Author: Money Mechanics

KEY TAKEAWAYS Taxpayers can pre-pay estate taxes and pay quarterly state and local taxes before the end of the year, allowing them to take advantage of the new SALT cap.Taxpayers who do not itemize may want to consider moving their 2025 planned charitable contributions to next year, while those who itemize may wish to advance their 2026 planned charitable gifts before the end of the year.Homeowners have only one more month to take advantage of the two clean energy home tax credits and should begin their renovations now to claim them. From paying more state and local taxes this year…

Key Takeaways A third 2025 Fed rate cut is expected next week, meaning savings and CD yields could soon start to slip. As rates fall, check your savings APY often to catch reductions early—and then shop the market to see if higher-yield options are available. A next-level move is to lock in a top CD before the Fed’s cut, letting you guarantee today’s high rates into 2026 on money you won’t need soon. What a Fed Rate Cut Next Week Could Mean for Your Money The Federal Reserve is expected to make its third rate cut of the year next…

Key Takeaways Americans remain worried about their spending as inflation continues to be a concern, studies show. More than one in four respondents in FINRA’s National Financial Capability Study said they spend more than they earn. A separate survey this year found that financial concerns are affecting the mental health of many Americans. More than a quarter of Americans say they spend more than they make, one of a number of metrics in recent surveys that show U.S. household finances are under growing strain. Spending Outpacing Income at a Higher Rate, More People Finding It Difficult to Pay Bills In…

Key Takeaways Federal law requires health plans to cover adult children on a parent’s plan until they turn 26.Seven states, including Florida and New York, let some nondisabled young adults stay on a parent’s health plan until as late as age 31.Sixteen states let disabled adult children remain insured indefinitely if they meet specific requirements. Why Most People Age Off a Parent’s Plan at 26 Turning 26 is of special significance in the United States: It’s the age when you generally get booted off your parents’ healthcare plan and need to secure your own coverage. Before 2010, many states capped dependent…

Key Takeaways Checking your credit score can help you identify errors that may have damaged your score. But despite the popularity of FICO with lenders, some free online services provide your VantageScore rather than your FICO credit score. If you plan to make a major purchase, such as a home or vehicle, ask your lender which credit model they use so you can check that score. Chances are your lender uses FICO, but lenders are increasingly using VantageScore. Checking your credit score may not be part of your daily financial routine, but when you apply for new credit, such as…

Make a solid financial plan, then go enjoy your retirement.gettyAre you worried that you won’t have enough money to last throughout your retirement? Unfortunately, “worry” is not a strategy! Instead, you’ll feel a lot better if you develop a plan. By planning ahead, you’re less likely to become an example of that old saying “Failing to plan is planning to fail.” Without a plan, you’d be leaving your future to chance. With one, you’ve taken charge of your future and are much less likely to run out of money.At a minimum, your financial plan should have two parts:It should ensure…

Key Takeaways Americans are thinking about their finances for about four hours every day, a new survey shows. The survey suggests younger generations think about finances more often than their elders, while more than half of the respondents said they’re focusing on inflation and bills. More than a third of those surveyed said financial worries are impacting their sleep. Americans spend nearly four hours a day thinking about money—that’s almost half of a typical workday spent stressing about finances, according to a new survey from Empower. The survey reveals that money is a dominant preoccupation, especially for younger generations like…

(Image credit: Getty Images)All three main U.S. equity market indexes closed lower on Monday amid a continuing sell-off for bitcoin and stocks leveraged to digital assets, as well as tepid economic data. History suggests better things are ahead, at least for the S&P 500, with investors, traders and speculators looking forward to another rate cut by the Federal Reserve.”The S&P 500 clawed its way back from nearly a 5% intra-month drawdown to finish November with a modest 0.1% gain,” LPL Financial Chief Technical Strategist Adam Turnquist writes, citing oversold conditions, solid earnings, renewed AI optimism, and repricing of rate-cut expectations…

Some investors have owned Series I savings bonds (I bonds) for many years, and the 30-year maturity date might be approaching. Others bought Series I savings bonds in recent years to insulate their portfolios from inflation and the ups and downs in the stock market.Whether you are a recent investor in I bonds, have owned them for many years, or are pondering adding them to your investment portfolio, you should be aware of the federal income tax rules.I bonds have important tax advantages for owners. Interest earned on I bonds is exempt from state and local taxation. Also, owners can…

Key Takeaways Airbus said it is near completion of fixing a software issue that had grounded 6,000 of its A320 aircraft.Reports on Monday indicated the European plane maker had found an issue with the fuselage in dozens of planes. Airbus on Monday announced that the vast majority of its A320 passenger jets have been fixed after a software problem led to the grounding of 6,000 of the planes, but the European aircraft maker may have another issue. Airbus said fewer than 100 A320s still need updates to address concerns that “intense solar radiation may corrupt data critical to the functioning…