There’s no shortage of uncertainty these days. Between shifting political priorities, market volatility, and changes in legislation, it can feel hard to keep up.

But taking the long view means you don’t have to because that’s exactly what we’re here for.

The new tax and spending legislation signed into law over the July 4th weekend is significant. We’re already evaluating its implications through the lens we bring to all planning topics: simplicity, cost-efficiency, and long-term alignment. Below, we’re sharing a summary of the key changes and potential impacts worth noting.

As always, we’ll coordinate with your tax and estate planning professionals and bring relevant insights into our upcoming planning conversations when appropriate.

The Hill Viewpoint

At Hill, we return to a few core principles again and again:

Keep it simple. Keep it low cost. Keep it liquid.

We’re running the new tax changes through that same lens—separating what’s useful from what’s noise, and focusing on what could enhance your long-term plan without adding unnecessary complexity.

We’re here to help you take the long view, stay steady through change, and, most importantly, simplify the financial side of life so you can focus on what matters most: time with family, meaningful experiences, and the freedom to enjoy the life you’ve built.

If you have questions about how this applies to your situation, let’s connect. We’re happy to discuss what it may mean for your plan.

What We’re Watching

Investments

Key Point:
With tax rates locked in and fewer AMT concerns, depending on your situation, there may be more room to plan investment income, withdrawals, and Roth conversion strategies.

Income & Tax Planning

• The lower tax brackets enacted in 2017 are now permanent, offering more certainty for long-term planning.
• Deductions for state and local taxes (SALT) have been expanded through 2028—potentially benefiting residents in higher-tax states.
• Fewer taxpayers are expected to be affected by the Alternative Minimum Tax (AMT), which could support more flexible income planning for those with incentive stock options or who itemize deductions.
  

Retirement Accounts

• No direct changes were made to IRAs, Roth IRAs, or required minimum distributions (RMDs).
• With lower rates remaining in place, planning strategies like Roth conversions or flexible withdrawal sequencing may gain added relevance—especially for those with significant pre-tax balances.
  

New Accounts to Watch

• A new federally sponsored savings account program for children born between 2025 and 2028 was introduced. While sometimes referred to informally as “baby bonds,” this savings vehicle offers a $1,000 contribution per eligible child.
• Use of these funds will be restricted to specific purposes, and more guidance is expected from federal agencies.
• These accounts are unlikely to be more favorable than existing vehicles like 529s from an investment perspective, but they may play a complementary role in family savings plans.

Estate Planning

Key Point:
The higher estate exemption offers more planning flexibility and may prompt a fresh look at existing trust structures.

• The estate tax exemption will increase to $15 million per person ($30 million per couple) starting in 2026.
• This higher threshold is currently permanent unless changed by future legislation.
• This could reduce the need for complex estate planning structures or insurance-based strategies tied to estate tax obligations for some families.
  

Tax Law Highlights

Key Point:
Several provisions offer expanded deductions and planning opportunities, especially for retirees and those with variable income.

• The standard deduction remains high, reducing the need for itemization in many households.
• New deductions for tip income (up to $25,000) and overtime pay (up to $12,500) will apply through 2028 for eligible earners.
• A new $6,000 deduction for individuals age 65+ is also included, with similar sunset timing.
  

Charitable Giving

Key Point:
Charitable giving remains a powerful planning tool, but new thresholds make strategy more important.

• Beginning in 2026, non-itemizers can deduct up to $1,000 (individuals) or $2,000 (joint filers) in charitable gifts.
• For itemizers, deductions only begin once gifts exceed 0.5% of income.
• For business owners, deductible giving now requires contributions greater than 1% of income.
• As a result, tactics like “bunching” gifts or using donor-advised funds may become even more relevant.
  

Education Planning

Key Point:
Families assisting with education costs may benefit from expanded 529 rules and student loan changes.

• Starting in 2026, borrowing limits will apply to certain federal student loans (Grad PLUS and Parent PLUS).
• Simplified income-based repayment plans are replacing current programs.
• 529 plan usage has expanded: families may now use up to $20,000 per student (up from $10,000) for elementary or secondary tuition—including private or religious schools.
• Qualified 529 expenses now include some non-tuition costs for K–12 education and costs related to professional credentialing.
  

Insurance

Key Point:
The expanded estate exemption may reduce the role of life insurance in certain estate plans.

• No direct changes were made to life or long-term care insurance rules.
• However, some clients may find they no longer need insurance to offset estate taxes.
• This could be a good opportunity to reevaluate existing policies or trust structures in light of broader estate planning goals.
  

Final Thoughts

As we digest the details of the new law, our approach remains unchanged: stay focused on what matters, filter out the noise, and align each opportunity with your long-term goals.

When the landscape shifts, we stay steady, so you can too.

Disclosures:
This material is intended for general informational purposes only and should not be construed as investment, legal, or tax advice. The views expressed are those of Hill Investment Group and are subject to change. Always consult your financial, legal, or tax professional regarding your specific situation. Hill Investment Group is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.

When my husband and I got engaged, we did what most couples do—we planned a wedding, dreamed about our future, and tried to figure out how to merge two different systems of “doing money.” Somewhere between cake tastings and choosing a venue, we met with a pre-marital counselor. Of everything we talked about, one idea stuck with me:

“To most people, money is either power or security.”

Understanding which it is for you—and for your partner—can be the difference between financial tension and financial teamwork.

