On September 16, 2026, the Federal Open Market Committee voted unanimously (12 to 0) to raise the federal funds rate by 25 basis points to a target range of 3.75% to 4.00%. This is the first rate increase since 2023, following six rate cuts spread across 2024 and 2025 that brought the target range down from 5.25% to 5.50%.

The Fed's updated Summary of Economic Projections, released the same day, signals the possibility of one additional 25-basis-point hike before year end. Markets are currently pricing that in for the December 8-9 FOMC meeting, though nothing about the Fed is ever quite as certain as market pricing implies.

The Short Version of Why

Inflation is running hotter than the Fed would like. According to the September projections, PCE inflation is expected to end 2026 near 3.7%, still well above the Fed's 2% target. Meanwhile, the labor market has held up better than expected, and productivity growth remains solid. Fed Chair Kevin Warsh framed it plainly at the September 16 press conference: the Committee is not confident inflation is falling toward target quickly enough.

What This Means for Your Money

For savers: This is your friend. Watch for HYSA rates to firm up over the next several weeks, and consider extending CD maturities if you have cash you know you will not need for six to twelve months.

For borrowers with variable-rate debt: Your interest rate on credit card balances, HELOCs, and adjustable-rate mortgages will step up. Now is a reasonable moment to prioritize paying down the highest-rate revolving balances first.

For fixed-mortgage holders: The 30-year mortgage rate does not follow the federal funds rate directly. It follows the 10-year Treasury yield, which has been jittery for months. A Fed hike aimed at cooling inflation can, counterintuitively, put downward pressure on long-term Treasury yields. Do not be surprised if the headline rate moves in a direction opposite what your gut expects.

What Not to Do

• Do not overhaul your portfolio in response to one meeting. Historically, one-move rate cycles are rare. Six months from now, the picture may look very different.
• Do not chase yield into products you do not understand. A 6.5% "high-yield" corporate note is not a substitute for a 4.5% FDIC-insured savings account.
• Do not stop your automatic 401(k) contributions. Dollar-cost averaging is unbothered by monetary policy. Your future self will thank you.
• Do not assume this is the last hike. The Fed's own dot plot suggests continued adjustments into 2027.

The most useful posture right now is a boring one: hold cash reserves in accounts that repay the increased rate, avoid new variable-rate borrowing where you can, and keep long-term investment strategy on autopilot. Boring, in this environment, is a strategy.

Every fall, roughly 68 million Americans on Medicare receive a wave of glossy mailers, celebrity-fronted television ads, and unsolicited phone calls all pointing to the same seven weeks: the Medicare Annual Enrollment Period (AEP), which runs October 15 through December 7, 2026. Any coverage changes made during this window take effect January 1, 2027.

This is the single, once-a-year opportunity for existing Medicare beneficiaries to review, switch, add, or drop most of their coverage. If you or a loved one is on Medicare, this is not a period to sleepwalk through.

What You Can Actually Change

An important nuance: Medigap (Medicare Supplement) plans are not part of the AEP. Medigap has its own rules and, outside your initial Medigap open enrollment window, insurers may use medical underwriting to accept or price your application.

The One Piece of Mail You Should Not Ignore

By September 30, 2026, Medicare Advantage and Part D plans are required to send each enrollee an Annual Notice of Change (ANOC). This document, which almost everyone throws in a "look at later" pile, contains the exact changes to your plan for 2027: premiums, deductibles, copays, drug formulary changes, and network adjustments.

Reading it takes fifteen minutes. Ignoring it can cost you thousands.

Three Reasons to Actually Do the Review

• Your prescriptions may have moved formulary tiers, or your plan may have added prior-authorization or step-therapy requirements. A drug that cost $10 last year may cost $80 next year.
• Your doctors may be out of network in 2027. Provider networks change annually. A quick call to your primary care office to confirm plan acceptance is worth the effort.
• New plans may fit better. Insurers roll out new benefits (dental, vision, transportation, over-the-counter allowances) each year. A plan that fit perfectly two years ago may no longer be the best value.

The One Tool Worth Using

Skip the mailers. Use the official Medicare Plan Finder at Medicare.gov. Enter your prescriptions, your preferred pharmacies, and your doctors, and the tool will show you side-by-side comparisons of every plan available in your ZIP code, ranked by estimated total annual cost. It is genuinely one of the better government tools out there.

