Author: Money Mechanics

As the world’s largest manufacturer of heavy construction and mining equipment, Caterpillar (CAT) has long been seen as a bellwether for the global economy. Happily for long-term shareholders, CAT’s returns have greatly outpaced the global economy – and U.S. stock market – for decades.Caterpillar’s outperformance in the 21st century was never a foregone conclusion. If anything, a company founded a century ago to supply tractors for delta farmers and New Deal works projects should be about as old-economy as they come.It’s not. Caterpillar has spent the past two decades navigating massive cyclical changes to the global economy very much to…

(Image credit: Getty Images)It’s common to feel like you’re behind when it comes to building wealth, especially if you are measuring your progress against traditional age-based milestones. Many people have been taught to follow a set path: start saving for retirement in your twenties, invest a set percentage of your income in your thirties and increase contributions later in life.In reality, financial lives rarely follow a straight line. Career changes, caregiving responsibilities, divorce, periods of unemployment or simply getting a later start can all shift your timeline. As a result, you may not be where you expected to be for…

(Image credit: Getty Images)After two lackluster years, the Primecap Odyssey Growth Fund (POGRX) is back. In 2025, the fund gained 33%, beating the S&P 500 Index, which climbed 18%, as well as 99% of all large-company stock funds.Moreover, the fund did so without a big allocation to communications services and information technology companies, which top the performance charts and dominate the broad market.Combined, the communications services and information technology sectors account for nearly half of the S&P 500 (they advanced 34% and 24%, respectively, over the past 12 months). But those sectors make up just over one-third of the Primecap…

(Image credit: Getty Images)Financial security rarely comes from hitting one magic number. Instead, it grows in layers, and for many households, the biggest source of money stress isn’t just low savings. It’s uncertainty.When you don’t know whether your savings are “enough,” every unexpected expense can feel like a crisis waiting to happen. That’s why financial experts increasingly recommend thinking about savings in tiers rather than aiming for one overwhelming goal. Each level of savings offers a different type of protection and peace of mind.If you’re trying to feel more financially secure this year, these three benchmarks can serve as a…

(Image credit: Getty Images)As the rising cost of everyday essentials continues to strain the wallets of Americans nationwide, it’s more important than ever to trim costs wherever you can. One of the best ways to cut your monthly budget is by eliminating things that are a waste of money anyway or potentially harmful to your wallet in the long run.By cutting out the wasteful spending first, you can save money without actually making sacrifices to your quality of life.With that in mind, here are some of the ways you might be spending more money than you need to on your…

(Image credit: Getty Images)The market for exchange-traded funds (ETFs) that help build bond ladders is growing. Bond laddering is a popular investing technique that staggers maturities across multiple bonds, or bond ETFs, in order to create a consistent income stream and minimize the impact of interest rate swings.Now, low-cost fund giant Vanguard has filed paperwork with regulators to launch a line of target-maturity corporate bond ETFs.They’ll go up against iShares’ line of iBonds, Invesco’s BulletShares and State Street’s MyIncome ETFs. Vanguard hopes to launch the funds in early 2026. (Investors should not confuse the firm’s target maturity ETFs with its…

When actress Diane Keaton died last year, she reportedly left her golden retriever, Reggie, around $5 million through a pet trust. While the amount may seem like the kind of over-the-top gesture only a celebrity might make, experts say taking steps to ensure a beloved pet will be cared for if you die or become incapacitated is a gift of love.”If you have no plan, you’re really leaving your pet’s fate up to chance,” says Vicki Stevens, director of program management and communications for the companion animals department of the nonprofit Humane World for Animals.Yet while a Pew survey found…

Key Takeaways For Warren Buffett, market volatility can often be an opportunity to grab some value. Buffett treats market dips like sales events, but only on businesses he truly understands. A bigger risk than market moves is often emotions like fear and panic. Market volatility tends to stress out investors. A down day for the Dow can induce anxiety, and a sudden market rally can entice amateur investors to chase stocks they don’t really understand. However, for Buffett—the legendary investor whose name has become almost synonymous with both discipline and long-term investing—market swings are not to be feared, but to…

Key Takeaways Eastern Europe offers affordable health care, a low cost of living, and culturally rich, historically significant cities.Countries like Montenegro, Bulgaria, and Croatia are some of the most affordable countries in Europe for retirees.  Get personalized, AI-powered answers built on 27+ years of trusted expertise. Although you might think of the Eiffel Tower and Big Ben when envisioning the backdrop of life in Europe, these four affordable European countries demonstrate that looking east can offer the perks of Europe without the high costs of London or Paris. Bulgaria, Croatia, Romania, and Montenegro offer the culture, scenery, and cafe lifestyle of…

Where Else People Age 55-64 Are Saving Money Asset % Households with Asset Median Value for Asset Holders Savings Bonds 8.5% $3,000 CDs 6.6% $25,000 Stocks (directly held) 19.2% $30,000 Retirement Accts 57% $185,000 Bonds (directly held) 1.2% $400,000 Source: The Federal Reserve’s “Survey of Consumer Finances” (2022) “Directly held” means the asset is not in a retirement account. The value of bonds in this table looks much higher than the other categories, especially given that only a tiny fraction of 55-64-year-olds owns directly held corporate or municipal bonds. This small group either holds numerous bonds, bonds with high values,…