Jason Jacobi, CFP® (00:01.14)
Welcome back everyone. Mark Boyer, Jason Jacobi Salt and Pepper have risen from the dead. It’s been quite the year, hasn’t it?
Mark Boyer (00:04.078)
Thank
Mark Boyer (00:10.444)
my, it’s been a year and it’s been crazy, right? And we’ve been through a lot of things here. Most importantly, just watching as our family’s gone this last year with Luca, right? So give a quick update on Luca. We’ve been dealing with leukemia here for last year. How’s that going?
Jason Jacobi, CFP® (00:28.436)
Yeah, yeah. So, you know, thanks for mentioning that we’ve been going through treatment for about 13 months now. Got another three weeks left and then we should be free and clear of the primary treatment schedule. We’ll still have at home chemo’s and, you know, going in once a month for, other types of treatment, but very minimal. We get back to normal life basically. So that’s been kind of the main priority focus for us at this point. And
Mark Boyer (00:50.574)
Yeah.
Jason Jacobi, CFP® (00:56.634)
Thanks to you and the rest of the team for picking up my slack.
Mark Boyer (00:59.862)
Yeah, it’s been a family. Yeah, it’s been busy. So part of the reason like, I get people asking like, where are you guys? I can be not doing videos anymore. And it’s been you know, that on top of your time has been much more limited is our thoughts also as grandparents, my wife and I, know, little Lucas are, he’s our one of one of our many grandchildren that we have. So it’s just been a crazy time. And then on top of that, you know, a year ago, we’ve been almost celebrating a year that we actually moved Boyer Financial from
LPL to as when we became an RIA right around the time we found out about Luca that we made a big major adjustment moving becoming our own RIA, which is so awesome. It’s been great. Our growth has been phenomenal this year. We’re really blessed becoming our own registered investment advisor. But with that, you know, we moved everybody to Schwab and that was crazy, right? You know, it was a part of it. And I’m so thankful for our team, Carly and JD and
Yeah, it’s been amazing just all the work, even your work off behind the scenes to move us. So it’s been a crazy year. We changed offices, we grew, even our office. So we moved downstairs in our complex here. We love it. We hope our clients, if you haven’t seen it, you need to come check it out. We got a refrigerator. all, we got, we can eat. It’s been amazing. Just really love it. So anyway, it’s good to get back in line with you, Jason.
you know, after this year, you know, try to get started. got some clients that somebody’s old friends actually give me grief like, Hey, you’re now you’re going to do I know what they’re going to say you’d only do in this video because the market’s up and it’s all good. so I have to take it, but it’s all, it’s all cool. It’s all in fun. And, but that’s not the purpose of us. Although we are new highs. It’s not, we’re to try to do this once a month, right? Going forward, we want to get back to a kind of a rhythm here. So anyway,
Jason Jacobi, CFP® (02:48.7)
Yep. Yep.
Mark Boyer (02:51.874)
Well, hi everyone. We’re just glad all that to say is we’re grateful for our clients and all the people that have hung in there. We’re excited to get maybe going back on our salt and pepper podcast here. So anyway, that’s our, anyway, it’s been good. It’s all been good. God has been good. He’s led us through all of it. And we’re thankful so much again for our clients who’ve been patient, who’ve been so kind, so prayerful, helping us, you know, praying. was, so many clients say, hey, I’m praying for Luca. I’m praying for Luca. And patient with our change and our.
our move to Schwab. Schwab has been amazing. And again, our growth has been crazy too. And on top of, know, with that move, it’s really been helpful for our business. anyway, thanks to all of you who’ve been part of that. And we’re excited to be back today talking about what’s up in our headlines.
Jason Jacobi, CFP® (03:38.214)
Yeah. Yeah. And I can’t agree more with everything you just said. And we’re all very grateful, thankful for all the prayers and support and, patience with the move. We’ve got some really great things coming. We just hired a new office admin, right? Katie Garrett, which we’ll introduce to all of you soon. And you’ll talk to her on the phone, I’m sure. See her in person when you come in, but also just technology that we’ve been working on and always learning and growing, right? If you’re not
Mark Boyer (04:04.6)
Yeah, part of changes.
