2025 Tax Changes under the OBBBA

By Robert Lange, EA

The One Big Beautiful Bill Act was signed into law earlier this month, and with it comes new changes to the tax code. This act carries a slew of new provisions all across the board, but today we’ll delve into the tax related changes that may be relevant to you.

Summary Breakdown

• TCJA 2017 tax brackets and higher standard deduction made permanent.

• 2025 Standard Deduction increasing to $31,500 for joint filers; $23,625 for Heads of Households; $15,750 for single and MFS filers.

• Child tax credit increases to $2,200

• New Senior Deduction

• Up to a $6,000 additional deduction per eligible taxpayer

• Eligibility: 65+ years old

• Full deduction if MAGI is $75,000 or lower for single filers; $150,000 or lower for joint filers, phased out if income above listed amounts

• Tax Deductions on Overtime and Tips

• Can deduct up to $25,000 of tips; up to $12,500 of OT income

• Certain professions excluded from deduction

• Charitable deductions even if you take standard deduction in 2026

• Up to $1,000 deduction for single filers; up to $2,000 for joint filers, starting in Tax Year 2026

• Auto loan interest can now be deducted

• Must be a new car purchased after December 31st, 2024

• Vehicle must have final assembly in the US.

• Other eligibility restrictions may apply

1. Tax Cuts and Jobs Act changes made permanent

At its base, the One Big Beautiful Bill Act addressed the elephant in the room. Most of the tax changes made in 2017 under the TCJA were set to expire after 2025, but now they are made permanent. This includes a higher standard deduction, lower tax rates across most brackets, and a higher child tax credit, just to name a few.

This continues to shift most taxpayers away from itemizing, utilizing the higher standard deduction each year. Since the inception of the TCJA, it is estimated that only 10% of taxpayers itemize their deductions, while the other 90% leveraged the standard deduction. Under the OBBBA, it is likely that those trends will continue. The standard deduction for 2025 will rise to $31,500 for joint filers, $23,625 for Heads of Households, and $15,750 for single and separate filers. Additionally, the Child Tax Credit gained another $200 for a maximum of $2,200 per child 16 or under.

2. Rising limits on State and Local Tax Deductions

One change to an itemized deduction, however, may see a shift in the direction of itemization this next year. Under the TCJA, tax payers could deduct the amount of tax they paid to their state and locality during the year, but only up to a limit of $10,000. Meaning if in 2024 you paid property tax of $4500, local income tax of $2500, and state income tax of $3200, you were capped out on the deduction amount you could’ve claimed, leaving a $400 deduction at the door.

Now, under the OBBBA, that limit rises to $40,000 for those with a yearly income under $500,000 ($250,000 for married filing separately). Above that, the increase is phased out by 30% until it’s back to the old limit of $10,000 at $600k gross income.

This change may see some taxpayers choosing to itemize if their state and local tax had been hampered by the limit in the past, especially if they were high income earners, owned multiple properties, or for those who made particularly large purchases throughout the year.

3. New Additional Senior Deduction

In addition to the rising standard deduction, a new benefit has arisen for qualified seniors. Taxpayers who are 65 years of age or older by the end of the tax year may receive up to a $6,000 additional deduction per eligible taxpayer. That means that joint filers both over age 65 may receive a deduction up to $12,000 for 2025, regardless of whether or not they itemize.

This new deduction is limited by yearly income, beginning to phase out at $75,000 ($150,000 for joint filers), and tapering off entirely at $175,000 ($250,000 for joint filers). This provision also is set to expire at the end of 2028.

The bottom line: Qualifying seniors filing from 2025 -- 2028 may see a significant reduction in their taxable income, regardless of if their only source of income is from Social Security.

4. Tax Deduction on Overtime and Tips

Another of the more anticipated points is the move to make tips and overtime non-taxable. This is coming in the form of a deduction, however it includes a handful of limits.

Up to $25,000 of tipped income can be deducted from income starting in 2025, regardless of whether a taxpayer is itemizing or taking the standard deduction. This deduction is available for all filers under an income limit of $150,000 ($300,000 for joint filers), and is reduced gradually as income rises above those limits until it's eliminated entirely.

