Author: Money Mechanics

Key Takeaways The service sector expanded in December, while the manufacturing sector struggled.Manufacturers have been hit hard by tariffs, which have raised costs and created uncertainty.Tariffs put in place last year were meant to boost manufacturing but, have instead led to consistent job losses so far. It’s tough out there for anyone in the business of making things, but the rest of the economy is hanging in thereThe services sector of the economy expanded at its fastest pace all year in December, while manufacturing continued to struggle, according to a pair of reports this week from the Institute for Supply…

Key Takeaways Defense sector stocks surged Thursday morning to lead S&P gainers after President Donald Trump called for a sharp increase in military spending.Trump said the U.S. military’s budget should increase to $1.5 trillion in 2027, up from $850 billion in fiscal 2025 and nearly $1 trillion in 2026. Shares of several defense contractors took flight on Thursday after President Donald Trump said that the federal budget for the military should increase significantly. “For the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars,…

Key Takeaways When evaluating whether your child should take on student debt, try to understand their dreams while planning for their financial reality.If your child does decide to take out loans, suggest that they not borrow more than what they’ll make their first year out of college.Encourage them to consider attending a community college for the first two years of their degree.Discuss the possibility of taking a gap year, which would give them time to build up savings. A parent posted on Reddit’s StudentLoans forum a question that probably keeps thousands of families up at night: their child wants to…

When you buy a car, the salesperson is likely going to offer up a bunch of add-ons before you drive away with your new ride. Two of the most common add-ons are extended car warranties and mechanical breakdown insurance. Both forms of optional coverage promise to shield your finances from expensive surprise repairs.But both also come with exclusions and restrictions that are important to know about before buying either.As the cost of cars rise, you’re left wrestling with the need to keep that up-front cost down while weighing the risk of costly repairs down the road. Here’s what you need…

Key Takeaways According to Fidelity, millennials (ages 29-44) had an average 401(k) balance of $67,300 in 2024, with an 8.7% average contribution rate—the second-lowest among generations.  The Transamerica Center for Retirement Studies put the median millennial retirement savings even lower at $65,000—meaning half had less than that. Many millennials savers increased their contributions to retirement accounts in 2024. The average millennial had about $67,300 saved for retirement, according to Fidelity Investments—a figure that looks modest next to Gen X’s $192,300 or boomers’ $249,300, though these generations have had longer to save. The story brightens when we look at contribution rates…

(Image credit: Getty Images)For many households, the single biggest number on the balance sheet isn’t a stock portfolio. It’s the home they live in.Over the past decade, that’s been a gift. Rising property values gave families a sense of security and, for many, meaningful paper wealth. But when so much of a family’s net worth is tied up in one place, it can also mean more risk than most people realize.A home is an illiquid asset. You can’t sell off the bathroom to fund a tax bill or an unexpected expense. Liquidity tends to show up only at the time…

It eventually happens to all savers: You’ll receive that dreaded email or letter from your bank informing you that the annual percentage yield (APY) on your savings account dropped.In fact, many savers have been receiving these letters recently. The reason? The Federal Reserve cut rates at each of its last three meetings due to declining job growth. And when that happens, banks follow suit by lowering APYs on all savings accounts.Therefore, if this has happened to you or you’re concerned it could happen soon, I’ll cover the next steps you should consider. From just $107.88 $24.99 for Kiplinger Personal Finance…

(Image credit: Getty Images)In an era when nearly everything can be done online, it’s easy to assume that financial guidance is no different.With a few clicks, retirees can schedule virtual meetings, move assets between accounts, even open investment portfolios without leaving home.Convenience is valuable, but for many retirees, there’s still something irreplaceable about sitting across the table from someone who knows them, their community and their goals. 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…

These Stocks Could Gain From Venezuela’s Upheaval 7 minutes ago The U.S. is planning big changes for Venezuela’s oil industry after ousting the country’s president. Shares of a handful of U.S. companies stand to benefit from the upheaval. Energy Secretary Chris Wright on Wednesday said that the U.S. will control Venezuelan oil sales “indefinitely,” funneling proceeds to American banks and rolling back sanctions that have choked the country’s crude exports for years. Refiners Valero Energy Corp. (VLO) and Phillips 66 (PSX) rose on the news. Chevron (CVX) is the only U.S. oil major still operating in Venezuela. That head start…

(Image credit: Getty Images)Every January, the financial news landscape is flooded with two things: Articles about canceling unused gym memberships and confident predictions about where the S&P 500 will finish the year.While getting fit is a noble goal, betting your financial future on market forecasts is a fool’s errand. If the past few years have taught us anything, it is that the economy is unpredictable, geopolitical events are sudden, and markets will do what they do regardless of what the pundits say.As 2026 gets underway, I am advising my clients to ignore the crystal ball and focus on the mirror.…