Jason Jacobi, CFP® (04:07.284)
You’re not going forward, you’re regressing. always trying to be good students, right? Students of the game.
Mark Boyer (04:10.08)
and good stewards of what the Lord’s given us. it’s good. And thanks also, again, I think I might’ve mentioned it, but we’ve had a lot of growth, a lot of referrals, and we’re being blessed just to meet new people and help them where we can. And that’s been really fun. So thank you to all of you who feel confident enough to throw our name out there to help your friends and family. We don’t take that lightly. That’s a huge compliment and we appreciate it.
Jason Jacobi, CFP® (04:19.633)
Yeah. Yeah.
Jason Jacobi, CFP® (04:38.868)
Absolutely. All right. So let’s get into it today. We’re going to talk about the big, beautiful bill. You know, there’s been a lot of commotion and people for it, people against it, a lot of fake news headlines on both sides. Again, not getting political here. Our goal is never to be political. Our goal is to look at the data. How does that data translate to how we can help our clients moving forward? That is our sole focus. So please bear with us when we talk.
and educate you guys through kind of what’s in the bill, what that means for our clients. So let’s dive right in. All right. So as all of you know, this past week, President Trump signed a sweeping and expansive spending bill into law, obviously nicknamed the one big, beautiful bill. It extends many of the 2017 tax cuts, lowers taxes for seniors, keeps corporate tax rates low. And while that may sound like a win for taxpayers and businesses,
And it is for many, might add. The Congressional Budget Office says that this bill is projected to add $3.3 trillion to the national debt over the next decade. That’s been the big thing, right, Mark, that we’ve been talking about.
Mark Boyer (05:49.878)
Hmm. Yeah. Well, yeah. mean, if you watch, mean, that’s been the big, you know, the whole, the whole bill was passed by, you know, basically JD Vance, you know, for the final vote, right? So it’s a very, none of the, Democrats voted for this bill. And even some key Republicans who are, who voted against it, you know, some of whom, you know, ended up, they moved in and they came and it got passed, but there was a
Jason Jacobi, CFP® (06:01.959)
Yeah.
Mark Boyer (06:18.338)
And I appreciate that there was some people out there that were actually really concerned about what we’re going to talk about today, the increase in the debt. I mean, they were really stigmatized like, no, we got to go back to pre-COVID debt limits and blah, blah. And they were really holding the line. I think that forced them some more cuts and that was good. But ultimately, I think now that it’s passed, we’re going to try to look at the different scenarios to see.
Jason Jacobi, CFP® (06:23.858)
Yeah?
Mark Boyer (06:46.828)
what Trump’s thinking and what the idea is there and what we need to do now as far as growing the economy.
Jason Jacobi, CFP® (06:50.247)
Yeah. Yeah. And you kind of prefaced it with what you said. You you talked about a couple of people that maybe held their line, things that they were passionate about or firmly believed in that we needed to implement more spending cuts, which I think, you know, even you and I agree on many people do. Like we couldn’t go out and spend like the government does. So how do they get to do it? This is ridiculous.
Mark Boyer (07:12.11)
Well, because they print money. it’s like, you’re like, hey, I’m low on cash. Let me go print up some new cash. Right. I mean, it’s not that’s that’s the ability that the that the government can do. I wish I had that kind of I wish I had that rule, but it is I know. none of us. Right.
Jason Jacobi, CFP® (07:20.4)
Yeah.
Jason Jacobi, CFP® (07:27.62)
I know, right? Exactly. So again, the world is going to look kind of behind the lens, potentially, maybe what Trump’s thinking, because we had to get this bill through. Otherwise, we would have seen the biggest tax increases of all time, I believe. So first, in order to kind of preface this whole bill, we need to understand that when the government cuts taxes without cutting an equal amount of spending, it has to borrow more money, right? We just briefly mentioned that.
