Author: Money Mechanics

Why Inflation May Be the Biggest Threat to Your RetirementgettyInflation is an important and often overlooked factor in retirement planning because it affects purchasing power, investment performance, and long-term financial security. Over time, inflation increases the cost of everyday expenses such as housing, healthcare, food, transportation, and utilities. Understanding the different inflation environments — high, moderate, low, and stagflation — and their impact on savings and investments is critical for retirees and long-term investors.High inflation occurs when prices rise rapidly over a short period. This can create serious challenges for retirees because fixed incomes and conservative investments may fail to…

Mortgage rates climbed to a new nine-month high Thursday as inflation fears outweighed fledgling investor optimism over the prospect of a peace deal with Iran. The average rate on 30-year fixed home loans rose to 6.53% for the week ending May 28, up 2 basis points from 6.51% the previous week, according to Freddie Mac. For perspective, rates averaged 6.89% during the same period in 2025.”The 30-year fixed-rate mortgage averaged 6.53% this week,” says Sam Khater, Freddie Mac’s chief economist. “Pending home sales have increased three months in a row, indicating there’s latent demand and homebuyers are ready to jump back…

(Image credit: Getty Images)Estate planning is complicated enough when both partners are U.S. citizens, but for couples where only one person is American, the rules change significantly at the border. For many affluent couples, the “unlimited marital deduction” is a cornerstone of estate planning — a guarantee that assets can pass to a spouse tax-free. However, if your spouse is not a U.S. citizen, that guarantee vanishes.Without the right structures in place, the IRS will view a noncitizen surviving spouse as a “flight risk” for taxable assets, often resulting in a massive, immediate estate tax bill. To protect your legacy…

May 27, 2026 Global Economic Developments and the U.S. Economy Vice Chair Philip N. Jefferson At the 2026 Bank of Japan-Institute for Monetary and Economic Studies Conference, Tokyo, Japan Good morning. It is an honor to be here at the Bank of Japan, and I appreciate the opportunity to speak with you today.1 I am looking forward to our discussion, but first I want to share some framing thoughts. I will briefly discuss three developments in the global economy that I am monitoring, and then I will update you on…

In-brief analysis May 28, 2026 We forecast natural gas consumption by the U.S. electric power sector this summer will remain near recent highs and set a record next summer in our May Short-Term Energy Outlook (STEO). Despite a 2% increase in overall U.S. electricity demand this summer, we expect natural gas-fired electricity generation to be similar to last summer, primarily because of forecast increased generation from renewables. In the May STEO, we forecast natural gas consumed by the U.S. electric power sector will average 43.7 billion cubic feet per day (Bcf/d) during the summer (June–September),…

Inflation continued to hit consumer wallets in April, likely keeping the Federal Reserve on the sidelines until the current wave subsides, fresh pricing data released Thursday showed.The personal consumption expenditures price index increased a seasonally adjusted 0.4% for the month, putting the 12-month inflation rate at 3.8%, the Commerce Department reported. Economists surveyed by Dow Jones had been looking for respective readings of 0.5% and 3.8%.Excluding food and energy, core prices rose 0.2% for the month and 3.3% for the year, against estimates of 0.3% and 3.3%.While the annual rates were in line with forecasts, the soft monthly readings could…

Lance Whitney/ZDNETFollow ZDNET: Add us as a preferred source on Google.Microsoft 365 users who need some AI-powered assistance with their files have a couple of options. As long as you subscribe to a plan that includes Copilot, you can tap into Microsoft’s AI to help you draft, edit, analyze, and summarize your files. Another option now available is Anthropic’s Claude, and that’s one worth considering.With Claude AI, you’re able not only to work in a single application but also to work across multiple applications. For example, you can ask Claude to generate a PowerPoint presentation based on data in an…

The IRS may revise its CP53E notices after months of taxpayer backlash and practitioner complaints.During a recent meeting with tax practitioners, the IRS Chief of Taxpayer Services said the agency may consider changes to the notices in light of widespread confusion, according to nonprofit publication Tax Notes (paywall).As Kiplinger has reported, hundreds of thousands of CP53E notices tied to direct deposit verification have reportedly been sent, and by some estimates, several million. In either case, those numbers represent a significant share of taxpayers hearing from the IRS during filing season. From just $107.88 $24.99 for Kiplinger Personal Finance Become a…

Most 401(k) plans provide a little-known tool that can increase an account’s flexibility, expand the available investments and potentially increase total returns. The tool can be especially valuable during the retirement years if the account owner wants to generate more income.The tool is known as a self-directed brokerage account or brokerage window. Many plans have the option but don’t publicize it. The plan sponsors don’t want to be blamed when participants make risky investments they don’t understand, potentially incurring losses. The plan administrators also might earn less money from an SDBA than from the funds offered through the core plan…

(Image credit: Getty Images)George Bernard Shaw is credited with saying that if all economists were laid end to end, they wouldn’t reach a conclusion. And President Truman said, “Give me a one-handed economist. All my economists say ‘on the one hand…’ then ‘but on the other hand.'”If you read the business news, it often seems that Shaw and Truman were right. Some economists seem to always favor one viewpoint, while others favor another. Often, it seems that their opinions line up with their politics.And yet, there are many areas where there is common thought among economists. One way to find…