Author: Money Mechanics

Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million. They’re sharing how they did it and what they’re doing with it. This time, we hear from a 54-year-old married real estate investor who lives in the rural Midwest. He and his wife, a government employee, both went to college, obtained graduate degrees and continue to work in their respective fields.See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all…

There are many things to celebrate when you reach the milestone of retirement, and one underappreciated blessing is not having to commute anymore. For those who drive to work, this means considerably less wear on your car from sitting in traffic day in and day out.And does that mean you can cut your insurance bills? Well, yes, cutting your daily commute can be leveraged to trim your premium. But the difference probably isn’t as much as you’re hoping for — and there are more meaningful changes you can make as you retire that will net better savings.If you’re in your…

If you’ve ever laid awake at night replaying thoughts like “Did I pay that bill?” or “Am I saving enough for retirement?”, you’re not alone. Nearly 70% of Americans report feeling anxious about money, according to a survey from Northwestern Mutual. But the problem isn’t just the stress itself. It’s what that stress does to your decision-making.When we’re under financial pressure, our brains default to short-term survival mode. We might put off looking at our credit card statement, make an impulsive purchase to feel better or avoid making an important decision altogether like investing or asking for a raise. The…

When it comes to retirement advice, it doesn’t get better than Warren Buffett. The billionaire CEO of Berkshire Hathaway and one of the most successful investors in the world, is known for espousing sage advice on everything from investing to retiring.He should know a thing or two about it. The 95-year-old has amassed a fortune and has a cult-like following among investors who favor his value approach to investing.Over the years, Buffett has shared his knowledge and wisdom in his company’s annual shareholder reports, at Berkshire’s annual retreats, and during addresses to universities, institutions and think tanks. His advice is…

Key Takeaways Economists say the flurry of policies aimed at forcing drug companies to lower prices may not be as effective as President Donald Trump intends.Tariffs are likely to push up prices, including for generic medications and products made in the U.S. The Trump administration has issued a flurry of orders aimed at lowering pharmaceutical prices, but experts are leery that the actions will achieve that goal.The latest move in Trump’s ongoing campaign to reduce drug prices came late last month when the White House announced a deal between the government and Pfizer (PFE), the multinational company that makes COVID-19…

Renovating your home can make your home safer and more enjoyable, and it may even boost your home’s value if you decide to sell. From updated kitchens to new roofs, the right improvements can enhance both your lifestyle and your investment.However, rising material costs driven by tariffs and increased labor expenses mean home renovation projects are becoming more expensive. Careful planning is key to keeping your project on track and avoiding unpleasant financial surprises along the way.We’ll walk through how to estimate renovation costs, plan for unexpected expenses, and explore smart financing options to help you pay for your project.…

Key Insights Americans are generally planning to spend slightly less money—but more time—shopping for the holidays this year, the National Retail Federation said.Total spending is still expected to tick up thanks to wealthy Americans, who have recently played an outsize role in fueling the economy, according to analysts. Americans aren’t expected to slash their holiday budgets this year. But they may spend more time hunting for bargains—and find smaller ones than they hoped. Consumers are expected to approach the year-end shopping season with the same thrifty ethos they’ve adopted for much of 2025 as they look to deal with tariff-fueled…

Charlie Munger, the former Berkshire Hathaway Inc. (BRK.A, BRK.B) vice chair and Warren Buffett’s long-time right-hand man, argued that investors must be prepared for a brutal reality: If you can’t stomach a 50% decline in your portfolio, you’ll never achieve exceptional results. While many hope for an easy path to wealth, Munger’s rule remains one of the most straightforward and most challenging tests for anyone serious about investing in stocks over the long term. The 50% Drop Test That Separates Winners From Losers “You can argue that if you’re not willing to react with equanimity to a market price decline…

Key Takeaways Generally speaking, if you’re holding more cash than you need to save for an emergency fund or a large purchase, then you have too much cash on hand. Having too much cash is bad for a long-term saving strategy, such as for retirement, because inflation can eat into yields greatly. Instead, consider investing some of your cash into stocks, bonds, and fixed-income funds. How Much Cash Is Too Much? Having cash on hand is important to pay bills and have money stashed away in case of injury, illness, or loss of employment. But how much cash should you…

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Questions over the colossal investment by US tech companies in artificial intelligence, now running at $400bn a year, continue to come thick and fast.Will it, sceptics ask, ever be recouped, let alone generate the magical returns AI zealots expect? Leaders of the financial world from Kristalina Georgieva, IMF managing director, to Jamie Dimon of JPMorgan Chase have warned of an abrupt market correction. Could this be one of history’s more extreme cases of irrational exuberance?That phrase, you may recall, was coined by…