For overtime pay, the situation is similar. The first $12,500 of overtime pay ($25,000 for joint filers), can be deducted from income regardless of itemizing status. The income limits are the same as well, at $150,000 and $300,000 respectively, with a tapering decrease as income rises past that.

There are, however, new guidelines disallowing this deduction for certain business fields, including health, law, accounting, consulting, athletics, brokerage services, and farming.

At the end of the day, many tip and overtime earners may find a portion of their respective income tax free, leading to a tax break in these next few years.

5. New Charitable Deduction Rules

One of the most commonly utilized provisions within the existing tax code is deducting yearly charitable giving. However, what many people have overlooked, is that because of the higher standard deduction, many taxpayers no longer itemize and don’t see this deduction come to fruition.

However, under the new act starting in Tax Year 2026, there is now a $1000 ($2000 for filing joint) above-the-line deduction for non-itemizers, meaning that if you take the standard deduction, you’ll receive some benefit after all.

This comes at a slight cost, as now when itemizing, charitable deductions are only tallied after donating half a percent of your gross income. In other words, a household with income of $100,000 donating $10,000 every year to qualified charities will only see $9500 reflected on their itemized deductions. 

Overall, this may be a sizable change for taxpayers who donate frequently each year but never enough to itemize, at the cost of those who do.

6. Auto Loan Interest Deduction for New Car Purchases

This deduction may affect far less taxpayers than the others, but it's worth mentioning. Under prior tax code, interest that accrued on certain loans could be tax deductible, but that only applied to mortgages, student loans, certain investment loans or business loans. Now, loans used to purchase eligible vehicles in 2025 may see the interest deductible through 2028.

The deduction is limited to $10,000 per year, and begins to phase out when income exceeds $100,000 ($200,000 for filing joint). It also only applies to vehicles with final assembly in the United States, and must be purchased brand new after December 31st, 2024. 

The exemptions for this deduction seem longer than the inclusions, so if you’re concerned about qualifying for a new vehicle purchase, we’ll be happy to help determine if you’re eligible for this deduction in coming years.

Conclusion

There are many provisions under the OBBBA we didn’t cover, including the estate and gift tax adjustments, some of the repealed energy credits, and many of the changes to business tax provisions, but for many tax taxpayers, just the changes listed above may see a significant difference in their returns than prior years.

If you’re concerned about filing for 2025, or qualifying for any of these deductions, Munn Tax Services would be happy to help.

Tax@munnwealth.com

419-794-0536

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice and social security planning.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. The materials we forward contain information researched and curated by the writer.   Where reasonably available, we have attempted to verify such data through independent sources.  In some instances, no direct verification is available, but our overall view of the writer, the organization with which they work, or the subject matter have led us to conclude that the information is materially reliable, or at least sufficiently insightful as to provide a starting point for a reader to thoughtfully consider the material. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training. Munn Tax Services is separate from Munn Wealth Management, LLC. 1323GTA

Why Good Planning Beats Market Timing

By: Garrett Zimmermann

If you’ve been watching the headlines lately, one thing is clear: uncertainty continues to dominate the economic landscape. Interest rates remain elevated, inflation is declining but persistent, and market volatility is a regular occurrence. These conditions can make investors feel anxious and lead them to wonder whether now is the right time to invest—or if they should wait it out.

The impulse to time the market is understandable. But in reality, trying to predict short-term market movements often does more harm than good. Especially now, in a period of heightened uncertainty, having a well-constructed financial plan is far more effective than trying to guess what the market will do next.

The Problem with Timing the Market

Market timing requires two correct decisions: when to get out and when to get back in. Most investors focus on the first—and ignore how difficult the second can be. The cost of being wrong can be significant.

Consider this example: If an investor remained fully invested in the S&P 500 from 2003 to 2023, they would have seen their money more than quadruple. But if that investor missed just the 10 best days in the market over those 20 years, their returns would have been cut nearly in half. Missing 30 of the best days could have eliminated their gains entirely.

The challenge is that the best days often come immediately after the worst ones. Investors who exit the market in response to volatility often miss the recovery.

This chart illustrates how missing the best days in the market from 2003 to 2023 can dramatically impact the outcome of a $10,000 investment:

·         Fully Invested: $10,000 grows to about $42,000.

