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We’ve all seen the headlines about inflation retreating from its highs during the COVID pandemic, and lately the current annual inflation rate is near 3%, yet many consumers wonder: “If that’s the official inflation rate, why do my bills and other costs seem so much higher than last year?”

Many of us ask ourselves that question. The problem is that when the government reports inflation, it does so for a basket of goods, and some elements of that basket, like transportation, may be much higher than the average rate reported. That can explain why your home heating bill is 15% higher than last year, while average inflation is hovering between 2% and 3%.

But besides affecting the price of goods and services you pay for regularly, inflation can also affect your investments.

What is inflation?

Inflation is defined as an upward movement in the average level of prices. Each month, the Bureau of Labor Statistics releases a report called the Consumer Price Index (CPI) to track these fluctuations.

It was developed from detailed expenditure information provided by families and individuals on purchases made in the following categories: food and beverages, housing, apparel, transportation, medical care, recreation, education, communication and other goods and services.

The CPI is a basket of goods, and your basket may not reflect the index’s basket. While it is the most used indicator of inflation, the CPI has come under scrutiny. For example, the CPI rose 2.4% over the 12 months ending February 2026, holding steady from the 2.4% rate reported in January.

Core inflation (excluding food and energy) increased 2.5% over the same period, indicating a stabilization in overall price growth. However, a closer look at the report shows movement in prices on a more detailed level. Motor vehicle maintenance and repair services, for example, rose 5.6% during those 12 months.

The effect on your investments

As inflation rises and falls, it can have the following effects on your investments and purchasing power:

1. Inflation reduces the real rate of return on investments. For example, if an investment earned 6% during a 12-month period and inflation averaged 1.5% over that time, the investment’s real rate of return would have been 4.5%. If taxes are considered, the real rate of return may be reduced even further.

2. Inflation puts purchasing power at risk. When prices rise, if you are on a fixed income, the money you have will cover fewer goods and services.

3. Inflation can influence Federal Reserve interest rate decisions. If the Fed wants to control inflation, it has various methods for reducing the amount of money in circulation. The most common way the Fed does that is to raise interest rates. As the logic goes, if interest rates rise, people and businesses will pull back on their spending, which in turn can reduce inflation. Also, if you are planning on taking out a loan, a higher inflation rate means you’ll have higher payments than if you take it out when rates were lower.

Seek out a trusted professional

When inflation is low, it’s easy to overlook how rising prices are affecting a household budget. On the other hand, when inflation is high, it may be tempting to make more sweeping changes in response to increasing prices.
The best approach may be to reach out to your financial professional to help you develop a sound investment strategy that takes both scenarios into account.

Once their kids are teenagers and in high school, parents fret about the trouble they could get into with friends, especially at parties. Unfortunately, these gatherings may involve alcohol, posing a risk of teens harming themselves and others.

Parents of kids who throw these parties, with or without their parents’ knowledge or consent, may bear responsibility for what happens there and for injuries or damages that occur after guests leave.

While their homeowner’s liability coverage may cover financial damages, the circumstances of the accident determine which policy will respond.

Take an example of a guest who consumes several beers at the party, drives off, gets into an accident and injures himself and a passenger. The parents of both injured teens sue the parents who hosted the party, who in turn notify their homeowner’s insurance company. However, the policy’s personal liability coverage does not apply to an insured person’s legal liability for:

• The occupancy, operation or use of a motor vehicle by any person.
• The entrustment of a motor vehicle by the insured person to anyone else.
• The insured person’s failure to supervise or negligent supervision of any person using a motor vehicle.
• The actions of a minor involving a motor vehicle.

Where auto insurance kicks in

Because of this, the homeowner’s policy would not cover the parents’ liability or defense costs. However, their personal auto insurance policy may cover them. The policy’s liability insurance covers the individuals named on the policy and household residents who are their relatives for liability for bodily injury from an accident arising out of the use of any auto.

Even though the parents were not actually operating the vehicle involved in the accident, their policy will cover their liability. In addition, the auto policy that applies to the car involved in the accident (the guest’s insurance or his parents’) will also cover the hosts’ liability for the passenger’s injuries. The hosts’ policy will step in if the owners’ policy does not apply or has paid out its maximum limit.

Now, assume that the guest consumes beer, but a sober guest gives him a ride home. Rather than go straight to bed, the young man goes for a swim in his parents’ pool and drowns. His parents sue the hosts, alleging that his judgment was impaired because the hosts allowed him to drink.

In this situation, the homeowner’s policy should pay for the hosts’ liability and legal defense. Because this accident did not involve a motor vehicle and no other policy provisions that would remove coverage apply, the policy will cover the claim.

