SUCCESS

Price controls are not evidence of the pragmatism that voters seemingly want.

‘Short n’ Sweet’ brings Sabrina Carpenter to a chart milestone for the first time in her career, and in only a few days, ‘Man’s Best Friend’ may also reach a major landmark.

IBM (IBM) unveiled the first mainframe processor built to run two rival computing architectures on a single core, disclosing the design at the Hot Chips conference on Monday, August 24, according to a press release.

Any enterprise architect who has ever been told a piece of software will not run on the mainframe knows the usual workaround: pay a vendor to port it, or route the workload somewhere else entirely. IBM just spent two years building a chip designed to remove that excuse for one of the fastest-growing software ecosystems in computing.

Why mainframes couldn’t talk to modern AI

For three decades, IBM Z has run on z/Architecture, an instruction set almost no software outside mainframe shops has ever targeted. The new chip’s 11 cores execute both z/Architecture and Arm instructions natively, without an emulation layer or a separate block of Arm-only cores bolted onto the die, the firm found.

That distinction matters because the mainframe now inherits software already built for Arm, including AI servers, smart virtual assistants, and instant search tools that power modern AI, instead of waiting for someone to build a mainframe-specific version first.

Related: IBM CEO sends blunt message on quantum computing

Without an emulation layer, the chip avoids the slowdowns that happen when hardware constantly translates foreign code. Think of it like a speaker fluent in two languages instead of relying on a middleman interpreter.

It allows real-time AI tools to run natively at full speed without stalling mission-critical operations.

Built on a 2 nanometer process, the chip packs 11 cores running above 5.7 GHz continuously, according to IBM’s announcement. It also includes AI inference accelerators aimed at catching fraudulent transactions in real time, a capability banks lean on for split-second decisions during a live payment.

IBM’s new processor lets mainframes run Arm-native software directly, ending a decades-old barrier that kept modern apps off IBM Z systems.IBM press release

The mainframe coder shortage

The Arm partnership has as much to do with staffing as silicon, according to Rachita Rao, a senior analyst at Everest Group, in comments to Network World.

Banks and insurers resist changing core architecture because of the risk to their ledgers, Rao said, but they also face a dwindling pool of specialists who know how to run z/Architecture systems.

Native Arm support lets those firms modernize without retraining an entire workforce or ripping out systems that still process the bulk of global financial transactions.

Rao also framed the move as IBM targeting sovereign and air-gapped computing, the regulated workloads that cannot move to public cloud infrastructure. That is a narrower market than the hyperscale data centers where Arm has already won, but it is one where IBM faces little direct competition.

IBM leadership framed the move as a direct response to that modernization push.

By bringing Arm natively to our platform, we’re combining access to one of the industry’s fastest-growing software ecosystems with the qualities that have made IBM systems the foundation for how businesses run today.

Why was Wall Street quiet?

IBM shares were fractionally lower and Arm slipped 2.4% in premarket trading following the announcement. That muted reaction fits how early the product still is. IBM gave no shipping date, no pricing, and no name for the chip, so any financial impact sits years out.

The announcement lands amid a broader buildout of IBM’s AI infrastructure bets, including an expanded Nvidia partnership to bring Blackwell Ultra GPUs to IBM Cloud, an $11 billion acquisition of data-streaming company Confluent, and a partnership with OpenAI.

IBM’s parallel Nvidia expansion signals the company is not treating Arm compatibility as its primary answer to AI at scale, since large models still run on GPU-heavy infrastructure. Arm’s role is narrower: pulling the software that surrounds those models closer to the data that already lives on the mainframe.

IBM also cleared a pricing obstacle that had discouraged this kind of consolidation. Red Hat moved to per-socket-pair pricing with cost parity across x86, IBM Z, LinuxONE, and Power shortly after Arm partnership was announced in April, per Moor Insights & Strategy, removing a structural penalty that made mainframe deployments more expensive per core regardless of how efficiently that core ran.

