Author: Money Mechanics

Key Takeaways Buffett turns market crashes into opportunities by following his own advice to “be fearful when others are greedy and greedy when others are fearful.”Focusing on strong business fundamentals rather than short-term price movements has been central to Buffett’s success, as demonstrated by his long-term holdings in companies like Coca-Cola Co. and American Express Company. Since 1965, shares of Warren Buffett’s conglomerate, Berkshire Hathaway (BRK.A, BRK.B), have delivered a compounded annual return of 19.9%—almost double that of the S&P 500 over the same period. Unlike many of Wall Street’s famous money managers, Buffett has thrived during market crashes by…

Key Takeaways Charlie Munger advocated for avoiding losses rather than chasing gains.The idea is that just one catastrophic loss can erase years of gains.Munger’s principle of inversion, coupled with competence and patience, was his recipe for long-term success. While Warren Buffett is well-known for making significant investments that have paid off in multiples, his business partner at Berkshire Hathaway and right-hand man, Charlie Munger, took a more subdued approach. Instead of swinging for the fences, Munger advocated for a bit of caution: avoid those big mistakes that can wipe you out entirely. As he famously quipped, “Avoiding stupidity is better than…

Income for single-filers Income for married couples filing jointly Marginal Income Tax Rate $640,601 or more $768,701 or more 37% $256,226 to $640,600 $512,451 to $768,700 35% $201,776 to $256,225 $403,551 to $512,450 32% $105,701 to $201,775 $211,401 to $403,550 24% $50,401 to $105,700 $100,801 to $211,400 22% $12,401 to $50,400 $24,801 to $100,800 12% $12,400 or less $24,800 or less 10% Tax Brackets Can Be Used To Help Guide Your Withdrawal Strategy Patrick Huey, a CFP and owner of Victory Independent Planning, suggests that knowing where you fall within the tax brackets can help you make smarter decisions about…

(Image credit: Getty Images)We often look forward to retirement as a time to kick back, travel more or otherwise revel in our golden years.But smooth sailing is no guarantee in retirement, especially if you don’t understand where the risks lie and make plans to avoid them.Here are seven risks that could sink, or at least heavily damage, your retirement, along with strategies to avoid them. 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…

(Image credit: Getty Images)Many people spend decades saving and investing, only to discover that their well-funded portfolio doesn’t necessarily equal a well-planned retirement.To build lasting security, it’s important to create a plan that can help you realize your goals while also protecting your income and independence. In the run-up to retirement, or when newly retired, you should therefore focus on these six key areas:1. Taxes: Avoid the stealthy erosion of wealthPeople are often surprised to learn they could end up in a higher tax bracket in retirement than while working. Income-based taxes on Social Security and Medicare and required minimum…

Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million. They’re sharing how they did it and what they’re doing with it.This time, we hear from a single 68-year-old semiretired certified public accountant in San Francisco. He owns his own firm, which had a staff of three to seven and 1,200 clients before he semiretired to work with “35 people I love to work for.” See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in…

Key Takeaways Index funds consistently outperform actively managed funds.They also cost less and can work better tax-wise.Index funds invest in a bucket of stocks that represent a part of the stock market, like the S&P 500. Many dream of retiring early, but achieving that goal doesn’t require high-priced financial advisors or complex investment strategies. Low-cost index funds have emerged as a powerful tool in pursuing financial independence, offering a straightforward path that combines simplicity, diversification, and a proven track record of superior performance. Understanding Index Funds Index funds are investments that mirror specific market indexes, such as the S&P 500…

For his new book, Healthy to 100, longevity researcher Ken Stern wanted to answer a question that nagged him: Why do so many people in some European and Asian countries live long, healthy lives and how can Americans be like them?So, for six months in 2024, he traveled to five of the most successful aging nations — Italy, Japan, Singapore, South Korea, and Spain — to find out why their average life expectancies were often six years longer than ours and to interview residents in their 70s, 80s, 90s and 100s.Stern, founder of The Longevity Project research initiative and host…

KEY TAKEAWAYS The rate of price increases for daycare in September 2025 was 1.5 times higher than the overall inflation rate.Rather than paying for pricy childcare, more parents, specifically women, are dropping out of the labor force to save money and care for their children. With the price of childcare escalating even faster than rent and college tuition for some families, more mothers are opting to leave their jobs and becoming full-time caregivers for their children. The cost of daycare increased by 5.2% in September 2025 compared to a year before, according to a report from Bank of America. That’s…

Key Takeaways The best use of a holiday bonus depends on interest rates: paying down student loans makes sense if your loan rate exceeds what you can earn in savings, while high-yield accounts offer flexibility and returns when rates are lower.Building or replenishing an emergency fund should be a priority if you lack cash reserves, even if debt repayment might offer slightly higher long-term savings. You just got your holiday bonus. Should you put that money in a high-yield savings account or a certificate of deposit (CD), or should you use it to pay down your student loans? If your…