Author: Money Mechanics

Key Takeaways Mortgage rates would need to fall to around 5.75% to draw back a significant amount of buyers into the housing market, according to recent surveys of lenders and real estate agents.The housing market has been in a holding pattern. For would-be buyers, mortgage rates remain prohibitively high, while sellers who locked in extremely low rates before they started rising in 2021 are reluctant to give them up. Mortgage rates are well below their highs for the year, but the housing market remains stuck in neutral, which begs the question: how far would rates need to fall to bring…

Key Takeaways Buffett has long been a big proponent of the index funds that Bogle helped bring to the masses. However, his public declaration that Bogle is an American hero may have also been influenced by the fact that one of Bogle’s funds just helped Buffett win a $1 million bet. Buffett bet that the Vanguard 500 Index Fund would outperform five funds-of-hedge-funds over a decade—and won by a mile. Warren Buffett once proclaimed that Vanguard founder Jack Bogle “has probably done more for the American investor than any man in the country.” Buffett’s praise appeared to affirm his longstanding…

Americans are increasingly shifting how they view retirement, including when it should begin. Instead of waiting until 65 or older, some now see 58 as the ideal age to retire, according to a recent Empower study. But before making the leap to early retirement, it’s necessary to understand the financial and emotional implications that come with retiring early. While the benefits are real, early retirement also comes with tradeoffs that need to be carefully considered. Early Retirement Could Be Your Chance To Try Something New Early retirement can be a great opportunity to reset your lifestyle. For some, it means…

Years ago, when clients asked me about private market investments, I had a standard response: “Sure, as long as you have at least $20 million in assets.”Since most private investments required minimum assets of $500,000 to $1 million, I didn’t recommend putting more than a small percentage of someone’s portfolio into illiquid investments. Investors needed a sizable portfolio to get involved and keep themselves liquid.Today, that conversation has changed completely. What was once the exclusive domain of university endowments such as Harvard and Yale and the ultra-wealthy, has become available to a much broader range of investors. It’s about to…

President Trump’s 870-page tax-and-spending bill is as big as advertised. Whether it is a beautiful bill from an investment standpoint is in the eye of the beholder. Like most new legislation, the One Big Beautiful Bill Act (OBBBA) has winners and losers.A larger tax credit, a bigger tax deduction, a more sizable write-off, a less-onerous regulation, or a booster shot from increased government spending can lift profits for companies that benefit.On the flip side, the end of a sizable subsidy, the phasing out of a tax break or major cuts to government programs can impair sales, resulting in earnings headwinds…

Question: I’m 68, and health issues have forced me to retire from my full-time job. Should I claim Social Security now or use my savings until I’m 70 so I receive a larger benefit amount?Answer: I’m sorry to hear about your health problems. It’s hard to imagine when you’re younger that poor health might sideline your work, but if it happens, you’ll need to rethink your retirement plan.A 2024 MassMutual survey aptly captured this dilemma, finding that 25% of respondents had to retire earlier than they had planned due to illness or injury. The survey also showed that, on average,…

Key Takeaways Median bank account balances in the U.S. range from $5,400 for those under 35 to $13,400 for ages 65–74, according to Federal Reserve data. Couples—with and without kids—report higher median savings than single households. College-educated households have the highest bank balances. The data reflects median—not average—savings, offering a more accurate snapshot of what typical Americans hold in their bank accounts. To boost your savings faster, consider a top high-yield savings account, money market account, or CD. The full article continues below these offers from our partners. How Much Cash Americans Keep in the Bank—And Where You Stand Ever…

Key Takeaways Tether Holdings recently made waves after confirming it was seeking a deal that would value the company at roughly $500 billion, comparable to the private valuations of firms pursuing artificial intelligence and space exploration.The two largest stablecoin issuers, Tether and recently public Circle, altogether account for 85% of the roughly $300 billion market. How much is the bridge between the real world and blockchains worth? Investors have shown interest in the business of stablecoins, the digital money some believe could one day displace cash. They’re not generally seen as investments themselves—those pegged to the buck should cost a…

Investors may not have as much to watch for this week as they expected if the federal government remains shut down. The shutdown is likely to delay the release of several economic indicators, including data on the U.S. trade deficit, weekly initial jobless claims and wholesale inventories. But investors are still expected to hear from Treasury Secretary Scott Bessent and top Fed officials. Consumer sentiment data and Fed meeting minutes are also expected to come out as planned.  Key corporate earnings are still expected, including numbers from PepsiCo, Delta Air Lines, Levi Strauss, and Applied Digital. Last week ended with…

President Javier Milei faces a formidable foe as he tries to contain a run on the peso ahead of crucial midterm elections: Argentina’s highly creative currency traders. The South American country’s history of strict exchange controls and economic crises have spurred investors to develop myriad strategies to extract profit from government policies. Their voracious demand for dollars can be a thorn in the side of cash-strapped Argentine leaders. Individual traders snapped up $9.5bn from Argentina’s central bank from April to August in order to sell them for more pesos on a parallel exchange market, according to a report by Buenos Aires’…