More IBM:

IBM CEO sends blunt message on quantum computing

IBM quietly cleared a quantum computing hurdle experts doubted

IBM CEO makes bold AI strategy claim

Arm’s last holdout is starting to open up

Arm chips already power roughly half of the new compute capacity added by the largest hyperscalers, with Amazon, Google, and Microsoft each building custom Arm silicon for their own clouds.

The mainframe was the one corner of enterprise computing that shift never reached, walled off by decades of software written for a single instruction set.

IBM’s chip does not tear that wall down immediately. Pricing for non-IBM software, distribution certification, and vendor support on Arm workloads remain undefined, and the earliest systems are not expected before 2027.

What changes is the assumption underneath it. The architecture now dominating cloud and AI infrastructure is no longer locked out of the systems that still run much of the world’s banking and insurance backbone.

That shift will shape enterprise computing decisions for longer than any single quarter’s stock reaction suggests.

Related: IBM quietly cleared a quantum computing hurdle experts doubted

Chicago Cubs manager Craig Counsell explained a surprising decision on the veteran infielder amid a hot streak.

Are you prepared for what happens if you stop paying your student loans? In this eye-opening interview, college finance expert Mark Kantrowitz breaks down the serious consequences of default—including wage garnishment, seized tax refunds, and how the government can take up to 15% of your Social Security benefits at any age.

Subscribe To “Broadcast Retirement Network” On YouTube For Aging, Finance, Lifestyle, Privacy, Retirement, and Wellness programming Monday through Sunday at 7:30 AM ET.

Transcript

Jeffrey Snyder, Broadcast Retirement Network

And we’re gonna welcome back to the program, Mark Kantrowitz. Mark, it’s so great to see you. Thanks for joining us this morning.

Mark Kantrowitz, College Financial Aid Expert

Thank you for having me.

Jeffrey Snyder, Broadcast Retirement Network

And last time we chatted, we talked about student loans and you were actually gonna be teaching some students at MIT. Before we get into student loan developments, how did the session go with the brilliant students at MIT?

Mark Kantrowitz, College Financial Aid Expert

Absolutely wonderful. I mean, these students are the smartest students in the world in science and mathematics. It’s part of the Research Science Institute program at MIT.

And I was very pleased with the quality of the student research, as well as the fact that we had no illnesses or injuries during the program.

Jeffrey Snyder, Broadcast Retirement Network

Well, I’m sure the parents appreciated that. And I guess it must be a hoot for you to shape eager, bright minds.

Mark Kantrowitz, College Financial Aid Expert

Yeah, and these are the students who are going to change the world. They solve unsolved math problems. They do a lot of new innovations in biotechnology and business.

And it’s amazing watching what the alumni do in the years after they leave the program.

Jeffrey Snyder, Broadcast Retirement Network

So is it like goodwill hunting? Do you remember the math? That was Harvard.

But do you remember the equation on the board? That’s what kind of triggered the whole storyline in goodwill hunting?

Mark Kantrowitz, College Financial Aid Expert

Well, I remember that it had something to do with number theory. I don’t remember the specific equation. Yeah, well, it was a great- These students are going to number theory too.

Jeffrey Snyder, Broadcast Retirement Network

Yeah, well, kudos to you for doing that. And again, I think you show yourself to be very dynamic in terms of talking about student loans, but also helping shape the minds of the future. So Mark, the reason why I reached out is I’m very curious.

You and I had spoken, I think last month, about some of the changes that were effective July 1st, and they were substantive. And really, a lot of it had to do with restarting student loans. I’m paraphrasing here.

But my first question to you is, what happens if I don’t pay my student loan? Like I don’t even restart payments. What are some of the ramifications?

Mark Kantrowitz, College Financial Aid Expert

Well, if you don’t make payments on your student loans after 90 days delinquency, it starts getting reported on your credit history for the federal loans, 120 days for the private student loans after, well, let me restart.

Jeffrey Snyder, Broadcast Retirement Network

Sure, three, two, one. Go ahead. Okay.

Mark Kantrowitz, College Financial Aid Expert

If you don’t make payments on your student loans, they get reported to credit reporting agencies after 30 days for private student loans and after 90 days for federal student loans. If you don’t pay your private student loans for 120 days, they go into default. If you don’t pay your federal student loans for 270 days, they go into default.

