Author: Money Mechanics

I ran across this article by David Beckworth that discusses the issues with the reduction of the Fed’s balance sheet (called “Quantitative Tightening” or QT). The issue raised is not one that I spent much time thinking about: the previous expansion of the Fed’s balance sheet (“Quantitative Easing” or QE) has led to behavioural changes in banks (and their clients) as well as regulators.The Fed’s balance sheet used to be fairly small. For those of you who quite sensibly do not think much about central bank’s balance sheets, its size is determined entirely by its liabilities (there is only a…

People dig out their cars parked along Lancaster St. during a winter storm on Monday, Jan. 26, 2026 in Albany, N.Y. Lori Van Buren | Albany Times Union | Getty ImagesThe harsh winter storm that recently hit much of the country took its toll on the mortgage market in the week that followed. Potential buyers stayed home, and mortgage rates didn’t move enough to spark refinance demand.Total mortgage application volume dropped 8.9% last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Last week’s results included an adjustment for the Martin Luther King Jr.…

If you hate seeing your team waste hours painstakingly entering data into spreadsheets only to get it wrong and be forced to do it all over again, you’re not alone. Enterprise data management is getting increasingly complex, with a bunch of different software programs piling up across various departments.Also: The best CRM softwareWithout a way to connect all these disparate data streams and put them into context, your business is probably struggling with problems like shadow IT, information overload, and just a bevy of human errors during the data entry process.ERP, or enterprise resource planning, software can plug into every…

Key Takeaways A 401(k) might be your best bet for saving more for retirement.A recent study shows that people with 401(k)s were able to save 29% more for retirement than their peers who did not have the same type of account.401(k) plans are often sponsored by employers, but even if you’re self-employed, you can open one for yourself.Traditional plans offer tax-deferred investing, a smart approach to regular contributions, compounding interest, and other tax advantages.Your employer might provide a matching contribution up to a certain percent of your salary. There are many retirement savings vehicles to choose from—401(k)s, IRAs, and more—but…

February 04, 2026 07:48 AM EST Millions of Legal Immigrants Are About to Lose Access to Government Loans for Small Businesses FROM 15 minutes ago The Small Business Administration is cutting off lending to any business with any amount of non-citizen ownership, excluding more than 5 million business owners from federal loans.Starting March 1, the SBA will no longer lend to businesses if any of their ownership is not a citizen, down from the 5% foreign ownership currently allowed. The move, announced Monday, is the latest step in President Donald Trump’s efforts to cut off legal immigrants from government funding…

Key Takeaways Warren Buffett said, “What the wise do in the beginning, fools do in the end.”With this quote, he was implying that wise people pounce early and that the fools follow the crowd and arrive when it’s too late to benefit, getting caught in a bubble that inevitably bursts.The comment is a dig at investors who pile into investments when they are already very popular and expensive in pursuit of quick profits.That approach has gained traction with social media and cheap trading apps and contrasts with Buffett’s long-term value investing philosophy. Warren Buffett isn’t just one of the world’s…

Key Takeaways According to 2022 Federal Reserve data, just 57% of Americans in their mid-50s to mid-60s have a retirement account, a participation rate that is near a 30-year low.Among households with at least one retirement account, the median balance for this age group was $185,000, according to the Fed.More recent data from Empower placed the median saved for 50-somethings at $253,454 and the median saved for 60-somethings at $186,902.Retirement readiness varies widely at this stage, shaped by housing wealth, access to workplace plans, and exposure to market swings.1 in 5 adults age 50 or older have no retirement savings…

Question: We’re 62 with $1.4 in retirement savings. I want to sell our $610k beach house to retire this year. My wife wants to keep it and work until 70 to boost our savings. How do we resolve this?Answer: Many people struggle to retire with a meaningful amount of savings. So if you’re 62 years old with $1.4 million socked away, you may be well ahead of your peers.The average retirement savings for people in their early 60s was $537,560, based on the latest data from the Federal Reserve. That puts you and your wife well above average; your savings…

(Image credit: Getty Images)When people ask me why I’m such a strong advocate for fee-only financial planning, my answer is simple: I’ve seen the entire financial advice ecosystem from the inside — how it works when financial adviser incentives are aligned with the client and how it breaks down when they’re not.My perspective wasn’t formed overnight. It evolved over more than four decades, beginning long before “fiduciary” became a household word and well before fee-only advice was widely understood or accepted.Learning to see the whole financial pictureI began my career in 1982 as an accountant, earning my Certified Public Accountant…

(Image credit: Getty Images)The first months of a new year are often a time to reflect, reset priorities and make plans for the future. Many people use the moment to review their finances, revisit goals and make resolutions designed to create greater peace of mind.Yet, one critical part of a financial plan is often overlooked: The estate plan. Even a well-crafted estate plan can become ineffective if it no longer reflects your current life, relationships or financial situation.Having a plan in place during your lifetime is an important step toward long-term security. But what happens if you are no longer…