday,”
​Benjamin Brandt​
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