Author: Money Mechanics

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…

Unlock the White House Watch newsletter for freeYour guide to what Trump’s second term means for Washington, business and the worldOn the assumption that a chaotic, incoherent trade war was baked in the cake, FT Alphaville’s main bet for a financial-economic calamity under Trump 2.0 has long been that he launches a full assault on the Fed. Well, it’s here now: Donald Trump said he was firing Federal Reserve governor Lisa Cook “effective immediately”, in a stunning escalation of the US president’s attacks on the central bank. In a letter to Cook posted on social media on Monday night, Trump…

With no real updates on Russia-Ukraine peace talks, investors turned their focus to the Fed Chairman’s at the . His comments were seen as dovish, raising expectations for as many as three cuts of 25 basis points each this year. The US dollar initially reacted, but yesterday’s trading erased much of Friday’s move, showing that markets remain unsure if the Fed will really ease policy that much. Outside of monetary policy, the US continued to pressure India over its purchases of Russian oil. Washington warned it could raise tariffs on Indian exports to as high as 50% by the end…

When most people think about building wealth, their minds go to stocks, real estate, or even private equity. But in today’s market environment – shaped by years of rate hikes, stubborn inflation, and market uncertainty – one asset class is quietly offering some of the best after-tax income opportunities we’ve seen in a generation: municipal bonds. Historically, municipal debt has long been favored by retirees and high-net-worth investors for their tax-free income and low default rates. But today’s yields are rewriting the narrative. Munis are no longer just a conservative investment option for capital; they are outperforming many taxable alternatives…