Financially Speaking
The summer seemed to fly by but was filled with fun times with family and friends. We would love to see pictures of your vacations or family get togethers!
Some highlights of our summer included:
Erik earned his Certified Private Wealth Advisor (CPWA®) designation. CPWA® is a professional certification designed specifically for seasoned advisors and wealth managers who work with high-net-worth (HNW) and ultra-high-net-worth (UHNW) clients. The curriculum focuses on identifying and analyzing challenges facing HNW clients and developing specific strategies to minimize taxes, monetize and protect assets, maximize growth, and transfer wealth. The coursework involved a rigorous curriculum covering four major topics:
Human Dynamics: Ethics, Behavioral Finance, Family Dynamics
Wealth Management Strategies: Tax Strategies & Planning, Portfolio Management, Risk Management & Asset Protection
Specialty Client Services: Retirement, Closely Held Business Owners, Executives
Legacy Planning: Charitable Giving, Estate Planning & Wealth Transfer
We had lovely weather for our annual Client Appreciation Event with the Frederick Keys at Harry Grove Stadium and were thrilled that so many of you joined us! Donovan threw out the honorary first pitch—though in true toddler fashion he initially took the ball and headed to 3rd base. A little help from Dad (Sean) and the pitch was on its way to the catcher.
In this quarter’s newsletter you will find an article titled “The OBBBA’s New Social Security Deduction”, an article titled “Stay Social, Stay Happy”, an article by me titled “Make Retirement about Experiences” and our Quarterly Economic Update. Be sure to scroll to the end to see pictures from our Client Appreciation night , our fall seminar on Social Security and our upcoming event at Frederick @ Night to start off the holiday season.
The obbba's new social security deduction: What it really means for retirees
Presented by Moore Wealth
You may have seen headlines celebrating a major shift in retirement savings: Social Security benefits are no longer taxed, thanks to the One Big Beautiful Bill Act (OBBBA). While this sounds like a sweeping win for retirees, the fine print tells a more complicated story. The OBBBA does introduce significant changes, but not all of them are as straightforward—or beneficial—as they might seem.
Understanding what’s changing, and what remains the same, can help retirees avoid costly assumptions and make more informed financial decisions.
How Does the OBBBA Affect Social Security Benefits?
The bill doesn’t repeal the tax on Social Security benefits outright. Instead, it introduces a new deduction that reduces the taxable income of many seniors, lowering or eliminating what they owe on their benefits. As a result, about 88% of retirees are expected to pay no tax on their Social Security benefits, not because the tax is eliminated, but due to a combination of deductions. Currently, 64% of seniors aged 65 and older already qualify for exemptions or deductions that prevent their benefits from being taxed. The bill expands the existing exemptions, increasing the number of retirees who won’t face taxes on their benefits from 64% to 88%.
It’s important to note that this deduction, introduced through the OBBBA, is a federal initiative. While Social Security benefits are subject to federal tax rules, some states also impose their own taxes on Social Security income—often with very different guidelines.
How Social Security Benefits Are Taxed
To understand who still pays taxes on Social Security, it helps to look at how the system currently works. The table below shows how much of your Social Security benefits may be taxable, depending on your filing status and combined income. Here’s a quick look at the current thresholds:
| Filing Status | Combined Income | % of SS Taxed |
|---|---|---|
| Single | <$25,000 | 0% |
| Single | $25,000-$34,000 | Up to 50% |
| Single | >$34,000 | Up to 85% |
| Married Joint | <$32,000 | 0% |
| Married Joint | $32,000-$44,000 | Up to 50% |
| Married Joint | >$44,000 | Up to 85% |
Combined income is calculated as your adjusted gross income (AGI) plus nontaxable interest and half of your Social Security benefits. AGI is your total income minus certain deductions, and the IRS uses this combined figure to determine how much of your benefits may be taxed.
Now, Here’s Where the OBBBA Makes a Difference
Starting in 2025, retirees ages 65 and older will be eligible for a new deduction in addition to the standard and age-based deductions. This deduction is income-based and gradually phases out as income increases. For example, singles earning up to $75,000 can deduct $6,000, while married couples earning up to $150,000 can deduct $12,000. The deduction phases out completely at higher income levels.