At Hill, we regularly walk couples through these kinds of conversations. Many of the couples we meet share core values (like a love for travel or a desire to raise a family), but are still working through the logistics of, “How do we actually combine this all?” and, “What shared values around money do we want to build from?”

In these discussions, we cover topics like:

• What should stay “yours,” what becomes “ours,” and what needs to remain “mine”
• How to build an emergency fund that feels safe and sufficient for both partners
• When it may make sense to pay down debt versus investing for the future
• Tax-efficient account structures and developing a clear savings strategy
• When to begin thinking about estate planning
• Planning for big goals like kids, real estate, or education

What we appreciate about these conversations is that they’re part financial planning, part real talk. We help couples organize their accounts and align their savings with their goals—but we also make space for the deeper stuff.

What does financial security look like to each of you? Who’s the natural saver, who’s the spender? Do you feel more confident when you can track every transaction—or does that stress you out?

Sometimes it takes a neutral third party to open the door to better understanding. In our experience, couples don’t usually argue about the numbers—they struggle to see each other’s financial values or life experiences clearly. And there’s research to support that insight. One study from UCLA found that couples who pooled at least some of their finances reported higher relationship satisfaction.¹ The researchers also noted that shared accounts may support transparency, reduce conflict, and promote long-term planning.

Of course, there’s no one-size-fits-all answer. Some couples prefer the simplicity of pooling everything. Others value some financial autonomy. Still others are blended families managing multiple generations, stepchildren, and pre-existing commitments. Wherever you fall, what matters most is being intentional—and finding a structure that reflects your reality and values.

As you might guess, we’re strong advocates of simplicity. Whether it’s consolidating accounts, automating savings, or establishing shared systems, simplicity creates clarity. And clarity opens the door to better conversations.

So if you—or someone you care about—could use help having these conversations or setting up better systems, know that we’re here. Whether it’s your first time talking openly about money, or your tenth, we’re ready to guide the conversation with care, curiosity, and a bias for action.

Taking the Long View together starts with a strong foundation—and a shared understanding of what money means to each of you.

Book a time to talk here.

¹ Pooling Finances and Relationship Satisfaction. Gladstone, Garbinsky & Mogilner (2018). Available via UCLA Anderson Review.

Disclosures:
The information provided herein is for educational purposes only and should not be construed as investment, legal, or tax advice. Hill Investment Group (“Hill”) is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. All investing involves risk, including the possible loss of principal. Readers should consult with their legal or tax professional regarding their individual circumstances.

Before joining Hill Investment Group, I spent part of my career at Dimensional Fund Advisors (DFA)—a firm whose investment philosophy has helped shape our own. DFA, like Hill, was founded on a simple but powerful belief: markets work. That foundational idea continues to shape how I view the world and reinforces my deep confidence in evidence-based investing.

It’s easy to think of “the market” as a complex or distant system. But in reality, we all interact with markets more often than we realize. Whether you’re selling a used couch on Facebook Marketplace, comparing mortgage rates, or negotiating with a contractor, you’re participating in a market—exchanging value based on available information, competing options, and mutual agreement. This same principle drives how trillions of dollars are traded globally every day.

What makes markets remarkable is their ability to reflect the collective wisdom, emotion, and activity of millions of participants. In the short term, markets can be unpredictable, reacting to headlines, global conflicts, elections, or economic data. But over time, they’ve proven to reward long-term thinking, discipline, and optimism.

Of course, that doesn’t mean every moment in the market feels good. Volatility can be unnerving, especially when headlines are loud and uncertainty is high. But as our co-founder Matt Hall recently reminded us, “sometimes you need to duck.” In other words, short-term turbulence is a natural part of investing. It’s the price we pay for the opportunity to pursue long-term growth.

If you take a step back, the broader trend is compelling. As David Booth, co-founder of DFA, noted in a recent commentary, markets delivered strong returns in early 2024, even amid geopolitical tensions and economic uncertainty. That’s not magic. That’s markets doing what they do best: translating risk, effort, innovation, and information into forward motion. It’s a reflection of human ingenuity—entrepreneurs solving problems, companies adapting, and people continuing to build and invest in the future.

At Hill, we believe that investing is ultimately an act of faith in global progress. When you invest in a broadly diversified portfolio, you’re investing in the belief that economies will continue to grow, that people will continue to innovate, and that the world will continue to move forward—not just in the U.S., but around the globe.

Yes, markets do go down. Historically, downturns have occurred roughly every six or seven years. But staying invested—despite those temporary declines—has historically been a reliable way to participate in long-term growth. On the other hand, trying to time the market or avoid short-term dips can carry a different risk: missing out on the recoveries that often follow.

There’s also a hidden cost to stepping away from the market: the mental load. The stress of trying to guess when to get in or out, or constantly second-guessing your plan, can be draining. Many investors eventually come to see the value of having a trusted advisor, not just to manage investments, but to help them focus on what matters most in their lives.

If you’re reading this, you’ve likely already embraced that philosophy. You’ve chosen to Take the Long View with us. Our encouragement now is simple: lean into that mindset. Let the markets do their job, while you focus on yours—being present with your family, pursuing your passions, and building a life filled with meaning and intention.

That’s the real return—and the heart of why we Take the Long View.

Disclosures:
This content is for informational and educational purposes only and does not constitute personalized investment advice or a guarantee of future results. Hill Investment Group does not provide legal or tax advice. Please consult your legal or tax professional regarding your individual circumstances. References to third-party firms or individuals do not constitute endorsements or affiliations unless explicitly stated.