Ep. 208 – Paul Fenner – Understanding the One Big Beautiful Bill Impacts for Parents During Their Building Years
Parents, are you juggling high school schedules, college plans, and the ever-growing list of financial and personal priorities?
This doesn’t leave much time to understand how the new “Big Beautiful Bill” will affect you. However, this is the life stage we will tackle today, drawing on my firsthand experiences as a parent of triplets (plus one!).
I highlight the positives of the new legislation, like the increased standard deduction and stable marginal tax rates. But, I also unpack the complexities and challenges hidden in the fine print, such as SALT deduction limits, tight retirement catch-up contributions, business owner perks, and what’s really happening with those much-hyped vehicle and energy credits.
If you’re looking for smart strategies for balancing college savings and retirement, managing capital gains, and understanding why tax diversification should be on your radar, we cover these topics as well.
If you’re feeling pulled in every direction and trying to make sense of how the latest tax changes intersect with your family’s goals, this episode is packed with actionable advice and thoughtful perspective, whether you’re a parent, business owner, or just trying to keep up with life’s financial demands.
Connect with Paul
Contact Paul here or schedule a time to meet with Paul here.
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And feel free to email Paul at pfenner@tammacapital.com with any feedback, questions, or ideas for future guests and topics.
ADDITIONAL RESOURCES YOU MAY LIKE
1 Big Idea to Think About
Navigating the "building years" of life—when raising older kids and managing competing financial priorities—requires a careful balance between emotional well-being and proactive, strategic planning, especially when adapting to complex new tax laws like the "Big Beautiful Bill." Taking time to clarify your personal objectives and regularly reassessing your financial approach can help you make the most of this fast-moving stage.
1 Way You Can Apply This
To better manage the competing demands of college savings, retirement, and everyday expenses during the busy "building years," take a step back and clarify your priorities—set aside a few moments each month to reflect on what's most important for your family's future. By intentionally pausing to align your financial choices with your core goals, you can reduce overwhelm, make more confident decisions, and build a financial plan that genuinely supports both your current lifestyle and long-term aspirations.
1 Question to Ask
Am I clear on what my current life stage means for my financial priorities, and have I taken time to reflect on what’s truly most important to me and my family as I plan for the future?
Key Moments From the Show
00:00 Living through the "building years"—older kids entering high school or college increases complexity and busyness for parents.
00:02 Parenting today feels like a nonstop, high-contact sport; every family manages in their own way.
00:03 The "Big Beautiful Bill" standard deduction rises (to $31,500), providing clarity for planning.
00:04 Marginal tax rates staying the same is a big plus for financial and life planning in this stage.
00:05 After age 50, retirement catch-up contributions ($7,500 for 401k, $1,000 for IRA) become a key planning tool.
00:06 SALT deduction increases ($10K to $20K for joint, $5K to $20K for singles), but income phase-outs add complexity.
00:07 High-income families still hit itemization limits despite higher standard deductions.
00:08 Vehicle interest deductions and other hyped credits rarely apply to higher dual-income families due to income phase-outs.
00:10 New "Trump accounts" for kids under 18 act like quasi-IRAs, but mainly benefit families with new or younger children.
00:13 Roth IRAs typically remain the better option for kids with earned income—tax-free growth beats other tools.
00:14 No changes to capital gains rates; careful management of asset sales remains important.
00:15 Balancing college savings and retirement creates real financial squeeze for families in this stage.
00:16 Many deductions phase out with income; most families won’t benefit as much as headlines suggest.
00:17 Key energy/home credits are being rolled back, making remodeling or buying EVs more expensive.
00:18 Action steps: Maximize retirement accounts, leverage Roth strategies, and manage tax bracket exposure.
00:21 Key challenge: Finding harmony between family life and financial decisions amid competing priorities.
00:22 Small business owners: Specific bill benefits may apply—reach out for tailored advice.
00:23 Diversifying tax buckets (Roth, traditional, brokerage) is crucial for maximizing after-tax returns in retirement.
00:24 Universal non-itemizer charitable deduction of $2,000 (married filing jointly) returns, but most still take standard deduction.
00:25 Final encouragement: Reflect on your priorities and set a roadmap to reach your goals amid financial changes.