·         Missed 10 Best Days: $10,000 Grows to only $21,000.

·         Missed 30 Best Days: Gains are nearly wiped out, ending at $10,000.

Planning Provides Stability and Structure

Unlike market timing, which is reactive, financial planning is proactive. A solid plan is built around your goals, time horizon, and risk tolerance—not market headlines. This foundation allows you to make decisions based on strategy, not emotion.

A well-designed financial plan helps you:

• Stay invested in a diversified portfolio that aligns with your objectives

• Prepare for volatility through proper cash reserves and asset allocation

• Reduce taxes through strategies like tax-loss harvesting or Roth conversions

• Make confident decisions during periods of uncertainty

Good planning does not eliminate risk, but it gives you a framework to manage it effectively.

Flexibility is More Important Than Predictions

Markets will always fluctuate. Economic conditions will shift. Rather than trying to predict every turn, it’s more effective to have a plan that is built to adapt.

A strong financial plan accounts for:

• Changing interest rate environments and their impact on debt and savings

• Temporary market downturns, with strategies in place for recovery

• Life transitions that affect your goals, income, or retirement timeline

The ability to adjust your course while staying focused on your long-term destination is one of the most important benefits of financial planning.

The Bottom Line

Trying to outsmart the market by guessing its next move is rarely successful and often harmful. The most successful investors are not those with perfect timing—they are the ones with patience, discipline, and a plan that aligns with their long-term goals.

If the current economic environment has you second-guessing your investment decisions, now is a good time to revisit your financial plan. Let’s make sure it still reflects your priorities and can weather whatever the market brings next.

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice and social security planning.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. The materials we forward contain information researched and curated by the writer.   Where reasonably available, we have attempted to verify such data through independent sources.  In some instances, no direct verification is available, but our overall view of the writer, the organization with which they work, or the subject matter have led us to conclude that the information is materially reliable, or at least sufficiently insightful as to provide a starting point for a reader to thoughtfully consider the material. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training.  1323GST

Best Low-Cost Options for Cell Phone Plans in 2025

By Garrett Zimmermann

Choosing the right mobile phone plan in 2025 can be overwhelming. With so many providers and plan options, it's important to understand what you're getting in terms of price, coverage, data, and features. Whether you need unlimited data for streaming and working on the go, or a basic limited plan to keep costs down, this guide breaks down the top choices available now.

Going directly with a major carrier can make financial sense when you're on a family plan with multiple lines, as bulk discounts often lower the per-line cost significantly. It can also be cost-effective when bundled with home internet or TV services, where carriers offer promotional pricing or loyalty discounts that smaller providers can't match.

Below, we explore both limited data and unlimited data plans from major and budget-friendly carriers, highlighting the best value options in each category. Here is a link to a video that explains how to find your monthly data usage for both iPhone and Android users to see what type of plan may fit your lifestyle best.

How to Check Data Usage on Your Phone Video Link

Limited Data Plans: Best for Light to Moderate Users

Limited data plans are perfect for those who don’t use their phones for heavy streaming or constant tethering. These plans keep costs low while still providing enough data for everyday activities like browsing, maps, and light video use.

Summary: 

Verizon – $35/month for 15 GB

• Network: Verizon

• Hotspot: Yes

• Overview: For those who prefer Verizon’s network reliability but don’t need unlimited data, this plan offers decent value.

• Considerations: Higher price compared to similar plans on other networks, but excellent coverage and speed.

Tello – $19/month for 10 GB

• Network: T-Mobile

• Hotspot: Yes

• Overview: Tello offers one of the lowest-priced plans on the market, making it ideal for users who need a basic, affordable service.

• Considerations: Low-cost plans come with fewer features, but customer satisfaction is generally high.

Mint Mobile – $20/month for 15 GB

• Network: T-Mobile

• Hotspot: Yes

• Overview: With 15 GB for only $20, Mint Mobile delivers more data than most plans at this price. It includes international calling to Canada and Mexico.

• Considerations: Requires annual prepayment to access the best rates.

Red Pocket Mobile – $20/month for 10 GB

• Network: AT&T, Verizon, or T-Mobile

• Hotspot: Yes

• Overview: Red Pocket allows you to choose your network, making it a good fit for areas where certain carriers perform better.

