Author: Money Mechanics

Key Takeaways Charlie Munger, who died in 2023 at the age of 99, argued that enduring an occasional 50% drop is crucial for any investor seeking substantial long-term gains.Market leaders such as Berkshire Hathaway, Amazon, and Apple have all had major drawdowns but recovered by staying focused on their fundamentals.Avoiding risk can result in lower returns that fail to keep pace with inflation. Charlie Munger, the former Berkshire Hathaway vice chair who died in 2023, argued that investors must be prepared for a brutal reality: If you can’t stomach a 50% decline in your portfolio, you’ll never achieve exceptional results.…

Key Takeaways Warren Buffett calls self‑development “the best investment by far” because skills can’t be taxed or “inflated away.”The next‑best hedge is to own stock in companies whose products require little new capital but can raise prices at the rate of inflation or even higher.Firms built on royalty-like models or networks often convert revenue to cash without big reinvestments, giving them room to outpace rising costs. Inflation may ebb and flow, but legendary investor Warren Buffett’s two lessons for fighting it are timeless. Become so good at what you do that people will pay a premium for your skills.Own stock in…

KEY TAKEAWAYS About four in ten Social Security beneficiaries are still working, with the majority having a part-time job.Experts have said that Social Security benefits are not keeping pace with retirees’ rising expenses, leading many to cut their spending or return to work. While most Americans stop working once they claim Social Security benefits, many still need to work to keep up with their expenses, a new report found. In 2022, approximately 40% of Social Security recipients worked at some point after claiming benefits, according to an analysis from the Center for Retirement Research at Boston College. Some of these…

(Image credit: Getty Images)People love expensive things. They love showing them off to other people. They love buying them, wearing them, hanging them on walls and casually saying things like, “This old thing?” when someone notices, even though they are totally excited about it being noticed.What they love considerably less is thinking about what happens if those things disappear, break, burn, flood, fall off their wrist or get stolen from their hotel room while they are downstairs ordering coffee.This is where insurance for valuable items comes in. And yes, I know what you are thinking: “I already have homeowners insurance.…

Key Takeaways Ethereum (ETH) is more volatile than Bitcoin, rallying higher during recent bull runs and falling harder during selloffs, losing 7.9% so far this year, compared to a 0.8% decline for Bitcoin (BTC) as of mid-December. 3. ETH offers staking income and blockchain uses that BTC lacks, but these features come with added risks, including regulatory uncertainty and the potential for smart contract hacks. Bitcoin experienced one of its worst months since January 2021, shedding approximately 17.5% of its value in November based on closing prices, which helped drag the entire crypto market below $3 trillion in 2025. Ethereum…

(Image credit: Getty Images)For affluent retirees, Social Security is often treated as a minor piece of the retirement puzzle — something to claim whenever it feels convenient.But the timing of those benefits can have a far greater impact than most realize. For high-net-worth retirees, deciding when to claim isn’t just about maximizing income — it’s also about managing taxes, preserving portfolio longevity and aligning lifetime income with estate and legacy goals.When coordinated thoughtfully, Social Security can serve as both a reliable income stream and a valuable tax-efficiency lever in a broader retirement strategy. From just $107.88 $24.99 for Kiplinger Personal…

Key Takeaways Investopedia asked economists at Vanguard to share their predictions for 2026, as their 2025 forecasts are on track to be among the most accurate on Wall Street.The U.S. economy will have solid economic growth, lower unemployment, and slightly lower inflation than in 2026, according to their forecast.Tariffs will continue to push up inflation in 2026, but the economy will likely get a boost from tax cuts, economists said. The year ahead will feature stubborn inflation, an improving job market, and solid economic growth, according to a group of forecasters who nailed their outlook for 2025.With all the different…

Stock futures pointed higher Friday to ring in the new year after major equities indexes ended 2025 on four-session losing streaks. After markets were closed yesterday for New Year’s Day, Nasdaq 100, S&P 500, and Dow Jones Industrial Average futures were up a respective 1%, 0.6%, and 0.4%, with AI-related stocks leading advances. The tech-heavy Nasdaq, benchmark S&P 500, and blue-chip Dow Jones Industrial Average finished lower for a fourth straight session Wednesday following a five-session winning streak through Christmas Eve, but still closed the year up about 20%, 16%, and 13%, respectively, powered by strong advances from several AI-tied firms. U.S.-listed shares of…

(Image credit: Getty Images)There’s a lot to ask yourself when you start investing beyond your retirement account: How much money should I allocate? What types of investments should I make?But one investing pro says the most important questions new investors need to ask themselves are, “What am I trying to achieve?” and “What are the financial goals for this?” This is according to Cullen Roche, author of Your Perfect Portfolio, which comes out January 6.And Roche should know. His career as a financial adviser has spanned more than 20 years – most recently as the founder and chief investment officer…

China’s carmakers are on track to capture about one-third of the global auto market by 2030 and generate most of their profits overseas, according to UBS, underscoring the resilience of the country’s electric vehicle (EV) advantage despite mounting trade barriers in the West. The Swiss bank said its forecast had remained unchanged from two years ago, even as Chinese carmakers accelerated factory construction in Europe and some global rivals scaled back electrification plans. “The main drag was due to Europe’s slowdown of EV adoption, and tariffs and protectionism against Chinese EVs,” said Paul Gong, an analyst at UBS specialising in…