Core Molding Technologies (CMT) has reported its fiscal year 2025 second-quarter performance, indicating a subtle shift in the industry's economic cycle. Despite ongoing challenges, the company's sequential revenue declines have shown improvement, fostering expectations for a potential recovery in the fiscal years 2026-2027.

Highlighting its forward-looking strategy, CMT revealed a significant new agreement with Volvo and outlined ambitious capital expenditure plans for its operations in Mexico. Furthermore, a strategic leadership change is on the horizon, with the current Chief Operating Officer slated to assume the CEO position in 2026, ensuring a smooth and deliberate transition. The company is also actively broadening its market reach; trucking-related revenues now account for only 50% of total revenue, and CMT has pinpointed an additional $200 million in potential growth within adjacent sectors, underscoring its commitment to diversification.

As CMT continues to navigate market fluctuations, its current valuation remains equitable, offering a combined yield of 10%. While the inherent cyclical risks of its industry persist, the moderate upside potential supports a continued hold recommendation, reflecting a cautious yet optimistic stance on the company's future trajectory. This period of strategic investment and diversification positions CMT to emerge stronger as market conditions evolve, demonstrating resilience and forward-thinking leadership in a dynamic economic landscape.

For many retirees, especially those living on a consistent income from Social Security, the impact of inflation can be particularly challenging. As the cost of goods and services escalates, maintaining a comfortable lifestyle becomes increasingly difficult. Essential expenses like food, housing, and healthcare can quickly outpace a fixed income, highlighting the importance of robust financial strategies.

Inflation, at its core, represents the pace at which the prices of commodities and services increase. It signifies a reduction in purchasing power, meaning that the same amount of money acquires fewer goods than before. Various metrics gauge inflation, with the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) index being the most frequently cited. For older adults, who are typically no longer actively earning, inflationary pressures are a major concern, as their financial resources are finite.

To mitigate inflation's detrimental effects on retirees, Social Security benefits are subject to an annual Cost-of-Living Adjustment (COLA). This adjustment aims to boost monthly benefits in alignment with inflation rates, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) as its basis. The COLA is usually announced in December, reflecting the change in CPI-W from the third quarter average of the preceding year to the current year's third quarter average. While this mechanism is designed to help, it may not perfectly mirror the actual cost of living for the forthcoming year, especially if price increases accelerate.

Given that a substantial portion of retirees, at least 40% according to AARP data, depend on Social Security for half or more of their income, proactive planning beyond these benefits is essential. The erosion of living standards due to inflation can compel many to seek additional income through part-time employment. Jamie Kertis, a financial advisor at Everthrive Financial Group, highlights that such work can be a fulfilling aspect of retirement, particularly when aligned with personal interests and time availability.

Beyond traditional part-time roles, some retirees opt for independent income generation. Kertis suggests leveraging existing skills and abilities on a flexible schedule, perhaps through side hustles like childcare, tutoring, or online sales. These ventures often require minimal initial investment and infrastructure, offering autonomy and supplementary income.

For those still in their pre-retirement years, several proactive measures can be taken to establish diverse income streams. Building an emergency fund, ideally covering three to six months of living expenses, is crucial for financial resilience. Maximizing contributions to tax-advantaged retirement accounts, such as 401(k)s and IRAs, is also vital. In 2025, for instance, IRA contributions are capped at $7,000, while 401(k)s allow up to $23,500, with additional catch-up contributions permitted for individuals over 50. Furthermore, meticulous budgeting for healthcare expenses is imperative, as medical inflation typically outpaces general inflation. Lastly, auditing one's lifestyle to identify opportunities for reducing expenses, such as downsizing living arrangements or adjusting spending habits, can significantly enhance financial security in retirement.

In summation, navigating the complexities of retirement, especially in an inflationary environment, demands foresight and strategic financial management. While Social Security provides a foundation, its annual adjustments might not fully counteract rising costs. Therefore, cultivating alternative income sources, diligently saving, and prudently managing expenditures are indispensable steps for ensuring a resilient and comfortable retirement.