• Considerations: Online account setup and support, but very flexible and competitively priced.

US Mobile – $17.50/month for 10 GB

• Network: AT&T, Verizon, or T-Mobile

• Hotspot: Yes

• Overview: US Mobile stands out for its flexibility—you can choose your network and customize your plan. It's a great choice for users who want control and value.

• Considerations: Mostly managed online, so it’s best for tech-savvy users comfortable configuring their plans.

Connect – $25/month for 8 GB

• Network: T-Mobile

• Hotspot: Yes

• Overview: A simple, no-frills option for users who only need minimal data each month.

• Considerations: More expensive per GB compared to others, but still affordable and reliable.

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Unlimited Plans: Ideal for High Data Users and Heavy Streaming

Unlimited data plans are best for users who stream video, work remotely, or simply want to avoid worrying about data usage. These plans often include extra perks like hotspot access and streaming services.

Summary:

Cricket Wireless Unlimited + 15GB Hotspot – $60/month

• High-Speed Data: Unlimited

• Hotspot: 15 GB

• Network: AT&T

• Extras: Includes HBO Max (with ads) and 150GB of cloud storage

• Overview: A feature-rich plan for those who want solid AT&T coverage and media perks.

• Considerations: Slightly higher price, but justified by the included streaming and storage options.

Straight Talk Gold – $55/month

• High-Speed Data: 20 GB, then reduced speeds

• Hotspot: Not included

• Network: Verizon

• Overview: Provides Verizon network access at a moderate price. A good option for users who want reliable coverage and decent data allowance.

• Considerations: Fewer features than some other unlimited plans in this price range.

Metro by T-Mobile Unlimited – $25/month

• High-Speed Data: Unlimited

• Hotspot: Not included

• Network: T-Mobile

• Overview: One of the most affordable true unlimited plans available, especially for new customers bringing their own device.

• Considerations: No hotspot, and limited premium features, but unbeatable on price for unlimited data.

Boost Mobile Unlimited+ – $60/month

• High-Speed Data: 30 GB before deprioritization

• Hotspot: Included

• Network: Varies

• Overview: Offers good high-speed data limits and predictable pricing with taxes and fees included.

• Considerations: Doesn't offer major perks, but provides reliable service and solid data for the price.

Mint Mobile Unlimited – $15/month (First Year)

• High-Speed Data: 40 GB, then throttled

• Hotspot: Included

• Network: T-Mobile

• Overview: With one of the lowest rates in the industry, Mint offers excellent value for those willing to pay annually. Includes hotspot and international calling.

• Considerations: Rate increases after the first year unless you renew for another full term.

Visible Plus Pro – $45/month

• High-Speed Data: Unlimited with no deprioritization

• Hotspot: Unlimited at 15 Mbps

• Network: Verizon

• Overview: Offers premium features like 5G Ultra Wideband access, 4K video streaming, and smartwatch connectivity, all on Verizon’s network.

• Considerations: Strong all-around value for users who want high performance without restrictions.

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client. This material is not intended as any form of substitute for individualized investment advice and social security planning. The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own. Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. The materials we forward contain information researched and curated by the writer. Where reasonably available, we have attempted to verify such data through independent sources. In some instances, no direct verification is available, but our overall view of the writer, the organization with which they work, or the subject matter have led us to conclude that the information is materially reliable, or at least sufficiently insightful as to provide a starting point for a reader to thoughtfully consider the material. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training. 1323GSQ

Protecting Yourself from Scams

By David Munn, CFP

On a regular basis we hear about scams, fraud, and identity theft attempts that our clients and others have experienced. Recently, many travelers in Ohio received scam texts claiming the recipient owes unpaid tolls to the Turnpike. These attempts are sophisticated in that they seem to target those who actually have used the Turnpike recently, making them all the more believable. 

Scam attempts often involve executing transactions in something other than US currency to make it less traceable, such as gift cards, gold bars, or digital currency, and caution the victim not to notify anyone else, both of which should always be a humongous red flag. 

Many scams are focused on the elderly. Here are some of the most common scams that target older adults.