Now that borrowing increases the deficit and over time the national debt. So one way which we’re to talk about here and start things off with to offset that added debt is by growing the economy faster, right? Where the government brings in more tax revenue, even at lower rates. So here is where it gets interesting. So to fully cover that $3.3 trillion projected debt increase through growth alone, just through growth alone,
This is not including tariff revenue or anything else. The U.S. economy would need to generate $20 trillion in additional GDP over the next 10 years. So how do we get to that number? Because the government typically collects about 17 % of GDP in tax revenue. So 17 % of 20 trillion equals roughly $3.4 trillion. Now, that is a tall order, but let’s look at the good news, right? We’ve seen Trump sign deals with
A lot of big tech companies, foreign investors are pouring money into the U.S. economy. Companies like Apple, Nvidia, Taiwan Semiconductors, Oracle have announced over $2 trillion in investments. And when you factor in foreign capital, including massive $1.4 trillion commitment from the UAE, you’re looking at over $4.3 trillion in pledged capital. And that’s real money, know, investments that can lead to job creation, to infrastructure innovation.
and ultimately higher GDP, which is the goal. But that’s not the whole answer. So here’s the punchline. If the economy grows at modest 3 % per year, which I know you’re gonna give us a little history lesson in a second, but we can see about 1.6 trillion in additional tax revenue over the next decade. And that would still leave us short. However, we ran some numbers. So if we grew it at around 4 % per year, that revenue boost nearly doubles.
Jason Jacobi, CFP® (09:52.16)
to 3.5 trillion just enough to wipe out the projected debt increase entirely. in other words, if we can sustain that 4 % annual GDP growth for the next decade and you all of you are thinking you’re crazy right now for even mentioning that we could theoretically neutralize the debt impact of this bill without raising taxes or slashing spending, which is a whole another story. Again, we talked about slashing that spending. Mark, initial thoughts, maybe give us the history lesson, whatever this
Mark Boyer (10:05.26)
Hehehehehe
Mark Boyer (10:21.74)
Yeah. Yeah. All right. So like I said earlier, know, you either, when you’re living over your means, which we are clearly, right. You either have to go in, you either got to cut your expenses or you have to, you have to grow your revenue or a combination of both. mean, we’re all, so it’s just like all of us. I mean, all of us are in the same, you know, we all have monthly expenses and different things and, we’re all dealing with a budget to, you know, hopefully.
Jason Jacobi, CFP® (10:22.133)
know, this peaks your interest.
Mark Boyer (10:51.384)
But we all, you know, we have income that comes in and then we have expenses that go out. you know, if we’re have more income at the end of the month, then that’s a positive. If we don’t, then it’s a negative and we’re, losing savings somewhere. So currently, obviously we have much more going out as a, as a country, as a government, more going out and to your point. So what this is going to do is it requires us to either cut spending. Okay. Which is what I was saying earlier, I appreciated some of the, you know,
those in our legislature that were trying to do that. But in order, again, it’s politics, they had to eventually, you gotta give some places. So that’s what happened in order to pass it, that they got one vote, it is what it is right now. And we’re still learning more and more about this new bill. But you can clearly see from Trump’s perspective that he’s actually trying to, you
There’s, cuts in there, but also he just believes we’re going to grow our way out of, you know, we’re going to grow this thing. Let’s say, let’s go, baby. We’re going to grow. We’re going to, we’re going to drill, baby drill. We’re going to, we’re going to cut taxes and really stimulate the economy. We’re going to get more industrial manufacturing, different things going and we’re going to, this thing’s going to grow. So the question is, you know, can we grow our way out of it? And to your point just said, Hey, look at over the next, you know,
Can we grow 4 % a year? Well, historically, in our long-term average for GDP from 1948 until 2025, we’ve averaged 3.15%. Okay, so that’s the overall, it’s a long-term, right? It’s almost, what’s that, it’s 70 years or so, and then we’ve averaged 3.15 % annual GDP growth. We’ve had decades though of higher growth. Average growth rate in the 50s and 60s was 4%.
