Author: Money Mechanics

Key Takeaways Cashing out your 401(k) early—or before age 59½—typically triggers income taxes and a 10% penalty. It can also significantly shrink your future retirement savings.Unless it’s a serious emergency and you have no alternative funds to tap, financial experts strongly advise against early withdrawals.Before tapping your 401(k), consider getting a 401(k) loan, a 0% APR credit card, a personal loan, or using funds from a 60-day individual retirement account (IRA) rollover. If you need cash, what’s the harm in tapping your 401(k) for some extra money? While it may be tempting to cash out your retirement account in a…

Dividend investing has long been pitched as a safe, reliable way to generate income, especially in retirement.But after years of conversations with clients and families, I’ve found that dividend strategies are often misunderstood and, in many cases, can create more problems than they solve — especially when it comes to taxes.Here’s the hard truth: High-dividend investing is not a magic formula. When you peel back the layers, it can actually increase your tax burden, limit flexibility and stunt long-term financial growth. Subscribe to Kiplinger’s Personal Finance Be a smarter, better informed investor. Save up to 74% Sign up for Kiplinger’s…

In 2023, InvestiFi helped WeStreet Credit Union and Frankenmuth Credit Union offer crypto investing services to members. “At the time, most credit unions weren’t willing to jump into the market,” says Kian Sarreshteh, CEO and co-founder of InvestiFi.But of course, the environment for cryptocurrency is much more favorable today. Bitcoin reached an all-time high above $124,000 earlier this year, while many other coins are notching milestones of their own.Crypto stocks are also red hot, as evidenced by the impressive price action in cryptocurrency platform Coinbase Global (COIN) and the strong public offerings of CoinDesk owner Bullish (BLSH) and stablecoin provider…

Forgotten second mortgages may be coming back to haunt homeowners who haven’t received notices or account statements for years. Some homeowners may have thought their second mortgages had been modified along with the first mortgage, discharged in bankruptcy, or forgiven. As home prices have increased and homeowners have paid down their first mortgages, some are facing foreclosure notices and payment demands from companies claiming to own or otherwise having the right to collect on these second or so-called zombie mortgages.The CFPB continues to receive consumer complaints related to these once thought by homeowners as resolved loans. Many homeowners allege that,…

On August 7, President Donald Trump signed an Executive Order allowing 401(k) savers to access alternative assets in their retirement plans. That means that you could invest in companies that aren’t publicly traded, in some private real estate ventures and even in cryptocurrency. The move was applauded by the Labor Department as a means of expanding investment choices for savers and giving them more autonomy over their money. And many big names in the financial world support the change.BlackRock, for example, thinks private equity in 401(k)s could help millions of Americans enjoy better returns in their retirement plans. Introducing this…

Please enable JavaScript if it is disabled in your browser or access the information through the links provided below. July 31, 2025 Federal Reserve Board joins other federal financial institution regulatory agencies in providing banks the flexibility to use an alternative method for collecting certain customer identification information For release at 2:30 p.m. EDT The Federal Reserve Board on Thursday joined other federal financial institution regulatory agencies, as well as the Financial Crimes Enforcement Network, in providing banks the flexibility to use an alternative method for collecting certain customer identification information. Specifically,…

(Oil & Gas 360) – Get ready for a powerhouse lineup of networking and entertainment at EnerCom Denver – The Energy Investment Conference, celebrating its 30th anniversary this August!   We’re kicking things off in style on Sunday, August 17 with the much-anticipated EnerCom Denver Charity Golf Tournament, proudly sponsored by Netherland, Sewell & Associates, Inc. and EnerCom. Set against the stunning red rocks of Arrowhead Golf Club in Littleton, this tournament is more than a game, it’s a chance to change lives, a $150 donation per golfer supports IN! Pathways to Inclusive Higher Education, helping students with intellectual disabilities thrive…

KEY TAKEAWAYS Since the beginning of the year, seven different IRS commissioners have been appointed to the role, which typically has a five-year term.Additional leadership and workforce turnover have been prevalent in the IRS as the Trump administration prioritizes reducing government spending.With the tax administration’s low numbers, experts have warned that the IRS will have delays and may be unable to complete a successful 2026 tax filing season. High turnover in the IRS’s leadership and workforce could delay tax administrative work during the next filing season, experts said. Since the beginning of the year, the IRS has had seven different…

Key Takeaways Saving for a wedding often takes a year or longer, so earning more interest on your money can help cover the costs. A high-yield savings account can earn 4–5%, which is 10–13 times higher than the national average of 0.38%. The best CDs also offer strong returns you can lock in for several months or longer, helping protect your rate if the Federal Reserve lowers interest rates. The full article continues below these offers from our partners. The Hidden Cost of Keeping Your Wedding Fund in a Regular Savings Account Weddings are a significant expense, and they’re only…

Key Takeaways Annuities offer steady income and tax-deferred growth but often have high fees and limited investment options. Stocks can diversify your portfolio and provide substantial growth potential. Investors with low risk tolerance who want predictable income may prefer annuities. Investors with a longer time horizon and higher risk tolerance may benefit more from stocks. As retirement approaches, people and financial advisors don’t always see eye to eye on where to invest a lump sum: 64% of people ages 45–75 would invest $100,000 in an annuity rather than the stock market.62% of financial advisors recommend investing the money in stocks…