Income Limits and Deductions for Seniors:
| Filing Status | Income Limit for Full Deduction* | Deduction Amount | Phase-Out Range |
|---|---|---|---|
| Single (65+) | Up to $75,000 | $6,000 | $75,000-$175,000 |
| Married (65+) | Up to $150,000 | $12,000 | $150,000-$250,000 |
*Income limit is based on Modified Adjusted Gross income (MAGI).
Let’s look at two examples to see how this may play out:
Jerry, a Single Retiree, Age 70
AGI: $80,000
Under the OBBBA, Jerry is eligible for a deduction of up to $6,000. However, because his income exceeds the $75,000 threshold, the amount he can deduct will be reduced accordingly.
Now, we have to do the phase-out calculation at a rate of 6 cents for every dollar over the limit.
For Jerry that means:
$6,000 – ($5,000 x 6%) = $5,700 deduction.
Assuming Jerry is at a 22% tax bracket:
$5,700 x 0.22 = $1,254 in tax savings.
Carol and Tim, Married, Ages 68 and 70:
Combined AGI: $160,000
Under the OBBBA, Carol and Tim are eligible for a deduction of up to $12,000. However, because their income exceeds the $150,000 threshold, the amount they can deduct will be reduced.
How much over the limit?
Phase-out calculation:
$12,000 – ($10,000 x 6%) = $11,400 deduction
Assuming Carol and Tim are at a 22% tax bracket:
$11,400 x 0.22 = $2,508 in tax savings.
“So, Will I Get These Deductions Forever?”
Not quite. It’s important to note that this deduction isn’t permanent; it’s currently set to expire after 2028 unless Congress decides to extend it. The phase-out is designed to balance immediate financial relief for retirees while ensuring the sustainability of Social Security benefits. By setting an expiration date, Congress can reassess the economic impact and effectiveness of the deduction, making adjustments as necessary. For now, this means retirees have a limited window to take advantage of this benefit, and it’s crucial to stay informed about any legislative changes that may affect their financial planning.
“Do I Get This Deduction Automatically”
No. This deduction is not automatically applied to your Social Security payments or W-2s. You—or your tax preparer—must actively claim it when filing your 2025 tax return. It’s your responsibility to calculate and include the deduction based on your income and eligibility.
Next Steps
The OBBBA deduction can be a valuable tax break for retirees, especially those in the upper-middle income range. However, the rules are complex, and eligibility phases out at higher income levels, making timing and income management critical. Strategic decisions, such as timing withdrawals, converting to a Roth IRA, or selling investments, can help you stay within the qualifying range and maximize your savings.
Because this deduction is temporary and nuanced, it’s essential to coordinate with both your financial and tax professionals. With thoughtful planning, you can take full advantage of this opportunity and potentially reduce your tax burden in retirement.
Authored by Mike Lynch and Curtis Hopp
The MIT Age Lab is not an affiliate or subsidiary of Hartford Funds
Source:
1 Social Security tax breaks: What the ‘Big Beautiful Bill’ really means for 88% of retirees, USA Today, 7/8/25 Tax savings will vary depending on your actual tax bracket.
For illustrative and educational purposes only. The hypothetical situations described above are dramatized scenarios for pre-retirees and Social Security beneficiaries to consider, if they choose, during their own decision-making process and should not be construed as advice. The circumstances and strategies described herein may not reflect an actual client’s experience. The couples described in the above scenarios are fictitious and any resemblance between them and actual couples is coincidental.
All information provided is for informational and educational purposes only and is not intended to provide investment, tax, accounting, or legal advice. As with all matters of an investment, tax, or legal nature, you and your clients should consult with a qualified tax or legal professional regarding your or your client’s specific legal or tax situation, as applicable. The preceding is not intended to be a recommendation or advice. This information does not take into account the specific investment objectives, tax and financial condition of any specific person. This information has been prepared from sources believed reliable but the accuracy and completeness of the information cannot be guaranteed. This material and /or its contents are current at the time of writing and are subject to change without notice.
Hartford Funds Distributors, LLC, Member FINRA.