1. Medicare and Health Insurance Scams

Scammers often pose as Medicare representatives or health insurance agents to steal personal information. They may call or send fraudulent emails claiming the victim needs a new Medicare card or must pay for medical services to maintain coverage. Once they obtain sensitive information like Social Security numbers or insurance details, they can commit identity theft or submit fraudulent claims in the victim’s name.

How to Protect Yourself: Never provide personal or financial information over the phone. If unsure about a Medicare-related issue, contact Medicare directly at 1-800-MEDICARE.

2. Grandparent Scam

In this scam, fraudsters impersonate a grandchild in distress, calling or emailing an elderly person and pretending to need urgent financial help. They may claim to have been arrested or stranded in a foreign country, begging their “grandparent” not to tell their parents. Scammers rely on the grandparent’s concern and willingness to act quickly without verifying the story.

How to Protect Yourself: If you receive such a call, ask the person for details only your grandchild would know. Contact other family members to verify their whereabouts before sending any money.

3. Tech Support Scams

Tech support scammers pose as representatives from major technology companies, claiming that the victim’s computer has a virus or other issue. They request remote access to the computer and often charge hefty fees for unnecessary or non-existent services. In some cases, they install malware to steal personal data.

How to Protect Yourself: Legitimate tech companies do not make unsolicited calls. If you receive such a call, hang up. If you need help with your computer, seek assistance from a trusted local service provider.

4. Lottery and Sweepstakes Scams

Scammers contact victims claiming they have won a lottery or sweepstakes but must first pay taxes, processing fees, or other charges to claim their winnings. Victims who send money may be strung along with more demands, losing thousands before realizing the scam.

How to Protect Yourself: Remember that legitimate lotteries do not require winners to pay fees upfront. If you did not enter a contest, you cannot win. Do not share personal or financial information with unknown callers.

5. Romance Scams

Scammers create fake online profiles on dating sites or social media, forming relationships with elderly individuals to manipulate them emotionally and financially. Once trust is established, they begin requesting money for emergencies, travel expenses, or investments.

How to Protect Yourself: Be cautious of online relationships that progress quickly. Never send money to someone you haven’t met in person. If unsure, consult a trusted friend or family member before making financial decisions.

Stay Vigilant!

Scammers often prey on emotions—fear, love, or excitement—to manipulate their victims. The best defense against scams is awareness and caution. Always verify requests for money, never share sensitive information with unverified sources, and discuss suspicious messages with trusted friends or family. By staying informed, individuals can protect themselves from financial exploitation and fraud.

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice and social security planning.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training.  1323GSP

Why Bonds Are Your Safety Net in a Volatile Stock Market

By David Munn, CFP

When the stock market takes a tumble, it’s easy to feel nervous—especially if you rely on your investments for income. The temptation to sell when prices fall is natural, but it’s also one of the most damaging decisions investors can make. That’s why having bond exposure in your investment portfolio isn’t just a good idea—it’s essential. Think of bonds as your financial seatbelt, helping you stay buckled in during market turbulence without derailing your long-term plan.

Why You Don’t Want to Sell Stocks When They’re Down

The stock market isn’t a straight line up—it’s more like a rollercoaster. Market corrections, defined as a drop of 10% or more from recent highs, happen more frequently than many people realize. In fact, historical data shows the stock market experiences a correction roughly once every 1 to 2 years. These drops are normal, even expected, but they can feel unsettling—especially if you’re retired or nearing retirement and need to start taking money out of your investments.

Selling stocks during a downturn locks in losses. You miss out on the potential recovery, which can happen quickly and without much warning. For example, after the sharp COVID-induced crash in early 2020, the S&P 500 rebounded over 60% in just five months. If you had sold during the panic, you would have missed a significant part of that recovery.

Bonds: Your Income Buffer

This is where bonds come in. Bonds are typically more stable than stocks and tend to hold their value—or even increase—when stocks are falling. That stability makes them a great source of funds when you need to make withdrawals. Instead of selling stocks at a loss, you can draw from your bond holdings or cash reserves while waiting for the stock market to recover.

At our firm, we advise clients to maintain at least 5 to 7 years’ worth of planned withdrawals in bonds or cash. Why that specific number? Because while market corrections are common, true bear markets—when stocks drop 20% or more—tend to recover within a few years. Historically, most bear markets in the U.S. have recovered their losses within 3 to 5 years. By having enough safe, liquid assets to cover 5 to 7 years of income needs, you’re giving your stock investments time to rebound without having to touch them when prices are low.

