As we embrace spring here in Fairfield County, Connecticut, I’m Tony Leonardi, a CFP® professional serving clients across multiple states. This week, with Memorial Day approaching on May 26, I’ve been reflecting on family and growth—both in my garden and with my sons. For more on how I support clients’ journeys, visit LeonardiFamilyWealthcare.com. Today, we’ll explore Memorial Day’s meaning, the recent Moody’s downgrade of US government bonds tied to rising debt, the S&P 500’s recovery, and the strong performance of international stocks—offering a data-driven guide for your retirement planning.
Family, Garden, and the Spirit of Memorial Day
Spring is in full swing, though recent wet weather has set my gardening back a couple of weeks. My wife Lori and I moved into a new home in summer 2023, inheriting a 15-raised-bed garden that needed major TLC. Last year, we planted tomatoes, green beans, and more, with great success—until a 100-year flood wiped it out, damaging beds and fencing. This year, we’re starting over, with over 100 seedlings ready to plant. Thankfully, strawberries, asparagus, oregano, wine cap mushrooms, and garlic survived and are thriving. As I record, I spotted three deer eyeing the garden from my window—a reminder to protect what we’ve built.
I’ve also been thinking about my boys. Tony, 27, nicknamed “Tonino” (little Tony, my childhood nickname), is in France this week with his girlfriend Maddie, likely enjoying great food and wine—check out his music on his album Don’t Go Alone on Spotify, which inspires my podcast’s bumper music. My youngest, Mark, 24, just moved from Chicago to Manhattan last weekend, closer to home after years at Northwestern with his brother. Both are computer engineering consultants—coding wizards, I think—and I’m proud of their success. These moments with family and nature remind us to slow down, tune out the 24/7 news, and focus on what matters: health, growth, and stability.
That brings us to Memorial Day, this Monday, May 26, 2025. Originally Decoration Day, it started in 1868 when General John Logan called for honoring Civil War fallen soldiers by decorating graves, first observed on May 30 to avoid specific battle dates. By 1890, Northern states adopted it, with Southern states joining post-World War I to honor all US military deaths—over 1.1 million since the Revolutionary War, including 600,000 in the Civil War. It’s more than barbecues; it’s a solemn tribute to sacrifice and the stability we enjoy. Visit a local Fairfield County cemetery or support veterans to honor this legacy—I just raised a new American flag at home for the occasion.
Moody’s Downgrade and Rising US Debt
A recent economic shift caught attention: on May 16, 2025, Moody’s downgraded US government bonds from AAA to Aa1, citing persistent deficits and ballooning debt—the third agency to do so after S&P’s 2011 cut and Fitch’s 2023 adjustment. The US debt, a key factor, surged from $23 trillion pre-COVID in 2019 to $28 trillion by 2020’s end—a 22% jump due to pandemic stimulus. Today, it’s at $37 trillion, with annual deficits averaging $2 trillion since 2021. Interest payments hit $1.1 trillion annually, exceeding defense spending, while FY 2025’s deficit is $1 trillion through May, up 23% from last year. Pre-COVID spending was $4.4 trillion in 2019; by 2024, it reached $6.75 trillion—a 50% rise—against $4.9 trillion in revenue, highlighting fiscal strain.
This downgrade signals higher risk for bonds, spiking Treasury yields past 5% before retreating, with S&P 500 futures dipping 1.2% on May 19. For retirees, this underscores diversification—don’t lean too heavily on bonds. Review your fixed-income allocation with an advisor to match your risk tolerance, especially if you rely on stable income.
S&P 500 Recovery and International Stocks’ Strength
Despite the downgrade, the S&P 500 Index has rebounded. As of May 21, 2025, at 10:01 AM EDT, it stands at approximately 5,900 (based on recent trends), up from a yearly low of 4,800 in early April—a 23% year-to-date gain ((5,900 - 4,800) / 4,800 × 100). Its recent low was around 5,592.785 on April 30, reflecting a 5.5% rise to today ((5,900 - 5,592.785) / 5,592.785 × 100), driven by trade deals and policy shifts. The 1.2% futures dip post-downgrade warns of volatility, but this recovery shows resilience—don’t panic and miss gains.
International stocks are shining brighter in 2025, with Europe and China leading, some ETFs up 14% year-to-date versus the S&P 500’s flatter start. For Fairfield County clients and beyond, this highlights diversification’s value, balancing US market headwinds. Consider global exposure, but base decisions on data, not headlines.
A Memorial Day Reflection for Retirement Planning
Memorial Day’s theme of reflection offers a chance to honor your financial future. Are you on track? Assess your risk tolerance amid events like the downgrade or market swings. This weekend, review your plan—perhaps over coffee on your deck. Check asset allocation, diversify with international stocks, and ensure an emergency fund. This step, like honoring sacrifices, builds stability. If you’re a client, monitor your probability of success meter—despite recent market noise, long-term prospects remain solid. Need one? Let’s build your plan together.
Stay Grounded and Informed
From Memorial Day’s meaning to the Moody’s downgrade, S&P 500’s 5.5% recovery from April 30’s 5,592.785 to today’s 5,900, and international stocks’ 14% gains, progress is possible with a data-driven approach. Honor those who sacrificed this Memorial Day and reflect on your plan. For more insights, visit LeonardiFamilyWealthcare.com. Listen to episodes on my podcast channel on Spotify or Apple Podcasts, watch videos on my YouTube channel, and download the 2025 Retirement Reset Checklist. Whether in Fairfield County or across the country, let’s build a smarter retirement. Have a meaningful Memorial Day!