Stay Social, Stay Happy
a guide to building friendships as you age
Presented by Moore Wealth
Maintaining social connections is crucial for our overall well- being and quality of life. But as we age, it’s common for our social circles to shrink. For instance, Americans aged 65 and older spend an average of 7.5 hours alone each day (see Figure 1). This loneliness can significantly impact our physical, mental, and cognitive health, leading to serious issues such as heart disease, depression, and cognitive decline. Health and mobility issues, along with major life changes like retirement, the loss of a spouse, or relocating, can make maintaining social connections more difficult. But even if you’ve been out of the loop for a while, it’s never too late to reconnect and build new friendships. Here are some tips to help you get back in the groove and make new friends, whether you’re feeling a bit rusty or just looking for new ways to connect.
We’ll Cover How to:
- How to get back in the social groove
- What to say to break the ice
- How to use the three R’s to grow friendships
First, How to Get Back in the Social Groove
It’s perfectly fine to ease into socializing at your own pace.Building relationships takes time, and that’s completely normal.Start Small: If you’re looking to put yourself out there, whether to practice socializing or make new friends, start with brief, low-pressure interactions. Try chatting with a neighbor by saying hello and asking about their day when you see them outside or in your apartment building.If you like dogs, be on the lookout for people walking them. Ask them about their dogs and you’ll be chatting away.You can also walk in a nearby park and greet the people you pass by or visit a local café and ask someone for their recommendations.Pursue Your Interests—or Explore New Ones: Consider joining clubs or groups that focus on your favorite hobbies, like reading, gardening, or exercise. Meetup groups (meetup. com) are great for finding people with interests like yours, whether it’s learning new skills or enjoying physical activities. You’ll instantly have something in common with other members, helping conversations flow naturally.Sometimes people lose touch with their interests over time due to life changes and shifting priorities. If you’re unsure about what to do, ask yourself what activities you enjoyed in the past or have always wanted to try.Volunteer: Volunteering provides an opportunity to meet new people in a structured environment and create meaningful connections. It’s a fantastic way to make friends because it connects you with like-minded people who share your passion and values. To find opportunities, VolunteerMatch.com allows you to type your location in the search bar and lists all the volunteer options near you. You can sort them by cause—such as animals, children, and the arts—to find the right fit for you.Tip—Bring a Friend: Attending an event with a trusted friend or family member (including our pets, when allowed) can make the experience less daunting. Or consider taking your four-legged companion to a dog park, where a fellow pet lover will likely strike up a conversation.Once you know where you want to go, you need to figure out what to say. Let’s dust off a few icebreakers.Second, What to Say to Break the Ice
Long after you’ve left middle school behind, concerns about not fitting in can persist. Even adults sometimes worry about how they’re perceived by others, especially in new social settings. But not knowing what to say doesn’t have to hold you back from making new connections.Here are some ice breakers that can help you feel more comfortable engaging in social situations:Compliment and Ask: This involves giving someone a compliment and then following up with a request or question. For example:- Compliment: “I couldn’t help but notice how beautifulyour garden looks. Your flowers are always so vibrant.”
- Ask: “Do you have any tips for someone who’s just starting out with gardening?”
Third, How to Use the Three R’s to Grow Friendships
No matter what, making new friends requires effort—but you don’t always have to start fresh. Are there people you’ve met with whom you think there’s potential for a closer relationship? These are the countless people that you see, cross paths with, and may have a brief conversation from time to time.The methods below, aka the “three R’s” may help you form stronger bonds with them.- Rekindle
- Reconnecting with old friends can feel like picking up where you left off. The shared history makes it easier to rekindle the relationship and make new memories together.
- Repot
- Just like a live plant, some friendships flourish when given room to grow beyond their initial containers. If you only interact with someone in one environment, think about how you can extend it to other areas of your life. For instance, if you had a coworker who enjoyed the outdoors, invite them for a weekend hike. It’s a great way to strengthen your connection and enjoy new experiences together.
- Ritual
- Consistency is essential to building and maintaining friendships. If you meet someone you’d like to befriend or want to stay connected with, try meeting up weekly. Activities could include attending a class or meeting for lunch. The key elements of building friendships through regular meetups are being intentional, available, and reliable. Nurturing these connections gives you a head start on forming friendships and expanding your social network.
