Author: Money Mechanics

Your asset allocation may be the most important decision you make as an investor. In fact, studies have found that asset allocation determines over 90% of the variations in portfolio returns. In other words, get your asset allocation right, and the rest is largely semantics.Asset allocation refers to how your investment funds are spread across the different asset classes, particularly in stocks and bonds.Portfolios with more stocks tend to lead to higher potential long-term returns, but also greater risk. Meanwhile, bonds provide a buffer against sharp downturns, but not necessarily the same growth as stocks. Finding the right balance between…

According to a letter he posted to his Truth Social platform, President Donald Trump says he has fired Fed Governor Lisa Cook.Based on allegations of mortgage fraud made by Federal Housing Finance Agency Director Bill Pulte and referred to Attorney General Pam Bondi, Trump cited his authority under Article II of the Constitution as well as the Federal Reserve Act to remove Cook for cause, effective immediately.Responding to the president, Cook said she would not leave her position. “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do…

The death of a spouse or partner can be one of life’s most devastating and stressful experiences. For many people, losing a partner takes a significant financial and emotional toll. Spouses often sacrifice time, finances, and their own careers to care for a partner in the period leading to their death. When their spouse passes away, a surviving spouse who is grieving their loss may find themselves overwhelmed with financial, administrative, and other obligations.Some states have enacted laws and some state courts have held that surviving spouses are not personally responsible for their deceased partners’ medical debts, and others limit…

Some might be surprised to learn their Social Security benefits are taxable in retirement.After all, you pay Social Security taxes on your wages while you work, and then when you retire, you might expect those payments to come tax-free.But up to 85% of Social Security payments may be taxed as you receive them. And even if you don’t think you’ll be subject to that much tax, your year-end bill might still surprise you. Factors like high income and unplanned withholding can result in a substantial tax bill to the IRS. Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed…

KEY TAKEAWAYS IBM and AI chipmaker Advanced Micro Devices said Tuesday they were teaming up to develop “quantum-centric supercomputing.”In June, IBM showcased what it called a “viable path” to building the world’s first large-scale, “fault-tolerant” quantum computer by the end of the decade. AMD shares are rising in premarket trading and have gained 35% so far this year. IBM (IBM) and AI chipmaker Advanced Micro Devices (AMD) said Tuesday they were teaming up to develop “quantum-centric supercomputing.” “In a quantum-centric supercomputing architecture, quantum computers work in tandem with powerful high-performance computing and AI infrastructure, which are typically supported by CPUs, GPUs and…

(World Oil) – Cenovus Energy has entered into a definitive agreement to acquire MEG Energy in a cash and stock transaction valued at $7.9 billion CAD ($5.7 billion USD), inclusive of assumed debt. The deal follows MEG’s recent rejection of a lesser takeover bid from Strathcona Resources. The acquisition brings together two leading SAGD oil sands producers with combined oil sands production of over 720,000 bpd, the lowest steam-to-oil ratio and the largest land base in the best quality resource area in the basin. Cenovus also stated the deal consolidates adjacent, fully contiguous and highly complementary assets at Christina Lake, enabling integrated development…

Key Takeaways DISH TV operator EchoStar announced the sale of low- and mid-band spectrum allocations to AT&T for $23 billion.The two firms also agreed to change their earlier network services deal to create a hybrid mobile operator relationship.EchoStar said the transaction resolves issues with federal regulators, who have been investigating whether it was meeting it wireless and satellite rights obligations. Shares of EchoStar (SATS) skyrocketed 75% in premarket trading Tuesday as the satellite TV provider, under pressure from federal regulators, sold 50 megahertz of its nationwide low- and mid-band spectrum allocations to AT&T (T) for approximately $23 billion. The operator…

Stock futures moved slightly lower Tuesday morning as investors assessed the potential impact of President Donald Trump’s decision to dismiss a high-ranking Federal Reserve official.  Futures tied to the Dow Jones Industrial Average, S&P 500 and Nasdaq were down 0.2% recently. Stocks got off to a sluggish start to the week after surging on Friday—the Dow hit its first record closing high of 2025—after Fed Chair Jerome Powell signaled that economic conditions may warrant a cut in interest rates when the central bank’s policy committee meets next in September. Late Monday, Trump said he had removed Lisa Cook from the…

Are you thinking about aging in place, maybe in a warmer locale? Like many of the roughly 20% of older adults who move for retirement, my father relocated to Florida to spend his retirement soaking up the sun and playing golf.Unfortunately, this means that, to date, he’s been in Florida for at least five hurricanes — one of which necessitated calling a contractor in a panic to help clear out space in the garage for his vehicle when he was on the edge of the hurricane’s path.I’m far from the only one who spends hurricane season worrying about whether my…

Question: I’m 53, and married with two teenage children. I earn $500,000 a year, yet I still live paycheck to paycheck. Despite my high income, we only started saving for retirement when I was 50. We have about $200,000 in a 401(k), which I max out annually. There is a $2 million mortgage on our primary residence and a $350,000 mortgage on our vacation property.My goal is to retire at 65 and maintain our current lifestyle, but I’m concerned about our lack of savings and high expenses. I’m also worried about how we’ll afford our children’s college educations.Answer: Living paycheck…