Author: Money Mechanics

Speaking today during the quarterly earnings call of US insurance company Travelers, CFO Dan Frey explained that even with the lower retention it now has, thanks to adding a new $1 billion lower layer to the treaty, the firms 2025 catastrophe loss experience would not have seen it make any recoveries from the tower.As we reported earlier today, Travelers renewed its corporate catastrophe excess-of-loss reinsurance tower for 2026 at the January renewals, adding $1 billion in additional protection through buying a lower layer. That lower layer reduced the attachment of the corporate cat reinsurance treaty to $3 billion, down from…

Lisa Cook, governor of the US Federal Reserve, left, and her attorney Abbe Lowell outside the US Supreme Court in Washington, DC, US, on Wednesday, Jan. 21, 2026. Al Drago | Bloomberg | Getty ImagesFederal Reserve Governor Lisa Cook’s job seemed safe from firing by President Donald Trump after Supreme Court justices skeptically questioned the Trump administration’s lawyers on Wednesday about the grounds for Cook’s would-be termination and its effect on the Fed’s historical independence.Justice Brett Kavanaugh warned Solicitor General D. John Sauer about the effects of his argument that Trump could fire Cook or other Fed governors “for cause”…

Key Takeaways Netflix shares slid Wednesday, extending their monthslong decline after the streaming giant failed to impress investors with its latest financial results.Netflix’s earnings narrowly topped fourth-quarter estimates, but the streaming giant’s first-quarter outlook disappointed. The company also said it would pause stock buybacks in order to finance its acquisition of Warner Bros. Discovery. Investors are scrutinizing Netflix’s results more closely than ever. They don’t like what they see. The streaming giant’s stock was down nearly 5% in recent trading, sliding after reporting earnings that narrowly topped analysts’ estimates, as Netflix (NFLX) failed to impress investors with its outlook amid…

Key Takeaways The average IRA balance for Americans in their 50s ranges from about $120,000 to $245,000, but many people have far less.Median balances tell a clearer story than averages because a few people with massive accounts skew the numbers upward. Fidelity’s latest analysis of 18.3 million individual retirement accounts (IRAs) shows the average balance hit a record of $137,902 in the third quarter of 2025.  For Gen X savers (ages 45 to 60), that figure sits at $120,273, an average that’s inflated by people who’ve saved far more. The median tells a different story. Transamerica data on Americans in…

KEY TAKEAWAYS Taxpayers using the IRS Free File can submit their 2025 tax return now, and the IRS will begin processing tax returns on Jan. 26.All W-2 and 1099 forms reporting income will be sent by Feb. 2.Taxpayers have until April 1 to file their taxes or request an extension. The 2026 tax filing season starts next week. Here are the key dates you need to know. During this filing season, taxpayers will need to use the newly created Schedule 1-A to take advantage of the new tax deductions and credits created by the ‘One Big Beautiful Bill’, such as…

Key Takeaways South Beach, Florida, is a small town located on the Miami Beach barrier island.Real estate is expensive, but Florida doesn’t impose an income tax, inheritance tax, or estate tax.Fifth Street south to the Atlantic Ocean is renowned for its walkability, and Lincoln Road Mall is pedestrian-only. An ideal retirement locale depends on whether you prefer sun or snow, and what you can do to pass your newfound time in your favorite weather. South Beach, Florida, is one of three small-town neighborhoods that make up the barrier island of Miami Beach, and it offers plenty of sunshine. Nestled at…

Congratulations, you’ve decided to launch a new business or a side hustle. You’re in good company.According to the Bureau of Labor Statistics, nearly 16.9 million Americans are self-employed as of mid-2025, representing approximately 10% of the U.S. workforce.Whether owners, freelancers, or sole proprietors, the self-employed span every field — from skilled tradespeople and creatives to real estate agents and consultants in every niche. 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 Kiplinger’s Free Newsletters Profit…

(Image credit: Getty Images)Think your portfolio is diversified? If it’s just stocks and bonds, you might be missing a crucial layer: Including government balance sheets.Municipal bonds — issued primarily by states and cities — bring something different to the table. They’re secured by independent government revenue streams and local financial strength, offering investors steady income and a way to help maintain stability when conditions shift at the federal level.In today’s uncertain environment, adding munis to your mix isn’t just an effective tax-management strategy — it’s also a way to build resilience into your portfolio. From just $107.88 $24.99 for Kiplinger…

(Image credit: Getty Images)I spend more time within our tax planning software and on the tax tab of our financial planning software than anywhere else in our tech stack — significantly more than I spend in our investment analytics tool.Probably the only thing I spend more client time on is asking questions about their values and goals so that I know we are walking together down the path that leads to their destination.For retirees with $2 million to $10 million invested, tax planning is often among the most impactful technical work we can do. For clients with more than $10…

Question: I’m retiring later this year at 67 with $2.6 million, most of which is in a traditional IRA. I’m worried about RMDs and taxes. What should I do?Answer: As of 2022, the last year for which there’s data available, the average 67-year-old retiree had about $609,000 in retirement savings, according to the Federal Reserve. Moreover, retirement savers in their 60s only averaged $257,000 in their IRAs. So if you’re retiring later this year at age 67 with a $2.6 million IRA, you’re clearly ahead of the game.If that money is in a traditional IRA, though, you’ll have to start…