Jason Jacobi, CFP® (12:26.317)
Yeah.
Mark Boyer (12:42.062)
For example, like the economy grew by 13%, 13, almost 13.4 % in 1950. That’s actually Jason, that’s actually 12 years before I was born. Can you believe that? That’s a long time ago. Around the time I was born, it was rolling at 6.4, dude. So that when I came in, man, it was happening. And then 6.5 in the 60s. So there’s been times where definitely growth has been there. It’s been higher than.
Jason Jacobi, CFP® (13:02.476)
because of you.
Mark Boyer (13:11.31)
Uh, recent now currently, you know, here in America, it’s, it’s been very low, you know, we, we haven’t had those kinds of rates. So it’s hard for us to imagine that type of growth, but it has been there in the past. Um, and there’s been periods of sustained growth. They’ve been, uh, you know, 61 to 69. We saw an expansion of almost 53 % or 5.1 % per year, uh, from the mid nineties, mid 91 to, to late 2000.
Jason Jacobi, CFP® (13:33.24)
Mm-hmm.
Mark Boyer (13:37.454)
There was an expansion of 43%, which translates basically to 3.8 % annually. So we could go into the history of all those periods of time, but it is possible that the economy can grow 4 % plus. The question will be, is it going to be able to roll and get going that way, especially with all the things that are happening with interest rates and…
Jason Jacobi, CFP® (13:56.684)
Yeah.
Mark Boyer (14:03.31)
and employment, different things, and there’s a lot of activity going on. But that is clearly what the current administration is banking on that we’ll be able to grow that longer term. anyway, that’s kind of the whole idea of what this current administration is trying to do. we don’t know if it’s going to be possible. We haven’t talked about tariffs yet, but…
As far as growth goes, yeah, I’m rooting for that. mean, that would be phenomenal to get us into that place to lower regulation, to lower taxes, which has happened. And to grow at that, I think we’re all rooting for that. The question is, will it be able to happen? We’ll see.
Jason Jacobi, CFP® (14:47.118)
Yeah. And all really good points. And I think what what sparked something in my mind, you were just talking about kind of like, are we going be able to sustain that? You know, that’s it’s we’ve had decades where we have had 4 % GDP growth year over year. But I was listening to the news other day and kind of that was one of the things we talk about stock market highs and company innovation. A.I.’s obviously been the play the last two years or so now, the big
The AI, big tech, kind of that growth sector has really exploded. I mean, look at how much chat GPT is actually challenging Google with a new web browser now that’s going to change the game. Again, AI has just been integrated with everything and it’s only going to continue to do so. So, I mean, one way we could have sustainable 4 % growth, especially with that 4.3 of invested capital from foreign investors and big tech.
Mark Boyer (15:27.672)
Crazy.
Jason Jacobi, CFP® (15:43.981)
Knowing the power of AI and then the quantum computing phase that follows that natural progression cycle of that brings about innovation and productivity gains even faster, right? And even more so. So potentially, yeah, exactly. Higher efficiency, higher output equals more goods, maybe even achiever prices or more demand for those goods.
Mark Boyer (15:58.05)
Yeah. efficiency. Yeah.
Jason Jacobi, CFP® (16:12.598)
So again, all of these things are gonna come into play that we don’t know yet, but I don’t want people to shut it off immediately and be like, 4 % is not attainable. Well, look what AI.
Mark Boyer (16:20.974)
Well, okay. So, mean, again, but it’s been, it’s been since two, the second quarter of 2000, the GDP has not reached the 5 % level. I mean, so we haven’t seen, we’ve been at below 2 % since the second quarter of 2000. That’s a long, that’s 25 plus years ago. Okay. We have not been above, we have been below, below 2%. So that’s why when Powell’s on TV and everything and all the different models that they’re rolling out about.
Jason Jacobi, CFP® (16:30.144)
Mmm.
Jason Jacobi, CFP® (16:38.508)
Yeah.