And in addition to getting notices from collection agencies, the federal government has very strong powers to compel repayment. There are three main enforced collection methods. One is to garnish up to 15% of your wages.

The second is to offset your federal income tax refunds. And the third is to offset up to 15% of your social security disability and retirement benefit payments.

Jeffrey Snyder, Broadcast Retirement Network

So they really have pretty powerful reach into your current and future earnings potential Do you have, so I want to focus for a second, if I may, on social security, because what if I’m 22 years old, I just started working, this is a hypothetical, and I don’t make payments and I become, you know, I go beyond the threshold. My future social security, could they collect 15% of my future social security payments?

Mark Kantrowitz, College Financial Aid Expert

Absolutely. And if you get disabled, and it may not be just when you reach retirement age, it may be right away. And that’s the money that you need to live off of.

It’s not a very generous amount of money for your disability or retirement benefits. And it’s kind of odd, the federal government gives with one hand and then takes back with the other. And this just doesn’t seem very ethical for many people, including myself.

We wish there were another way for the government to get the student loans repaid. And the other two methods, and those are much more effective. And perhaps they should stick to just those.

Jeffrey Snyder, Broadcast Retirement Network

Well, how long is that? You know, you seem to know a lot of facts. I’m hitting with questions.

You know, we don’t pre-plan the questions, but when did this garnishment of social security begin? I mean, is it something, and I guess we’re making people aware, but are people when they sign the dotted line on those loans, are they aware? Are they made aware?

Or is it in that little tiny disclosure at the bottom that nobody reads?

Mark Kantrowitz, College Financial Aid Expert

It is in the disclosure, which you should read because it’s very important to know all the terms and conditions of your loans and as well as your rights and responsibilities. The garnishment of the offset of social security benefits started in the 1990s. There was a lawsuit to try to block it and that lawsuit failed.

And then the U.S. Department of Education started offsetting social security benefits. And the amount that was offset each year kept on increasing as more and more of ours were subjected to it.

Jeffrey Snyder, Broadcast Retirement Network

So I guess there is an opportunity to kind of right the wrong. And a U.S. Senator from Vermont has offered some legislation to try to do away with this particular provision to garnish social security. And by the way, I’m not naming him Mark, because not because I don’t like him, but because Google and YouTube don’t think that we’re doing an election ad when we do mention an office holder.

So that’s the only reason for the audience that I don’t mention the Senator’s name. But he, this Senator is trying to kind of right the wrong. In terms of the likelihood of, Senate’s out of session right now, I guess they come back after Labor Day right before the election, but is it likely that something like this could gain support?

It just seems so draconian to me, thinking about all the young people and all the older people like myself who may have loans.

Mark Kantrowitz, College Financial Aid Expert

Well, I think it potentially has bipartisan support. The administration, when they restarted repayment, they initially were going to collect from social security, but then they suspended that and they haven’t restarted that aspect of the enforced collection methods. So there might be interest on both sides of the aisle for eliminating this as an option for collecting defaulted federal student loan debt.

Jeffrey Snyder, Broadcast Retirement Network

Mark, I know you’re not an expert in retirement, but I know you save for retirement, like many people. It just seems, and we’ve had the passage of the Secure Act, Secure Act One, Secure Act Two, that did a lot of really good things. It just seems like, like you said, the one hand, the left hand or the right hand, depending on how you’re looking at me on the screen, doesn’t seem to know what the other hand is doing.

It just seems like it doesn’t align with retirement security, let alone the wage garnishment and the financial security, but the retirement security, a lot of people depend on social security, Mark.

Mark Kantrowitz, College Financial Aid Expert

The average amount of social security is roughly around $1,000. Imagine trying to live on that little money. Now, if you happen to have saved in an IRA or 401k, you may be in better shape, as well as if you have money in taxable accounts, but it’s still, it’s very difficult for our nation’s senior citizens to pay for their housing, their food, their medications, and even with Medicare, there’s still a lot of expense that they have to pay.

And so they are the group that is least capable of repaying the debt through losing 15% of their social security benefits.

