Author: Money Mechanics

Key Takeaways Warren Buffett said, “What the wise do in the beginning, fools do in the end.”With this quote, he was implying that wise people pounce early and that the fools follow the crowd and arrive when it’s too late to benefit, getting caught in a bubble that inevitably bursts.The comment is a dig at investors who pile into investments when they are already very popular and expensive in pursuit of quick profits.That approach has gained traction with social media and cheap trading apps and contrasts with Buffett’s long-term value investing philosophy. Warren Buffett isn’t just one of the world’s…

Key Takeaways A big vote on Elon Musk’s pay is set for today. Schwab Asset Management and the Florida State Board are among those backing the Tesla board’s proposal, while Norway’s sovereign wealth fund and the New York State Common Retirement Fund are against it.Prediction markets bettors across Polymarket, Kalshi, and Robinhood are showing near-certain probabilities that shareholders approve Musk’s pay package. The fate of Tesla—or, at least, the answer to the question of whether its chief Elon Musk stays or walks—could rest on today’s shareholder vote. A preliminary tally on this year’s 14 proposals, which include giving Musk greater…

Shares of asset manager Invesco (IVZ) have been volatile during the second half of 2025, rising and falling on news about one of its largest and most well-known funds, the Invesco QQQ Trust (QQQ).An October 24 shareholder vote to approve the conversion of QQQ from its legacy unit investment trust (UIT) structure into a more modern exchange-traded fund (ETF) governed under the Investment Company Act of 1940 has been adjourned until December because management has not secured the required number of votes.The UIT model, an older structure that predates ETFs, comes with strict limitations. UITs can’t reinvest dividends or alter…

On September 15, the IRS issued final Treasury regulations implementing provisions of the SECURE 2.0 Act related to age-50 catch-up contributions under employer-sponsored retirement plans.While many plan administrators were hoping for additional time, the IRS did not extend the nonenforcement period with respect to the Roth catch-up requirement for higher earners, which must still be implemented by 2026.This means that beginning January 1, 2026, if you participate in a governmental 457(b) plan, are age 50 and older and earned more than $145,000 (indexed annually) in the prior calendar year, you must make age-50 catch-up contributions on a Roth basis. From…

Taking time out of the workforce to have a child or care for an aging parent often means your taxable income drops.That “downtime” can be a smart window to convert part of a pre-tax IRA to a Roth IRA — paying tax at today’s lower rate, so future growth inside the Roth can be tax-free forever.Starting in 2025, the math may be even better for some seniors because of larger standard deductions. From just $107.88 $24.99 for Kiplinger Personal Finance Be a smarter, better informed investor. CLICK FOR FREE ISSUE Sign up for Kiplinger’s Free Newsletters Profit and prosper with…

Florida has long been an enticing draw for retirees, offering beaches, a subtropical climate and relief from shoveling snow in the winter.But for the financially minded, there are advantages that go far beyond beautiful sunsets and dolphins frolicking in the water. One of the most significant: Florida is one of only nine states that don’t have a state income tax.For retirees, this means no state tax on your Social Security benefit, pension, withdrawals you make from retirement accounts or any other income you have. From just $107.88 $24.99 for Kiplinger Personal Finance Be a smarter, better informed investor. CLICK FOR…

Key Takeaways Warren Buffett’s 90/10 strategy involves allocating 90% of assets to a low-cost S&P 500 index fund and 10% to short-term government bonds.The 90/10 rule offers simplicity, lower fees, and the potential for higher returns.The strategy is based on historical returns for the S&P 500, as well as Buffett’s skepticism about the performance of the average fund manager.Critics say such a high allocation to equities isn’t suitable for all investors, particularly those nearing retirement or already retired. The 90/10 rule comes from legendary Warren Buffett’s advice for average investors. Put 90% of your money into a low-cost S&P 500…

Key Takeaways Private employers added 42,000 jobs in October, payroll provider ADP said, bouncing back after two straight months of losses.The job gains did little to change the picture painted by recent reports of a stalled-out job market.The lackluster job growth could encourage officials at the Fed to cut interest rates to prevent the slowdown from worsening. With the government shutdown still delaying official data, private measures of the labor market show the job market is still drying up.U.S. private employers added 42,000 jobs in October, payroll provider ADP said Wednesday. That was more than the 22,000 forecasters had expected,…

Key Takeaways Compared to other generations, baby boomers are the least prepared for retirement. Only 40% of boomers are on track to maintain their current lifestyle in retirement. This lack of retirement readiness is due to limited early access to retirement plans, like 401(k)s and less time to recover from under-saving.  When you think of retirement readiness, you might assume older generations are in the lead. However, less than half (42%) of Americans are on track for retirement, according to new Vanguard research. Of all the generations, baby boomers are among the least prepared, facing significant savings shortfalls and a…

By David Shepardson WASHINGTON (Reuters) -Major automakers, including General Motors, Tesla, Toyota Motor, Hyundai, Volkswagen and Ford, urged the Trump administration on Tuesday to extend a North American free trade deal they call crucial to American auto production. The automakers made the comments in filings with the U.S. Trade Representative’s Office ahead of the 2026 formal review of the United States-Mexico-Canada Agreement. All suggested changes. The American Automotive Policy Council, representing the Detroit Three automakers, said USMCA “enables automakers operating in the U.S. to compete globally through regional integration, which delivers efficiency gains” and accounts “for tens of billions of…