Author: Money Mechanics

(Image credit: Getty Images)Roth conversions have become a popular topic in retirement discussions, and for good reason.With concerns about future tax rates, required minimum distributions (RMDs) and the tax treatment of inherited retirement accounts, many investors are taking a closer look at whether converting traditional retirement assets to a Roth IRA makes sense.At its core, a Roth conversion involves moving money from a traditional IRA or 401(k) into a Roth IRA and paying income taxes on the converted amount today. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus…

(Image credit: Getty Images)Most people think retirement planning is about reaching a magic savings number. Save enough, invest wisely, and everything else will fall into place.But after years of working with individuals and families approaching retirement, I’ve learned that this narrow focus on saving often leaves people feeling unprepared, even when they’ve done everything “right” financially.I’ve found three main reasons for this retirement planning uneasiness. 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 Kiplinger’s Free…

(Image credit: Getty Images)Question: We’re 78, retired, and want to use our 2026 RMD to treat our two children, spouses, and six grandkids to a week-long vacation. We’re mobile but don’t have the same energy as the younger folks (no matter how much coffee we drink)! How should we approach this?Answer: For people with money in a traditional retirement savings plan, required minimum distributions (RMDs) can be a blessing and a curse. While RMDs can inevitably produce a sizable tax bill, they can also serve as an opportunity to splurge on experiences you otherwise wouldn’t dream of.If you’re 78 years…

Key Takeaways Impulse spending and social pressure can drain your finances, but small changes—like making it harder to online shop and setting clear boundaries with loved ones—can help you stay on track.It’s never too late to kick-start retirement savings: take advantage of employer 401(k) match and increase your contributions after you receive raises. Last year, did you splurge on a pair of shoes you couldn’t afford or fail to open an IRA even though you told yourself you would? If so, you’re not alone. A Credit Karma survey of more than 1,000 Americans found that the top financial regrets for…

Question: My partner and I plan to buy a home within the next year or two and are saving money for a down payment. Since we want to keep this separate from all other banking, what’s the best account to store it in?Answer: Having a dedicated account for larger savings goals is wise because it accomplishes two things: it provides a clear view of your progress toward the goal, and it reduces the temptation to spend that money impulsively, helping you stay on track.I’ll break down the best savings account to use in this scenario, as well as a viable…

Key Takeaways Financial planners say retirees are more likely to outlive their savings due to poor planning and spending habits.Experts recommend keeping five years of income needs in safer assets and tracking expenses closely to avoid premature portfolio depletion. Many Americans are worried that they will live longer than their savings. “Running out of money is a real risk, and for most retirees, it doesn’t happen because of bad investments,” said Melissa Caro, certified financial planner (CFP) and founder of My Retirement Network. “It happens because of bad timing, inflexible spending, or poor planning around income streams.” Whether you’re already…

Key Takeaways Buffett and Munger used financial data but prioritized understanding the actual business—its competitive advantages, management quality, and long-term prospects. They invested as if buying entire companies forever, not just trading stocks for short-term price moves or quarterly earnings. Warren Buffett and Charlie Munger built Berkshire Hathaway (BRK.A, BRK.B) into a massive empire by prioritizing a qualitative understanding of a business over complex financial modeling. While they certainly used financial ratios and other analytical tools, they didn’t let spreadsheets drive their investment decisions. Instead, these legendary investors focused on something many overlook: Deeply understanding how businesses actually work. This…

Q4 earnings mostly beat expectations, but indices remain range-bound. Johnson & Johnson and TSMC extend uptrends on solid outlooks. Meta lifts revenue guidance and doubles AI investment plans. The US earnings season for the fourth quarter of 2025 is still underway, but most major companies have already reported their results. That gives investors a clear picture of how the season is shaping up. So far, the results have been slightly positive. Many companies beat expectations, but the overall impact on the broader market has been limited. The Nasdaq 100 and S&P 500 have moved in a narrow range, with returns…

The U.S. Bureau of Labor Statistics released its inflation reportfor January 2026 on February 13th. Big News for our subscribers (at least we’re excited about it): We are in the process of a massive update for the site. We’ve already updated the Cumulative Inflation Calculator and made the tables easier to navigate. They collapse, so it is easier to scroll past them and continue on with the article. They are also searchable, reversible, and just plain easier to read. We’ve consolidated some pages, so there is less jumping around, and we are adding a table of contents to the page…

Something strange happened at University of California campuses this fall. For the first time since the dot-com crash, computer science enrollment dropped. System-wide, it fell 6% this year after declining 3% in 2024, according to reporting this past week by the San Francisco Chronicle. Even as overall college enrollment climbed 2% nationally — according to January data from the National Student Clearinghouse Research Center — students are bailing on traditional CS degrees. The one exception is UC San Diego — the only UC campus that added a dedicated AI major this fall. This all might look like a temporary blip…