Others are more pessimistic. “I have concerns about using a projected medical expense in a plan to be implemented prior to retirement and/or prior to a need,” said Michael Zmistowski of Financial Planning Advisors in Tampa, Fla. “For me, the bottom line is these numbers thrown around sound great for the folks, but it's a false calming effect. Don't get too excited over the savings.”

All in all, exercise constraint. “What you don’t want to do is run out and buy the latest flat screen TV or a new car,” said Chad Parks, founder and CEO of Ubiquity Retirement + Savings in San Francisco. “Be prudent and stock away that extra money to create a cushioned emergency fund.”

Time to invest in renewable energy companies?
Besides healthcare cost savings, another primary objective of the act is to help renewable energy companies. But that doesn’t necessarily mean they are now a hot investment idea.

“The broad [sustainable-energy and eco-friendly] sector will see a long-term boost from the Inflation Reduction Act, lifting demand [and] the profitability profile of some players,” said Julie Praline, a director and equity analyst at Crestwood Advisors in Boston. “However, not all companies will benefit in the same way.”

Stuart Katz, CIO at Robertson Stephens, noted that the act “does provide an important accelerant for climate change adaptation and mitigation, and [it] will catalyze several green themes and industries.”

Other observers, however, are more cautious. “The law’s impact on the investment idea is negligible at best,” said Pisano at Biondo Investment Advisors. While it may persuade some people who were on the fence to purchase an electric vehicle, he added, it won’t be enough to alter the fundamentals that make investments attractive or risky. “The vast majority of people still drive a gasoline car and have their home connecting to gas or oil.” 

Still, there may be related investment opportunities in the future. “While there are provisions to make products like solar panels and electric cars more affordable to the middle class, the actual heavy lifting that needs to be done is in the area of building up our infrastructure to support those types of products,” said Bradley Newman, lead financial advisor at Fort Pitt Capital Group in Harrisburg, Pa.

In time, he said, it may be worth taking another look at related industries, such as “the companies that will build out the necessary infrastructure, or those that supply the components, like batteries or microchips."

Better stock dividends?
The act will impose a 1% tax on corporate stock buybacks. “Buybacks are an indirect way of returning profits to stockholders, which in turn increases the company earnings and therein increases the share price,” said Jay Freeberg, a partner at JRF Asset Advisors in New York City.

If the new tax makes companies rein in their buybacks, many of them may choose to reward shareholders in another way. “We will likely see companies increasing their dividends, so that they do not keep too much cash on their balance sheets,” said Freeberg.