What About Now?

With the current volatility in the market it’s understandable that investors are feeling uneasy. We've seen several sharp pullbacks over the last few years, and it’s likely we’ll continue to see ups and downs.

But this is exactly why a well-balanced portfolio with both stocks and bonds is so important. Stocks offer long-term growth. Bonds offer short-term stability. Together, they create a more resilient investment strategy—one that allows you to weather the storm without reacting emotionally or making rash decisions.

Final Thoughts

Market corrections are not a matter of “if,” but “when.” They’re a normal part of investing. The key to long-term success isn’t avoiding the ups and downs—it’s preparing for them.

By maintaining 5 to 7 years’ worth of planned withdrawals in bonds or cash, you’re creating a buffer that lets your growth investments recover. You don’t have to sell stocks when they’re down. You don’t have to panic. You can stay on track with your financial goals, no matter what the headlines say.

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice and social security planning.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Past performance may not be indicative of future results. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission (SEC). Registration as an investment adviser does not imply any certain degree of skill or training.  1323GSM

The Impact of the Social Security Fairness Act

By David Munn, CFP

The Social Security Fairness Act, signed into law on January 5, 2025, represents a significant shift in the U.S. Social Security system by repealing two provisions—the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO)—that previously reduced or eliminated benefits for certain public sector employees. This legislative change aims to provide equitable Social Security benefits to individuals who have dedicated their careers to public service.

Understanding WEP and GPO

The WEP and GPO were enacted to adjust Social Security benefits for individuals who received pensions from employment not covered by Social Security taxes. The WEP affected workers with non-covered pensions by reducing their Social Security retirement or disability benefits, while the GPO reduced spousal or survivor benefits for individuals receiving such pensions. These provisions primarily impacted public sector employees, including teachers, firefighters, police officers, and federal workers, often resulting in significantly reduced or eliminated Social Security benefits.

The repeal of WEP and GPO through the Social Security Fairness Act restores full Social Security benefits to approximately 3.2 million affected individuals. 

Eligibility for Benefits

With the repeal of WEP and GPO, individuals who were previously subject to these provisions may now be eligible for increased Social Security benefits. Eligible groups include:

• Retirees with Non-Covered Pensions: Individuals who receive pensions from employment not covered by Social Security taxes and who were previously affected by WEP may now receive full retirement or disability benefits.

• Spouses and Survivors: Spouses, ex-spouses, and surviving spouses who were subject to GPO reductions may now be eligible for full spousal or survivor benefits. This change is particularly significant for those who may have been denied benefits or received reduced amounts due to the GPO.
  
  

Steps to Receive Benefits

To access the benefits provided by the Social Security Fairness Act, individuals should take the following steps:

1. Verify Eligibility: Determine if you were previously affected by WEP or GPO. If you received a non-covered pension and experienced reduced Social Security benefits, you are likely eligible for increased benefits under the new law.
   
   

2. Apply for Benefits: If you have not previously applied for Social Security benefits due to WEP or GPO, you should apply as soon as possible. Applications can be submitted online through the Social Security Administration (SSA) website at ssa.gov/apply. For personalized assistance, you can call the SSA at 1-800-772-1213, Monday through Friday, from 9:00 a.m. to 6:00 p.m. ET. When prompted, say “Fairness Act” to be connected to a representative trained in WEP-GPO matters.
   
   

3. Update Personal Information: Ensure that your mailing address, direct deposit information, and other personal details are current with the SSA. Accurate information will facilitate timely processing of your benefits and any retroactive payments.
   
   

4. Monitor Communications from SSA: The SSA is in the process of issuing retroactive payments and adjusting monthly benefits. Stay informed by regularly checking your mail and any official communications from the SSA regarding your benefits.
   
   

Implementation Timeline

The SSA has committed to an expedited implementation of the Social Security Fairness Act:

• Retroactive Payments: The SSA began issuing retroactive payments in February 2025 to individuals who were previously affected by WEP and GPO. These payments compensate for past reductions in benefits, retroactive to January 1, 2024.
  