Jeffrey Snyder, Broadcast Retirement Network

Yeah, I guess with the trust fund, not being in good fiscal shape, it just seems, and I understand, look, I think borrowers or creditors should be paid back. I think there’s just gotta be a better way to do that because you can’t, you’re just robbing Peter to pay Paul is the terminology I would use. Before I let you go, Mark, are there any other, there’s been a lot of talk about these accounts versus 529 plans.

These are the accounts named, I’m trying not to say the office holder’s name, named after the current sitting president that have gained a lot of popularity. Are you seeing that of interest when people consider using a 529 or these accounts or getting a federal student loan? Has it come into the equation?

Mark Kantrowitz, College Financial Aid Expert

Well, I mean, several hundred thousand people have signed up for these accounts for their children in part because there is a $1,000 birthday gift if your child was born within a few recent years, and that’s free money, and it’s hard to ignore free money. Though I and others have pointed out that this money in the account may reduce the student’s eligibility for federal student aid pretty severely because these accounts have not been exempted from being considered assets on the free application for federal student aid. So that’s something that still has to be resolved.

The U.S. Department of Education has to give guidance. There may be need for subsequent legislation to change it so that it is not considered a resource available to pay for college, that they’re not required to pay for it and if you have the money in the account for several years while you’re in college, you may be left with no money at the end of that period because as much as a fifth of the money in an asset in the child’s name reduces aid eligibility for federal purposes, 25% for about 200 private colleges, and if you take a distribution, it can reduce your aid eligibility by as much as half of that distribution. So it’s not a really good situation.

But if you’re never going to college or you’re really wealthy, then it is a nice little gift.

Jeffrey Snyder, Broadcast Retirement Network

And in terms of the 529 plan, you don’t hear that much. I mean, I hear about it because I’m kind of in tune and I read about it, but I think a lot of people don’t hear a lot about it. Is this a tool that, you know, obviously you’ve got the student loans, you have these accounts that I mentioned.

Are people taking advantage of this option as a way to pre-save for college?

Mark Kantrowitz, College Financial Aid Expert

Absolutely. There are now, I think, four or $500 million saved in 529 plans and it continues to grow every year. And when the stock market went down, the value went down temporarily, but since then it’s continued to go up and it is a tax efficient, financial aid efficient way of saving for college costs.

I mean, if you use it for qualified higher education expenses, the distributions are entirely tax-free and they have a minimal impact on eligibility for a need-based financial aid, especially if a grandparent is the one who’s the account owner. Then the qualified distributions do not affect the FAFSA and it’s not reported as an asset on the FAFSA. So if you manage it properly, it could have zero impact on aid eligibility as well as a minimal tax impact.

And it’s exempted from taxes if you do a qualified distribution. Contributions to 529 plans in two thirds of the states actually get a small tax deduction or a tax credit.

Jeffrey Snyder, Broadcast Retirement Network

Yeah, that’s certainly positive for the taxpayer, but also for the account holder, or I should say the account holder, who’s also gonna be the taxpayer. Last question for you, Mark, and then I promise I’ll let you go. Just a question, just a general question just occurred to me.

Are we ever gonna see college tuitions go down or will they always go up? Are they gonna go up at less of a growth percentage?

Mark Kantrowitz, College Financial Aid Expert

Well, I mean, college costs on a net price have been, in certain cases, some of the public colleges have been flat. Though they, because of the high cost, high aid model, there’s pressure on them to just keep on increasing. When the main impact that we’re starting to see and we will continue to see is several colleges each year will be closing because they can’t raise the money to pay their own bills.

And these colleges tend to be small, tuition dependent, that draw their involvement from a local region as opposed to national colleges.

Jeffrey Snyder, Broadcast Retirement Network

Yeah, that’s unfortunate. And also there are towns, entire towns that are built around these schools. If they close, it could have a really detrimental effect to those communities.

Mark Kantrowitz, College Financial Aid Expert

It’s a long-term demographic trend. The end of the baby boom echo means that there are fewer students going to college. And with fewer students, well, fewer traditional students going to college, these colleges struggle and compete with each other to enroll the new students who can pay the bills.

