Author: Money Mechanics

Key Takeaways Keeping funds in cash may feel like common sense, but inflation will erode your spending power over time. Preserving wealth usually requires investors to park their assets in vehicles that will appreciate over time. When inflation rises and uncertainty dominates the headlines, holding cash feels like the safest possible move. But safety and security are not always the same thing. What follows challenges that very human instinct, revealing why the comfort of cash can quietly undermine long-term financial stability, even as it appears to protect it. The Instinct to Hoard Cash—And Why It Feels Safe In times of…

Key Takeaways Friction maxxing adds small barriers to spending to create pauses before purchases.The concept works best for impulse categories like delivery apps and online shopping, but overdoing it on essentials just causes frustration. Does this sound like you? You’re sitting there, scrolling through Instagram at 11 p.m., and you see an ad for something tempting that you don’t need … then boom, you’ve purchased it in 30 seconds flat. Well, you’re not alone. According to a study by Liquid Web, 14% of shoppers have bought something within one minute of seeing an ad, and 85% regret an impulsive online…

Key Takeaways Katy, Texas, is a suburb of Houston that is known for comfortable communities and modern amenities.Local housing costs in Katy are lower than the national average for homeowners.Texas has no state income tax, and Katy’s property taxes are lower than the national average.Proximity to Houston provides cultural experiences and easy access to specialized healthcare. Katy is a rapidly growing suburb west of Houston known for comfortable communities and modern amenities. With a population under 28,000, it will appeal to retirees who are seeking warm weather, safety, and everyday convenience without the crowds and fast pace of city living.…

(Image credit: Getty Images)I’ve never met an investor who was scared of growing their portfolio too much. It’s the next market crash that causes investors to hold their breath and hope for the best.Fear of the next market crash is often based on two false assumptions: That you may need access to all of your money at any time and that the only response to a downturn is to wait it out. In reality, neither is true.What if I told you that the next downturn isn’t something to dread? In fact, I believe the next market crash could significantly benefit…

(Image credit: Getty Images)Have you ever talked to a friend, family member or colleague about retirement? Did you notice that their retirement (or plan for retirement) was not the same as yours?We’re not just talking about numbers. Retirement is different for everyone in a variety of ways: Location, timing, length, activities, finances, health, family, goals. The list goes on and on.For this reason, it’s helpful to use the “sketchbook” approach to retirement planning. You might not have heard of this before. It isn’t part of a financial planning curriculum, nor is it something that shows up as a line item…

(Image credit: Getty Images)Your 50s can be the perfect time to reflect on your life and to think deeply about what’s still to come, especially as it relates to retirement.Individual situations vary, of course, but generally, your 50s serve as a pivotal decade. You’re finished raising the children, or nearly so. You’re possibly in the middle of your peak earning years, which typically occur from ages 45 to 54. You’re still young enough to engage in an active lifestyle.For most people, their 50s are also when retirement appears on the horizon, even if it remains distant enough to be hazy.…

(Image credit: Getty Images)Annuities are designed to help you save for retirement. But is it wise to buy an annuity in your 70s or 80s?It can be. At this age, most people need and want to reduce their risk and generate reliable income — two things that annuities do well.Whether an annuity will work for you depends on your savings, Social Security and any pension benefits, spending habits, health, age and risk tolerance. 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…

Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million. This time, we hear from a 68-year-old married retiree in Wisconsin. He retired as a senior reactor operator/control room supervisor at a nuclear power plant, and he and his wife, both born and raised in suburban Chicago, have been married for 48 years. See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.) From just $107.88…

It’s human nature. You visit a charming coastal town or picturesque lake village and turn to your spouse on the ride home and say, ‘I love that spot. Let’s buy a place. We can rent it out. It will help pay the bills in retirement.’Then the dream collides with financial reality: How will you come up with the cash for a down payment?Whether you want to buy a single investment property or fantasize about owning multiple rental units, coming up with the initial capital can be tricky. While the Trump Administration floated the idea of penalty-free 401(k) withdrawals for down…

(Image credit: Getty Images)Retirement planning isn’t complete without factoring in the people most important to you. A crucial component of your legacy strategy involves your investments and how they’re structured.Many people fail to review their investment accounts or the future tax impact. That lack of oversight can be damaging to your beneficiaries.The investments you make in your 50s and 60s can positively or negatively impact your estate and your beneficiaries’ future taxes, depending on your approach. 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…