Mark Boyer (16:48.738)
you know, should lower rates, all this, they’re working on these models that they’ve, you know, it’s, it’s very, they’re not, we’re not anticipating big growth. mean, some of the largest money managers in the world, I’m reading, you know, they’re one and a half to 2%. I mean, they would be thrilled. So the idea of like 4%, you know, sounds like craziness. It’s like, you know, impossible. so that’s, know, as far as that goes, that’s again, that’s, that’s, you know, saying whether that’s going to happen or not, but that’s the dynamic that’s going on, right? And we haven’t seen that.
Jason Jacobi, CFP® (16:53.728)
Yeah.
Yeah.
Jason Jacobi, CFP® (17:16.074)
Right. Yeah, totally.
Mark Boyer (17:18.668)
You’ve never seen that in your lifetime. know, that kind of growth, well, the majority of your life, I guess you’re maybe a little bit older than that. But yeah, yeah. You know what saying now? I mean, it’s like, it’s crazy that way. So that’s, that’s significant and where all the model, everything’s based on lower growth rates. So, you know, it’s kind of on almost uncharted waters here for 25 years. See if it can happen. Yeah.
Jason Jacobi, CFP® (17:20.48)
No.
Jason Jacobi, CFP® (17:27.029)
I’m young, I’m young. Yeah.
Jason Jacobi, CFP® (17:40.074)
It is. 100%. I was actually just thinking that we’re in uncharted times. We’ve never been in a period. I’m sure the industrial revolution was like this. Things were rapidly changing. How you produce buildings and goods. It was such an explosive time for the country. But now you’re entering this next phase of the AI, the automation.
Mark Boyer (18:00.867)
Yeah.
Jason Jacobi, CFP® (18:06.028)
innovation and so we don’t know exactly like where this is going to go. So it’s uncharted waters in that sense too. But let’s dial in the tariff talk here real quick. So again, our projections, what we just talked about, 4 % GDP growth, you know, would wipe out that kind of deficit, that delta. Now, if we factor in, so let’s back up here.
Mark Boyer (18:13.582)
100%. Yeah. Yeah.
Jason Jacobi, CFP® (18:35.18)
Besant has just said that we’ll bring in about $500 billion this year of tariff revenue. So if 500 billion.
Mark Boyer (18:44.942)
500 billion this year. Yeah. With the current deals that are done. that what? Yeah, that’s current. Yeah.
Jason Jacobi, CFP® (18:51.241)
Yes, based off of how things are right now. if that’s the case here, let’s take a look. So making sure we get this, the revenue right here. All right. So.
Or we would need…
I’m sorry, excuse me, 300 billion. That’s why I wanted to check 300 billion.
Mark Boyer (19:15.086)
300 billion. All right. So 300 billion, you’re saying 300 billion this year is what the deals we’ve made. We’ve got a lot of potential deals out there still, but currently we’re locked in to get $300 billion in tariff revenue. Again, and we haven’t talked about this, so this is good stuff. mean, yes, we have to grow it. Tariffs, are this… I mean, it is a bad word. It’s almost like when I remember the first time my mom
Jason Jacobi, CFP® (19:23.614)
Yes.
Jason Jacobi, CFP® (19:28.843)
Mm-hmm.
Jason Jacobi, CFP® (19:41.855)
Yeah.
Mark Boyer (19:44.942)
I thought it was cool and I said a cuss word, my mom heard it and I got my mouth washed out with soap. It wasn’t good. know, I mean, it’s almost like the tariff word is that. Anyway, out there in the land, the tariff word is like the bad word of the current deal. so what’s the numbers? What’s the numbers? What are you thinking?
Jason Jacobi, CFP® (19:56.821)
Yeah.
Jason Jacobi, CFP® (20:04.683)
So the 10 year outlook, Congressional Budget Office projects that we’ll bring in about $2.8 trillion in tariff revenue from 2026 to 2035 under the current tariffs. Yale’s budget lab estimated 2.6.
Mark Boyer (20:21.998)
2.6 trillion. that’s, wow. So that’s a 0.8 trillion, right? Low or less than what we need.
