Author: Money Mechanics

Anyone who’s a fan of holiday movies is no doubt familiar with Charles Dickens’ “A Christmas Carol.”The story is about how Ebenezer Scrooge, a miserly old man who swims through hoards of gold coins in some retellings, is transformed into a generous soul after he receives a visit from four spirits on Christmas Eve.While most of us probably hope we’re not as frugal as Scrooge, we still enjoy a good deal when we see one. That’s why his dramatic change of heart holds a critical tax lesson: The most powerful way to lower your tax bill this season may be…

Key Takeaways Bill Gates on Wednesday warned the AI industry will be “hyper-competitive,” and that “a reasonable percentage” of today’s pricey tech stocks will lose a lot of their value. Big tech’s huge data center investments fueled concerns about an AI bubble and weighed on tech stocks in November. One of America’s legendary tech founders has a warning for AI investors: They can’t all be winners. “Not all of these valuations will end up going up. Some of them will go down,” Bill Gates, co-founder of tech giant Microsoft (MSFT), said of AI stocks in an interview with CNBC on…

Key Takeaways A padded cash cushion can reduce significant stress during a career gap.It’s okay to temporarily reduce 401(k) contributions, extra mortgage payments, and splurges.Model a longer pay gap than expected to allow for uncertainty and breathing room.Consider all liquidity options, including home equity access, before leaving employment.Utilize the low tax year for key tax planning strategies. Career gaps are becoming more common among Americans. In fact, according to MyPerfectResume’s 2025 Career Gaps Report, nearly half (47%) of U.S. workers have experienced a break in their careers.  When planning a career gap, whether it’s a parental leave, sabbatical, or a…

If you provide financial help to family, friends, or others — whether paying tuition, covering medical bills, or sending money through an app — you might be wondering about possible IRS or tax implications.But here’s some good news: most people will never come close to exceeding the lifetime estate and gift tax exemption, which, due to the new 2025 Trump/GOP tax law, will remain extraordinarily high for the average household.And even before you’d ever get anywhere near that limit, the IRS has several categories of financial gifts that don’t count toward annual gift tax limits, as long as they meet…

The market still faces record oversupply next year, according to the monthly report by the International Energy Agency (IEA), but the glut estimate is now trimmed by about 230,000 barrels per day compared to the November forecast. The market is headed to as much as 3.84 million barrels per day (bpd) of supply exceeding demand in 2026, the IEA said on Thursday in its closely-watched report for December. While this still is a considerable glut, it’s lower than the 4.09 million bpd implied oversupply expected in the November report. In today’s report, the IEA said that the projected global oil…

Moody’s has announced that it has launched its North America Severe Convective Storm HD Models, which according to the firm redefines the standard for assessing tornado, hail and wind risk.According to Moody’s, throughout the last three years, U.S. insured losses from severe convective storms (SCS) have exceeded $50 billion annually, even surpassing hurricanes in insured impact. With SCS losses continuing to rise, the majority of existing models reportedly still struggle with a number of fundamental limitations, such as coarse hazard resolution, small event sets, simplified vulnerability curves and constrained financial modules. Moody’s recently revealed that insured losses from U.S. SCS…

The Federal Reserve cut its benchmark rate by a quarter point at its last meeting of the year.December’s move marks the third time in a row the central bank has lowered interest rates, shaving three-quarters of a point off the federal funds rate since September to a range of 3.5% to 3.75%. The cuts could have an effect on many of the borrowing and savings rates consumers see every day.Although the federal funds rate, set by the Federal Open Market Committee, is the interest rate at which banks borrow and lend to one another overnight and not the rate that consumers pay,…

Elyse Betters Picaro / ZDNETFollow ZDNET: Add us as a preferred source on Google.ZDNET’s key takeawaysComcast has introduced all-new TV packages.The packages are available for new and existing customers.New plans have up-front pricing with no fees or commitments.Earlier this year, Comcast rolled out big changes to its internet service. Now it’s revamping its TV offerings.The company’s new video plans, which offer all-in pricing, are available to new and existing customers. They’re designed to bring “simplicity and transparency” Comcast says, by having a simple, up-front price that includes all major fees and requires no contract or commitment, doesn’t have any equipment…

Stock futures were mostly lower Thursday, a day after major indexes neared closing records following the Federal Reserve’s decision to cut interest rates, as Oracle shares sank following weaker-than-expected revenue, dragging AI-tied stocks.  Futures associated with the tech-heavy Nasdaq and benchmark S&P 500 were down a respective 0.5% and 0.3%, while those affiliated with the blue-chip Dow Jones Industrial Average reversed earlier losses and were up fractionally. Yesterday, the Dow, S&P 500, and Nasdaq finished up a respective 1.1%, 0.7%, and 0.3% after the Fed cut its key rate to a range of 3.5% to 3.75%. The S&P 500 missed setting a new…

Key Takeaways By volunteering your time, you can fill a void in your life that may be caused by the end of your full-time job.Volunteering can involve welcome physical activity and exercise that can help stave off arthritis and cardiovascular problems.Volunteering can come with some small tax advantages, and fewer recreational expenditures because you’re busy. Normally, a huge sigh of relief is heard from workers embarking on the more easy-going days of retirement. However, for many such people, their next thought may be, “Now what?” Retiring can mean more than leaving the full-time workforce. It can sometimes mean loss of…