This all sounds nice, but i’m an introvert!
Meeting new people can be challenging, especially for introverts. But it doesn’t necessarily mean diving into large gatherings or being the life of the party. Introverts can make friends and socialize just as well as extroverts, though they might approach it differently.Here are a few tips:Different social settings: Introverts often thrive in one-on-one or small gatherings where they can leverage their listening skills and thoughtful nature to have in-depth conversations.Leverage your interests: Introverts often immerse themselves fully in their hobbies, causes, or work. Joining clubs or groups that align with your values can help you form strong, meaningful connections with others who share your values and passions.Be yourself: Authenticity is key. Don’t feel pressured to be someone you’re not. Genuine connections form when you let your true self shine, allowing others to appreciate the real you. You might be just the friend they’ve been looking for. Remember, it’s okay to take your time and find what works best for you. Friendships can grow in the most unexpected ways!Friendships: They’re Good for Us!
It’s interesting how many aging adults find themselves spending more time alone without consciously choosing to do so. This quiet shift can go unnoticed until their social world has significantly changed. While this may not happen to you, it’s a common trend. Staying connected isn’t just enjoyable— it’s essential. Strong relationships bring joy, fulfillment, and even health benefits, helping us thrive in many ways. By being intentional about nurturing your social circles, you can stay happy and healthy for years to come.Next steps
Pick an activity from one of the categories to build or reinforce friendships.Authored by Hartford Funds
Hartford Funds Distributors, LLC, Member FINRA.
Make Retirement About Experiences
Over the past few years we have had a number of clients retire. We like to refer to this as their 3rd phase of life. During the first phase, you are going to school learning how to do whatever it is you decided to pursue. The second phase is during your working years building your career. We are guided though those first two phases by teachers, mentors and colleagues. The third phase, retirement, is one we are left to figure out on our own. I’d like to suggest that retirement is about experiences and trying things you didn’t get to do during your working years. You probably have all of the “things” you could possible need or want by this point, so purchase are likely low on your list of priorities.
Retirement gives us something incredibly rare: time. Time to reconnect with what matters, explore new passions, and create moments that stay with us. But when it comes to how we use that time – and money – it’s easy to default to things we can buy.
Here’s another way to think about it: How can you build your retirement “wishlist” around experiences rather than purchases? This can help turn your retirement into a time of becoming more connected, more fulfilled, and more you.
It’s About the Feeling, Not the Price Tag
The moments that linger in your memory are usually the ones that made you feel something. For example:
- Taking a Wishlist trip with the whole family: your spouse, kids and grandkids.
- Hosting a family game night becomes a tradition.
- Teaching your grandchild how to ride a bike, ski or do something you love to do.
Use milestones to create memories
You don’t need a special occasion to create a memory, but tying experiences to milestones can make them even more powerful. Think about:
- Marking your retirement with a trip to a place you’ve always wanted to see and experience.
- Celebrating an anniversary with a surprise weekend getaway.
- Taking a grandchild on a trip to celebrate a landmark birthday.
Spend With Intention, Not Impulse
Some of the most meaningful experiences come from thoughtful, rather than expensive, choices:
- Upgrade your Saturday mornings – sign up for a class, take up hiking, or learn to paint.
- Gift yourself a weekend retreat or a solo day exploring a nearby town.
- Dedicate yourself to learning a new craft like photography or piano.
Make Space for Reflection
Experiences don’t always need to be big or bold. Sometimes, the richest moments happen in stillness. Take the scenic route. Start a journal. Share your stories with someone younger. Or just sit with a good cup of coffee and appreciate the journey so far. Leave room for presence. That’s where the magic often lives.
Create Traditions
Experiences can grow. What starts as a one-time idea can turn into a cherished tradition. Maybe it’s a yearly family beach trip, or a monthly evening with old friends. These aren’t just things you do, they’re things that connect you.
Retirement isn’t about what you can buy – it’s about what you can live. This is your time. Time to dream. Time to explore. Time to invest in the moments that matter most. Because the most valuable things you can collect in retirement aren’t things at all – they’re the experiences that make you feel fully alive.