Jason Jacobi, CFP® (20:31.027)
Yeah, and then the tax foundation models showed 3.1. So what we did is we ran numbers off of, okay, over the next decade, if we could bring in around, you know, $3 trillion, let’s use that as the watermark, we would need about $300 billion, right, to make up. So with that being said, you know, we can factor in the
Mark Boyer (20:45.741)
Yeah.
Mark Boyer (20:54.456)
Wow.
Jason Jacobi, CFP® (20:58.687)
I mean, that’s my new it’s basically a point four to point six GDP growth per year you would need to average in order to offset the deficit.
Mark Boyer (21:05.966)
If you do get the tariff revenue and it’s long-term, 10 years, yeah, Yeah, that’s an interesting deal that nobody’s talking about. But again, like I said, it’s all kind of new for us as a country. It’s uncharted waters. We’ve never been in that place. And Trump’s pretty determined, it seems like to me, he’s going there. He uses the tariffs a lot for negotiating. I think that’s clear.
Jason Jacobi, CFP® (21:10.271)
Correct. Correct. Correct.
Mark Boyer (21:34.594)
I mean, look back in April, man, when he came out with that first thing on the lawn and he threw out the tariffs with the board and the markets just like, what? Because they were way higher. then, know, then, you know, whatever, was just, you know, having been in the markets a long time, you you get these things, surprises. anyway, but now since then, you know, the markets have really gotten used to Trump style, I think, you know, kind of the, we’re going to delay things, we’re going to push it.
Jason Jacobi, CFP® (21:39.914)
Yeah.
Yeah. Yeah. Yeah.
Mark Boyer (22:01.494)
And it seems like the market’s really kind of digesting some of that now. I mean, you know, so it’s part of that. And if he’s successful there, you again, I don’t hear, I’ve never heard him talk a lot about that part. Maybe I’ve just missed it, but that is true. I mean, if we get tariff money, that could help us too.
Jason Jacobi, CFP® (22:19.594)
Yeah. So tariffs, even if they bring in an average 2.5 to $2.8 trillion, then we have up to 3.3 billion. So about $500 billion, give or take again, a couple hundred billion or whatever, that still cuts that 4 % number exponentially in order to make it even profitable and actually have net positive flow over the next decade. So it’s interesting to think about. wanted just to bring it to your attention because the news always assess
Mark Boyer (22:23.17)
Yeah, possibly, if it worked,
Mark Boyer (22:33.93)
you
Mark Boyer (22:41.624)
Potentially. Potentially.
Mark Boyer (22:48.995)
Yeah.
Jason Jacobi, CFP® (22:49.193)
Oh, you know, we’re increasing the debt, which in real terms we are, that’s, but again, because we can’t forecast, we’re going to be at 4 % for 10 years. We’re going to be bringing in, you know, $2.8 trillion or $3 trillion in additional tax revenue from tariffs. So it’s all up in the air, but at least we’re trying to give you the information to say, oh, take a step back and be like, okay, so it’s, it’s not all doom and gloom like the media talks about.
The data says we can grow, we have grown at higher GDPs, though not for a while. Totally get it. And we’re kind of in an area of uncharted waters and that’s kind of our job, right, is to wade through the noise and see how that’s going to help benefit for our clients.
Mark Boyer (23:22.862)
Mm-hmm, it’s happening, yeah.
Mark Boyer (23:35.918)
Yeah, I think the key thing and it’s all good. Thanks Jason for all this. It’s good information. It really is. And again, you know, we’re just kind of throwing it out there and it’s I know I think you in our newsletter, it’ll be some, if you got comments, let us know, you know, like what do you guys think? I mean, if listening to this, are your take? We’re just throwing out what we’re hearing and what’s going on. You know, it’s always an exciting time, you know, to be, you know, invested. think it’s, you know, it’s always a challenge.
Jason Jacobi, CFP® (23:49.917)
Yeah. Yep.
