Beck BodeDefining True Wealth & Growing Through Challenges
"What is genuine wealth?" For some it's family, for others it's health, and for some it's the things or people they surround themselves with. While we all have different reasons for building, protecting, and growing our wealth, there sits an indelible quality that unites us all. Wealth is about sustainable long-term growth versus just a means to an end.
As we reach the end of August, we look at the summer weekends left before it seems the world goes back to full swing. Soon kids will be back to school, dropped off to college for the first time and everywhere in between.
In this edition we share three perspectives of some of our core values in practice. From Ben Beck's thoughtful exploration into "what is the true definition of wealth," to Angel's story of finding growth when the world seems to be falling apart, and highlighting some planning opportunities of the One Big Beautiful Bill (OBBBA) legislation.
We find reminders that wealth is more about who we surround ourselves with and how we see the world instead of just a number.
In this issue
1. Feature Article: What is the true definition of wealth?
2. Spotlight: Growing through unexpected challenges at LPL Focus with Angel Costanza
3. Client Q&A: Your One Big Beautiful Bill Questions, Answered
4. NoBondsCast: How to spend in retirement without running out of money
Feature Article: What is the true definition of Wealth?
Managing Partner & Chief Investment Officer
In my line of work, I see plenty of people one would call affluent. If you're just looking at things on the surface—someone with $15 million, a certain car, a certain house—you might assume they're wealthy. You see the make and model of the car, the size and location of the home, the lifestyle. You may think, Oh, look, they're wealthy. But I've learned that a lot of what people think is wealth is just a well-polished illusion.
The deeper question is: how do we define what wealth is?
It's not necessarily money. It could be health. I'm wealthy because I'm in good shape. Or I'm wealthy because I have a loving family. Those are true statements. In fact, there is no truer definition of wealth to me than family and health—and no sports car, vacation home, or balance sheet can compete with that. But today I'll focus on wealth in a financial context.
Speaking from this perspective, I would say that wealth is a measurement not of your capital, but of the growth of your capital. Either your capital is growing at a pace greater than that which you are withdrawing from it... or it's not. And if it's not, I don't care how shiny it looks from the outside—it's not wealth.
Read Ben's full exploration of true wealth →
Spotlight: Growing Through Unexpected Challenges - Angel at LPL Focus
This month, Angel Costanza was invited to speak at LPL Focus, LPL Financial's flagship conference that delivers dynamic days of learning, networking and thriving for financial professionals and institutions every year.
Among industry leaders, Angel shared powerful insights about navigating life's unexpected challenges that resonate far beyond the financial industry.
Drawing from personal experience with significant life events over the past five years, Angel shared wisdom that applies to all of us facing uncertainty. Her presentation explored how life's most difficult moments often reveal our true resilience and can become catalysts for growth when approached with the right mindset and support systems.
Though Angel spoke to an audience of financial professionals, her message transcends career boundaries.
Her candid reflections on navigating both personal and professional challenges resonated deeply with attendees, offering lessons valuable for anyone facing life's inevitable uncertainties.
Angel distilled her experiences into four principles that apply to both financial planning and life's broader journey:
- Build resilience during good times: The foundation for weathering difficult periods is established during moments of stability – whether in your investment strategy or personal preparation.
- Review your plans regularly: Just as we recommend regular financial reviews, personal contingency plans need consistent updates to remain effective.
- Distinguish between opportunity and distraction: In volatile markets and challenging life situations alike, staying focused on long-term goals rather than "shiny" distractions remains crucial.
- Embrace support networks: The importance of community and professional guidance grows even more significant during periods of uncertainty.
Angel's presentation reminds us that the principles of sound financial planning—preparation, consistency, focus, and trusted guidance—apply equally well to life's most challenging moments.
Client Q&A: Your One Big Beautiful Bill Questions Answered
The recently passed One Big Beautiful Bill Act (OBBBA) brings significant tax changes that will impact your financial planning starting this year. Here are answers to the most common questions we're receiving about these important changes:
Q: How significant is the SALT deduction cap increase?
A: The SALT (State and Local Tax) deduction cap has increased from $10,000 to $40,000, which is particularly beneficial for Massachusetts residents facing high real estate taxes. However, this benefit phases out based on your Adjusted Gross Income (AGI) and is completely eliminated for those with AGI of $600,000 or more, who will remain limited to the $10,000 cap.
Q: How does the OBBBA affect long-term tax planning?
A: One of the most significant aspects of the OBBBA is that it makes the current tax rates and brackets permanent, rather than allowing them to sunset this year as originally scheduled. This provides valuable certainty for long-term planning, as the rates will continue to be indexed for inflation annually. The permanence of these lower rates creates a more stable framework for retirement and investment planning over these next few years.
Q: What is the "Senior Bonus Deduction" and how does it work?
A: The Senior Bonus Deduction provides an additional deduction of up to $6,000 for single seniors and $12,000 for married filing jointly seniors. This is available from 2025-2028 (for four years). Importantly, you can claim this bonus deduction whether you take the standard deduction or itemize your deductions. For married seniors filing jointly, this could mean a standard deduction of up to $46,750.
Q: Were there any changes to how Social Security benefits are taxed?
A: Despite earlier discussions about making Social Security income non-taxable, the OBBBA made no changes to Social Security taxation. Up to 85% of benefits can still be taxable depending on your other income. However, the increased standard deduction and Senior Bonus Deduction may effectively reduce the tax impact for some retirees.
Q: What are "Trump Accounts" and how could they impact my children or grandchildren?
A: Trump Accounts provide a $1,000 government deposit for newborns between 2025-2028, with families able to contribute up to $5,000 annually starting July 2026. These accounts grow tax-deferred and can be used for qualified expenses like education, first-time home purchases, or starting a business, with distributions taxed at favorable long-term capital gains rates.
While the free $1,000 is welcome, these accounts work best alongside established options like 529 plans rather than replacing them. For families expecting children during this period, this represents a modest but useful addition to your financial planning toolkit.
Have additional questions about how the OBBBA might affect your specific situation? We recommend scheduling a planning session to review your tax strategy in light of these changes.
For a deeper dive into these tax changes, watch our recent analysis video featuring Ben Beck, CFP® and Meg Curry, CFP®, who break down the practical implications of the OBBBA for your financial planning.
Watch the full OBBBA analysis video →
NoBondsCast: How to Spend in retirement without running out of money
Are you afraid to spend your retirement savings, even though you’ve saved and planned for years?
In this episode of the NoBondsCast, Ben Beck, CFP® and Jim Bode explore the most overlooked challenge in retirement: How do you confidently spend the money you worked so hard to save?
We cover:
• Why so many retirees struggle to enjoy their money
• How to balance lifestyle today with long-term financial security
• What planning without Social Security could look like
• The GPS Framework we use to model real-life retirement decisions
A Final Thought
Thank you for being part of our Beck Bode community. As we approach the final weeks of summer, we're grateful for the opportunity to support your financial journey through both challenges and triumphs. If Ben's reflections on wealth, our OBBBA analysis, or Angel's insights resonated with you, we'd love to hear your thoughts during your next review meeting.
Wishing you continued growth and true wealth in all its forms,
Thanks for reading, and for your continued trust in us.
From all of us at Beck Bode