Differences in coverage

While one policy or the other may apply to a liquor liability claim, there could be significant differences between the coverage limits the two policies provide. Most homeowner’s policies provide personal liability coverage of at least $100,000 per occurrence; many provide limits of $300,000 or $500,000.

Auto policies may provide much less coverage if the homeowner has only the state-mandated minimum coverage, but those limits are relatively small. Every state has different requirements for minimum limits for injuries or deaths to third parties.

Should a young person be seriously injured or killed, the damages claimed could exceed these amounts. Parents should consider buying an umbrella policy, which pays for damages that surpass the amounts payable under homeowner’s and auto policies.

Of course, the best course of action is to properly supervise parties so that everyone has an enjoyable time and lives to have another one.

For many U.S. workers, health insurance remains confusing, intimidating and underutilized. Despite the billions employers spend on benefits each year, a large share of employees does not fully understand how their coverage works or how to use it effectively.

According to a report by Aflac, only 38% of employees said they understand everything about their benefits, suggesting that most workers need more guidance on how their coverage works. When employees lack health care literacy — the ability to find, understand and use health information and services — they are more likely to delay care, make poor medical decisions and incur unnecessary costs.

For employers, that translates into higher claims costs, lower productivity and frustration with benefit programs.

Improving health care literacy can deliver measurable benefits. The Centers for Disease Control and Prevention has estimated that better health literacy could prevent nearly 1 million hospital visits annually and save more than $25 billion in health care costs.

The cost of confusion

Employees who do not understand their benefits often:

• Use out-of-network providers unnecessarily.
• Choose higher-cost care settings, like emergency rooms for non-emergencies.
• Skip preventive care that could head off more serious conditions later.
• Misinterpret bills or fail to challenge incorrect charges.

These behaviors drive up employer-sponsored plan costs and can also lead to more absenteeism and presenteeism.

Open enrollment is not enough

Many employers concentrate their communication efforts during open enrollment. While important, that once-a-year push is not enough to build true understanding.

Employees make health care decisions year-round, like when they schedule a test, fill a prescription or choose where to seek care. Without ongoing education, even well-designed benefit plans can go underutilized, and employees may make costly choices.

Employers that take a continuous approach to education are more likely to see employees engage with their benefits and make smarter decisions.

Practical ways to build health care literacy
Employers do not need to overhaul their benefits strategy to make progress. Small, consistent steps can have a meaningful impact:

• Use plain language. Rewrite benefit materials to eliminate jargon and explain key terms like deductibles, copays and coinsurance in simple terms. Aim for a sixth to eighth grade reading level.
• Educate year-round. Provide monthly or quarterly communications that focus on one topic at a time, such as preventive care, telemedicine or how to read an explanation of benefits.
• Show real-world examples. Compare costs for common scenarios like urgent care vs. emergency room visits so employees see the financial impact of their choices.
• Promote in-network savings. Use visuals or tools that highlight how much employees can save by staying within network providers.
• Leverage multiple channels. Combine e-mail newsletters, intranet content, webinars and short videos to meet employees where they are.
• Offer decision support. Provide access to benefits counselors, either in person or virtually, to help employees choose plans and understand coverage.
• Encourage preventive care. Regular reminders about screenings, vaccinations and annual checkups can reinforce healthy behaviors and reduce long-term costs.
• Use data to guide efforts. Review claims trends and employee questions to identify where confusion is highest, then tailor education accordingly.

Build trust and engagement

Employers that invest in health care literacy often become a trusted source of information for their workforce. That trust can increase participation in wellness programs, improve satisfaction with benefits and strengthen retention.

It also aligns with a broader shift in how employees view their benefits. Workers increasingly expect guidance and want help navigating a complex system. Fortunately, employers are well positioned to provide it.

A new study has found that many people who interact with their mobile phones while behind the wheel do so because of pressure from their bosses to answer calls, emails and text messages even if they are not on the clock.

Employers that pressure their staff to respond quickly to work-related messages and calls can be held partially liable for any accidents their employees cause due to distracted driving. While the employee’s personal auto coverage would cover the cost of accidents they cause, if an incident results in serious injury or property damage, the injured third party may go for deeper pockets, like your business.

According to the report by The Travelers Companies, almost nine in 10 business managers expect their employees to at least occasionally respond to work-related phone calls and texts outside traditional office hours. A third of them expect employees to take or participate in work phone calls while they’re driving.

Unsurprisingly, drivers who want to keep their jobs and the accompanying paychecks try to please the boss. Forty-two percent of drivers take work calls and read work texts and e-mails while driving, according to the report. Of those who do:
More than 40% say it’s because there may be an emergency at work.
39% believe they must always be available for their employers.
Just under 20% believe their bosses will become upset if they don’t answer.

