Kiplinger's Personal Finance

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Given the fact that no federal or state fuel taxes are paid by electric-vehicle owners, how will the construction and maintenance of the highway system be financed when the number of EVs in use reaches into the millions (“Electric Vehicles Are Taking Charge,” April)? Also, with the nationwide grid at or near its maximum capacity, as well as in serious need of modernization, how will the huge additional power needs be met? Finally, are buyers being made aware of ultimate battery life and the cost of replacement? It is no small expense. AL DICENSOEASTON, MD. What is the residual value of a 10-year-old electric vehicle? Gasoline engines, with proper care, easily go 200,000 miles and have value for trade-in or continued use. A 10-year-old EV battery has used up its useful life.…

I recently happened across a Financial Times column written last June by Bill Gross, the Pimco investment firm legend once christened the Bond King by Fortune magazine. (Gross is the subject of a fascinating new book, The Bond King: How One Man Made a Market, Built an Empire, and Lost It All, by Mary Childs.) Gross contended that the real bond kings (and queens) are the Federal Reserve chairs. In the column, he wondered how long the Fed could continue its easy money policies in the face of surging inflation, and how long stocks and longer-term bonds would continue to be attractive investments. His conclusion: “Cash has been trash for years but soon it may be the only haven for investors sated beyond reasonable expectations of perpetually low yields and…

IF YOU’VE EVER DRIVEN ACROSS the U.S., you’ve probably noticed that while most gas stations charge the same price for a frozen burrito, the cost of a gallon of gas varies widely. The price differences primarily reflect state gas taxes, which range from as little as 15 cents to more than 68 cents per gallon (see the box on page 10). And as drivers head out for summer vacations, they are likely to see even greater disparities at the pump when they cross state lines. In response to record-high gas prices, lawmakers in Connecticut, Florida, Georgia, Maryland and New York have approved gas tax holidays, and bills have been introduced in at least a dozen more states that would temporarily suspend or reduce gas taxes. Meanwhile, Democrats in Congress have introduced legislation…

Natalie and Dan Slagle are founders of Fyooz Financial Planning, a financial planning firm that specializes in advising couples. What kind of money conversations should couples have before the wedding day? Dan: One of the most important conversations to have concerns your upbringing around money and how you view it. I think that’s going to paint a better picture for what the future is going to look like in terms of how you view finances as a couple. There can be financial trauma that comes from your upbringing, whether it’s because your parents separated due to finances or you don’t have a good understanding of the basics of personal finance because they never talked about money. Working through those things together is important. Should all new couples merge their finances? Natalie: No, but all…

MANAGING AN INHERITED IRA HAS never been easy, and it soon could become even more complex. Under the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which took effect in 2020, adult children and other non-spouse heirs are required to deplete inherited IRAs and other tax-advantaged accounts within 10 years of the death of the original owner. Previously, these heirs could take withdrawals over their life expectancy, which reduced the size of annual withdrawals and allowed untapped assets to continue to grow. The law didn’t change the rules for surviving spouses, along with heirs who are disabled or are no more than 10 years younger than the original IRA owner. Those heirs can roll the money into their own IRAs or take withdrawals over their life expectancy. In the months…