A practical financial check-in for 2026

Every year brings small but meaningful changes that can impact how we save, spend, travel, and plan for the future. Some are easy to overlook, while others can quietly cost—or save—you money if you know what to watch for.

In this edition of “7 Things You Should Know,” we’re highlighting a mix of timely updates and practical insights that touch on everyday financial life, from insurance costs and retirement savings to flying requirements, housing trends, and even “lost” money you may not realize is yours. None of these topics requires a major life change, but each one offers an opportunity to make more informed decisions and avoid unnecessary surprises.

Think of this as a quick check-in: seven things worth knowing now that could make a meaningful difference over time.

Offset the Cost of Rising Insurance Premiums

As we’ve noted on several occasions, the cost of insurance is soaring for many people. But there are steps proactive consumers can take to lower their premiums, or at least limit how much they go up.

One of the easiest ways to save is to bundle your homeowners and auto insurance (and sometimes life or umbrella insurance) with the same company. Many insurers offer a multi-policy discount that can lead to significant savings.

Also, if you drive an older vehicle that has lost much of its value, consider adjusting your coverage by increasing deductibles or lowering (or dropping) comprehensive and collision coverage.

Many insurers offer discounts if you make home improvements such as installing qualified security systems, smoke alarms, or fire sprinklers.

As for your auto insurance, the most important thing you can do is maintain a clean driving record. Some states provide discounts, especially for those 55 and older, for taking a defensive driving course. That could save you 5-20% on your premium.

You can find approved courses through AAA, the National Safety Council, and some online providers. Check with your insurer before enrolling to make sure they offer a discount.

And while we’re on the subject of driving-related costs, even small habits can add up.

Did you know that your mileage per gallon drops significantly at higher speeds? Every 5 mph over 50-60 mph uses more fuel due to increased wind resistance.

New ID Requirements to Fly

There’s an important change coming that could affect your next trip.

Beginning February 1, 2026, airline passengers will be required to show a Real ID card or pay a $45 TSA fee to fly out of any U.S. airport. That fee puts you into an alternative screening process called TSA ConfirmID.

Other forms of identification can be used, such as a valid U.S. passport, a Green Card, or a DHS Trusted Traveler Card, such as Global Entry.

If you don’t have any of those, you can pay the $45 online, before arriving at the airport.

To get a Real ID card, visit your state’s Department of Motor Vehicles and present several original or certified documents to prove your identity. These include your passport, birth certificate, Social Security card, a pay stub with your full Social Security number, and two items proving your state residency (e.g., a utility bill).

The cost varies by state, but it’s usually around $30. It generally takes 15-20 business days to process, so don’t wait until the week before your departure date. The Real ID shows up on your driver’s license.

New Contribution Limits for 401(k) and IRA Accounts

On the retirement planning front, there’s some good news for savers.

The IRS has expanded the amount you can stash away in retirement accounts. Beginning January 1, 2026, the limit for most plans will be $24,500, up $1,000 from last year. People 50 and over can contribute an additional $8,000 in catch-up contributions, and workers aged 60 through 63 can contribute an extra $3,250 on top of that, setting their limit at $35,750.

If you earned FICA wages of more than $150,000 in 2025, the catch-up contributions must be made to a Roth 401(k)/403(b), thus losing the benefit of the tax deduction that you received last year when all 100% of the catch-up could be contributed to the Traditional 401(k).

401(k)s Not Just for Retirement?

While contributions are rising, not everyone is in a position to take advantage of them.

A record number of savers are tapping their retirement plans for emergency cash needs.

In 2024, 4.8% of people with 401(k) plans took “hardship withdrawals” – a record high. According to Vanguard Group, that’s more than double the rate seen just a few years ago.

For individuals under age 59½, these withdrawals may be subject to a 10% penalty, depending on certain IRS requirements. There are exceptions such as disability, adoption, and unreimbursed medical expenses.

Using retirement savings in an emergency may help prevent a financial crisis from spiraling out of control, but it also creates a long-term cost, especially when you factor in the lost compounding growth over several decades. This is not a strategy we recommend unless it is absolutely necessary. Speak with a financial planner before tapping into your retirement savings for anything other than retirement.

Record High Savings Rate

Despite the rise in hardship withdrawals, overall savings trends tell a more encouraging story.

The average total savings rate in 401(k) plans, which includes both employee contributions and employer matches, reached a record high of 14.3% at the end of the first quarter of 2025, according to a Fidelity Investments analysis.

The total average contribution rate usually increases with age:

• Baby Boomers: 17.2%
• Generation X: 15.4%
• Millennials: 13.5%
• Generation Z: 10.9%

Financial advisers generally recommend that people save about 12% to 15% of their pay annually.

Home Buyers Want Move-In Ready

Let’s shift gears to housing trends.

If you skim through homes for sale online or in a newspaper, you’ll see plenty of “fixer-upper” listings. They tend to need work and sell for about 7% less than comparable renovated properties.

A recent Zillow report found that a listing using the word “renovated” had the opposite effect, selling for about 4% above the median price.

That’s a change from just a few years ago, when many buyers were looking for projects in which they could be creative and carve out their own vision.

But now, buyers are looking for turnkey properties that already have most of what’s on their wish list.

Other words that pop up on Zillow’s most wanted list include cozy, parking (especially in city listings), private backyard or outdoor space, mountain, lake or ocean view, near public transit, renovated kitchen (especially with stainless steel appliances or an upgraded countertop), mother-in-law suite, and lush landscaping.

Find “Lost” Money

Finally, there’s one area where many people may be overlooking money that’s already theirs.

American workers have “lost” or forgotten billions of dollars they invested in 401(k) and other retirement plans with former employers.

If you realize that money from your old 401(k) was not rolled into your current plan, start by contacting the benefits department at your former employer. And don’t give up hope if your former employer is no longer in business. The Department of Labor has a new “lost and found” database that can help you find your abandoned money.

In addition to retirement plans, there are lots of other assets still unclaimed, often including your last paycheck at a former employer. Each state maintains a database for searching for unclaimed property. Check out unclaimed.org.

Closing Thoughts

At first glance, these seven topics may seem unrelated, but together, they reflect a common theme: small details matter. Whether it’s adjusting a deductible, updating your retirement contributions, preparing for upcoming travel requirements, or tracking down forgotten assets, staying informed can help you make smarter, more confident financial choices.

As always, if any of these topics raise questions or prompt you to take a closer look at your own situation, don’t hesitate to reach out to us.