Another study found that 86% of people who drive for their jobs had used a mobile device for work purposes while driving during the prior three months. An astounding 29% participated in video calls while driving.

These behaviors put the health and lives of the drivers at risk, along with those of their passengers and the motorists with whom they share the road. In addition to unnecessary pain and suffering, resulting accidents can incur thousands or even millions of dollars in legal liabilities for the drivers and their employers.

Some solutions to the problem are in the hands of policymakers and manufacturers of autos and mobile devices. These include:
Requiring advanced safety technologies in new vehicles.
Phone features that disable the device while the user is driving.
Laws against using mobile devices while driving, with steep penalties for violations.
State driver tests that include questions about the dangers of distracted driving.

What to do
Employers can also take action, such as:
Including in their employee handbooks policies discouraging use of mobile devices while driving on company business.
Making safe driving part of the company’s culture so that employees will have an expectation that they must drive safely.
Explicitly stating that no work phone call, e-mail or text message is so important that it cannot wait until the employee has parked their vehicle.
Explicitly stating that no employee will be expected to participate in video calls while driving.
Discouraging managers from calling, texting or e-mailing employees outside of stated hours or when they know employees are driving.

In addition, employees should be told they can find safe places to stop their vehicles should they feel it necessary to check messages or respond to calls or texts. And they should be made to feel secure enough in their positions that they can also refuse to respond until they are safely parked.

Distracted driving causes avoidable, tragic accidents. These are bad enough when people make voluntary irresponsible decisions. They are worse when drivers feel they have no choice.

If employers and employees change their attitudes, they can make the highways safer for all.

Retirement planning doesn’t happen by accident. It’s a long-term financial goal that benefits from structure, clear milestones and regular check-ins.

While every person’s situation is unique, a straightforward framework can help anyone take meaningful steps toward a secure retirement, no matter their age or how far along they are in saving. If you’re new to saving for retirement, here’s a practical five-step road map you can start using today.

1. Set realistic goals and know your timeline

The first step in retirement planning is to understand what retirement looks like for you and when you expect it to begin.

Do you imagine traveling, working part time or relocating in retirement? Your lifestyle goals affect how much you need to save. Starting early gives your savings more time to grow and allows you to adjust as life changes. While there’s no “perfect” age to begin, the earlier you start, the more compounding returns can grow your savings.

2. Estimate how much you’ll need

Once you’ve set your goals, estimate your future expenses. This includes housing, transportation, health care and lifestyle choices like travel or hobbies. A common planning guideline is to save enough to replace about 70% to 90% of your pre-retirement income after you stop working.

3. Choose the right accounts and invest

Where you save matters. For many people, employer-based plans such as 401(k)s — especially those offering matching contributions — are a strong starting point. If you don’t have access to a workplace plan, individual retirement accounts like traditional or Roth IRAs offer tax-advantaged ways to grow your retirement savings.

Next, choose investments that suit your time horizon and risk tolerance, whether that’s a mix of stocks and bonds or a target-date fund that adjusts automatically as you age. There are many educational resources online that can help you understand these options.

4. Maximize contributions and take advantage of employer benefits

Retirement accounts like 401(k)s and IRAs have annual contribution limits. If you’re above a certain age, catch-up contributions can let you save more as you get closer to retirement.

Always try to capture any employer match in your 401(k) or similar account — that’s essentially free money that can significantly boost your savings over time. Above all, consistency matters: regular contributions and disciplined investing often outperform sporadic investing decisions.

5. Review and adjust regularly

Life changes like a new job, new family responsibilities, a new child and market volatility mean your plan should evolve too. Revisit your savings goals, account strategies and investment allocations at least annually, or after major life events.

Take advantage of planning tools

Free online tools can make your planning easier and more precise. However, you should use them as a starting point before speaking with your financial planner. Some tools you may want to explore that can better prepare you for a meeting with us include:

Online calculators. Retirement calculators are designed to estimate whether your current savings and investment strategy will be enough to support you once you stop working.

While each calculator varies slightly, most of them follow the same basic process: they gather information about your finances and assumptions about the future, then project how your savings may grow and how long that money could last in retirement.

Retirement worksheets. These can help organize projected income sources such as Social Security or pensions alongside expected expenses.

Online retirement worksheets help you organize the financial pieces of retirement in one place so you can estimate how much income you’ll have and how much you’ll need. Unlike retirement calculators, worksheets are usually more structured forms that guide you through entering information and doing simple calculations.

Start today

No matter where you are in your financial journey, there’s value in taking actionable steps toward retirement readiness. If you are not into using online tools, we have them in house and can work through them with you.

We can help you plan for a secure retirement, without sacrificing your lifestyle. For more information contact Joe Sellitto today.