August 04, 2026

IN THIS ISSUE: Bond trends, sneaky money drains, and trimming taxes

GOOD START

Once you hit this magic savings milestone, progress may get easier.

THE HEADLINES

Bonding agents

What’s happening: Bond yields and prices are on a bumpy ride.

Here’s why: Ongoing inflation risks. Recent renewed hostilities in the Middle East have made oil prices volatile, and tariffs are back in the news. Then there’s the Federal Reserve, which has signaled it’s open to raising rates if inflation stays high, but as of the July Fed meeting, they held rates steady. This is all making bond yields and prices bounce around.

What it means: The upside of bond market volatility is that bond yields are now relatively high, compared with where they’ve been in recent years. That means the odds of earning a decent return are generally much better, according to Julian Potenza, Fidelity Total Bond Fund co-manager. Interested in bonds? Consider your goals, time horizon, risk tolerance, and the need for diversification across and within asset classes.

As for handling inflation, it could be worth it to look into investments like Treasury Inflation-Protected Securities (aka TIPS, a kind of government bond) that could help counter it, say Fidelity pros. Here are 6 ways to help protect your portfolio from inflation.

• • •

Bill of health

What’s happening: A 65-year-old retiring this year can expect to spend an average of $185,500 on health care and medical expenses during retirement—even with standard Medicare coverage, according to Fidelity’s 25th Annual Retiree Health Care Cost Estimate.¹ That’s up 7.5% from just 1 year ago.

Here’s why: Prices are spiking for services, generally, but also costs related to chronic conditions. Plus, more people are getting more care, which raises health insurance costs. Besides, standard Medicare doesn’t cover premiums, co-pays, deductibles, total medication costs, and routine vision and hearing exams.

What it means for you: The earlier you can plan for these costs, the better. If you have an eligible, high-deductible health plan, consider a triple tax-advantaged, investable health savings account (HSA). Contributions are pre-tax, potential investment growth is tax-free, and withdrawals are tax-free if used for qualified medical expenses, including some Medicare premiums—find out what counts as qualified.²

Another consideration: avoiding coverage gaps. Make these 4 retirement health care decisions well before you think you’d need to. Know that you could call on Fidelity to help you explore options for coverage, navigate Medicare, and figure out what to do if you work past 65.

• • •

Money talks

What’s happening: Nearly 70% of Americans who have used generative AI say they’ve used it for financial advice, according to an Intuit Credit Karma survey.³ But there can be risks for acting on AI’s guidance.

Here’s why: Some generative AI platforms may provide info and suggestions that are incorrect, inconsistent, or biased, according to a new study in the Journal of Financial Planning. Another watchout: Data you share with AI may not be secure.

What it means for you: AI tools may be a helpful first step for getting money ideas, but check reputable sources too. (Psst … Fidelity has answers to many of your questions). If you chat with AI, never share sensitive information, like your Social Security number, and know that the accuracy of personalized, specific calculations can vary.

Also, remember AI doesn’t act as a fiduciary. Translation: It isn’t legally obligated to prioritize your best financial interests. Looking for more reliable guidance? Here are smart tips to get matched with a financial advisor.

SNEAKY THINGS TO AVOID

HOW TO

Help reduce taxes in retirement

Most people miss these 6 moves.

Learn what’s critical

WORTH A TRY?

Hit the limit

With just a few months left in 2026, it’s time to check your progress toward your IRA, 401(k) or 403(b), and HSA contribution limits. Maxing out your annual contributions boosts your savings, and, depending on the account and your eligibility, it could help you lower your taxable income.

Here are 3 ideas for contributing more.

Think about setting up recurring transfers to these accounts or inching up the regular amount you’re already automatically contributing. Here’s how.
Earmark part of any year-end bonus for these goals.
Learn how to cut expenses by 10% and consider putting the money saved toward these accounts.

Need more direction? These 6 steps could help you max out your retirement savings.

NEXT STEPS TO CONSIDER

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1. The Retiree Health Care Cost Estimate (RHCCE) is based on a single person retiring in 2026, 65 years old, with life expectancies that align with Society of Actuaries’ RP-2014 Healthy Annuitant rates projected with Mortality Improvements Scale MP-2020 as of 2022. Actual assets needed may be more or less depending on actual health status, area of residence, and longevity. Estimate is net of taxes. The Fidelity Retiree Health Care Cost Estimate assumes individuals do not have employer-provided retiree health care coverage, but do qualify for the federal government’s insurance program, original Medicare. The calculation takes into account Medicare Part B base premiums and cost-sharing provisions (such as deductibles and coinsurance) associated with Medicare Part A and Part B (inpatient and outpatient medical insurance). It also considers Medicare Part D (prescription drug coverage) premiums and out-of-pocket costs, as well as certain services excluded by original Medicare. The estimate does not include other health-related expenses, such as over-the-counter medications, most dental services and long-term care.

2. With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.

3. “The Rise of Fin-AI: Why Americans Are Trusting Generative AI With Their Wallets,” Credit Karma, September 2, 2025.

Investing involves risk, including risk of loss.

Past performance is no guarantee of future results.

Diversification and asset allocation do not ensure a profit or guarantee against loss.

Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.

Investment decisions should be based on an individual’s own goals, time horizon, and tolerance for risk.

Fidelity does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially affect investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely. Fidelity makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.

The third parties mentioned herein and Fidelity Investments are independent entities and are not legally affiliated.

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