Author: Money Mechanics

Think you really know how federal income tax brackets work? You’re not alone if you’re not totally sure.A recent survey found that roughly two-thirds of U.S. taxpayers don’t understand how federal rates and brackets actually affect their taxes.Take our quiz to see if you can get it right, bust common tax myths, and get clear on how federal income taxes work. 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 on investing, taxes, retirement, personal finance…

When it comes to burning through money in retirement, lifestyle creep can be partially to blame. A pricy car here, a fancy trip there, and before you know it, you’re blowing your retirement budget.While lifestyle creep can happen to anyone in retirement, it tends to be more prevalent among those with financial means. After all, for some, their eye isn’t on the ball as much since they know they have a sizeable nest egg.“Some higher earners use future dollars to fund their lifestyle today,” says Derrick Longo, a wealth advisor at Exencial Wealth Advisors. But if they don’t factor in…

Question: I have $150,000 that I don’t need anytime soon, but I don’t want to put it in the stock market. What should I do?Answer: If you’re looking for a risk-free place to store your money, my best solution is a jumbo CD. Jumbo CDs come with FDIC insurance up to $250,000 and APYs that’ll outpace inflation.However, there are a few things you want to consider before signing up for one. I’ll cover key considerations, how much you can earn and why now is the right time to get one. From just $107.88 $24.99 for Kiplinger Personal Finance Be a…

Key Takeaways The state of Michigan has partnered with Detroit Pistons star Tobias Harris’ housing initiative to provide down payment assistance to first-time homebuyers.The program will provide up to 40% of a home’s purchase price as down payment assistance, saving buyers from having to pay for private mortgage insurance.Buyers will have to repay the down payment assistance as part of the shared-appreciation mortgages offered through the Tobias Harris Homeownership Initiative. The state of Michigan is working with Detroit Pistons star Tobias Harris to provide down payment assistance to first-time homebuyers.  The program will provide qualified buyers with up to 40%…

Most people can appreciate a good shortcut, and in the world of investing, few are as beloved as the Rule of 72.The Rule of 72 is a simple mental math trick that tells you roughly how long it will take for your money to double. Just divide the number 72 by your expected annual rate of return, and voila! You have a quick, easy estimate.For example, if your portfolio is growing at 8% per year, the Rule of 72 says your money should double in about nine years, or 72 divided by 8. From just $107.88 $24.99 for Kiplinger Personal…

Stocks and bonds carry a timeless appeal for investors as the core of most portfolios. These asset classes are both liquid and growth-oriented, helping investors generate remarkable stock returns alongside the broader market while hedging with the safer bet of bonds as needed. However, the investment universe is much broader than these core asset classes. One often-overlooked vehicle is fine wine, which has surged in popularity as a complementary asset class in recent years. Unlike stocks and bonds, though, wine may offer some measure of stability and inflation resistance, as well as the distinction of being a tangible and finite…

Key Takeaways Adding rent payments to your credit score can help raise it, especially if you have little or no credit history. VantageScore 4.0 factors in rent and utility bills, unlike other models. A higher score can help renters qualify for mortgages or better loan terms. While mortgage payments can boost credit scores for homeowners, renters have long been unable to use housing costs to raise their own scores. But recent Federal Housing Finance Agency (FHFA) changes now allow credit bureaus to count rental payments as part of a person’s credit report. Studies show this helps renters build their credit…

U.S. stock futures were pointing mostly lower ahead of several pieces of economic data Thursday, a day after major indexes ended down for a second consecutive session following three straight record-high closes.  Futures associated with the tech-heavy Nasdaq and benchmark S&P 500 were down 0.3% and 0.2%, respectively, while those affiliated with the blue-chip Dow Jones Industrial Average were little changed. Investors will be watching for several economic indicators today, including the final revision to second-quarter GDP, which was revised higher in August. Data for existing home sales, jobless claims, and durable-goods orders also are on tap. Tomorrow, the August reading for the Personal Consumption Expenditures index—the…

Delinquent federal student loan borrowers are staring down the prospect of wage garnishment or involuntary collections — and it’s causing them to weigh reorienting their finances, even if it means falling behind on other payments. That’s according to a new TransUnion survey of federal student loan borrowers, which found they would consider putting student loan payments ahead of bills for credit cards and personal loans, though mortgage and auto loan payments were prioritized above all else. Typically, borrowers put student loans at the bottom of their payment hierarchy, said Michele Raneri, vice president and head of US research and consulting…

Editor’s Note: The story’s headline has been updated to correct a typo.On Wednesday, Cathie Wood-led Ark Invest executed significant trades involving Alibaba Group Holding Ltd BABA, Advanced Micro Devices Inc. AMD, and Tempus AI Inc. TEM.The Alibaba TradeARK Innovation ETF ARKK fund purchased 63,231 shares of Alibaba Group. This acquisition, valued at approximately $11.16 million, comes amid a surge in Alibaba’s stock price. The stock closed at $176.44, marking an 8.19% increase. This uptick follows news of CEO Eddie Wu’s announcement to expand the company’s AI investment. Alibaba’s focus on AI infrastructure is expected to accelerate global spending, potentially boosting the company’s growth prospects.The AMD TradeIn a contrasting move, Ark Invest’s ARKK fund sold 138,432…