The Investment Account Mistake That Can Increase Taxes in Retirement
Traditional 401(k)s and IRAs let savers defer taxes, but required minimum distributions (RMDs) begin at age 73 and can turn large pre‑tax balances into hefty taxable income. A 4% RMD on a $5 million portfolio creates a $200,000 ordinary‑income hit, potentially raising Medicare premiums and taxing Social Security benefits. Roth accounts avoid RMDs and offer tax‑free withdrawals, while taxable brokerage accounts provide liquidity without early‑withdrawal penalties. Diversifying across tax buckets and using backdoor Roth conversions can mitigate the retirement tax trap.
The Markup Trap: How to Tell If You’re Overpaying for Gold by 20% or More
Gold’s appeal as an inflation hedge is tempered by dealer premiums that can dramatically increase purchase costs. While typical bullion markups sit in the low‑single digits to about 10%, some sellers add 20% or more, eroding potential returns. The article...
How to Build Your Credit to Qualify for a VA Home Loan
The article explains how veterans can qualify for a VA home loan by strengthening their credit. While the VA imposes no strict minimum score, most lenders require at least 620, with some accepting scores as low as 550. It outlines...
Once Heralded as the Future, Bitcoin ATMs Have Become a Huge Problem
Crypto ATMs, once touted as a bridge to mainstream finance, have become a hotbed for fraud and consumer loss. In 2024, the FBI reported a 58% year‑over‑year jump in scams, with Americans losing $388 million through these kiosks, many of which...
3 Simple Ways to Quietly Save Money and Build Wealth
The article outlines three low‑key strategies for building wealth: eliminating unnecessary fees, automating savings and investments, and sticking to diversified, low‑cost index funds. By keeping cash on hand to avoid overdraft and ATM charges, investors preserve more principal for compounding....
When Is OpenAI Going Public? Here’s What to Know About the Rumored IPO
OpenAI is reportedly preparing a confidential IPO filing with Goldman Sachs and Morgan Stanley, potentially submitting paperwork as early as next week. The company aims to begin trading on public markets by September, leveraging the offering to fund its massive...
Kevin Warsh Is the New Head of the Fed. Here’s Why This Matters for Your Money
Kevin Warsh is set to become the Federal Reserve chair, the first leadership change in eight years, as Jerome Powell steps down from the top spot but stays on the Federal Open Market Committee until 2028. Warsh inherits an economy...
Suze Orman’s 2 Personal Finance Rules to Follow (and 2 to Rethink)
Suze Orman advises building a three‑to‑six‑month emergency fund and maintaining a solid credit score as foundational personal‑finance habits. She cautions against car leasing, arguing it can be a costly depreciation trap, and suggests limiting debit‑card use in favor of strategic...
Venmo’s First Redesign Since 2009 Means No More Spying on Your Friends’ Payments
Venmo announced its first full redesign since launching in 2009, introducing a more personalized feed and streamlined navigation. The update emphasizes privacy, showing users privacy settings during onboarding and defaulting transaction visibility to “between friends.” It also curates brand recommendations,...
States Rush to Ban AI-Generated ‘Surveillance Pricing’ That Uses Shoppers’ Personal Data
Retailers are increasingly using AI-driven algorithms to set individualized, real‑time prices—a practice dubbed “surveillance pricing.” Consumer Reports uncovered price gaps of up to 23% for identical groceries on Instacart, potentially adding roughly $1,200 to a four‑person household’s annual bill. State...
Americans Blame Corporate Greed, Not Extreme Weather, for High Home Insurance Costs
A Pew Research Center survey finds 71% of U.S. homeowners say home‑insurance premiums have risen, with 65% blaming insurers’ profit motives rather than extreme weather. Insurers counter that climate‑driven losses, soaring reinsurance costs, and mounting catastrophe payouts are forcing price...
Trump Wants to Suspend the Federal Gas Tax to Lower Fuel Prices. Can He Do That?
President Donald Trump announced plans to suspend the 18.4‑cent‑per‑gallon federal gas tax, arguing it would help lower the recent surge in gasoline prices that have topped $4.50 per gallon. The proposal is unprecedented because the Constitution grants taxing authority solely...
Before You Claim Social Security at 67, Ask These 3 Questions
The article advises retirees to pause before claiming Social Security at age 67 and to answer three critical questions about cash needs, expected longevity, and spousal considerations. It explains that waiting until the full retirement age of 67 secures the...
The Side Hustle Tax Trap: How the IRS Views Hobbies and Side Gigs for Tax Purposes
Side‑hustle earnings are taxable and must be reported once they exceed $400 in a year, even if no 1099 is issued. The IRS differentiates hobby income from business income, allowing deductions only for activities pursued with a profit motive. Failure...
The IRS Is Testing AI Tools to Decide Who Gets Audited
The Internal Revenue Service is signing contracts for artificial‑intelligence and machine‑learning tools to augment tax enforcement as its audit workforce shrank by nearly a third. A recent GAO report shows the agency has logged 126 AI use cases, with two‑thirds...