Author: Money Mechanics

Key Takeaways A Zillow study showed that mortgage rates in many major U.S. cities would have to drop well below today’s levels of around 6.1% to make housing affordable.Mortgage rates need to fall by about two percentage points in places like Dallas, New Orleans, and Nashville to make borrowing costs accessible for homebuyers. But in Pittsburgh, Birmingham, and other cities with low housing costs, mortgage rates could tick even higher and still remain affordable. Some housing markets are so expensive that they would still be unaffordable even if rates plummeted. In other areas, a small decline in rates would be enough…

Key Takeaway Living on $4,000 a year only works when your biggest cost—housing—is paid by someone else.Extreme frugality can look like financial independence, but without flexibility, it collapses fast when life changes. A Reddit post recently posed a question about a relative taking extreme FIRE (Financial Independence, Retire Early) measures: “Is my ‘broke’ brother a genius or a deadbeat?” The brother in question is said to be 38, doesn’t work, and lives on about $4,000 a year, about $333 a month, or $11 a day: He eats on a $100 [per month] budget. He doesn’t have a phone plan. He…

(Image credit: Getty Images)Many women I speak with are financially successful by any reasonable measure. They have built strong careers, accumulated meaningful assets and made responsible decisions over time.Yet, when conversations turn to investing strategy, retirement planning or long-term wealth decisions, hesitation often creeps in. It rarely shows up as confusion about the numbers. More often, it appears as a quiet reluctance to engage fully.That reluctance is frequently driven by money guilt. 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…

(Image credit: Getty Images)If you inherited an IRA from a parent or loved one in the past few years, you may be facing a hidden tax trap. Since the passage of the SECURE Act, the rules governing inherited retirement accounts have shifted dramatically, and missteps can be costly.While the SECURE Act rules were initially confusing, the IRS issued final regulations in July 2024 that clear the air but also set the stage for significant penalties if you fail to act.The death of the ‘stretch IRA’For decades, beneficiaries could “stretch” distributions from an inherited IRA over their own lifetime, allowing for…

(Image credit: Getty Images)Most people assume their taxes will decrease once they retire. After all, their paycheck stops coming — so their tax bill should shrink too.But for many retirees, the opposite happens. The first few years of retirement often trigger a series of tax surprises that quietly drain cash flow and limit flexibility.Required minimum distributions (RMDs) haven’t even started yet, but decisions made during this early window can determine whether future withdrawals are taxed gradually — or are hit all at once. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just…

(Image credit: Tierney L. Cross/Bloomberg via Getty Images)Who knew that monetary policy could be so exciting? The way the Federal Reserve Bank sets interest rates and manages the money supply might prompt some terse words among economists or some raised voices on CNBC, but it typically creates little controversy outside financial circles.As with many things in the Trump administration, however, the president’s nomination of financier, lawyer and former Fed governor Kevin Warsh to replace Jerome Powell in May has been mired in high drama.Warsh, 55, is currently a lecturer at Stanford University and a partner in the family office that…

As of 2026, the full retirement age for anyone born in the United States in 1960 or later is 67. If that feels like a raw deal, spare a thought for people in Libya, North Africa.In 2022, Libya raised its official retirement age to 70 for both men and women, the highest in the world. With the World Health Organization placing the country’s average life expectancy at just 72.2 years, only a small minority of citizens will likely live long enough to receive full retirement benefits for a significant amount of time.As increasing longevity and diminishing birth rates shrink workforces…

(Image credit: Getty Images)Between tariffs on imported products and weather-related challenges impacting crops, both flowers and chocolate have seen steep price increases ahead of Valentine’s Day. For couples, that means the go-to gift to show your love is going to stretch your budget even thinner this year.If you want your loved one to feel special but you don’t want to break the bank to do it, you’ll have to get a little more creative this year to pull it off.Here’s a closer look at which gifts have seen the biggest price hikes and what you can do to keep your…

It’s not unusual for family heirlooms to hold significant sentimental value. If you’re lucky, they might have a lot of monetary value, too.If you own a bunch of gold jewelry and silver flatware or other pieces that were passed down to you from older generations, you may be eager to sell them sooner rather than later, especially if you’re not particularly attached to them. Despite a recent dip in gold and silver prices, both metals have seen their value increase substantially through the years.Selling your gold and silver could help fund other goals or investments. Plus, it might free up…

The Moody’s Corp. headquarters in New York on Aug. 27, 2024.Jeenah Moon | Bloomberg | Getty ImagesA version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.Commercial real estate deal volume fell in December for the second straight month, but the full-year numbers reveal some progress, potentially setting up much-needed momentum for this year.Total deal dollar volume dropped 20%…