Author: Money Mechanics

When you buy an index fund, you are buying a portfolio with real shares in weights that reflect a miniature version of the underlying market or index (see here and here for more). We also know that if the portfolio has the exact same stock weights as the index, not only should returns be equal, but also the index fund doesn’t have to trade.Of course, when it comes to exchange-traded funds (ETFs), it’s not just the portfolio that needs to track the index — the ETF price also needs to track the portfolio. That’s where ETF market makers and ETF arbitrageurs come in. Chart 1: ETFs tracking the index is a two-step process involving portfolio managers and arbitrageurs They use creations and redemptions, which make arbitrage easier, to keep ETFs tracking their underlying portfolio closely,…

Key Takeaways JPMorgan analysts said the recent sell-off in tech stocks amid worries about an AI bubble could offer investors an opportunity to buy up shares of good companies at a discount.They listed 15 hardware and networking stocks exposed to AI that they believe are a bargain with “overblown” worries priced in, and strong fundamentals poised to drive gains. Is it time to start buying tech stocks again? JPMorgan says so, with analysts telling clients in a note Thursday—a day after Nvidia’s (NVDA) blockbuster earnings hit markets—that it could be time to go “bargain hunting” among the shares of hardware…

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 married 60-year-old military vet who worked in the federal government. He lives the retired life with his wife in Virginia Beach after living in Fredericksburg, Virginia, while working in Washington, D.C.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 Northern New Jersey. (See all of the…

Here’s a quick pop quiz: What do Ray Kroc, Colonel Sanders, Arianna Huffington, Bernie Marcus and Grandma Moses have in common?Answer: They all launched highly successful businesses — McDonald’s, KFC, a major media company, The Home Depot and a career as a preeminent folk-art painter — after age 50.Like these icons, a growing number of people are choosing to become entrepreneurs in their 50s, 60s and beyond. 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 the best of expert advice…

I can’t think of two words that generate more excitement and fear at the same time than “I quit.”If you’re leaving for a better job, starting a business or stepping into retirement, the words can be thrilling. But if all you have is a dream and a blank calendar, they feel very different.That’s the position I found myself in. After 10 years in a finance job, I took a leap and decided to write full-time. In this job market, I fully understand why people reacted with some version of concern or disbelief, as U.S. layoffs hit their highest October level…

For us golfers, winter represents two options. If you stay in a climate that gets cold, winter means the end of the golf season. It usually hits right when you’ve finally gotten your swing in a groove, then the cold snaps come and the clubs – and your swing – go into hibernation.Or, you can follow the path well-worn by clever snowbirds: Go somewhere warm, whether for a short vacation, a season or to live out your life without ever having to wait out a snowstorm to go back to the greens.If you love someone who daydreams of reorganizing their…

If you’re tired of the increasing costs, time-consuming wired installations and contracts with hidden fees that are so common with today’s internet, Verizon offers an appealing alternative.Verizon Home Internet is a wireless internet solution that runs off the 5G networks your phone uses, offering reliability, speed and no need for a scheduled installation.The service is quickly gaining traction as cable alternatives get more expensive, and additional perks like entertainment add-ons and a credit to help you switch make Verizon Home Internet highly appealing. But just like any other internet service, it’s important to carefully review all of the pros and…

When it’s time to upgrade your phone, trade-in offers are everywhere. They’re designed to make getting the newest model feel easier and more affordable.Trade-ins are popular because they benefit both you and the carrier. You get an instant price break, and the carrier gets your old device to refurbish and resell.But it’s still worth thinking twice. Keeping your old phone can offer perks like resale value, a backup device or a hand-me-down for a family member. 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…

Black Friday shoppers may notice something different this year. The deals just don’t feel as exciting. And there’s a good reason for that. Tariffs on everything from electronics to tools have quietly pushed up costs behind the scenes, leaving retailers with less wiggle room to drop prices.When you mix that with lingering inflation and higher shipping and labor costs, the result is the same: smaller discounts and fewer jaw-dropping bargains.If you’ve been waiting to upgrade your laptop, replace an appliance or check off your holiday gift list, this shift matters. Some categories will offer real savings, but others are likely…

Key Takeaways Springfield ranks among the top U.S. retirement destinations, offering a mix of affordability, culture, and healthcare access. Retirees can enjoy diverse activities—from museums and live events to outdoor recreation. Massachusetts sate tax breaks for seniors and Springfield’s relatively low housing costs can help make retirement more budget-friendly. Springfield, Massachusetts, nestled in the western part of the state, is one of the largest cities in Massachusetts and New England.If you’re looking for a big city feel without a big city price tag in retirement, look no further. Springfield claims the number six spot on the 50 best places to…