October is Financial Planning Month

By Tim Greife, Financial Advisor

Why Now is the Perfect Time to Revisit Your Strategy

Markets have been on a strong run, hitting all-time highs in August and September. Corporate earnings remain solid, supporting investor confidence. The Federal Reserve’s .25% rate cut in September signaled the possibility of additional cuts later this year. Combined with Q2 GDP growth of 3.3% and a healthy supply of money circulation, the economy is still showing strength.

On the other hand, there are factors to watch. Unemployment has crept higher in recent months, and job growth is slowing. Inflation is much lower than two years ago, but concerns remain, particularly around tariffs and their potential to push prices higher.

Against this backdrop, October—designated as Financial Planning Month—serves as a timely reminder to step back, evaluate your financial health, and prepare for the opportunities and challenges ahead. Whether your focus is on personal finances, investments, or retirement planning, remember to align your strategy with your goals—for year-end, but also for 2026 with the upcoming changes brought by the One Big Beautiful Bill (OBBB).

Year-End Planning Considerations

Charitable Giving: If you itemize deductions, charitable contributions can provide both personal satisfaction and tax benefits.
Tax-Loss Harvesting: Look for opportunities to offset gains in taxable accounts.
Retirement Contributions: Maximize 401(k), IRA, and HSA contributions where possible. Don’t forget catch-up provisions if you’re eligible.
Investment Review: Ensure your portfolio remains aligned with your goals and risk tolerance. Are you still on track for retirement? Now’s the time to check.
RMDs: Retirees should confirm that Required Minimum Distributions are met.
Savings & Spending: Budget for holiday and winter travel or expenses.
Company Benefits: Review open enrollment options, update elections, and confirm coverage for health, life, and disability insurance.
Estate Planning: Review beneficiaries, wills, trusts, healthcare directives, and powers of attorney.

Key OBBB Changes Ahead

The OBBB introduces significant tax and benefit changes for 2025–2028:

$6,000 Senior Deduction for those age 65+ (starting December 31, 2025).
Tip Income Deduction: Up to $25,000 for incomes below $150,000 (single) / $300,000 (joint).
Overtime Wages Deduction: Up to $12,500 for the same income thresholds.
Auto Loan Interest Deduction: Up to $10,000 for incomes below $100,000 (single) / $200,000 (joint).
“Trump Accounts” for Children: $1,000 seed funding per child born 2025–2028 (up to $5,000 cap).

For 2026 and beyond, even larger shifts take place:

Child Tax Credit rises to $2,200 and adjusts annually for inflation.
Tax Brackets widen annually for inflation, with a 37% top cap.
State & local Taxes Deduction increases to $40,000.
Student Loan Programs (SAVE, ICR, PAYE, Graduate Plus) end, while Parent PLUS loans face new caps.
Government Assistance Programs such as Medicaid, Medicare, and marketplace health insurance see revised eligibility and funding.

Bringing It All Together

These changes can feel overwhelming, but that’s where proactive planning makes the difference.
By reviewing your finances now, you can:
Reduce stress heading into the new year.
Optimize your tax and investment strategies.
Position yourself to take advantage of new opportunities and minimize risks.

Back to 2025

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