Market Navigator for the Quarter Ending September 30, 2025
Presented by: Moore Wealth
Markets continued their upward climb in September, with U.S. stocks reaching new record highs despite the month’s historically weak reputation. Falling interest rates and stronger-than-expected earnings helped fuel the rally, while economic data showed steady growth. Although some risks remain, the overall tone was optimistic heading into the final quarter of the year.
- Beyond the Headlines: Stocks Hit New Highs as Rally Extends into Fifth Month
- Federal Reserve and Interest Rates: Fed Resumes Rate Cuts, Supporting Stocks and Bonds
- Report Releases: GDP Revised Higher; Job Growth Slows Sharply
- Looking Ahead: Political Gridlock and Global Tensions Could Test Market Resilience
Beyond the Headlines: Stocks Hit New Highs as Rally Extends into Fifth Month
September was another positive month for markets, as U.S. stocks gained on the back of continued growth and falling interest rates. The S&P 500 gained 3.65 percent for the month and 8.12 percent for the quarter. The Dow Jones Industrial Average returned 2.00 percent in September and 5.67 percent for the quarter. The Nasdaq Composite led the way with a strong 5.68 percent gain for the month, capping off a 11.41 percent rise in the third quarter.
The S&P 500, Dow, and Nasdaq all set record highs during the month, which was especially impressive given that September has historically been the worst month for investors. This now marks five straight months with positive returns for U.S. stocks, highlighting the strength of the current rally.
Fundamental factors were supportive of markets during the month. Second-quarter earnings season wrapped in September, and results came in better than expected. On average, companies in the S&P 500 saw earnings grow by 10.8 percent in the quarter, which was well above analysts’ estimates of 2.8 percent. Over the long run, fundamentals drive market performance, so this was an encouraging result for investors. Technical factors were supportive as well, as all three major U.S. indices spent the entire month well above their respective 200-day moving averages.
The story was similar for international stocks as well, with both developed and emerging markets gaining for the month. The MSCI EAFE Index gained 1.91 percent in September and 4.77 percent for the quarter. The MSCI Emerging Markets Index was up 7.18 in September and 10.95 percent for the quarter.
Even bonds were up, as falling interest rates supported all asset classes. The Bloomberg Aggregate Bond Index gained a solid 1.09 percent for the month, capping off a 2.03 percent gain for the quarter. High-yield bonds also participated in the ongoing rally as the Bloomberg U.S. High-Yield Corporate Bond Index was up 0.82 percent in September and 2.54 percent for the quarter.
Federal Reserve and Interest Rates: Fed Resumes Rate Cuts, Supporting Stocks and Bonds
Interest rates fell in September as the Federal Reserve resumed cutting rates at its mid-month meeting. This 25-basis-point rate cut was widely anticipated by investors and economists and signaled a new phase in the Fed’s attempts to normalize monetary policy. As seen in Figure 1, this marks the first rate cut in nearly a year following a series of rate cuts to end 2024.
Source: Federal Reserve Bank/Haver, September 2014‒present.
Going forward, markets expect to see one or two more rate cuts by the end of the year. In general, falling interest rates tend to support stock and bond prices, so any further cuts would likely be celebrated by investors.
Report Releases: GDP Revised Higher; Job Growth Slows Sharply
The economic updates released during the month were also broadly positive, with some caveats. Second-quarter GDP growth was revised up from earlier estimates of 3.3 percent to 3.8 percent, driven by increased personal consumption growth. Consumer spending drives the bulk of economic activity in the country, so this upward revision was a good sign for the state of the overall economy. We also saw positive reports for retail sales as well as personal income and spending growth during the month.
With that being said, there are some areas of the economy that warrant further attention. First and foremost is the labor market, as we’ve seen a notable slowdown in hiring over the past few months. The August job report showed that just 22,000 jobs were added during the month, and downward revisions to prior months further lowered overall employment levels. While still low on a historical basis, the unemployment rate in August ticked up to its highest level since late 2021.
We’ve also seen signs that inflation may be set to pick up further, as consumer inflation came in hot in August. While still well below levels seen in 2021 and 2022, inflation remains above the Fed’s 2 percent target and is trending in the wrong direction. This will be another important area to keep an eye on going forward.