Mark Boyer (24:04.942)
I think you can get super, the markets right now are very, they’re moving. We’re hitting new highs ever since kind of that announcement in April. And who knows what’s gonna happen. Tariff yesterday, all of a sudden something came up with Canada and the markets are down this morning. All that to say though is just a lot of noise. Again, I always stress with clients is that based on the goals and objectives that you have, it’s.
critically important to stick with a plan that you have and to stay diversified. I’ll give you an example. There’s a lot of people like, Trump is all pro-America, right? It’s all this, mega, mega pro-America, which is great. But what’s interesting is to see the markets that have done the best this year, international markets, right? International markets, markets that have not done very well because frankly,
Jason Jacobi, CFP® (24:45.021)
Yeah.
Jason Jacobi, CFP® (24:51.741)
Yeah. International. Yeah.
Mark Boyer (24:58.806)
last few years, there’s been a lot of value in international. Plus you get with the concern of the dollar and the U.S. debt, the U.S. dollar has been dropping. So that’s actually a tailwind. It’s a tailwind for international investing. So we’ve been part of that. We’ve got we position a lot of portfolios more internationally here early in the year based on that. That’s been that’s been helpful. So, you know, I think you just there’s always you just got to stay in tune and and adjust when you need to that game plan that you put together.
Jason Jacobi, CFP® (25:09.075)
Tailwind.
Mark Boyer (25:28.814)
And so we encourage clients to not panic, or get too giddy. You gotta keep your extremes on both sides kind of under control and just have your game plan, review it, call us, review it with us. Make sure we’re still on the same page and then we can adjust as we go. So I know you love doing that with your clients as well and that’s part of it. And it’s really important to remember that, I just say the kind of the foundation of investing is that.
Jason Jacobi, CFP® (25:50.288)
Yeah.
Mark Boyer (25:58.274)
diversification and, and, you know, keeping alert of what’s happening out there.
Jason Jacobi, CFP® (26:03.367)
It really is. It really is all good points. And I really like what you said about the international piece, you know, the currency and how that kind of factors into being tailwinds or headwinds, depending on what the US dollar is doing comparison to other currencies. It’s really fascinating. Actually, a lot of people don’t think about it. So thanks for talking about that. So how does all this affect our clients? And I want to get your closing thoughts on this after, you know, a couple of things I wanted to touch on.
on just kind of the new kind of tax rates and deductions and exemptions that are kind of in place in the bill that I think are going to benefit our clients. You know, for example, know, standard deduction has gone up to 31.5 for married filing jointly. And again, these all go into play for this year. So you should see an immediate immediate tax benefit on that side for most middle and upper, you know, income earning families.
So, you know, we get a bonus deduction now for if you’re 65 or older, you get 7600 or if you $8000 if you’re not married or don’t have a surviving spouse. So and that’s through 2028 as well. One thing that I’m thankful for that got through and I understand there’s there’s differing opinions with this, but the state and local tax deduction, the salt deduction quadrupled from 10,000 to 40,000 through 2029.
Mark Boyer (27:04.149)
I’m not there yet.
Mark Boyer (27:22.904)
That’s huge.
Jason Jacobi, CFP® (27:28.391)
It does revert back to 10,000 in 2030. But again, it’s nice to have a little bit more reprieve for people in high tax states like New York and California and so on. And then we get an increase in the child tax credit. We get the estate and gift tax exemption actually goes up to 30 million for married filing jointly, 15 million for single. And then what’s really big. So this is big for a lot of a lot of vocational workers.
people that work in restaurants, hospitality bars, valet, know, just people out there working hard, tax on tips, right? That was a big thing that this administration campaigned on. So you’re able to deduct up to $25,000 per year from 2025 through 2028 against your earned income. So can deduct 25,000 of your taxes. Overtime pay, can deduct a 12.5 per taxpayer.
of your overtime pay. You can even deduct auto loan interest, right? It’s kind of part of that made in America policy, bringing manufacturing back. You can deduct 10,000 of annual interest on new loans from 2025 to 2028. And then this is a new thing. So this is actually going to be important for our clients. The Trump accounts. You heard about those? The Trump accounts for child saving.
