Author: Money Mechanics

Since the start of his second term, President Donald Trump has repeatedly proposed abolishing federal income tax in favor of tariff revenues. As Kiplinger has reported, he has spoken about jettisoning taxes completely and mused about eliminating tax on the first $150,000 of income.In a November Thanksgiving video, Trump said, “Over the next couple of years, I think we’ll … be cutting income tax — could be almost completely cutting it, because the money we’re taking in is going to be so large.”Maybe you’re someone who thinks eliminating the tax is a good idea. After all, who likes paying income…

Gambling winnings are expected to be taxed more next year — at least federally. Thanks to the 2025 GOP/Trump tax and spending bill, a portion of winnings from activities like lotteries, slot machines, and sports betting face a potential double taxation.That’s because prior IRS gambling rules allowed you to deduct all gambling losses up to the amount of winnings. Starting in 2026, losses are limited to 90% of winnings.But just weeks before the new gambling tax provision becomes effective, President Donald Trump reportedly said he would “think about” repealing income taxes on gambling winnings entirely. From just $107.88 $24.99 for…

In life, accidents happen. But when they occur during retirement, it’s important to be prepared—otherwise, you risk running out of money during what should be considered your golden years. According to a recent T. Rowe Price survey of more than 7,000 retirees globally, more than a quarter (27%) of respondents said they’d be able to withstand a financial shock in retirement. Investopedia spoke with financial planners who shared what they think are the most common financial shocks retirees face and how people can prepare for them. “Retirement resilience isn’t about predicting every expense. It’s about having a safety margin with…

Key Takeaways The uptick in unemployment in November shows that the Federal Reserve was justified in cutting interest rates earlier in the year, economists said.The Fed is expected to pause its rate-cutting campaign in January to assess the impact of cuts so far, but the poor jobs report kept a January cut on the table.The Fed is cutting borrowing costs in hopes that easier money will boost spending and hiring. An unexpected jump in the unemployment rate Tuesday kept pressure on the Federal Reserve to rescue the job market by cutting interest rates.Fed officials—concerned about the health of the labor…

The income-related monthly adjustment amount (IRMAA) is one of the most significant and stealthy retirement taxes, effectively raising the cost of Medicare Part B and Part D premiums for those with higher incomes. Since the penalty is based on your tax return from two years prior, effective IRMAA management requires a proactive, long-term strategy.The IRMAA is one of the most significant costs retirees face and is a crucial part of retirement income planning. IRMAA is an extra charge added to your standard monthly premiums for Medicare Part B medical insurance and Medicare Part D prescription drug coverage.Liability for the IRMAA…

Key Takeaways The proposed Nicholas Bitcoin and Treasuries AfterDark ETF aims to bottle the overnight performance of the cryptocurrency in an investment vehicle.Some research supports the premise of the strategy, but it may not consistently deliver excess returns. The early bird may get the worm. But does the night owl eat its lunch? That question is at the core of a proposed exchange-traded fund from Nicholas Wealth called Bitcoin and Treasuries AfterDark. (Approval and launch under the ticker “NGHT” are expected next year.) The strategy aims to capture the performance of the world’s largest cryptocurrency while U.S. stock markets are…

After you put money in a certificate of deposit, you can sit back while it collects interest over its term. Once it reaches maturity, you’ll face a decision: Renew it or withdraw the funds.Typically, you have a grace period of about seven to 10 days after a CD hits its maturity date to decide what to do. Your bank may send you a notification a few weeks before the certificate matures.When you open a CD, it’s also a good idea to put a reminder on your calendar of when the certificate is nearing the end of its term. With this…

Last week, the US Federal Reserve released its and cut interest rates by 25 basis points, matching market expectations. The year still has major events ahead. Later this week, the Bank of Japan will decide on . Markets see a strong chance, close to 90%, of a 25 basis point rate hike. The economic calendar also remains busy. Key updates include delayed data from the and . Investors currently expect rates to stay where they are. Still, weak economic data can quickly shift expectations, as seen in recent market moves and sharp changes in rate forecasts. At the same time,…

Issuance of Rule 144A property catastrophe bonds in 2025 surpassed the $20 billion milestone today as the settlement of the largest wildfire cat bond ever seen, sponsored by the California FAIR Plan, has taken the total for the year-to-date to just over $20.7 billion, Artemis data shows.Full Rule 144A property catastrophe bonds, so those covering physical natural catastrophe risks to property assets, make up the largest segment of the cat bond market and have done since its inception in the second-half of the 1990’s. Notably and underscoring just how incredible issuance has been this year, when looking at only 144A…

The stock market graphic of Zillow Group is displayed on a smartphone with the logo of Zillow in the background on Feb. 21, 2021.Sopa Images | Lightrocket | Getty ImagesZillow shares plunged more than 9% on Monday on worries that the online real estate platform could have a big new competitor: Google Search. Google appears to be running tests on putting real estate sale listings into its search results. Over the weekend, real estate tech strategist Mike DelPrete published mobile phone screenshots of Google Search results showing real estate listings, which appeared to be powered by real estate data company…