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IN THIS ISSUE: Market update, larger tax refunds, and trimming expenses |
THE HEADLINES
Market movesWhat’s happening: It’s been a bumpy ride lately for stocks.
Here’s why: Investors might be feeling uncertain about the future state of the economy and inflation in the wake of recent economic reports and geopolitical developments.
What it means for you: Market ups and downs are normal. While it’s possible that things could stay bumpy, it can be helpful to remember that the stock market has a long history of recovering from short-term losses and continuing to grow over the longer term. (Just keep in mind: Past performance is no guarantee of future results.) It might be tempting to sell stocks to avoid additional drops, but if you do, it could be hard to catch up. Missing just a few of the best days in the market could set you back. Here are
9 tips to help navigate the market’s moves.
Available today, March 11, at 2 p.m. ET? Tune in for Fidelity pros’ latest thinking about the markets. |
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Cash backWhat happened: At an average of $3,382, tax refunds as of February 28 are 6.3% higher than this time last year, according to the IRS.1
Here’s why: It could be because of changes to tax brackets, a higher standard deduction, and higher credit amounts on the Earned Income Tax Credit and
Additional Child Tax Credit.
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| What it means for you: If you’re expecting a refund, you can
check to see where it is 24 hours to 4 weeks after you submit your return, depending on whether you filed digitally or by mail. What should you do with the refund cash? You could boost your emergency savings, invest for retirement or another goal, or treat yourself with a portion of it. Get
6 more ideas for your tax refund. |
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Untapped potential?What’s happening: Health savings account (HSA) owners might not be tapping into the account’s full potential, according to Fidelity’s 2025 State of Retirement Planning study.
Here’s why: They might not know HSA funds can be invested—33% of HSA owners are not investing any of that money.2 While HSAs offer a potentially tax-free way to pay for qualified medical expenses, they can be used as a retirement tool as well. Starting in the year you turn 65, you can use your HSA to pay for anything penalty-free, but your distributions will be subject to tax. If you are enrolled in an HSA-eligible health plan, you can invest your pre-tax contributions, and any potential growth is tax-deferred too.3
What it means for you: If you want to make the most of your HSA by investing some of the balance, consider setting a “cash target” or an amount of money kept in cash in your core account to cover near-term expenses. For example, say you have $5,000 in your HSA. You may determine $2,500 should be your cash target to use on qualified medical expenses now, and you can invest any money above that baseline to use in the future and even into retirement. Learn more about
investing your HSA, plus other ways to help make the account work for you. |
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WORTH A TRY?
Name that accountResearch says labeling your financial accounts by goal could help you stash more cash. That’s because it helps you establish an emotional connection to your goals—and that could make you more likely to prioritize hitting them.
You could think of fun or descriptive names to remind you why you’re saving—like “Beach House” or “Never-Work-Again Fund.” Once you’ve set aside money for that goal, you’ll be less likely to withdraw it to spend on something else. Want to do this for a Fidelity account? Log in to your account, then go to Profile. Under Preferences select “Nickname your accounts.”
Learn 8 more ways to help snowball savings for the future. |
HOW TO
Cut your expensesThe trick to saving more and spending less is to make small changes over time and build up your savings habit. |
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QUICK Q
Should I open an IRA if I already have a 401(k)?An individual retirement account (IRA) could help you save more for retirement outside of an employer-sponsored plan, such as a 401(k) or 403(b). Opening one could help you:
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Supplement your current savings in your employer-sponsored retirement plan. You can contribute to a 401(k) and an IRA at the same time to increase your retirement savings. (Psst … got 60 seconds? Plug your numbers into this tool to help get an estimate on where you stand.)
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Gain access to a potentially wider range of investment choices than your employer-sponsored plan.
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Take advantage of potential tax-deferred growth and potential tax-free withdrawals.4
Read more about investing for retirement with a 401(k) and Roth IRA. Then consider
which type of IRA might be right for you. |
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