  

• Increased Monthly Benefits: Adjusted monthly benefit payments, reflecting the repeal of WEP and GPO, are scheduled to commence in April 2025. Beneficiaries can expect to see these increases in their regular Social Security payments.
  
  

Our advisors are available to assist with understanding how these changes impact you and claiming eligible benefits. 

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice and social security planning.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission. Registration as an investment adviser does not imply any certain degree of skill or training.  1323GSG

Master Your Money: Why Tracking Every Dollar Matters

By Garrett Zimmermann

Mastering your finances isn’t about restriction—it’s about empowerment, giving you the freedom to spend intentionally and build a secure financial future. One of the most fundamental steps toward financial stability and success is tracking your spending. Whether you’re looking to save money, reduce debt, or build wealth, understanding where your money goes is crucial. Here’s why tracking your spending should be a priority:

1. Awareness of Financial Habits Many people underestimate how much they spend on non-essential items like dining out, entertainment, or impulse purchases. Tracking expenses provides a clear picture of spending patterns, helping to identify areas where adjustments can be made. This awareness is the first step toward making informed financial decisions.

2. Better Budgeting and Financial Planning Creating a budget is much easier when you have accurate data about your expenses. By tracking spending, you can allocate funds effectively, ensuring that essential costs like rent, utilities, and groceries are covered while also setting aside money for savings and investments.

3. Helps to Reduce Debt Debt can quickly spiral out of control if spending is unchecked. By monitoring expenses, individuals can pinpoint unnecessary costs and redirect funds toward paying off debts faster. Reducing debt not only improves financial health but also reduces stress and increases financial freedom.

4. Encourages Savings and Investment Without tracking spending, it’s easy to overlook opportunities to save or invest. When you keep an eye on your expenses, you can identify excess spending that could be redirected into an emergency fund, retirement account, or investment portfolio, helping to secure a better financial future.

5. Prevents Overspending and Financial Stress Living paycheck to paycheck can be stressful, and often, it’s due to a lack of financial tracking. Keeping records of expenses helps in preventing overspending and ensures that financial goals are met without unnecessary financial strain.

6. Helps Achieve Long-Term Financial Goals Whether it’s buying a home, starting a business, or traveling the world, long-term financial goals require careful planning. Tracking spending ensures that money is allocated wisely, bringing financial goals within reach faster.

7. Improves Financial Discipline and Control Developing strong financial habits is key to long-term success. When you consistently track expenses, you become more conscious of your financial choices, leading to better spending decisions and greater control over your financial future.

How to Track Your Spending

There are several ways to track spending, depending on personal preferences and technological comfort. Some effective methods include:

• Using budgeting apps like Rocket Money, YNAB, or PocketGuard

• Maintaining a spreadsheet with categorized expenses

• Keeping a spending journal or notebook

• Reviewing bank statements and categorizing expenses manually

Tracking/Budgeting Platforms

Many are overwhelmed with the idea of how they are going to track their finances. Below is a list of tracking/budgeting platforms that can transform your financial consciousness with a click of a button. Features like account syncing and automatic expense tracking take the stress away from learning your financial patterns. There are also many reports and insights you receive with these services that can help you make the best financial decisions for your situation and goals. Below is a list of some of the best financial platforms and what they have to offer:

Conclusion

Tracking your spending is a powerful financial tool that fosters awareness, discipline, and long-term financial success. By understanding where your money goes, you can make better financial decisions, reduce unnecessary expenses, and work toward a more secure and prosperous future. Start tracking your spending today and take control of your financial well-being!

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This material is intended to be educational in nature, and not as a recommendation of any particular strategy, approach, product or concept for any particular advisor or client.  This material is not intended as any form of substitute for individualized investment advice.  The discussion is general in nature, and therefore not intended to recommend or endorse any asset class, security, or technical aspect of any security for the purpose of allowing a reader to use the approach on their own.  Before participating in any investment program or making any investment, clients as well as all other readers are encouraged to consult with their own professional advisers, including investment advisers and tax advisors. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will either be suitable or profitable for a client's investment portfolio. Munn Wealth Management, LLC, is registered as an investment adviser (RIA) with the United States Securities and Exchange Commission. Registration as an investment adviser does not imply any certain degree of skill or training.  1323GSD