Mark Boyer (28:48.815)
Yeah, but explain them a little bit. Yeah, I think it’s it’s I’m excited about this one.
Jason Jacobi, CFP® (28:53.883)
Yeah, one time $1,000 credit to account per child born between 2025 and 2028 helps get them going and saving for their future. That’s a nice little plus there.
Mark Boyer (29:04.654)
And I understand that they can be invested in the markets. It’s not like a fixed rate or anything. You can actually invest it in markets, which is just massive. That’s just massive. that’s another subject, social security. that’s one of the issues there. So that’ll be big. Because you can start compounding growth with a child born. Even $1,000 can really, really grow by the time they’re…
Jason Jacobi, CFP® (29:09.552)
Yeah.
Yeah, good point. Great point.
Jason Jacobi, CFP® (29:21.531)
Yeah.
Jason Jacobi, CFP® (29:33.443)
Right. Yeah. Yeah, absolutely. And I think this one, you know, one thing at Boyer Financial, you know, Mark, that I think you you’ve championed since you started this year back in 2002 was giving. Right. That’s kind of a foundational part of our business. We always encourage our clients to give. And there’s some great ways you can do it now with with the types of accounts, the donor advice funds and so on and so forth. Foundations.
Mark Boyer (29:34.134)
It’s significant, yeah, significant money.
Mark Boyer (29:51.384)
Yeah.
Jason Jacobi, CFP® (30:01.125)
But what’s really nice is that people that maybe weren’t, were kind of on the fence like, I might not get a deduction because I don’t itemize. Is it really worth it for me? Even though we appreciate out of the goodness of our heart and our faith and what we believe and tithing goes back biblically to the Bible. you can deduct 1,000 if you’re single or $2,000 married finally jointly. That’s permanent after 2025.
Mark Boyer (30:28.131)
Hmm.
Jason Jacobi, CFP® (30:28.132)
So people that might not be able to itemize, they can still deduct one or $2,000 per year if they give, which is fantastic. That’s fantastic. I love that.
Mark Boyer (30:31.736)
Give, yeah.
Mark Boyer (30:35.65)
That’s great. That’s great. That’s great. Yeah, me too. That’s great. love the fact that, yeah, we’ve been doing a lot of charitable foundations, different things with clients too. And, you know, it’s important. Look, I mean, you don’t, like they said before, you don’t ever see a, you know.
You know, there’s no, we’re not taking anything with us. We’re not taking anything out of this place. And so to be a person of generosity and to appreciate what God’s given you and give back, huge. that’s what we, to your point, that’s what we are always, you know, hopefully trying to talk to with clients because that’s a big deal. And this is huge because we got a lot of, you know, we got clients that, know, don’t necessarily, I have a lot of, we have a lot of clients, non-Odemyzers. And so this is, this is big for them. It’s great. So you’re going to put all this information in a newsletter, right? This, some of this, they’ll
Jason Jacobi, CFP® (31:24.869)
Correct.
Mark Boyer (31:25.592)
be able to see that and that’s great. Good stuff. I mean, no, no, no, it’s good. A lot of good points in here. could talk. there’s a lot of, a lot of exciting things for you. You kind of went over it quickly, but you got a little bit more of a tax credit for having kids. So that’s good for young family.
Jason Jacobi, CFP® (31:27.225)
Yep, and if you’re not on the newsletter, go ahead, sorry.
Jason Jacobi, CFP® (31:41.208)
Yeah, absolutely. Absolutely. And one thing I wanted to say is if you’re watching this video or listening on a podcast in your car or whatever, you can go to our website, www.boyer.com. You scroll to the bottom and you can actually type in your email there and you can actually get added to our newsletters that we send out.
We do them at least monthly. If there’s any big topics, we might do them more often, but it kind of gives us a good high overarching view of what’s going on, what we’re seeing, and then kind of forecasting going forward. But you can add yourself on there and then you’ll be on the list for future newsletters and podcasts moving forward.
