Author: Money Mechanics

The standard 401(k) playbook leaves high-income professionals and business owners with a planning gap that’s larger than most realize. Cash balance plans, when used correctly, can help close it.For most American workers, a 401(k) and an IRA cover the retirement bases. For successful professionals and business owners earning far above the median household income, those same vehicles may provide less retirement savings capacity and current-year tax efficiency than other qualified plan structures.The shortfall isn’t a flaw in the traditional plans but rather a planning gap — a missed opportunity to select a plan that better fits their unique circumstances. From…

Most financial plans are created with good intentions. When they’re made correctly, they account for the client’s goals, spending habits and savings patterns. But financial problems rarely come from a bad financial plan. They’re usually the result of a plan not being implemented consistently.Making financial changes isn’t easy. Behavioral changes take time, and daily life can be distracting. Clients usually understand the recommendations being made, especially when they have a good relationship with their adviser.But actually following the guidance requires the client to look inward and confront financial habits that may no longer work — and that can be uncomfortable.…

If there’s one question that keeps pre-retirees up at night, it’s this: Will my money last?For decades, the financial industry has leaned heavily on rules of thumb, such as the 4% rule, to answer that question. But real life rarely follows a straight line.Markets fluctuate, inflation rises and falls, and unexpected expenses — especially healthcare — have a way of showing up at the worst possible times. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues CLICK FOR FREE ISSUE Sign up for…

Dear Wealth Wise: “I’m 63 and my husband is 62. We currently have employer private insurance. Do I have to choose Medicare when I turn 65, or can I defer until he turns 65? Upon turning 65, I’m eligible for TRICARE For Life [for veterans]. I want to discontinue private insurance once I become eligible for Medicare, but that would leave my spouse without coverage. What are our options?”— One Year Closer to 65Dear One Year Closer to 65: You’ve asked a great question; many Americans struggle with healthcare decisions in their early 60s and even after Medicare kicks in…

The last time we checked in with Brown Capital Management International Small Company (BCSVX), the fund was reeling from a 2.3% decline in 2025 — a year when the MSCI ACWI ex USA Small Cap Growth Index gained 26%.The fund is heavy in tech stocks, which sank, and it’s light on materials and industrials shares, sectors that fueled much of the rally in 2025.And now? Over the first four months of the year, BCSVX, a member of the Kiplinger 25, our favorite no-load mutual funds, declined another 12%, compared with an 11% climb in the aforementioned index. From just $107.88…

At both the federal and state levels, efforts are underway to give workers a retirement savings boost. In one of the latest moves, President Trump signed an executive order this spring designed to enhance the options for workers who don’t have access to an employer-provided retirement plan. About 56 million workers fall into this group, or nearly half of U.S. private-sector workers ages 18 to 64, according to research from AARP.The TrumpIRA.gov, set to launch by the beginning of 2027, will connect these workers, who often include independent contractors, small-business employees, part-time workers and self-employed individuals, to low-cost IRAs from…

Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and helps your balance grow. However, rates vary widely across financial institutions, so it’s important to ensure you’re getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Overview of CD rates today Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates…

We’ve learned that Mercury General Corporation’s (Mercury Insurance’s) new Luca Re Ltd. (Series 2026-1) catastrophe bond issuance has seen its price guidance range now fall for a third time, with the company looking set for strong execution for its second 144A cat bond deal.As Artemis previously reported, Mercury Insurance made its return to the catastrophe bond market at the end of May, with an initial target to secure $100 million of California wildfire and fire following earthquake protection from the capital markets. In our first update on this deal, we reported that the Luca Re 2026-1 catastrophe bond was being marketed…

Vessels in the Strait of Hormuz near the beach of Bandar Abbas, Iran, June 17, 2026.Amirhosein Khorgooi | ReutersEarly signs that the Strait of Hormuz is reopening have eased the most acute threat to global energy supplies, but economic damages from the nearly four months of war will take months to unwind, analysts warned. The U.S. and Iran signed a memorandum Thursday to open the Strait of Hormuz, ending a war that has upended global energy supply chains, pushed inflation higher and dented the outlook for growth.But even if shipping through the strait normalizes, higher inflation has already been largely…

Asked about the privacy implications of chatbots like ChatGPT and Claude, Signal President Meredith Whittaker answered, “These are not your friends. These are not conscious beings. These are not sentient interlocutors.” Whittaker made those comments in a broader interview with Bloomberg about policy, privacy, and Signal. She acknowledged that she uses AI tools “to format a document here and there,” but insisted, “I don’t ask them questions. I’m very serious about my thinking and writing, and I don’t want the process of working through an idea […] to be foreclosed or eclipsed by the response of a system that’s averaging…