Key Dates to Circle

• By September 30, 2026: Watch for your Annual Notice of Change letter. Read it.
• October 1, 2026: Plan details for 2027 become available on Medicare.gov. You can start "window shopping."
• October 15, 2026: AEP opens. You can now make changes.
• December 7, 2026: AEP closes. Missing this deadline generally means waiting a full year.
• January 1, 2027: Your new coverage takes effect.
• January 1 to March 31, 2027: Medicare Advantage Open Enrollment Period (MA OEP), a limited second window for MA enrollees only.

If you help an aging parent manage their coverage, this is the conversation to have next weekend, not in November.

By the time the calendar flips to April, your options for 2026 are almost entirely gone. The moves that lower your 2026 tax bill, sharpen your retirement strategy, and manage capital gains all have one thing in common: they must be completed by December 31, 2026. That is roughly 100 days from now.

Here are the five year-end plays worth reviewing before the holidays arrive and everyone loses focus.

1. Max the Workplace Retirement Plan

The 2026 elective deferral limit for 401(k), 403(b), and 457(b) plans is $24,500. The age-50 catch-up adds another $8,000. And under SECURE 2.0, employees aged 60 through 63 can use the super catch-up of $11,250, allowing a total employee contribution of up to $35,750.

Check your year-to-date contribution now. If you are behind pace to hit your target, most employers allow you to increase your deferral percentage for the remaining pay periods. Every dollar contributed pre-tax reduces your 2026 taxable income directly.

2. Consider a Roth Conversion, Deliberately

Q4 is prime Roth conversion season for a specific reason: by October or November, you have visibility into your 2026 income. That lets you convert a precise amount from a traditional IRA into a Roth IRA without accidentally spilling into a higher bracket.

A common strategy is "bracket filling": convert just enough to fill the top of your current bracket without crossing into the next one. The converted amount is taxed as ordinary income in 2026, but future growth and qualified withdrawals from the Roth come out entirely tax-free.

Two important cautions. First, since the 2017 Tax Cuts and Jobs Act, Roth conversions are irreversible: no more recharacterizations, no undo button. Second, a large conversion can raise your Modified Adjusted Gross Income enough to trigger higher Medicare premiums (IRMAA) two years later, so retirees near age 63 and beyond should model carefully.

3. Harvest Losses (and Gains) Before December 31

Tax-loss harvesting means selling investments held in taxable accounts at a loss to offset capital gains realized elsewhere. Losses can offset unlimited capital gains, plus up to $3,000 per year of ordinary income, with any excess carrying forward indefinitely.

Two rules worth respecting:

• The wash-sale rule disallows the loss if you (or your spouse) buy a "substantially identical" security within 30 days before or after the sale. Same stock, same day, different account, no dice.
• Gains harvesting is the mirror image. Investors in the 0% long-term capital gains bracket (2026: taxable income up to $49,450 single, $98,900 MFJ) may be able to realize gains at no federal tax cost, resetting cost basis higher.

4. Fund the HSA if You Have One

If you are enrolled in a qualifying high-deductible health plan, the Health Savings Account is arguably the most tax-advantaged account in the U.S. tax code: tax-deductible contributions, tax-free growth, tax-free qualified withdrawals for medical expenses. The 2026 contribution limits are $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up for account holders age 55 and older.

You have until the April 2027 tax deadline to fund a 2026 HSA, but earlier is generally better if the cash is available. Every dollar contributed reduces 2026 taxable income.

5. Charitable Giving Deserves a Look

If you itemize, this is the season to review deductible giving strategies. Two mechanics worth knowing:

• Donor-advised funds let you contribute (and deduct) a large amount in one tax year, then distribute grants to charities over multiple future years. Useful for "bunching" deductions to exceed the standard deduction threshold.
• Qualified Charitable Distributions (QCDs) allow individuals age 70½ and older to donate up to $111,000 in 2026 directly from an IRA to a qualified charity, satisfying required minimum distributions without adding to taxable income.

Your Q4 Action List

• Pull a year-to-date paystub and confirm you are on pace for your 401(k) target.
• Run a projection of 2026 taxable income. Ask your CFP or CPA to model a Roth conversion scenario.
• Review taxable brokerage accounts for tax-loss harvesting opportunities before Thanksgiving. December liquidity is thin.
• If eligible, top up the HSA.
• Draft charitable giving plans. Deadlines for donor-advised funds are firm.
• Schedule a year-end review with your advisor. October is ideal. December is late.

The households that pay the least tax over a lifetime are not the ones with the cleverest tricks. They are the ones who use the last 100 days of every year deliberately.