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IN THIS ISSUE: Tax strategies, finding cash in a pinch, and 3 savings habits |
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THE HEADLINES
Dollar coasterWhat’s happening: The US dollar’s value has been volatile lately.
Here’s why: Rising and falling oil prices due to the conflict in Iran might be impacting the buck because oil trades globally in dollars. The dollar may have also been rising as American investors sell international stocks and cash out in US dollars—increasing its demand. Hello, mixed signals. |
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What it means for you: Like the dollar, the stock market has also been seeing volatility as investors attempt to understand how long the conflict in Iran could continue. Though the US stock market and the dollar don’t always move in the same direction, uncertainty could be fueling the rapid up and down in both cases.
As with any volatility, taking a long-term approach is wise. Focusing too much on headlines can lead to missed market gains. In fact, in the 12 months following major geopolitical events, from Pearl Harbor to the start of the Russia‑Ukraine War, average stock market returns were right around their long‑run trend—about 8%.1 For now, here are
5 takeaways from recent market volatility,
plus 1 quiet positive that headlines are masking. |
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Tax season yearWhat’s happening: Taxes may be top of mind now, but Fidelity pros suggest thinking about tax efficiency year-round.
Here’s why: A study by independent research company Morningstar of pre- and after-tax investment returns from 1926 to 2023 showed that taxes may reduce portfolio returns by 2% a year on average for investors who do not account for them when making investment decisions.2
What it means for you: Consider these strategies to help reduce taxes and potentially boost annual returns:
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Adjusting asset location: This is when you own less tax-efficient assets, like taxable bonds, in tax-advantaged accounts, and more tax-efficient assets, like stocks, in taxable brokerage accounts.
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Tax-loss harvesting: Selling investments that are down can help offset realized investment gains (as in, investments you sold for a profit and may be taxed on).
Fidelity’s Tax-Loss Harvesting Tool🔒
could help.
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Managing capital gains: Consider hanging onto securities for more than a year so they’re taxed at the lower federal long-term capital gains rate (up to 20%, depending on your taxable income). If you sell them sooner, the gains would be taxed at your federal ordinary income rate, which can go as high as 37%.
Check out these
4 ways to help avoid tax drag
on your 2026 portfolio’s performance. Haven’t filed your 2025 taxes yet? Here are
5 last-minute tax moves
that could help save you money. Speaking of savings, Fidelity customers could
save 25% or more on tax prep. |
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Something borrowedWhat happened: The share of workers taking 401(k) hardship withdrawals ticked up from 18.9% in 2024 to 19.4% in 2025, according to Fidelity’s Building Financial Futures report.3 The share of workers with outstanding 401(k) loans also rose. That’s on top of the 9% of workers who took out a new loan in 2025.4
Here’s why: Rising prices, combined with a strong 2025 market, may have made taking money from increasing 401(k) balances seem more attractive. Investors may also be taking loans to pay for medical expenses or other unforeseen circumstances, according to the Fidelity report.
What it means for you: Before you remove money from a 401(k), first look to these
5 sources if you need cash fast.
They seek to minimally disrupt your financial health. Still need to draw on your 401(k)? Consider these pros and cons to
401(k) loans
and
401(k) hardship withdrawals. |
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HOW TO
Save $5,000 this yearThese strategies can help you stash more without major sacrifices. |
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TOOL SCHOOLToday’s tool:
Find the Help You Need widget
What it does: Matches you with resources to help you manage your money on your terms.
How it works: Pick a topic—from investing to retirement planning to taxes—and whether you want to do things yourself, get a little help, or have someone do it all for you. Then, a pop-up window will display tips, plus links to tools, calculators, and articles that could get you closer to your goals. Want DIY ways to choose investments? Or hands-on help to keep more of what you earn? What about putting together an estate plan? The widget can help point you in the right direction.
Good to know: Fidelity’s tools and calculators can help with almost any financial need, from creating a budget to reviewing your investment strategy.
Find all of them here. |