Now, the Ivy League colleges, MIT, Stanford, they have no problem attracting talented students, but it’s the second and third tier institutions that may have more difficulty recruiting students who are capable of paying the bills.

Jeffrey Snyder, Broadcast Retirement Network

Yeah, very unfortunate because I think that’s a tier that we need. There are students to be served, obviously less than what we have seen in the past. Mark, we’re gonna have to leave it there.

Thank you so much for joining us. And look, we look forward to having you back on the program again very soon, sir.

Mark Kantrowitz, College Financial Aid Expert

Thank you.

The most recent edition of my Ask the Analyst column on CD ladders generated a lot of interest. Because I mentioned Treasury Inflation-Protected Securities ladders as an alternative, I also received many questions about those. Below are some of the most common questions that showed up in my inbox. 1) Amy, I just read your article on CD ladders and TIPS. At the beginning of May, I decided to pare down some equity holdings and split the proceeds between VBIL (Vanguard 0-3 Month Treasury Bill ETF) and TIP (iShares TIPS Bond ETF). VBIL has maintained its principal and paid out interest; however, with the TIP option, I have lost 3% of my principal. I’m confused, as I do see inflation continuing in everyday life and chose that vehicle to protect against this. I may return to CD ladders.You’ve pointed out one of the key pitfalls of TIPS: interest rate risk. While TIPS are an excellent hedge against inflation, they’re still subject to the same type of risk that can foil any other type of bond. TIPS and bond funds with longer durations are at the greatest risk from rising interest rates. Rising market yields between May and late July 2026 (when you sent in this question) caused losses for funds such as iShares TIPS Bond ETF, whose portfolio has a relatively long duration (6.3 years).If you want to avoid losses from rising rates, holding individual bonds can be a better option. Although they’ll still experience losses if interest rates rise, their par value at maturity won’t be affected by changes in market rates. If you return to certificate of deposit ladders instead, you would be avoiding one type of risk (interest rate risk), but not another one (inflation risk). Because yields on CDs are fixed, they will generally lose purchasing power from the effects of inflation over time. 2) You covered CDs vs. CD ladders in your article. And you also mentioned TIPS as well. What about comparing making a TIPS ladder vs. using a TIPS ETF?As the previous questioner pointed out, interest rate risk is one of the main disadvantages of TIPS exchange-traded funds. A TIPS ladder is also subject to price changes from shifts in prevailing interest rates, but as long as you hold each rung of the ladder to maturity, you won’t lose principal value if interest rates rise. The ladder structure also makes it easier to match up the bond’s cash flows with the timing of anticipated spending. For example, a retiree could set up a 10-year TIPS ladder made up of TIPS with maturity dates ranging from one to 10 years. As each bond matures, the proceeds could be used to cover spending needs for that year. A TIPS ETF could also be used to cover spending needs, but could see its principal value decline in any given period. 3) What is the limit for purchasing TIPS?The minimum purchase amount for TIPS is $100 if you purchase it directly (via TreasuryDirect). Brokerage platforms such as Fidelity, Schwab, and Vanguard generally require a minimum purchase amount of $1,000. 4) How and where do you set up a TIPS ladder?Most major brokerage platforms allow customers to build customized ladders of TIPS with staggered maturity dates. TreasuryDirect is another option for setting up a TIPS ladder. The process involves setting up an account, selecting TIPS with specific maturity dates, and purchasing TIPS with at least $100 per rung to build an inflation-adjusted income stream. TIPSLadder.com offers a variety of helpful resources to help investors construct a ladder. Alternatively, you can purchase a prebuilt ladder with products such as iShares iBonds 1-5 Year TIPS Ladder ETF LDRI. These funds hold diversified portfolios of TIPS that mature in the same year. Like an individual bond, each ETF provides regular interest payments and distributes the principal value at maturity. 5) How do TIPS mutual funds or ETFs compare to individual TIPS purchased through TreasuryDirect.gov or through a brokerage? What are the advantages and disadvantages of each?As I discussed in the answer to the first question, interest rate risk is the main disadvantage of TIPS mutual funds and ETFs. Individual TIPS are also subject to interest rate risk, but provide a set value (adjusted for inflation) at maturity. 