Noah here—Judah has arrived! Mom is recovering well, and Judah’s already gained over 21 ounces in his first eight days. Here’s my favorite picture with him so far.
Let's dive into a two-minute look at the economy, an interesting story, and a financial planning secret.
📊 Economy – Big Beautiful Bill + Tariffs
The House-passed Big Beautiful Bill includes extensions of the 2017 tax cuts, spending reforms (like cuts to Medicaid), and increased defense funding. The Tax Foundation estimates it could reduce deficits by $1.9 trillion over the next decade—hopefully so. New or expanded tariffs may also bring in additional revenue, though the exact impact remains uncertain. As the bill heads to the Senate, its final shape will be important to watch.
🌍 Interesting Stories – Moody’s Downgrades U.S. Debt
Moody’s downgraded U.S. government debt to Aa1 (one notch below the top rating) on May 16, citing the nation’s growing $36 trillion debt. S&P and Fitch had already issued similar downgrades in 2011 and 2023. Bond markets responded mildly, with only slight yield increases. The downgrade underscores ongoing fiscal concerns, but its long-term effect will depend on future policy decisions.
💡Financial Planning Secret – Systematic Rebalancing
Systematic portfolio rebalancing—once or twice per year—helps maintain your desired risk level and long-term growth. As markets shift, rebalancing keeps your allocation in check and creates opportunities to sell high and buy low. It’s a simple but powerful habit for staying on track with your financial goals.
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About the Author
Noah Schwab CFP® is a financial advisor in Spokane, Washington, specializing in helping retirees with 401k Roth conversion strategies.
- Fiduciary. No commission, no insurance products
- Offering investment management and financial planning