Looking Ahead: Political Gridlock and Global Tensions Could Test Market Resilience
Aside from the weakening job market and concerns surrounding inflation, there are other risks that investors should keep in mind. Domestically, political uncertainty has risen recently due to the impasse in Congress over spending negotiations. While a resolution to the current stalemate is expected, the timing is still up for debate, which could lead to further policy uncertainty from Washington. Foreign geopolitical risks remain as well, as seen by the ongoing conflicts in Ukraine and the Middle East.
On the whole, we remain in a pretty good place as we head into the fourth quarter. Market fundamentals and performance have remained healthy throughout the year despite high levels of uncertainty and shifting risks. While there are some areas to monitor, especially on the jobs and inflation fronts, the economic backdrop largely remains supportive, and the most likely path forward is for continued economic growth and market appreciation.
As always, a well-diversified portfolio remains the best path forward for most investors. If concerns remain, however, you should speak to your financial advisor to go over your financial plans.
Disclosure: This material is intended for informational/educational purposes only and should not be construed as investment advice, a solicitation, or a recommendation to buy or sell any security or investment product. Please contact your financial professional for more information specific to your situation.
Certain sections of this commentary contain forward-looking statements based on our reasonable expectations, estimates, projections, and assumptions. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Past performance is not indicative of future results. Diversification does not assure a profit or protect against loss in declining markets. All indices are unmanaged and investors cannot invest directly into an index. The Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue-chip stocks. The S&P 500 Index is a broad-based measurement of changes in stock market conditions based on the average performance of 500 widely held common stocks. The Nasdaq Composite Index measures the performance of all issues listed in the Nasdaq Stock Market, except for rights, warrants, units, and convertible debentures. The MSCI EAFE Index is a float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Index is a market capitalization-weighted index composed of companies representative of the market structure of 26 emerging market countries in Europe, Latin America, and the Pacific Basin. It excludes closed markets and those shares in otherwise free markets that are not purchasable by foreigners. The Bloomberg Aggregate Bond Index is an unmanaged market value-weighted index representing securities that are SEC-registered, taxable, and dollar-denominated. It covers the U.S. investment-grade fixed-rate bond market, with index components for a combination of the Bloomberg government and corporate securities, mortgage-backed pass-through securities, and asset-backed securities. The Bloomberg U.S. Corporate High Yield Index covers the USD-denominated, non-investment-grade, fixed-rate, taxable corporate bond market. Securities are classified as high-yield if the middle rating of Moody’s, Fitch, and S&P is Ba1/BB+/BB+ or below. One basis point (bp) is equal to 1/100th of 1 percent, or 0.01 percent.
Authored by Chris Fasciano, chief market strategist, and Sam Millette, director, fixed income, at Commonwealth Financial Network®.
© 2025 Commonwealth Financial Network®
What We've been up to
Moore Wealth Client Appreciation Event at the Keys Game
We always enjoy connecting with our clients outside the office, and this year’s gathering was no exception. It’s truly an honor to have your trust—and to share such great moments together beyond the day-to-day.
We hope you enjoy the rest of your summer and look forward to seeing you again at next year’s event!
Moore Wealth Fall Seminar on Social Security:
We had such a great time at our recent Social Security seminar! It was an easy, down-to-earth conversation about how the program began, what’s changing in 2025, and simple ways to get the most out of your benefits. We also touched on individual, spousal, survivor, and divorce benefits — with plenty of helpful tips to make planning for retirement a little clearer (and a lot less stressful). We hope to see everyone at the next seminar in the Spring!
what we have coming up
Friday, November 7th 5-8 pm
Join us for an enchanting start to the holiday season!
Stop by the Moore Wealth team at 30 N. Market Street in Downtown Frederick as tree lights are turned on for the season, and downtown businesses stay open late offering something special for everyone.
We’ll have steaming hot apple cider to keep you cozy, and marshmallows for toasting to add a little extra sweetness to your evening.
Advisory services offered through Moore Wealth®, a Registered Investment Adviser. Moore Wealth is located at 50 Carroll Creek Way, Suite 335, Frederick MD 21701. They can be reached at 301-631-1207.