6) You mentioned TIPS ladders are an alternative to CD ladders for inflation protection. What happens if you only have a taxable account … would you recommend the same?Both interest payments and increases in the principal value for TIPS are subject to ordinary income tax at the federal level. As a result, TIPS are usually a better fit for tax-deferred accounts, such as an IRA or 401(k). One exception is for retirees with lower levels of income. Under the current tax laws, a married couple may not need to pay federal income tax on income up to $46,700 owing to the combination of the standard deduction and traditional age-based deduction, plus the $12,000 joint senior bonus deduction. 7) Please provide advice and a strategy for investing in I bonds, TIPS, and iShares (iBonds ETFs) for retirement. Or is Social Security adequate to protect against inflation? Let’s assume existing diversified ETF and mutual fund investments in Roth and IRA accounts. If Social Security covers most or all of your monthly living expenses, you may not need separate inflation protection. That’s because Social Security payments have a built-in cost-of-living adjustment, with payments increasing annually in line with the consumer price benchmark reported by the Bureau of Labor Statistics. If the majority of your expenses aren’t covered by Social Security, it’s worth adding some dedicated inflation protection to your portfolio. If you want to immunize all of your future spending against inflation and match up the timing of cash flows and spending needs, you could set up a TIPS ladder to cover each year’s spending needs during retirement. (Stefan Sharkansky discussed this topic in more detail in a recent episode of The Long View podcast.)Alternatively, you could invest a portion of your fixed-income portfolio in TIPS (using one of the vehicles discussed above) and the remainder in other high-quality bonds. Bill Bernstein recommends a 40/60 split between TIPS and other bonds, which I think is a reasonable approach. Keeping a portion of your portfolio in stocks is another way to hedge against potential inflation risk. 8) I made a TIPS investment at TreasuryDirect in 2021. I would like to set up a ladder of TIPS investments, but I’m unsure if I should make another investment at TreasuryDirect since they have a penalty for early withdrawal. I have a Fidelity CD ladder, and after reading your article, thank you, I’m considering switching to a TIPS ladder as the CDs mature. How could I use my current TreasuryDirect TIPS investments to start setting up a TIPS ladder at Fidelity (or Vanguard)?It is possible to transfer TIPS holdings from TreasuryDirect, but the process may be somewhat complicated. First, you’d need to fill out a transfer request from the official government site. Next, you’d need to sign the form in person at a bank or brokerage firm that can provide a medallion signature guarantee. Then, you’d need to contact the brokerage firm for specific directions on how to make the transfer to your brokerage account and send the transfer request form and signature guarantee to TreasuryDirect. I haven’t gone through this process myself, but it can reportedly take at least several months. 9) What’s the cost of having Fidelity for a CD ladder? How does that compare with FZDXX [Fidelity Money Market] and/or SPAXX [Fidelity Government Money Market]? If you’re building a CD ladder made up of newly issued CDs through Fidelity, there’s no separate cost charged to you (assuming you build the ladder online without working with a phone representative). Fidelity gets paid by the issuing bank.If you’re building a CD ladder made up of CDs on the secondary market, there’s a trading fee of $1 for each CD with a $1,000 par value. There may be other fees if you buy fractional CDs on the secondary market. For comparison, Fidelity Money Market FZDXX has an expense ratio of 0.30% (or $3 for a $1,000 investment). Fidelity Government Money Market SPAXX has an expense ratio of 0.42% ($4.20 for a $1,000 investment). Have a Question for Me?In this column, I answer questions from readers about investing, personal finance, and retirement planning. (Note: I’m focusing on questions that are of general interest to many of our readers, not personalized tax advice or portfolio recommendations.) You can submit one by filling out this quick survey.

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The St. Louis Cardinals have received an update on their former outfielder who is back on the market after a very short stint.

United moved early to unveil a summer 2027 schedule that includes Airbus A321 XLR flights and little known cities like Ibiza and Ljubljana.